Thailand’s Dried Fruit Boom: Innovating for China’s Growing Market

Thailand has solidified its position as the world’s leading exporter of dried fruit to China, with sales soaring to $125.64 million (4.24 billion baht) in the first 10 months of 2024, a 10.22% increase from the previous year. As the Chinese market for dried and preserved fruit is projected to reach a staggering 335.3 billion yuan (1.55 trillion baht) by 2028, Thai suppliers are being urged to prioritise innovation and quality to maintain their edge in this lucrative trade. With health-conscious consumers driving demand for natural, low-calorie products, Thailand faces both a golden opportunity and a pressing challenge to adapt to evolving tastes.

A Booming Market with Health at Its Core

China’s appetite for dried and preserved fruit has seen explosive growth, with the market valued at 146.2 billion yuan in 2023, a 32.6% leap from the prior year, according to iiMedia Research. This surge reflects a broader trend among Chinese consumers, 82% of whom prioritise health and nutrition when selecting dried fruit. Transparency is equally critical, with 80.6% demanding clear information on additives, sugar content, and calories.

This shift towards healthier snacking is reshaping the industry, creating openings for products that align with wellness trends. Online shopping dominates purchasing habits, preferred by 81.4% of consumers, though physical stores remain relevant for 77.6%. Mixed dried fruit products, such as granola bars and creative pairings like persimmon with butter filling, are also gaining traction, with brands like Zhao Ren leading the way.

For Thailand, which outpaces competitors like Chile, Vietnam, the US, and France in exports to China, this presents a clear directive. “The Chinese dried fruit market is expanding rapidly, particularly for natural, low-calorie, and innovative products,” said Sunanta Kangvalkulkij, director-general of Thailand’s Department of International Trade Promotion (DITP). “Thailand’s leading export position reflects the popularity and trust in the quality of our products.”

Thailand’s Competitive Edge

Thailand’s success in China is no accident. The country’s tropical climate and agricultural expertise have long made it a powerhouse in producing high-quality dried fruits, such as mango, pineapple, and durian, which resonate with Chinese palates. The trust in Thai products, as Sunanta noted, stems from consistent quality and a reputation for natural, minimally processed goods—attributes that align closely with current consumer priorities.

However, maintaining this lead requires more than resting on past achievements. The DITP is pushing Thai businesses to innovate, urging them to develop new products that cater to the demand for health-focused and convenient snacks. This could mean exploring novel combinations, enhancing packaging for transparency, or leveraging e-commerce platforms to reach China’s digital-savvy shoppers.

The numbers underscore the urgency of adaptation. With the market projected to more than double in value by 2028, the potential rewards are immense—but so is the competition. Countries like Chile and Vietnam are also vying for a larger share, often with lower production costs or unique offerings. If Thailand is to sustain its dominance, it must stay ahead of these trends, ensuring that its products not only meet but anticipate consumer needs.

Challenges in Innovation and Standards

Innovation, while essential, is not without hurdles. Developing new dried fruit products—whether through unique flavour profiles or health-oriented formulations—requires investment in research and development, an area where smaller Thai producers may struggle. Larger exporters might have the resources to experiment with offerings like dried fruit bars or low-sugar options, but the industry as a whole must grapple with scaling such innovations without compromising on quality.

Maintaining high standards is another critical concern. Chinese consumers’ emphasis on transparency means that Thai exporters must ensure rigorous quality control, from sourcing raw materials to final packaging. Any misstep—such as undisclosed additives or inconsistent labelling—could erode the hard-earned trust in Thai products. The DITP’s call to “maintain high standards” is a reminder that reputation is as valuable as market share in this competitive landscape.

Moreover, navigating China’s regulatory environment poses its own challenges. Import standards, labelling requirements, and food safety regulations are stringent, and Thai businesses must comply to avoid costly delays or rejections at the border. Partnerships with local distributors or consultants familiar with China’s market could help, but they add another layer of complexity and cost to the export process.

Economic Implications for Thailand

The dried fruit trade is more than a niche success story; it holds significant implications for Thailand’s broader economy. Agriculture remains a cornerstone of the country’s GDP, employing millions and supporting rural communities. The sector’s growth, particularly in high-value exports like dried fruit, offers a pathway to bolster incomes and reduce reliance on volatile domestic markets.

If the DITP’s projections hold and Thai businesses successfully tap into China’s expanding market, the economic benefits could be transformative. Increased export revenues—potentially reaching billions of baht annually—would strengthen Thailand’s trade balance, providing a buffer against global economic uncertainties. Additionally, innovation in dried fruit processing could spur job creation in related industries, from packaging to logistics, further amplifying the sector’s impact.

However, these gains are not guaranteed. The global trade landscape is fraught with risks, from geopolitical tensions to fluctuating exchange rates. A sudden shift in China’s import policies or a slowdown in consumer spending could dampen demand, leaving Thai exporters exposed. Diversifying export destinations—perhaps by targeting other health-conscious markets in Asia or Europe—could mitigate such risks, though it would require additional investment and market research.

The Road Ahead: Balancing Opportunity and Risk

As Thailand looks to capitalise on China’s dried fruit boom, the path forward demands a delicate balance of ambition and caution. On one hand, the market’s projected growth to 1.55 trillion baht by 2028 offers a rare opportunity to cement Thailand’s status as a global leader in agricultural exports. On the other, the challenges of innovation, quality assurance, and regulatory compliance loom large, testing the resilience of Thai businesses.

Sunanta’s advice to “create new products that meet the evolving demands of Chinese consumers” is a call to action that resonates across the industry. Whether it’s through mixed fruit snacks, enhanced nutritional labelling, or digital marketing strategies, Thai exporters must adapt to stay relevant. At the same time, they must safeguard the quality that has made their products a staple in China, ensuring that trust remains the foundation of their success.

For now, Thailand holds a commanding position in this rapidly growing market. But in the fast-paced world of international trade, standing still is not an option. The next three years will be pivotal, not just for the dried fruit sector, but for Thailand’s broader ambitions as an agricultural powerhouse. If the country can innovate while upholding its standards, the rewards could be as substantial as the market itself—provided it navigates the risks with care.