(VAN) Though consumer sentiment in China has been tepid, small, satisfying buys like blueberries are still highly sought in the market.
While China’s economy has faced challenges in recent years, certain sectors have defied the odds and flourished. Among them is the fruit industry, where demand for blueberries – the tangy, nutrient-rich crop often marketed as a “superfruit” – has surged.
Though not traditionally a blueberry-growing country, China has surpassed the US as the world’s largest producer of the fruit, with blueberries planted in 26 of China’s 34 provinces according to the US Department of Agriculture (USDA)
At the same time, the volume of imported blueberries – perceived to be of higher quality and consequently sold at a steeper price – has also seen an increase of 94.3 per cent from 2019 to 2022. Domestic demand for the fruit has surged by around 200 per cent over the past five years, according to Zhiyan Consulting.
With their relatively high cost and oft-touted health benefits, blueberries are primarily favoured by middle-class consumers.
Despite cutting back on spending in areas like luxury goods and cars, these buyers remain less sensitive to the cost of blueberries, according to Stone Wang, executive chairman in China of US-based berry company Agrovision. Prices typically range from a dozen to several dozen yuan (US$1.65-4.94) per box.
“Especially in the context of consumption downgrading, middle-class consumers are more inclined to seek a sense of ritual and satisfaction through premium fruits,” Wang said.
Xu Tianchen, senior China economist at the Economist Intelligence Unit, echoed Wang’s comments. Xu explained that housing, once a major expense, has declined in importance due to a protracted slump in the property market. This has given people more disposable income as they opt not to purchase homes for either living or speculative purposes.
“Consumers are adjusting their spending to the economic reality, but that doesn’t mean they’re tightening their belts across the board,” Xu said. “Against this backdrop, consumers – especially young people in their 20s – are more willing to pay for [simple pleasures]. Imported blueberries and Jellycat dolls, for example, are the kinds of things that bring people joy.”
Despite a climate of caution among foreign investors, the growing demand for blueberries in China has drawn foreign companies like Wang’s. His firm began investing in local production bases in 2024, seeing it as a promising opportunity.
China’s foreign direct investment (FDI) has been shrinking since 2023, as investors remain wary of the country’s slowing economic growth and strained relations with the United States. In 2024, FDI fell by 27.1 per cent year-on-year to 826.3 billion yuan (US$113.47 billion), according to the Ministry of Commerce.
Wang’s company, via its main production base in Peru – the world’s largest blueberry exporter – initially focused on shipping blueberries to China.
However, with the upswing in domestic demand and an invitation from the government of Yunnan province, the company decided to establish a new facility in the southeastern region known as the country’s “fruit barn.”
“China’s vast population and the government’s strong commitment to economic growth make it a unique opportunity. While blueberry demand is rising, it remains relatively low compared to other countries,” Wang said. “For qualified foreign investors, entering the Chinese market is a rare and valuable prospect.”
Wang noted that the provincial government has been highly supportive, offering material resources and help with regulatory processes to facilitate the investment.
“We bring capital, technology, and job opportunities, which we believe can be mutually beneficial as we also want to expand further into the Chinese market. We see this as a win-win situation for both sides,” he said.
Considering the divergence in the blueberry industry compared to China’s broader economy, Xu said unmet demand remains in the consumer market – particularly in China’s second- and third-tier cities, where the middle class continues to grow. At the national level, household incomes are still on the rise.
“Of course, investing in China is no longer a no-brainer for foreign enterprises, and companies must do their due diligence to understand what consumers truly want,” Xu said.
“China’s economy faces challenges, but it is not in a state of depression, nor is it hopeless.”
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