Refrigerated shipping and the trade in dry goods have both grown by an average of 3.8% per year in the last 10 years. Trade in meat products and bananas accounts for 52% of the 130.5 billion tons of refrigerated shipping in 2019. Following the improvement of cold supply chain technology, fruit can be transported over even longer distances. There is huge potential in this market. Fruit trade is one of the driving forces of developments in the cold supply chain industry.
According to the latest report by Drewry, "Review and Forecast of Refrigerated Shipping in 2020/2021", shipping of fruit grows faster than shipping of any other staple product. There is an average annual growth of 5%. The trade in pineapples is slowing down, but the trade in mangoes, persimmon, and durian is rapidly rising, as is the trade in avocadoes.
At the moment, in terms of cross-border fruit trade, mangoes are just behind pineapples. The shipping volume of mangoes exceeded 1.3 million tons in 2019. The trade volume has grown by an average of 5.2% per year in the last 10 years. This is the result of huge investments in mango production areas aimed at the export market. In some production areas mangoes and avocadoes are grown side-by-side and processed in the same facilities, from packaging, selection, and storage all the way to ripening in the same facilities.
Avocados are everywhere. This is because the supply chain is well integrated, from processing technology to supply chain management. This allows consumers to purchase ready-to-eat avocadoes. This type of product is well suited for salads and sandwiches, because the oily and smooth texture of avocadoes makes mayonnaise redundant. The avocado has huge market potential in North America and Europe, and increasingly so in Asia as well.
Fruit suppliers are venturing into new production areas. Chinese fruit traders are making huge investments in Peru and Colombia to expand avocado production there. The world's largest avocado retailer Mission Product successfully accomplished IPO in October last year. This shows the huge market potential of avocadoes. The company plans to invest in Europe, Asia, and South Africa as well to guarantee year-round supply of top-quality avocadoes.
The future of cross-border fruit trade looks positive. According to specialists, the average annual growth in the next four years will exceed 6%.
Source: Mofang Cold Supply and Storage, Alibaba Group