The Surging Durian Demand: A Look at China's Frenzy and Global Impact

Thea Fathanah Arbar, CNBC Indonesia

Wednesday, 13/09/2023 17:00 WIB

Photo: Durian (CNBC Indonesia/ Muhammad Sabki)

Jakarta, CNBC Indonesia – New unique phenomena appear. This is related to the soaring global demand for durian fruit.

The HSBC report states that demand has increased by 400% from year to year. This is none other than supported by crazy consumption in China.

Bucking global trend, durian demand surges 400% year-on-year caused by the frenzy in China,” said a report released by the bank as quoted CNBC International, Rabu (13/9/2023).

Over the last two years, China has imported durian worth US$6 billion or the equivalent of IDR 92.2 trillion. HSBC ASEAN economist Aris Dacanay in his report said this amount was 91% of global demand.

The ‘durian boom’, which is largely concentrated in China, occurred because consumers did not see it as just a fruit. However, it is also a “gift” that shows off the wealth of the giver.

In addition, it has become commonplace in China to include durian as part of traditional gifts to friends and relatives during engagements. Although the surge in demand for durian in China began in early 2017, according to data from HSBC, the increase in demand only increased at the end of 2022.

“Will durian become the new rubber? Maybe one day, giving durian to your mother-in-law will become a world tradition. Only time will tell,” said Dacanay.

Please note, durian, which is also called the king of fruits, is sold for more than US$10 (Rp. 153 thousand) per kilo in China. In fact, on average, Southeast Asia only sells around US$6 (Rp. 92 thousand) per kilo.

ASEAN is known to be the main supplier of this fruit. It even accounts for 90% of world durian exports in 2022.

Thailand, for example, accounts for 99% of total durian exports in the 10 Southeast Asian bloc countries. The surge in demand for durian also brings opportunities for other Southeast Asian countries, including Vietnam.

Collect South China Morning Post (SCMP), the price per kilogram of durian fruit from Vietnam can be priced at US$ 4. This is much cheaper than from other Southeast Asian countries.

“The market in China is so big that there is plenty of room for other ASEAN countries to join in and compete – sort of like durian,” Dacanay wrote.

“There is a big opportunity… the durian market is still getting bigger along with the enthusiasm of other countries in ASEAN to compete against Thailand’s dominance over the King of Fruits,” he concluded.

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