Vietnamese bananas account for nearly half of China's banana imports

According to the General Administration of Customs of China, China has increased its purchases of Vietnamese bananas despite a downward trend in overall banana imports.

China imported over 957,000 tons of bananas in the first half of 2024, generating a total revenue of 486 million USD. This marks a decrease of 4.6% in volume and a decrease of 22.9% in value compared to the corresponding period in 2023. During this time, China increased banana imports from Vietnam, Ecuador, Laos, Mexico, and Thailand, while reducing imports from the Philippines and Cambodia.

Vietnam emerged as the largest banana supplier to China in the first half of 2024, with 420,000 tons of Vietnamese bananas imported, an increase of 18.5% compared to the corresponding period in 2023, accounting for nearly half of China's total banana imports.

The volume of bananas imported from Vietnam was nearly double that of the second-largest supplier, the Philippines (222,000 tons), and significantly higher than that of other sources such as Ecuador (123,000 tons), Cambodia (131,000 tons), Laos (49,000 tons), Mexico (7,000 tons), Thailand (over 2,000 tons), Myanmar (over 2,000 tons), and Indonesia (1,000 tons).

Despite increasing its imports of Vietnamese bananas, China drastically reduced imports from the Philippines, which saw a 39.3% decline in banana exports to China in the first half of 2024 compared to the corresponding period in 2023.

The Panama disease, which has severely affected banana yield in the Philippines, has been considered a key factor behind the sharp decline in banana imports from the country. The disease has also caused the price of Philippine bananas to rise. During the first two months of 2024, the average price of Philippine bananas imported into China was 524 USD per ton, gradually rising to 547 USD per ton over the six-month timeframe.

On the other hand, the price of Ecuadorian bananas imported into China also saw a noticeable increase due to tensions in the Red Sea, which resulted in extended shipping times and increased freight charges by shipping companies. During the first two months of 2024, the average price of Ecuadorian bananas imported into China was 620 USD per ton. Over the first half of the year, this price climbed to 671 USD per ton.

In contrast, the price of Vietnamese bananas has remained relatively stable in the first half of the year, averaging 408 USD per ton. This stability has been attributed to their immunity to the Panama disease and the absence of reliance on shipping routes through the Red Sea. These factors have afforded Vietnamese bananas a considerable competitive advantage in the Chinese market compared to those from other countries.

Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association (Vinafruit), noted that Vietnam enjoys substantial logistical advantages when exporting bananas to China, primarily due to the shared land border, which allows for overland transport. The ongoing investment in the Trans-Vietnam Expressway network has further reduced the time needed to transport bananas to Chinese border checkpoints. As a result, when compared to other countries, the transportation time and costs for Vietnamese bananas to China are currently considerably lower.

China is one of the world’s largest banana importers. According to the China Chamber of Commerce for Import and Export of Foodstuffs, Native Produce, and Animal By-products, the country imported 1.77 million tons of bananas in 2023, generating a total revenue of 1.08 billion UDS. Among the imported groups, China purchased 686,000 tons from the Philippines, 506,000 tons from Vietnam, 266,000 tons from Ecuador, and 263,000 tons from Cambodia. These four countries accounted for 97% of China’s total banana imports.

With regards to volume, bananas are the most imported fruit in China, surpassing durians at 1.43 million tons, coconuts at 1.18 million tons, and others. However, in terms of value, bananas rank fourth, following fresh durians at 6.72 billion USD, cherries at 2.65 billion USD, and frozen durians at over 1 billion USD.

Mordor Intelligence forecasts that the global banana market will reach nearly 141 billion USD in value by the end of 2024. Global demand for bananas is predicted to increase further between 2019 and 2029, driven by rising consumer health consciousness.