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Home Agricultural: Farming, News & Trends China’s Fruit and Vegetable Market Surpasses $1.3 Trillion in Scale

China’s Fruit and Vegetable Market Surpasses $1.3 Trillion in Scale

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Fruits

The latest report by consulting firm AstuteAnalytica reveals that China’s fruit and vegetable market will be $1.3448 trillion in 2023, and the industry will grow at a compound annual growth rate (CAGR) of 6.64 percent over the next ten years, with the market expected to reach $2.3985 trillion by 2032.

China is the world’s largest producer of vegetables and fruits, the report says. According to the United Nations Food and Agriculture Organization (UNFAO), in recent years, China has produced a staggering amount of vegetables, accounting for about 50 percent of the world’s total vegetable production. Vegetable production in 2022 is estimated to be more than 680 million tonnes on China’s 28 million hectares of farms. China’s diverse climatic zones provide the conditions for growing a wide range of fruits, and fruit production also leads the world. in 2022, China produced more than 313 million tonnes of fruits, with apples and citrus accounting for the largest share of output. Notably, China accounts for about 50 percent of the world’s apple production, at about 44 million tonnes.

Vegetable market

China Fruit and Vegetable Market Size 2019-2032 (in USD billion)

Urbanization and rising income levels are driving strong demand for fresh fruits and vegetables, as well as consumers’ preference for higher quality and more diverse fruits and vegetables. retail sales of fruits and vegetables in China are projected to exceed US$200 billion in 2023, showing a steady growth trend, while per capita consumption of vegetables in China’s cities has already reached 105 kilograms/year.

In addition, China plays an important role in the global fruit and vegetable trade. While China is an important exporter, especially as far as apples, garlic, and certain varieties of vegetables are concerned, it is also becoming an increasingly important importer. in 2023, China’s total agricultural trade (including imports and exports) amounted to US$302.96 billion, of which more than 337,000 tonnes of vegetables and 7.33 million tonnes of fruits, amounting to about US$15 billion, were imported. Among the imported fruits, tropical fruits such as durian and banana were particularly popular. China’s trade in fruits and vegetables is significantly biased in favor of imports, generating a trade deficit of $123.88 billion, the report said.

Fruit price

In recent years, imported fruits have accounted for about a quarter of China’s fruit market share, AstuteAnalytica noted. China’s avocado imports have increased tenfold over the past five years, and blueberry consumption has increased fivefold over the same period. Tropical fruit imports are still expected to grow at a CAGR of 8.46 percent over the forecast period. To reduce its dependence on imports, China is investing in expanding localized production of non-indigenous fruits such as durian and cherries, with production of domestically produced cherries, for example, growing by 20% annually, the report said.

The report also found that technological advancements such as greenhouse cultivation, supply chain management, and e-commerce have also fuelled the growth of China’s fruit and vegetable market size, as well as changes in the industry landscape. For example, online platforms have accounted for 24 percent of China’s total fruit and vegetable sales in 2023, with online fruit and vegetable sales growing by 35 percent in 2023; the market for organic produce has reached $8 billion and achieved a 20 percent CAGR over the past five years; and the cold chain logistics sector has seen a 15 percent annual growth rate.

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