Consumers prefer more high-end products as their disposable income grows. However, some premium fruits are not that rare and expensive anymore. What is causing this devaluation of premium fruit in recent years?
There are many reasons for this development. The most important reason is related to the growing income of ordinary people in China. The demand for premium fruit and the consumption volume of premium fruit in the domestic market have doubled. China represents a great potential market and countries that export to China see their export volume grow every year. The previously rare premium fruits have thus become more common and more affordable.
In addition, as the domestic consumption volume increases, so does the enthusiasm of farmers. They introduce fruits from abroad and grow them in suitable environments in China. This further increases the supply volume and therefore reduces the price.
China has also lowered the customs tariffs in recent years to allow Chinese consumers to enjoy more imported fruits. Some countries even enjoy zero-tariffs, which again lowers the market price of premium fruit in China.
