Durian Fruit Market Analysis Report By Product, By Distribution Channel, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global durian fruit market size was accounted for USD 17.6 billion in 2018 and is anticipated to grow at a CAGR of 7.2% over the forecasted period, from 2019 to 2025. Increasing awareness regarding the health benefits of durian fruit among consumers has majorly driven the market growth. The durian fruits act as an antioxidant, antidepressant, and anti-aging, and help to maintain sugar levels and prevent the risk of cancer.

The durian fruit is a high source of vitamin C, vitamin B complex, potassium, iron, and dietary fiber, thereby expected to boost the market growth in the next few years. Moreover, the customers are willing to consume different food products to experience exotic flavors. This product is gaining popularity in several applications including cookies, coffee, and cakes in Southeast Asian Countries. The global foodservice providers such as Pizza Hut, Kentucky Fried Chicken (KFC), and McDonald's have included this fruit in their finished goods. These factors are expected to spur the product demand over the forecast period.

In Southeast Asia, the durian fruit is also called “The King of Fruits”. Among all forms of this product, the Mao Shan Wang or Musang King Durian is a popular variety. The production of this product is mostly found in Malaysia, Vietnam, and Thailand and it is gaining popularity across the globe. Germany, U.K., and the U.S. have developed the taste for this tropical fruit due to food blogging and cultural cuisine. Increasing durian tourism in Thailand and Malaysia is projected to remain an important factor to drive market growth. In 2019, the Malaysian government declared plans to boost the farmers for agro-tourism.

Distribution Channel Insights

By distribution channel, the durian fruit market is fragmented into supermarkets & hypermarkets, convenience, specialty stores, and online. Supermarkets & hypermarkets held the largest market share of more than 45.0%, in 2018 and are anticipated to retain their dominance throughout the forecast period. It allows the buyers to check products physically, which directly affects the purchasing decision of buyers.  In addition, the easy availability of these fruits in different forms is also driving the growth of this segment.

An online sales channel is projected to grow with the highest CAGR of more than 9.0% during the forecast period. The rising number of internet users and e-commerce portals for grocery is fueling online channel growth. In 2019, Alibaba Group Holding Limited set up a new online portal Tmallin China.  Alibaba offers frozen whole Musang King durians by cooperating with local suppliers of Malaysia to supply all durian flavored products in China. In addition, the governments of China and Thailand have planned to work by collaborating with Alibaba Group Holding Limited to promote online sales of the product.

Product Insights

By product, the market is fragmented into a whole fruit and frozen pulp & paste. In 2018, frozen pulp & paste accounted for the largest market share of over 70.0%. The production of fruits is limited in very few countries such as Malaysia and Thailand that export the fruit pulp in frozen form across the world. Therefore, frozen pulp held a significant share owing to its long shelf life. Further, frozen pulps are very convenient to eat than whole fruit. The pulp is used in various food products such as pizza, yogurt, and ice cream to give a different flavor to food items. For example, in 2017, Vietnam-based, TH Milk and Joint Stock Company introduced durian flavor yogurt.

Increasing usage of paste forms of durian fruit in various food products such as cakes, pastries, biscuit jams, chocolates, juice, and candies are anticipated to witness a positive effect on this segment growth. Moreover, the growing consumption of durian flavored coffee, tea and milk are expected to accelerate the growth of this segment in South Asian Countries. The demand for these products has been growing in the food processing and foodservice industries. For example, in 2016, Pizza Hut launched durian-flavored pizza in China due to the rising popularity of this fruit.

Regional Insights

Asia Pacific durian fruit market accounted for the largest market share of more than 96.0%, in 2018. China, Malaysia, Vietnam, Indonesia, Taiwan, and Hong Kong are potential markets. Thailand is the world's largest exporter of this product followed by Malaysia. In terms of imports, Hong Kong, Singapore, and China are major countries.

The Free Trade Agreement with Thailand has propelled the import significantly in China. Initially, the durian whole fruit does not allow to import from Malaysia to China. In 2019, the Chinese customs department allowed it in the country. On the other hand, the demand for this product is increasing in several countries such as Germany, the U.K., Belgium, Italy, and the U.S. due to rising awareness regarding the health benefits of the product.

Impact of COVID-19

The industry has observed a significant impact due to the COVID-19 outbreak. The world’s largest experts such as Malaysia and Thailand experienced slow growth due to supply chain disruptions and labor shortages. However, in China, the demand for thorny fruit has increased instead of the country’s strict lockdowns.

Ministry of Commerce in Thailand stated that the country has exported around USD 567 million durian fruits to China from January to April 2020 and Thailand has exported around USD 788 million across the globe. Hence, in spite of lockdowns and pandemic situations, the demand for durian fruit is expected to rise in China and other countries.

Durian Fruit Market Share Insights

The key players in the market include Sunshine International Co., Ltd., TRL (South East Asia) SdnBhd, Agri Foods Public Company Limited, Grand World International Co., Ltd., Top Fruits SdnBhd, Hernan Corporation, Chainoi Food Company Limited, Charoen Pokphand Group, and Thai Interfresh Co., Ltd.

In the last few years, the manufacturers are focusing on product innovation and development to sustain themselves in the competitive market. Increasing demand for the product in food processing is encouraging manufacturers for product development. Hence, the producers are increasing their product lines such as frozen pulp, flakes, powder, raw durian, and paste to fulfill the customer’s demand. These factors are expected to boost the market growth over the forecast period.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global durian fruit market report based on product, distribution channel, and region:

• Product Outlook (Volume, Kilo Tons; Revenue, USD Billion, 2015 - 2025)
    • Frozen Pulp & Paste
    • Whole Fruit

• Distribution Channel Outlook (Volume, Kilo Tons; Revenue, USD Billion, 2015 - 2025)
    • Supermarkets & Hypermarkets
    • Convenience & Specialty Stores
    • Online

• Regional Outlook (Volume, Kilo Tons; Revenue, USD Billion, 2015 - 2025)
    • Americas
        • The U.S.
    • The Asia Pacific
        • Indonesia
        • Malaysia
        • China
        • Thailand
        • Vietnam
    • Europe Middle East & Africa
        • U.K.