Challenges and Opportunities in Thailand’s Fruit Export Market to China
The fast-growing fruit market in China has presented both challenges and opportunities for Thailand’s fruit export industry. According to a recent analysis by the FTI (Fruit Trade Institute), the emergence of new competitors in China’s market has put pressure on Thai producers to enhance their competitiveness. Currently, Vietnam holds the largest market share at 9.3%, followed by the Philippines (4.9%), New Zealand (4.6%), Peru (4.2%), South Africa (1.9%), Cambodia (1.8%), Australia (1.6%), and Indonesia (1.4%). These countries pose a significant challenge to Thailand’s market presence.
While several countries are experiencing high growth rates in the fruit market, their market values remain relatively small. Myanmar has witnessed a remarkable growth of 583.8%, Spain has grown at 105.6%, and the United Arab Emirates has also experienced a notable increase at 105.6%. Brazil’s growth stood at 415.8%, Costa Rica at 470.9%, and other countries similarly demonstrate substantial growth. These burgeoning markets highlight the opportunities available to Thai exporters.
It is crucial for Thailand to sustain and expand its presence in the Chinese market, which serves as a vital export destination for its fruit produce. In order to mitigate the impact of intensifying competition, Thai exporters must strategize and diversify their market reach. This will ultimately benefit the country’s fruit producers.
Expanding Export Opportunities to China
Exploring new fruit export opportunities in the Chinese market reveals untapped possibilities for Thai exporters. Notably, there is a substantial demand for fruit varieties that Thailand has not yet entered, including cherries, berries, grapes, dragon fruit, kiwi, apples, avocados, peaches, strawberries, prunes, and pears. These fruits alone account for a significant 40.7% of China’s fruit market. Considering that many of these fruits are winter fruits, which Thailand cannot cultivate, there lies a comparative advantage that can be harnessed to seize future trade opportunities between Thailand and China.
Furthermore, the development of land transport infrastructure will contribute to more efficient distribution networks. The possibility of using rail transport, with reliable train checkpoints such as those in the Guangxi Zhuang Autonomous Region or the Mohan Railway Checkpoint in Yunnan province, presents additional opportunities for Thai products to gain traction in the Chinese market in the future.
However, despite Thailand’s strengths in producing high-quality and flavorsome fruit, the competition for China’s fruit import market is intensifying. Therefore, it is essential for Thailand’s policymakers and entrepreneurs to adapt and remain responsive in order to maintain their market share in China and worldwide. Constant monitoring of fruit production and export situations in competing countries is vital.
Thailand must also prioritize maintaining hygiene, safety, and fruit quality standards, consistently surpassing those of competing countries. Furthermore, diversifying the export market should be a key policy, reducing the risks associated with relying solely on a single market. By expanding fruit exports to new markets with significant purchasing power, Thailand can increase its market share. Particularly, targeting countries, such as the United States, the Netherlands, Germany, France, the United Kingdom, Canada, Japan, Hong Kong, Belgium, Italy, Poland, Spain, and South Korea, where a substantial proportion of fruits are imported from worldwide.
Moreover, Thailand should explore opportunities at the provincial level within China. As urbanization progresses in different Chinese provinces, industrial development, infrastructure improvements, and an enhanced quality of life for rural communities have ensued. Notably, provinces with modern logistics systems offer great potential for encouraging additional fruit exports to China’s inner cities. Thailand can capitalize on this opportunity to expand fruit exports to provincial levels, particularly in the less-developed western and central regions of China.
The FTI has analyzed the challenges and opportunities of exporting fruit to China and found that the fast growing fruit market in China has created new competitors. to become more competitive in the market The main competitors in the Chinese fruit market are Vietnam, with a market share of 9.3%, the Philippines 4.9%, New Zealand 4.6%, Peru 4.2%, South Africa 1.9%, Cambodia 1.8%, Australia 1.6% and Indonesia 1.4%.
In addition, there are countries with very high growth rates but the market value is still small. This reflected the demand that started to exist in the market such as Myanmar grew 583.8%, Spain grew 105.6%, United Arab Emirates grew 105.6%. grew 169.3 percent, Brazil grew 415.8 percent, Costa Rica grew 470.9 percent, etc.
Therefore, it is a challenge for Thailand to maintain the Chinese market. which is an important fruit export market Including having to plan to diversify the market. to reduce the impact of increased competition This will help Thai fruit producers.
for export opportunities In terms of trying to export new fruits to the Chinese market, it was found that there is still a demand for many Chinese imported fruits that Thailand has not been able to enter the market, such as cherries, berries, grapes, dragon fruit , and kiwi, apples, avocados, peaches, strawberries, prunes and pears, etc.
These fruits account for 40.7 percent of the Chinese fruit market. It can be seen that most of them are winter fruits that Thailand cannot grow to have a comparative advantage.
If Thailand develops the production potential of some products and pushes them to be commercial exports, it will be a trade opportunity for Thailand and China in the future. In addition, land transport will be more efficient in the future in the route where rail transport is another option for transporting fruit. by using a sound train checkpoint in Guangxi Zhuang Autonomous Region Or Mohan Railway Checkpoint in Yunnan province, which will help create more opportunities to sell Thai products to China in the future.
However, although Thailand has strengths in the quality and taste of the fruit. But competition is increasing in China’s fruit import market. Cause the policy department and Thai entrepreneurs to adapt In order to maintain a share in the Chinese market and the world market. Monitor the fruit production and export situation of competing countries
Including maintaining hygiene, safety and fruit quality standards, which is something that Thailand must continue to do and raise to be better than other competing countries.
At the same time, market diversification policies should be pushed to reduce the risk of relying on a single market. by diversifying fruit export markets to new markets with purchasing power in order to increase market share Especially in markets where a high proportion of fruit is imported from the world. And Thailand still has a small share in that market like the United States, the Netherlands, Germany, France, the United Kingdom, Canada, Japan, Hong Kong, Belgium, Italy, Poland, Spain and South Korea .
In addition, the market should be expanded to the provincial level of China. As the development of urbanization in different provinces of China expands. As a result, industrial development and infrastructure improvement. Including the quality of life of rural people in China has improved. Especially in states that have developed modern logistics systems. will help encourage more fruit exports to China’s inner cities This will be an opportunity for Thailand to increase fruit exports to China at a provincial level. Especially the population in the western and central regions of China, where urbanization is less developed than the eastern and southern regions.
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