For some years now, the Chilean cherry industry has been talking about market diversification and despite the attempts of the different organizations related to the export of this fruit, China continues to be the main destination for cherries, with 88 percent of the total exported during the last campaign; total shipments for the 2022-23 season exceeded 415,000 tons or 83 million 5 kg boxes, with a positive variation of 171 TP3T compared to the previous year. Of these, 365,201 tons were destined for China/Hong Kong.
The table prepared by iQonsulting shows the destinations of Chilean cherries; although there is no specific data for India, it is represented in the 1% of other Far Eastern destinations. But why has this distant country been mentioned for some years as an alternative to diversify the shipment of this fruit species?
It is enough to review the demographic data to begin to answer the question posed above; the Asian country is one of the most populated in the world with a population of 1,407,563,842 inhabitants; in addition, it is one of the 10 most important economies on the planet. In simple words, as in China, there are enough people capable of demanding a high quantity of products and among them cherries seem to be gaining ground.
In 2020, ProChile published a comprehensive report on the fruit market in India. The country imports blueberries, cherries, kiwi, apples, avocados, walnuts and grapes from Chile. In the case of cherries, the Asian country prefers Chilean fruit over other origins, with Chilean fruit representing 53.51 TP3T of the total imported in 2019 by India; followed by the United States (21.81 TP3T) and Australia (11.61 TP3T).
Market trends
Interesting information about Document prepared by the Market Intelligence Sub-Department of the Strategic Development Directorate of ProChile This is the profile of the Indian consumer:
Demanding consumers: India has a population of approximately 1.38 billion people. 191% of the population is middle class, who are the main consumers of fruit. This segment has become more demanding and demands high-quality goods.
Basic requirements: Price is very important, followed by quality and proven health benefits.
Consumer culture: India has been a price-sensitive market, but now consumers are willing to pay extra for good quality products, especially if the product has health benefits.
Regarding the demand for the fruit, the document indicates that «(The cherry) is also considered a niche product. The Chilean cherry is preferred followed by the US one for its appearance and flavor.» Now, regarding consumption trends, he points out that «Cherries have been
"They are mainly consumed by confectioners and in the hospitality sector. Due to awareness of their health benefits, direct consumption of cherries is increasing."
Finally, as regards the target segment, cherries would be consumed by the middle and upper class population, between 28 and 50 years of age. The main consumer states are concentrated in the large cities, where consumption is continuously growing: Delhi, Mumbai, Bangalore, Pune, etc.
Efforts concentrated in India
For trade unions, state agencies, exporters and even producers, India sounds like a powerful destination for exporting cherries. In 2021, the Association of Exporters, Asoex, promoted Chilean cherries in India for the first time.
The launching activity was headed by Juan Angulo, Ambassador of Chile in India and took place at Foodhall, Chanakyapuri, where an attractive display of Chilean cherries was set up, achieving very good sales.
“Chilean cherries are appreciated for their superior taste and quality, and Chile is one of the largest exporters of cherries in the world. Consumers around the world love the fantastic taste of cherries for their juicy and sweet pulp. I am delighted to see them in India,” said Juan Angulo, then Chilean Ambassador to India.
Time has passed and efforts are being made from different sectors to achieve a market diversification for Chilean cherries towards India. The former Minister of Agriculture and current president of the National Society of Agriculture, Antonio Walker, refers precisely to this.
«India is a tremendous challenge, we have to make India what we have done in China, it is a totally different cultural reality, India is more protectionist, it has a different approach to trade openness, but India is going to surpass China in number of inhabitants, so there we have a market that we can exploit much more and I think that the Ministry of Foreign Affairs, the Ministry of Agriculture are putting a focus on India and we appreciate that, because we have to conquer that market, because it could be one of the largest in the world if we do it well».
But what does the industry say? Over the next few years, Chile is expected to export more than 100 million boxes; in addition, in 2024 there will be a late Chinese New Year (February 10), which will offer a wide window for cherry marketing prior to the holiday. Are exporters looking to India?
«The main market is still China and once logistics improve, Vietnam and India will come in strong, and it is already a little more consolidated, but diversification still reaches 10 percent, so there is still a lot of work to be done, but growth is taking place, and investment is being made in new markets to open up the portfolio of opportunities for Chilean cherries.. Now (as an exporter) we soon have a trip to India, Korea and Vietnam with the objective of improving the possibilities and seeing what alternatives we have to avoid excessive transit times," said Erick Araneda, commercial manager of Exportadora Magna.
Sebastián García, Category Manager for Cherries at Copefrut, also referred to market diversification, pointing out that it is necessary to know and understand the possible new destinations for Chilean cherries.
«I see it as a very important challenge. We have a job to do as an industry to open new markets. We must clearly understand the objective of diversification and where to diversify. There are markets that we are exploring, such as Southeast Asia, that we still don't know how far they can go. Others, such as the United States and Brazil, are already more established. We have to understand how to serve those markets, the challenges that exist there and the demands of consumers. That is something that we have to learn to take advantage of in the best way possible.»
Logistics and marketing
India has only one big "but" to become a new major destination for Chilean cherries and that is the lack of adequate infrastructure to receive, transport and maintain a fruit species as delicate as the cherry. However, in recent years significant investments have been made in this regard.
«Just as at one time China did not have refrigerators, it is necessary to set up and be able to distribute there. I know a very nice story from India about Australian melons that were sent to normal channels of importers who distribute to supermarkets, but imports did not increase; well, it was a delegation to see what happened and it turns out that distribution is very different, since in India carts are a super natural means of distribution and sale of fruits and vegetables and there are people who control this quantity of carts, there are thousands of carts and they are distributed to those who sell in the neighborhoods from a collection center; the melon producers detected this and did business with those in charge of these distribution centers and the sale of melons increased by 1000 percent and today they are the large suppliers of melons through "from the distribution of the carts" said Isabel Quiroz, Founder and Director of iQonsulting.
Through this example, Quiroz also made a constructive criticism regarding market diversification.
«I feel that sometimes we are very traditional in continuing to contact the same import media and we do not study the social fabric of how distribution to the housewife is done in these new countries, how they buy in the neighborhoods, in the big cities, not in the supermarket that sometimes reaches very few people, I think that there we have a lot of work to do, because India is coming to us», said Isabel Quiroz.
The study carried out by ProChile sheds light on how different the Indian market is. Below are some of the parameters included in the study, which provide a general overview of what it means to export to the Asian country.
Importer: There are no exclusive importers for each of the products and most of them
The fruit is imported by importers who sell fresh fruit in general.
Supermarket: The supermarket culture is relatively new. The largest chains
Major supermarkets are: Big Bazar and Easyday, both owned by Future Group,
Reliance retail, Godrej Natures Basket and Food World (formerly known as Spencers).
Specialty stores: The most popular gourmet chain stores are Le Marche and
Food Hall. There are small retailers in different areas that have their specialty stores.
selling dried fruits and spices. In some cities like Delhi and Mumbai, they also sell
Premium sales outlets for dried fruit are observed.
Restaurants: They play a very important role in popularizing a product.
Include fruits as an ingredient or garnish in foods and convey their benefits
will educate the end consumer and increase demand for the product. In the case of grapes, these
They are considered a staple fruit in India so people do not prefer to order them when
They will eat out. Restaurants will not be of any help in promoting grapes in India.
E-commerce: Grofers and Bigbasket are the top online stores in India
with over 5 million registered users. Amazon Grocery Store is also
gaining popularity now.
It is therefore necessary to closely understand the reality of the Indian market and consumer, which, as indicated in the ProChile report, has numerous differences with the main destinations for Chilean cherries. On the other hand, India must improve its infrastructure in order to increase shipments of domestic cherries to this destination.
An important issue is the long travel times; a sea freight from Chile to India takes a week longer than from China, which presents a tremendous challenge: Reaching this new market not only involves commercial, phytosanitary, logistical, state, etc. management, but also doing things in the best possible way in the orchard, considering the impact this has on post-harvest and on the quality of the fruit at its destination.
