Beijing has become the primary destination for fresh fruit imports in northern China, with increased direct shipments in the past five years, according to a recent report by the United States Department of Agriculture (USDA).
The report, ‘Fresh Fruit Market in North China’, has cited increased consumer demand in northern China, high inland transportation costs and rising costs in shipping via Hong Kong’s grey channel for Beijing’s growth as an import hub.
On top of increased direct shipments to high-end retailers in China’s north, the report also highlights China’s growth in e-commerce.
“Given the limitations of fresh product logistics, consumers in North China’s second and third tier cities still have limited access to ordering fresh products online,” stated the report. “However, the potential market is large and based on industry data, online fresh product sales revenues increased nearly 41 per cent in 2013, reaching more than US$930m.”
“Industry forecasts predict that over the next five years, e-commerce growth rates will increase by more than 100 per cent and market size is likely to reach more than US$16bn and account for greater than 15 per cent of the total fresh product market.”
In 2013, the US shipped US$253m in fresh fruit to northern China, accounting for 10 per cent of total US fresh fruit exports to the People’s Republic in terms of value, according to the USDA. Washington State alone saw a 100 per cent increase in cherry shipments to Beijing in 2014 compared to the previous year.
