Thailand's Processed Fruit Industry in 2022: Booming Export Market
May, 31 2022
Thai Fruit Exports Thrive Amid COVID-19 Challenges
Fruit exports have become a key driver of Thailand’s agricultural sector. Despite the slowdown in rice exports in 2021, the overall agricultural export value remained stable thanks to the strong performance of fruit exports, which reached a total value of USD 5.7 billion—six times higher than a decade ago. Thai fruits now account for 29% of total agricultural exports, with demand remaining strong, particularly in Asian markets due to short transportation times, preserved freshness, and relatively low logistics costs.
Key exported fruits include:
- Durian - "The King of Fruits": In 2021, Thailand exported durians worth USD 3.5 billion, an increase of 68%.
- Longan and Mangosteen: These fruits continue to be popular internationally, with stable growth in demand.
- China, Hong Kong, and Vietnam are the major markets for these exports.
Despite concerns about the COVID-19 pandemic since late 2019, demand for Thai fruits remains strong, particularly in China, which remains the top buyer of durian, longan, and mangosteen.
Deputy Prime Minister and Minister of Commerce, Jurins Laksanawisit, announced after a fruit export management meeting that a war room has been established to monitor and resolve issues related to fruit exports to China. The team includes representatives from government agencies, private sectors, exporters, logistics companies, and farmers.
Expanding Thai Fruit Exports to China
- 90% of Thai fresh fruit exports go to China.
- In 2022, Thailand aims to export 530,000 tons of fruit to China.
- Three main export routes:
- 83% by sea
- 6.5% by air
- 10.5% by land
- Four major land checkpoints: Mohan, Youyiguan, Dongxing, and Pingxiang.
- Due to China's Zero-COVID policy, land border closures have impacted logistics. Therefore, Thailand is shifting towards maritime transport to ensure all 530,000 tons reach the Chinese market.
Processed Fruit Industry in 2022
According to the Department of International Trade Promotion:
- Total estimated fruit production in 2022: 5.36 million tons (+11% YoY).
- Fruit exports from January to March 2022: 754,027 tons, valued at THB 33.98 billion.
- Breakdown of export types:
- Fresh fruit: 225,159 tons
- Processed/canned fruit: 213,578 tons
- Dried fruit: 180,254 tons
- Frozen/chilled fruit: 9,620 tons
Challenges Facing Thai Fruit Exporters
Despite continuous export growth, Thai exporters and farmers face key challenges:
1) Over-Reliance on the Chinese Market
- China is the dominant buyer, making Thai exports vulnerable to Chinese trade policies.
- Tighter import regulations may increase logistics costs.
- Changing consumer preferences in China could lead to higher demand for exotic fruits from other countries.
- Solution: Expand fruit processing to create new flavors and increase export potential.
2) Increasing Farmers’ Income
- Farmers need to adopt financial technology and e-commerce.
- Online platforms should connect buyers and sellers to enhance direct trade opportunities.
3) Zoning and Managing Durian Production
- The rapid increase in durian cultivation could lead to oversupply.
- Uncontrolled market supply could push down prices and affect export revenues.
- Solution: Expand export markets in parallel with production growth.
Future Outlook
- Despite pandemic-related logistics challenges, Thai exporters have adapted well.
- Transport restrictions and health safety protocols remain barriers to global shipments.
- Thailand continues to shift to sea freight to bypass land border restrictions.
- Efforts to expand into new markets and improve logistics efficiency will be key to sustaining growth in fruit exports.