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Chinese grape market analysis

"Short-term prospects are not great, but we believe market conditions will improve after July"

The market for premium domestic grapes grows stronger every day. A number of specialized fruit import companies are strengthening their domestic fruit section. Manager Li of Berda Fruit recently analyzed current retail information in the grape market, and looked ahead at market trends this summer.

Domestic Shine Muscat grapes

Domestic Shine Muscat grapes

"We began expanding our section of premium domestic fruit last year. Our product assortment includes Shine Muscat grapes, Summer Black grapes, and strawberries. Berda Fruit primarily deals in import grapes, and their main client group consists of beverage shops. That is why Berda Fruit has an advantage moving into the market for premium domestic grapes.

"According to initial forecasts, the product quality of Shine Muscat grapes is similar to last year, but the production volume increased, so the price is likely to come down. There are several reasons for the price decline. First, the expanded production volume pushes the price down. Second, some farmers harvest grapes early, and that affects the product quality. Third, domestic consumption levels have declined. As for strawberries, they are always popular in China, especially with women. Strawberries are eaten as a snack, but they are also used in milk tea or fruit tea."

Domestic Summer Black grapes

"We are adding more domestic fruit varieties to our assortment this year. At the same time, we are also looking for great strategic partners. We have years of experience in retail, and we have created an outstanding sales team, so we are now looking for exceptional strategic partners in production areas."

Domestic Summer Black grapes

The wholesale market is another important sales channel for Berda Fruit. According to manager Li, Guangzhou is an important market for premium domestic fruit. "Although a great many large cities in China have fruit wholesale markets, Guangzhou Jiangnan Fruit and Vegetable Wholesale Market is the largest fruit and vegetable wholesale market in south China. Guangzhou is the heart of distribution in south China, which includes import fruit and domestic fruit. They complement each other, and this combination can attract even more customers."

Domestic strawberries

When asked about summer sales expectations, manager Li replied: "The prospects for this summer do not look great. The pandemic and relevant measures still affect distribution. For example, the need to isolate in high risk cities means that fewer people from outside of Guangdong are willing to come to Guangzhou. Moreover, local distribution is affected as well. Fewer customers visit supermarkets, which means that online sales channels deal with larger numbers of customers, and that causes some problems for deliveries. That is why the fruit market is unlikely to improve in the near future. However, if the spread of Covid-19 can be stabilized this summer, like last year, then distribution will improve. We hope the pandemic can be stabilized before July." (Photo right: Domestic strawberries)

As for the long-term future, manager Li remains confident in the domestic fruit market. "Although the market struggles with major challenges, we can also see general improvement in market trends. We have encountered difficulties before, but long-term perspectives show improvement. Recent difficulties are troubling, but we have not lost our faith. We expect the market to improve after July. Once the pandemic in Shanghai is brought under control and lockdowns are lifted, then the industry will quickly recover. We think the conditions in the fruit market will look great between July and October."

Domestic strawberries

In addition, manager Li also pointed out another trend: "The Chinese market is polarizing. High-quality fruit sells even when the prices are rising, but poor-quality fruit will not sell, even when the prices are low. That is why we focus on premium domestic fruit. Quality is key."

For more information:

Dean Zhang

Guangzhou Berda Fruit Co., Ltd.

Tel.: +86 159 0204 0737 

E-mail: dean@berdafruit.com 

Website: www.berdafruit.com 


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