Research on China’s Onion Market and Analysis of Opportunities for Dutch Onions to Enter the Chinese Market PDF Free Download
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Research on China’s Onion
Market and Analysis of
Opportunities for Dutch
Onions to Enter
the Chinese Market
Beijing Orient Agribusiness Consultant
Co., Ltd. （BOABC）
November 2023
I
Tables
Executive Summary ..................................................................................................... 1
1 Global Production and Trade of Onions and Shallots ................................ 1
2 Onion Supply and Trade in China ............................................................... 1
3 Circulation and Consumption of Onions in China ...................................... 2
4 Analysis of Major Trading Countries in Asia ............................................. 3
5 Opportunity Analysis for Dutch Onions Entering the Chinese Market ...... 4
6 Recommendations for Dutch Onions Entering the Chinese Market ........... 4
Research Methods and Explanation ........................................................................... 5
1 Research Methods ....................................................................................... 5
2 Explanation ................................................................................................. 5
Chapter One Onion Supply in China and the World .............................................. 6
1.1 Current Situation and Trends of Global Onions and Shallots Production 6
1.2 Current Situation of Onion Production in China ....................................11
1.3 Analysis of Onion Storage in China ....................................................... 20
Chapter Two Analysis of Onion Trade in China and the World ........................... 23
2.1 Global Trade of Onions and Shallots ..................................................... 23
2.2 China’s Onion Trade .............................................................................. 29
Chapter Three Analysis of Circulation and Consumption of Vegetables and
Onions in China ................................................................................................................. 56
3.1 Analysis of Onion Circulation in China ................................................. 56
3.2 Overview of Fruit, Vegetable and Onion Consumption in China .......... 62
3.3 Analysis of Main Retail Channels of Onions ......................................... 67
3.4 Main Factors Influencing Consumption of Fruits, Vegetables and Onions
II
in China ................................................................................................................ 71
3.5 Future Development Trends of Fruit, Vegetable and Onion Consumption
in China ................................................................................................................ 79
Chapter Four Analysis of Trade Policies and Tariffs of Major Onion Trading
Countries ............................................................................................................................. 82
Chapter Five Conclusion .......................................................................................... 87
5.1 The Future Chinese Onion Import Market has Great Growth Potential 87
5.2 Dutch Onions Have Favorable Conditions to Enter the Chinese Market
.............................................................................................................................. 89
Chapter Six Analysis and Recommendations for the Opportunities of Dutch
Onions Entering the Chinese Market .............................................................................. 91
6.1 Opportunity Analysis for Dutch Onions Entering the Chinese Market . 91
6.2 Recommendations for Dutch Onions Entering the Chinese Market ...... 92
1
Executive Summary
1 Global Production and Trade of Onions and Shallots
In 2021, global output of onion and shallots reached 106.592 million tons, and the top 10 producers
were mainly distributed in Asia, North America and North Africa, accounting for 65.9 percent of
global production. India and China are two major producers, aggregately contributing to 47.7
percent. Affected by rapid economic development and population growth in the future, Asia will
see steady growth in onion production and planting area.
In 2021, global onions and shallots (dry) exports reached 8.552 million tons, with an export value
of $3.731 billion. The top 10 exporting countries accounted for 74.3% of the total export volume.
The Netherlands is a major exporter of onions and shallots worldwide, with an export volume of
1.691 million tons in 2021, accounting for 19.8% of the global total, and an export value of $746
million, representing a 20% share. The Netherlands primarily supplies the European market (47.8%
in 2021) and the African market (37.1% in 2021) with onions and shallots. India and China are the
next largest exporters, accounting for 16.8% and 7.8% of the global export volume, respectively,
mainly supplying neighboring Asian countries. The Netherlands' onions and shallots exports
account for 88.3% of its domestic production, while India's exports account for 5.4% of its
domestic production, and China's exports account for 2.8% of its domestic production. Compared
to India and China, the Netherlands is a typical onions and shallots export-oriented country.
Importers of onions and shallots in the world are mainly distributed in Asia, Europe and America.
Among them, Asia saw a rapid increase in onions and shallots import, especially Bangladesh,
whose import volume was up to 571,000 tons in 2021, according for 7 percent of global import
volume of onions and shallots. Vietnam imported 198,000 tons of onions and shallots, taking the
second place in Asia, and its import value registered US$ 220 million, accounting for 5.7 percent
of global total. The imports of Japan were declining as a whole.
2 Onion Supply and Trade in China
China’s harvested area of onions remain around 50,000 hectares, and its production ranges
between 4 million tons and 5 million tons and the figure in 2022 was 4.46 million tons. The main
producing areas of onions in China are divided into long daylight producing areas, moderate
2
daylight producing areas, and short daylight producing areas. The long daylight producing areas
include Gansu and Inner Mongolia, and produced 2.6 million tons of onions in 2022, the main
harvest period is concentrated from July to September. The moderate daylight producing areas
covers Shandong and Jiangsu provinces, reporting production of 1.29 million tons, the main
harvest period is concentrated from May to June. The short daylight producing areas mainly
include Yunnan, and the production in 2022 reached 450,000 tons, the main harvest period is
concentrated from February to March.
In terms of the cost-effectiveness of onion cultivation, labor costs and land rent are the main
expenses, accounting for approximately 60% of the total cost. In recent years, onion cultivation
costs have been increasing rapidly, while the profitability of cultivation has been declining.
Regarding onion storage, onions are primarily stored from October to November. Onions stacked
outdoors are sold in February of the following year, while onions stored in cold storage can be
sold continuously until May of the following year. The annual storage volume is around 600,000
tons.
China's fresh or chilled onion export season is concentrated from May to January of the following
year, with the fourth quarter reaching the peak period. In 2022, China's fresh or chilled onion
exports amounted to 796,000 tons, accounting for 17.8% of the production, with an export value
of $532 million. China mainly exports onions to Southeast Asia, Japan and South Korea, China
Hong Kong, and the Russian market, accounting for about 95% of the export value.
The Chinese onion imports are still limited, with around 10 thousand tons, while the exports are
around 20% of the production. In the future the imports are expected to grow, based on climatic
and economic developments and through shift in demand or substituting partly the exports in
seasonal demands and variety differences.
In terms of customs clearance for imports, the clearance time for China's onion imports is around
3-5 days, with clearance costs ranging from 6,500 to 9,000 yuan per TEU(Twenty-feet Equivalent
Unit).
3 Circulation and Consumption of Onions in China
China’s onion supply chain can be roughly divided into five links, including the front-end industry
(seeds, fertilizers, plant protection products, agricultural machinery manufacturers, and
3
distributors), growing, circulation (processing and distribution), retail, and consumption.
Wholesale markets of agricultural products occupy an important position in the wholesale
distribution of onions in China, accounting for about 70 percent. In the future, the proportion of
B2B e-commerce and food supply chain channels will increase gradually.
In 2021, China’s direction consumption of vegetables stood at about 155 million tons, which is
equivalent to 109.8 kg per capita, and the consumption of onions reached 3.66 million tons, which
is equivalent to 2.6 kg per capita. The proportion of onion consumption in total vegetable
consumption was lower than 3 percent.
Retail channels of vegetables (including onions) in China mainly include farmers' markets,
vegetable shops in communities, supermarkets, e-commerce platforms, and catering.
Among them, farmers' markets are the main retail channel.
China’s consumption demand of onions remains stable with little growth. With the upgrading and
transformation of vegetable consumption in China, the consumer market will raise higher demands
for the quality and safety, nutritive value, and taste of onions. At the same time, with the
acceleration of work pace and the development of food chains, the consumption of processed and
semi-processed onion products will increase steadily.
4 Analysis of Major Trading Countries in Asia
Among major onion importing countries (regions) in Asia, the import tariffs of China, Hong Kong
(China), Japan, Vietnam, Bangladesh, Cambodia, Myanmar, Malaysia, and Indonesia are low, and
even zero.
On the basis of free trade agreements and WTO agreements, major onion importing countries
(regions) in Asia have implemented measures to reduce or increase taxes on major onion sources
based on local market conditions. Among them, China, Hong Kong (China), Japan, Vietnam,
Bangladesh, Cambodia, Myanmar, Malaysia and Indonesia provide lower tariffs ranging between
0 and 13 percent, while South Korea, Thailand, and the Philippines impose higher import tariffs
ranging from 40 percent to 142 percent.
4
5 Opportunity Analysis for Dutch Onions Entering the Chinese
Market
Based on the growing demand in the Chinese onion consumption market, the advantages of Dutch
onions in terms of quality, traceability, and food safety, along with their supply stability, the
feasibility of Dutch onions entering the Chinese market is high.
After Dutch onions are allowed to enter the Chinese market in the future, the annual export volume
will depend on various factors such as competition from other onion-exporting countries, shipping
costs, landed prices, branding efforts, marketing strategies, and market dynamics. It will also be
influenced by the latest trends in the Chinese onion market, supply and demand relationships,
consumer preferences, and trade policies.
6 Recommendations for Dutch Onions Entering the Chinese Market
Before obtaining approval to enter the Chinese market, the Dutch side can accelerate the market
access process through marketing promotion and seeking high-quality partners.
In the future, after Dutch onions are granted entry into the Chinese market, the Dutch side can
expand its market share in the Chinese onion consumption market through customization,
strengthened quality control, and continuous innovation.
5
Research Methods and Explanation
1 Research Methods
To help the Dutch side gain a better understanding of the Chinese onion industry chain and
consumer market, and to objectively assess the opportunities for Dutch onions to enter the Chinese
market, BOABC primarily employs desk research, expert interviews, industry surveys, and
consumer research to gather and analyze industry data, extract industry insights, and make
predictions about future trends.
Desk research: BOABC conducts analysis and research on the production, trade, distribution, and
consumption of global and Chinese onions through websites and databases such as the Food and
Agriculture Organization (FAO), China Customs, Ministry of Commerce of China, Ministry of
Agriculture and Rural Affairs of China, FreshPlaza, EastFruit, Wind, BOABC's project library,
BOABC's internal database, as well as market research reports on fruits, vegetables, and onions.
Expert interviews: BOABC conducts interviews with relevant personnel from industry
organizations such as the China Chamber of Commerce of Foodstuffs, Native Produce and Animal
By-Products（CFNA）, and China Vegetable Distribution Association.
Industry surveys: BOABC conducts surveys at supermarkets, restaurants, farmers' markets,
community fresh food stores, agricultural product wholesale markets, and import-export agents.
Consumer research: BOABC conducts consumer research with approximately 20 consumers
through methods such as telephone interviews and online questionnaires.
2 Explanation
In this report, global production and trade data for onions and shallots (dry) are sourced from the
FAO database. For the purpose of comparative analysis, in Chapter 1, Section 1.1, and Chapter 2,
Section 2.2, the production and trade data specifically related to Chinese onions (onions and
shallots, dry) are also sourced from the FAO data.
In other chapters, the production data for Chinese onions (referring specifically to onions) are
obtained from industry surveys, while the trade data is sourced from the China Customs database.
6
Chapter One Onion Supply in China and the
World
1.1 Current Situation and Trends of Global Onions and Shallots
Production
1.1.1 Global Harvested Area and Production of Onions and Shallots
From 2011 to 2021, global harvested area and production of onions and shallots both presented an
increasing trend, and the growth rate of the former was slightly higher than the latter. The global
harvested area of onions and shallots increased from 4.364 million hectares in 2011 to 5.779
million hectares in 2021, with a CAGR of 2.85 percent. Global production of onions and shallots
grew from 85.193 million tons in 2011 to 106.592 million tons in 2021, with a CAGR of 2.27
percent.
Figure 1-1 Changes in Harvested Area and Production of Global Onions and Shallots, 2011-2021
Sources: FAO
From the data for the period between 2011 and 2021, global yield of onions and shallots ranged
between 18 tons per hectare and 19.5 tons per hectare. The yield dropped for two consecutive
years in 2020 and 2021, falling from 19.3 tons per hectare in 2019 to 18.4 tons per hectare in 2021.
Africa, South Asia, and Southeast Asia saw a rapid increase in population in the past decade,
4,364 4,473 4,693 4,814 4,835 5,076 5,155 5,160 5,178 5,530 5,779
85,193 82,560 84,672 89,257 91,349 94,949 97,068 97,621 99,807 104,564 106,592
-
20,000
40,000
60,000
80,000
100,000
120,000
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Area Harvested(1,000 ha) Production Quantity(1,000 tons)
7
resulting in a rising demand for onions and shallots, and the harvested area also expanded rapidly
in these regions. However, affected by extreme weather and backward agricultural productivity,
the yield per unit area fluctuated greatly.
Figure 1-2 Global Yield of Onions and Shallots per Unit Area, 2011-2021
Sources: FAO
1.1.2 Production Status of Major Onions and Shallots Producing
Countries
The world’s top 10 producers in 2021 were mainly distributed in Asia, North America and North
Africa, accounting for 65.9 percent of global production, according to data from the FAO. India
and China were the top two producing countries, contributing to 47.7 percent of global production,
and other countries each made up a share of no more than 4 percent.
From 2011 to 2021, China’s production of onions and shallots increased from 22.0 million tons
to 24.164 million tons, with a CAGR of 0.94 percent, but its proportion in global production
dropped from 25.8 percent to 22.7 percent. The decline in proportion was attributed to two factors.
On the one hand, the growth in harvested area and per unit area yield were slowing down; on the
other hand, the harvested area and production in other major producing countries increased year
by year.
The production of onions and shallots in India increased from 17.511 million tons in 2011 to
26.641 million tons in 2021, with a CAGR of 4.29 percent, and its proportion in global production
19.5
18.5
18.0
18.5
18.9
18.7 18.8 18.9
19.3
18.9
18.4
17
17.5
18
18.5
19
19.5
20
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Yield（t/ha）
8
rose from 20.6 percent to 25 percent. As one of the three major vegetables in India, onions are an
important food ingredient. Moreover, India population increased rapidly with a CAGR of up to
1.1 percent between 2011 and 2021, which was much higher as compared to the 0.5 percent in
China. As a result, the consumption and harvested area of onions and shallots in India climbed
year by year.
Thanks to expanded harvested area, Bangladesh, Indonesia, and Sudan ranked among the global
top 10 producing countries of onions and shallots in terms of production in 2021, respectively
accounting for 2.1 percent, 1.9 percent, and 1.9 percent of global production. Compared to 2011
and 2016, the Netherlands, Russia, Brazil, and Mexico dropped out of the global top 10 in 2021
in terms of production.
The Netherlands is an important onion producer for the European Union, mainly supplying onions
and shallots to the EU and parts of Africa. According to data of the FAO, the harvested area and
production of onions and shallots in the Netherlands reached 39,000 hectares and 1.916 million in
2021, respectively accounting for 21.1 percent and 26.8 percent of the total in the EU. From 2011
to 2021, the harvested area and production of onions and shallots in the Netherlands both showed
an increasing trend, and the CAGRs reached 2.9 percent and 2.2 percent respectively.
Table 1-1 Production and Proportion of Onions and Shallots of Main Producing Countries
in 2011, 2016, and 2021
Unit: kiloton
2011
2016
2021
Country
Production
Proportion
Country
Production
Proportion
Country
Production
Proportion
China
22,000
25.8%
China
23,727
25.0%
India
26,641
25.0%
India
17,511
20.6%
India
20,931
22.0%
China
24,164
22.7%
USA
3,361
3.9%
USA
3,801
4.0%
Egypt
3,312
3.1%
Egypt
2,304
2.7%
Egypt
2,459
2.6%
USA
3,102
2.9%
Iran
2,173
2.6%
Iran
2,401
2.5%
Turkey
2,500
2.3%
Turkey
2,141
2.5%
Turkey
2,121
2.2%
Pakistan
2,306
2.2%
Russia
2,123
2.5%
Pakistan
1,736
1.8%
Bangladesh
2,269
2.1%
Pakistan
1,940
1.3%
Bangladesh
1,735
1.8%
Sudan
2,051
1.9%
Netherlands
1,541
1.8%
Brazil
1,655
1.7%
Indonesia
2,005
1.9%
Brazil
1,523
1.8%
Mexico
1,635
1.7%
Iran
1,925
1.8%
Sources: FAO
In terms of the harvested area of onions and shallots in the main producing countries, India and
China have been the top 2, and grew more than 46 percent of global onions and shallots. Although
9
the two countries both saw an increasing trend in harvested area, the growth rate of China was
obviously lower than that of India. From 2011 to 2021, China registered a CAGR of 0.8 percent
in harvested area and its proportion decreased from 23.2 percent to 19 percent, while India reached
a CAGR of up to 4.1 percent with the proportion increasing from 24.9 percent to 28.1 percent.
Nigeria, Indonesia and Bangladesh continued to expand onions and shallots planting, and their
proportion in global harvested area in 2021 increased to 12.2 percent, 3.4 percent and 3.4 percent
respectively. Their CAGRs in harvested area in the past ten years stood at 13.9 percent, 7.6 percent
and 4.2 percent respectively. In terms of yield per unit area, Nigeria witnessed a sharp drop, while
Indonesia and Bangladesh saw growth. The yield in Indonesia and Bangladesh in 2021
respectively reached 10.3 tons per hectare and 11.7 tons per hectare, which were much lower than
the global average of 18.4 tons per hectare.
Table 1-2 Proportion of Harvested Area of Onions and Shallots of
Main Producing Countries in 2011, 2016, and 2021
Unit: 1,000 hectares
2011
2016
2021
Country
Harvested
Area
Proportion
Country
Harvested Area
Proportion
Country
Harvest
ed Area
Proportion
India
1,087
24.9%
India
1,320
26.0%
India
1,624
28.1%
China
1,014
23.2%
China
1,082
21.3%
China
1,100
19.0%
Nigeria
192
4.4%
Nigeria
494
9.7%
Nigeria
705
12.2%
Pakistan
148
3.4%
Bangladesh
177
3.5%
Indonesia
195
3.4%
Bangladesh
128
2.9%
Indonesia
150
2.9%
Bangladesh
194
3.4%
Russia
96
2.2%
Pakistan
136
2.7%
Pakistan
154
2.7%
Indonesia
94
2.1%
Vietnam
98
1.9%
Sudan
111
1.9%
Vietnam
89
2.0%
Sudan
88
1.7%
Vietnam
97
1.7%
Myanmar
72
1.7%
Uganda
79
1.6%
Egypt
94
1.6%
Uganda
69
1.6%
Myanmar
70
1.4%
Uganda
81
1.4%
Sources: FAO
1.1.3 Global Development Trends of Onion Production
（1）Global planting structure of onions will become more diversified
Affected by the changes in cooking culture and consumption habits, constructional demand of
global onion consumption markets is gradually increasing. Global onion growing is expected to
develop towards diversification, and onion production is forecast to keep stable with growth.
10
In recent years, with the slowdown of global economic growth, the total demand of onions in all
kinds of consumer markets basically remained stable, but different regional markets raised
increasingly diversified needs for onions in variety, specification, quality, taste, and processing.
Changes in consumer demand will be gradually transmitted to the supply end, so onion planting
should be adjusted according to market demand to prevent constructional imbalance between
supply and demand.
（2）Asia will continue to lead global onion growth
In the future, the production and consumption demand of onions in Asia are forecasted to maintain
a stable growth trend due to rapid economic development and population increase.
This is especially true in South Asia and Southeast Asia. Onions are an essential food ingredient
in these regions, but most countries face challenges such as small harvested areas, low production,
and short marketing periods, making it difficult to achieve year-round self-sufficiency. As a result,
they need to import a significant quantity of onions from neighboring countries (such as India and
China) every year. Overall, both the local onion production in South Asia and Southeast Asia and
the onion production in major importing countries (such as India) are expected to continue
growing. Furthermore, the import demand for onions in Europe, Africa, North America, and other
regions will also stimulate the expansion of onion cultivation areas in major Asian exporting
countries.
（3）Onion harvested area in India is expected to remain stable with an increase
India is the world’s largest producer and consumer of onions. As an indispensable ingredient in
India, onions are known as the “political vegetable”. Affected by tropical monsoon climate and
high temperature, the production and stocks of onions in India change greatly and onion quality is
unstable, resulting in large fluctuations in prices. To stabilize onion prices, the Indian government
has restricted imports and exports of onions many times.
Moreover, onions are also important ingredients in the daily diet of India’s neighboring countries.
Bangladesh, Malaysia, Sri Lanka and the United Arab Emirates are the top importers of India’s
onions, and highly depend on India in terms of onion markets. India’s ban on onion exports will
lead to a spike in onion prices in Bangladesh and other countries.
To stabilize domestic supply and meet the import demand of surrounding countries, India is
expected to pursue growth in harvested area while maintaining stability.
11
1.2 Current Situation of Onion Production in China
1.2.1 Overview of Onion Production in China
The data in section 1.1 of this chapter come from the FAO, with onions and shallots as statistical
samples. Those data are based on estimation, and they are quite different from the actual
production data in China (refers to the Chinese mainland, unless otherwise specified). Currently,
there are no official statistics for onion production in China. BOABC obtained the data of the
Chinese onion industry (only including onions) through filed research and desk data sorting, and
the actual harvested area in China is much smaller than the statistics of the FAO. The production
situation of onions in China’s main producing areas from 2017 to 2022 was analyzed as follows.
(statistical scope: red onions
1
and yellow onions in China’s 10 major producing provinces)
Judging from the production situation of onions in the main producing areas from 2017 to 2022,
the harvested area and output decreased steadily. In 2022, the harvested area dropped to 48,500
hectares, and the production moved down to 4.46 million tons. Onion production was greatly
affected by the harvested area, and the change in production was basically consistent with that in
harvested area.
Figure 1-3 Changes in Harvested Area and Production of Onions in China, 2017-2022
Sources: Information compiled by BOABC
1
Including purple onions.
51.7
55.9
47.9
50.5 49.1 48.5
4,895 5,010
4,250
4,870 4,780 4,460
-
2,000
4,000
6,000
0.0
20.0
40.0
60.0
2017 2018 2019 2020 2021 2022
Area Harvested(1,000 ha) Production Quantity(1,000 tons)
12
Per unit area yield of onions in China’s main producing areas saw little fluctuations, remaining
between 88 tons per hectare and 95 tons per hectare, which is much higher than the global average.
The high yield is mainly attributed to the following factors: ①Onion growing in China features
relatively fine management, and farmers in the main producing areas are experienced; ②The
varieties planted in these areas are mostly excellent hybrids introduced from abroad.
Figure 1-4 Per Unit Area Yield of Onions in China, 2017-2022
Sources: Information compiled by BOABC
1.2.2 Analysis of Different Daylight-producing Areas
At present, onion producing areas in China is stably distributed basically. According to sunshine
duration, the main producing areas can be divided into long daylight producing areas, moderate
daylight producing areas, and short daylight producing areas. In 2022, the harvested area and
production of onions in the long daylight areas were 26,100 hectares and 2.6 million tons, those
in the moderate daylight areas stood at 16,200 hectares and 1.29 million tons, and the figures for
the short daylight producing areas reached 5,700 hectares and 450,000 tons.
94.6
89.7 88.8
96.4 97.3
91.9
60
80
100
120
2017 2018 2019 2020 2021 2022
Yeild（t/ha）
13
Table 1-3 Harvested Area and Production of Onions in China’s Main Producing Areas in 2022
Classification of
producing areas
Main producing
provinces
Area (1,000 ha)
Production (Kt)
Long daylight
producing areas
Gansu
20
1,960
Inner Mongolia
3.5
340
Heilongjiang
2.7
300
Total
26.1
2,600
Moderate daylight
producing areas
Shandong
8
600
Jiangsu
2.3
240
Henan
2.3
160
Sichuan
1.3
100
Hebei
1.1
80
Shanxi
1.2
110
Total
16.2
1,290
Short daylight
producing areas
Yunnan
5.7
450
Total
5.7
450
Sources: Information compiled by BOABC
（1）Long daylight producing areas
The long daylight producing areas of onions are mainly concentrated in northeast and northwest
China, contributing to more than 50 percent of the national harvested area and about 50 percent of
the national production. The harvested area in this producing area fell back in 2019 and 2020, and
then picked up to above 25,000 hectares between 2021 and 2023. The production here showed an
increasing trend thanks to the rapid improvement in per unit area yield in recent years. The yield
of onions has increased from 89 tons per hectare in 2018 to 100 tons per hectare in 2022.
Figure 1-5 Changes in Harvested Area and Production of Onions in
Long Daylight Producing Areas, 2018-2023
Sources: Information compiled by BOABC
25.3
22.5
20.3
26.3 26.1 25.3
2,250
2,028
2,263 2,680 2,600
0
1,000
2,000
3,000
0
10
20
30
2018 2019 2020 2021 2022 2023
Area Harvested(1,000 ha) Production Quantity(1,000 tons)
14
Gansu is the largest onion producing zone in the long daylight producing areas as well as China’s
largest onion producing area. 20,000 hectares of onions were grown in this region in 2022,
producing 1.96 million tons of onions, 44 percent of the national production. Onion planting areas
in Gansu are mainly concentrated in the Hexi Corridor, with Jiuquan, Zhangye, Jiayuguan and
Yumen as the main producing cities. With the changes in market demand, Gansu has gradually
formed two main producing areas, red onion and yellow onion producing areas, supplemented
with a small quantity of white onions.
In recent years, Gansu saw a rapid increase in the harvested area and production of red onion but
a decline in the harvested area and production of yellow onions. The harvested area of red onion
increased from nearly 10,000 hectares in 2018 to 13,000 hectares in 2022, with a CAGR of 8.4
percent, and the production jumped from 900,000 tons in 2018 to 1.3 million tons in 2022, with a
CAGR of up to 13 percent. By contrast, from 2018 to 2022, the harvested area of yellow onion
dropped from 12,000 hectares to 7,000 hectares, and the production fell from 900,000 tons to
660,000 tons.
Figure 1-6 Changes in Harvested Area and Production of Red Onion and Yellow Onion
in Gansu Province, 2018-2022
Sources: Information compiled by BOABC
（2）Moderate daylight producing areas
The moderate daylight producing areas are mainly concentrated in the central plain such as
Shandong, Jiangsu and Henan provinces, Sichuan high-altitude localities, and North China such
as Hebei and Shanxi, accounting for about 33 percent of the nationwide harvested area. As the
9.7
11.2 11.0
12.7 13.3
11.7
7.5
5.0
8.0
6.7
0.0
4.0
8.0
12.0
16.0
2018 2019 2020 2021 2022
Area Harvested(1,000 ha)
Red Onion Yellow Onion
900 980
1,200 1,270 1,300
900 620 600
790
660
0
400
800
1,200
1,600
2018 2019 2020 2021 2022
Production Quantity (1,000 tons)
Red Onion Yellow Onion
15
main producing province in the moderate daylight producing areas, Shandong grew 8,000 hectares
of onions in 2022, and its production reached 600,000 tons, making up about 13 percent of the
national onion output.
In recent years, the harvested area and production of onions in the moderate daylight producing
areas dropped rapidly. The harvested area has decreased from 26,000 hectares in 2018 to about
15,000 hectares in 2023, and the production dropped from 2.355 million tons in 2018 to 1.29
million tons in 2022.
Figure 1-7 Changes in Harvested Area and Production of Onions
in Moderate Daylight Producing Areas
Sources: Information compiled by BOABC
（3）Short daylight Producing Areas
Short daylight onions are mainly grown in Yunnan Province’s Yuanmou County to supply on the
spring market in China. Onion planting in Yunnan was on the rise in recent years, and the
proportion of the harvested area and production was also increasing. The harvested area in Yunnan
expanded from 3,500 hectares in 2018 to 8,000 hectares in 2023, with a CAGR of 17.8 percent,
and its proportion in the national harvested area rose from 6.3 percent to 11.7 percent. From 2018
to 2022, the production of onions increased from 350,000 tons to 450,000 tons, with a CAGR of
6.5 percent, and its proportion in the country’s production rose from 7.0 percent to 10.1 percent.
26.3
20.9
23.9
18.1 16.2 14.8
2,355
1,852
2,132
1,706
1,290
0
1,000
2,000
3,000
0
10
20
30
2018 2019 2020 2021 2022 2023
Area Harvested(1,000 ha) Production Quantity(1,000 tons)
16
Figure 1-8 Changes in Harvested Area and Production of Onions in Yunnan, 2018-2023
Sources: Information compiled by BOABC
Onion producing areas in China are wildly distributed. Onions in producing areas with different
sunshine duration can be harvested in different seasons. Onion harvest typically occurs between
July and September in the long daylight producing areas, in May and June in the moderate daylight
producing areas, and from February to March in the short daylight producing areas. Onions
produced in the long daylight areas are storable, and can be supplied from July until March of the
following year for up to eight months. From the perspective of harvest time and supply period,
Chinese onions are available all year round.
Table 1-4 Harvest and Supply Time of Onions in Different Producing Areas in China
Onion producing areas
Main harvest time
Main supply time
Long daylight producing areas
July to September
July to March of the
following year
Moderate daylight
producing areas
May and June
May to August
Short daylight producing areas
February and March
February to May
Sources: Information compiled by BOABC
1.2.3 Cost-benefit Analysis of Chinese Onions
Gansu Province and Shandong Province are the largest onion producing areas in China, but the
planting costs in these two provinces are quite different. The cost in Gansu Province was about 2-
3 times that of Shandong Province. The planting cost of onions in Gansu have increased rapidly
3.5 3.7
5.7
4.3
5.7
8.0
350
300
420
360
450
0
100
200
300
400
500
0
3
6
9
2018 2019 2020 2021 2022 2023
Area Harvested(1,000 ha) Production Quantity(1,000 tons)
17
since 2021, and broke through the barrier of 100,000 yuan per hectare to up to 114,000 yuan per
hectare in 2022, a year-on-year rise of 16.9 percent. The planting cost in Shandong was relatively
stable, basically fluctuating between 36,000 yuan per hectare and 39,000 yuan per hectare.
Figure 1-9 Changes in Onion Planting Costs in Gansu Province and Shandong Province, 2018-2022
Sources: Information compiled by BOABC
In terms of planting cost composition, in the past five years, labor costs accounted for about one-
third of the planting cost of onions in Gansu, land rent, seedlings, and agricultural materials
respectively made up about 20 percent, and irrigation spending accounted for 5 percent. Among
the planting cost of onions in Shandong over the past five years, land rent was the largest part,
averaging about 31.5 percent, and followed by labor costs, which made up about 30 percent of the
total. Agricultural materials accounted for about one-quarter on average, the percentage for
seedlings was above 10 percent, and the proportion of irrigation costs reached 4 percent.
The cost of onion cultivation in Gansu is significantly higher than in Shandong. According to the
industry research analysis conducted by BOABC, the reasons may mainly include the following
points: high labor cost in Gansu due to severe outflow of rural labor force and lower mechanization
level; Gansu is a region with long daylight hours, and the onion varieties planted are mostly high-
quality hybrid late-maturing varieties from foreign countries, resulting in higher costs; the
application of chemical fertilizers is relatively high during onion cultivation in Gansu, leading to
higher agricultural input costs; land for onion cultivation in Gansu is relatively limited, resulting
in higher rental prices; Gansu faces water scarcity, and some production areas have implemented
quota-based water usage, leading to overall higher irrigation costs.
87,750 87,450 87,000
97,500
114,000
37,500 39,000 36,000 36,000 37,500
-
30,000
60,000
90,000
120,000
2018 2019 2020 2021 2022
Planting Cost（RMB/ha）
Gansu Province Shandong Province
18
Figure 1-10 Onion Planting Cost Structure in Gansu Province, 2018-2022
Sources: Information compiled by BOABC
Figure 1-11 Onion Planting Cost Structure in Shandong Province, 2018-2022
Sources: Information compiled by BOABC
Gansu performs slightly better than Shandong in terms of onion planting income. According to
industry research, the purchase price of onions in Gansu stood at about 1400 yuan/ton and the
yield was 98 tons per hectare in 2022. That is, the income from onion planting was 137,200 yuan
per hectare, and the profit reached 23,200 yuan per hectare after deducting the planting cost of
114,000 yuan per hectare. In Shandong, the purchase price of onions was about 800 yuan/ton and
the yield registered 75 tons per hectare, and the income per hectare reached 60,000 yuan. After
deducting the planting cost of 37,500 yuan, the profit per hectare stood at 22,500 yuan, which is
700 yuan lower than that in Gansu.
28,500 30,000 30,000 33,000 37,500
18,000 17,250 16,500 19,500 22,500
21,000 19,500 18,000
21,000
24,000
15,750 16,500 18,000
19,500
24,000
4,500 4,200 4,500
4,500
6,000
-
30,000
60,000
90,000
120,000
2018 2019 2020 2021 2022
Planting Cost（RMB/ha）
Gansu Province
Labor Land Rent Seeds Agricultural Materials and Equipment Irrigation
13,500 13,500 9,000 9,000 9,000
10,500 12,000
12,000 12,000 12,000
3,750 4,500
4,500 4,500 4,500
8,250 7,500
9,000 9,000 10,500
1,500 1,500
1,500 1,500 1,500
-
15,000
30,000
45,000
2018 2019 2020 2021 2022
Planting Cost（RMB/ha）
Shandong Province
Labor Land Rent Seeds Agricultural Materials and Equipment Irrigation
19
Overall, although the planting cost in Shandong was much lower than that in Gansu, there was
little difference between them in terms of planting profit due to unfavorable onion prices in
Shandong.
1.2.4 Major Factors Influencing Onion Harvested Area in China’s Main
Producing Areas
Currently, China’s onion planting structure basically remains stable, with an annual fluctuation of
50,000 hectares in harvested area. The change in harvested area is mainly affected by the supply-
demand relationship, price changes, and planting costs.
(1) Supply-demand relationship and price fluctuations
At present, the demand of onions keeps stable in the domestic market, and the supply is greater
than the demand as a whole. Changes in onion price are mainly affected by supply. Weather has a
great effect on onion production in China. Favorable weather conditions during the growing period
will bring about an increase in production and supply, which may lead to a drop in price. Thus,
farmers’ profits will decrease, and they may even lose money, which in turn will result in a
reduction in harvested area in the following year. On the contrary, abnormal weather will lead to
decreased output, and onion prices will rise under the condition of a relatively strong market
demand. In this case, farmers will be profitable and expand planting in the following year. But, if
consumers are less receptive to the price rise, farmers are commonly reluctant to sell onions in
order to make profits or recover costs. Under the circumstances, the circulation of onions will be
slow, and farmers may suffer losses or make small profit if the price moves down in the later
period, resulting in a decline in harvested area in the next year.
(2) Planting costs
In recent years, onion planting costs in China increased year by year, especially labor costs and
land rents, leading to declining planting earnings. Some main producing areas have seen a decrease
in harvested area.
In terms of labor costs, as plastic film mulching and transplanting are used in onion growing in
China, which don’t match mechanized production, a lot of labor is needed. Growers in China are
mainly those born in the 1960s and 1970s, and few young people are engaged in agricultural
20
cultivation. The aging of agricultural population and the aggravation of labor shortage have led to
the rapid increase in the labor cost of onion planting, especially in Gansu.
On land rent, firstly, China’s farming land is seriously fragmented. If large onion growers want to
rent 10 hectares of contiguous farmland, they may need to sign contracts with dozens of farmers,
who ask for different prices, resulting in high coordination costs. Secondly, local governments
have introduced strong financial support policies to guide large-scale agricultural operation. Most
of these subsidy policies involve land rent, lifting the land rent. However, when the subsidy was
stopped, the land rent remains high.
1.3 Analysis of Onion Storage in China
1.3.1 Analysis of Onion Storage Methods in China
Outdoor palletizing and cold storage are the main storage methods of onions in China. Onion
storage in Gansu is dominated by outdoor palletizing, and a small quantity of high-quality onions
are stored in cold storage. Cold storage is mainly adopted in Shandong, Henan, Jiangsu, and a
small part of Hebei.
Onions need be fully dried after harvest, generally for 8-10 days. When the skin of bulbs is
sufficiently dried and the top of onions becomes membranous, they can be stored.
(1) Outdoor palletizing
Places with high terrain, dry soil and good drainage are selected to stack onions. First, the ground
is pad with sleepers, on which straw is spread. Then, onions in woven bags are put on the straw in
a crisscross pattern to form an onion stack of about 5 tons (length: 5~6 meters, width: 1.5~2 meters,
and height: 1.5 meters). Next, the stack is covered with thin film, and 3~4 layers of straw mat are
laid on the top of the stack and 2 layers of straw mat are placed around the stack. Finally, the stack
of onions is horizontally and vertically tied with rope. Onions in Gansu are successively stacked
in October and sealed in mid-to-early November. Generally, stack transfer rarely happens after
sealing. Onions can be stored for more than 3 months, and generally are sold in February of the
following year.
(2) Cold storage
21
Cold storage is a forced dormancy method. When onions are going to germinate through natural
dormancy, they are put in a low-temperature environment to remain dormant to extend the storage
period. Onions are put in baskets for stacking or put into woven bags for keeping on shelves in
cold storage with temperature of about 0℃ and relative humidity of about 80%. In this way, onions
can be stored for more than six months. However, due to high humidity in cold storage, onion
bulbs tend to grow adventitious roots, so it’s necessary to ventilate the cold storage and timely
remove moldy onions.
1.3.2 Analysis of Changes in China’s Onion Stocks in Cold Storage
Onions in cold storage in Shandong generally come from the moderate daylight and long daylight
producing areas, with red onion as the main variety. The storage of onions produced in the
moderate daylight areas starts at the beginning of June and ends at the end of June, with about
350,000 tons stored each year, and the sales period basically comes to an end in late September.
Onions produced in the long daylight areas start to be put into storage in October, and the stocks
reach the peak in late October or early November, when the storage stops. The selling of onions
produced in the long daylight areas lasts from October/November to May of the following year.
At present, relevant market research institutions in China’s onion industry haven’t conduct
monitoring on the month-end stocks of onions in the moderate daylight producing areas, so only
changes in the stocks of onions in the long daylight producing area are analyzed in this section.
From the perspective of cold storage intake, China's onion storage volume declined from the
2019/20 to 2022/23 seasons, and the storage deadline was delayed. The storage volume decreased
from 650,000 tons in the 2019/20 season to 550,000 tons in the 2022/23 season, with a compound
annual growth rate of -5.4%. The storage deadline was postponed from October to November. In
terms of cold storage delivery, the consumption of onion stocks was slow in the 2021/22 and
2022/23 seasons. The previous year's delivery volume accounted for over 50% in the 2019/20-
2020/21 seasons, but it declined to 35% and 27% in the 2021/22 and 2022/23 seasons, respectively.
These changes are caused by the following factors. High prices of onions stored in 2021 led to
high costs and increased difficulties in delivering onions. Slow digestion of onions made storage
companies suffering heavy losses in 2021/22. Affected by the loss in the previous crop year and
the expansion of red onion planting, they became more cautious about storing onions in 2022. As
a result, the storage quantity and the delivery quantity of onions both declined in the fourth quarter
22
of 2022.
Table 1-5 Changes in Onion Stocks in
Cold Storage in Long daylight Producing Areas, 2019/20-2022/23
Unit: kiloton
Harvest
seasons
2019/20
2020/21
2021/22
2022/23
Ending
stocks
Delivery
Ending
stocks
Delivery
Ending
stocks
Delivery
Ending
stocks
Delivery
Oct.
650
600
Nov.
410
240
420
180
600
550
Dec.
300
110
280
140
390
210
400
150
Jan.
220
80
140
140
240
150
270
130
Feb.
130
90
100
40
180
60
160
110
Mar.
60
70
50
50
30
150
60
100
Apr.
20
40
10
40
0
30
10
50
May
0
20
0
10
-
-
0
10
Sources: Information compiled by BOABC
23
Chapter Two Analysis of Onion Trade in China
and the World
2.1 Global Trade of Onions and Shallots
2.1.1 Global Exports of Onions and Shallots
2.1.1.1 Global Export Volume and Export Value of Onions and Shallots
Overall, the growth in global production and consumption of onions and shallots has promoted
the export, which showed an upward trend in the past decade. From 2011 to 2021, global export
volume of onions and shallots increased from 6.831 million tons to 8.552 million tons, with a
CAGR of 2.3 percent, and the export value rose from US$ 2.892 billion to US$ 3.731 billion, with
a CAGR of 2.7 percent. Affected by the supply of main producers, the demand of main consumer
markets, and global supply chain, the export volume and FOB price of onions and shallots
fluctuated from year to year.
Figure 2-1 Global Export Volume and Export Value of Onions and Shallots, 2011-2021
Sources: FAO
6,830.8 6,534.2 7,007.8 7,147.2 6,831.2
7,467.1 7,690.7 7,904.9 8,375.3 8,923.1 8,551.5
2,891.7
2,417.0
3,265.8
2,859.7 3,050.5 3,002.0 3,037.1
3,428.7
3,872.4 3,801.7 3,731.3
0
1,000
2,000
3,000
4,000
5,000
0
2,000
4,000
6,000
8,000
10,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Export Quantity (1,000 tons) Export Value (million USD)
24
2.1.1.2 Proportion of Export Value and Export Volume of Major Exporters
The proportion of the top ten exporting countries declined after a rise between 2011 and 2021. In
terms of export volume, the proportion of the top 10 producers rose from 76.3 percent in 2011 to
80.4 percent in 2016, and then dropped to 74.3 percent in 2021. As for export value, the percentage
increased from 77.2 percent in 2011 to 83.6 percent in 2016, and then fell to 79 percent in 2022.
In terms of export volume, the Netherlands, India and China maintained the top three spots all
year round, accounting for more than 44 percent of global exports of onions and shallots. From
the perspective of export value, the Netherlands, India, China, and Mexico were the top four
exporters, making up more than 50 percent of global exports.
As a major exporter of onions and shallots in the world, the Netherlands exported 1.691 million
tons of onions and shallots in 2021, accounting for 19.8 percent of global total, and the export
value registered US$ 746 million, taking a 20 percent share in the world’s total export value. The
Netherlands is a typical export-oriented country with Europe( 2021, the market share was 47.8%)
and Africa(2021, the market share was 37.1%) as the main destinations, and its export volume of
onions and shallots accounts for more than 85 percent of its production. In addition, the
Netherlands is a large agricultural trader, having two major European ports-Amsterdam and
Rotterdam, and is close to the port of Antwerp-Bruges in Belgium. That makes the export of onions
more convenient and the transport cost lower.
In 2021, India exported 1.435 million tons of onions and shallots, accounting for 16.8 percent of
global export volume, and the export value stood at US$ 450 million, making up 12 percent of
the world’s total. The vast majority of onions and shallots were supplied to its home market, and
only about 5 percent were exported with Asia as the main export destination, which contributed to
about 97.4 percent of its export value. Bangladesh was the largest importer of Indian onions and
shallots, creating 31.6 percent of India’s export value of onions and shallots, followed by Malaysia,
Sri Lanka, the United Arab Emirates and Nepal, which accounted for 15.1 percent, 13.3 percent,
9.4 percent, and 8.3 percent of India’s exports respectively.
In 2021, China’s export volume of onions and shallots reached 665,000 tons, accounting for 7.8
percent of global exports and 2.75 percent of its production, and the export value stood at US$ 436
million, contributing to 11.7 percent of the world’s total. South Asia, Japan, South Korea, Hong
Kong, and Russia were the main importers of Chinese onions and shallots, accounting for 95
25
percent of China’s export value. Among them, Vietnam and Japan were China’s largest export
markets of onions and shallots, respectively accounting for 40.9 percent and 29.5 percent of
China’s exports in value terms and 26.4 percent and 35.9 percent in volume terms.
Table 2-1 Export Volume, Export Value, and Proportion of the World’s
Top 10 Exporters of Onions and Shallots in 2011, 2016, and 2021
Units: kiloton, million US$
2011
Area
Export Quantity
Proportion
Area
Export Value
Proportion
Netherlands
1,326.6
19.4%
Netherlands
522.3
18.1%
India
1,110.1
16.3%
India
370.7
12.8%
China
742.0
10.9%
Mexico
301.2
10.4%
Egypt
490.9
7.2%
China
300.8
10.4%
Mexico
370.1
5.4%
Egypt
215.6
7.5%
USA
356.2
5.2%
USA
215.4
7.4%
Spain
253.4
3.7%
Spain
122.5
4.2%
Argentina
212.0
3.1%
Argentina
75.1
2.6%
Peru
177.3
2.6%
Germany
56.0
1.9%
Pakistan
173.2
2.5%
Poland
54.1
1.9%
Total
5,211.8
76.3%
Total
2233.7
77.2%
2016
Area
Export Quantity
Proportion
Area
Export Value
Proportion
India
1,837.2
24.6%
Netherlands
479.4
16.0%
Netherlands
1,231.1
16.5%
China
456.4
15.2%
China
711.0
9.5%
Mexico
415.9
13.9%
Egypt
457.3
6.1%
India
382.4
12.7%
Mexico
412.9
5.5%
USA
230.0
7.7%
Spain
356.4
4.8%
Egypt
197.8
6.6%
Iran
343.7
4.6%
Spain
154.3
5.1%
USA
325.6
4.4%
Peru
70.0
2.3%
Peru
209.0
2.8%
Iran
68.2
2.3%
Poland
116.7
1.6%
France
54.7
1.8%
Total
6,001.0
80.4%
Total
2,509.1
83.6%
2021
Area
Export Quantity
Proportion
Area
Export Value
Proportion
Netherlands
1,690.8
19.8%
Netherlands
745.7
20.0%
26
India
1,434.9
16.8%
India
449.5
12.0%
China
665.1
7.8%
China
435.7
11.7%
Mexico
482.5
5.6%
Mexico
425.4
11.4%
Pakistan
455.4
5.3%
USA
263.8
7.1%
Iran
372.7
4.4%
Spain
166.1
4.5%
USA
345.8
4.0%
Pakistan
145.3
3.9%
Spain
339.7
4.0%
Egypt
141.6
3.8%
Peru
296.1
3.5%
Peru
99.2
2.7%
Turkey
271.5
3.2%
Poland
76.6
2.1%
Total
6,354.6
74.3%
Total
2948.8
79.0%
Sources: FAO
2.1.2 Global Imports of Onions and Shallots
2.1.2.1 Global Import Value and Import Volume of Onions and Shallots
From 2011 to 2021, global import value of onions and shallots increased from US$ 3.016 billion
to US$ 3.857 billion, with a CAGR of 2.4 percent, and the import volume increased from 6.352
million tons to 8.199 million tons, with a CAGR of 2.6 percent. The high demand for onions and
shallots in Asia has boosted global imports. From 2011 to 2021, the import volume of onions and
shallots in Asia grew from 2.804 million tons to 4.083 million tons with a CAGR of 45.6 percent,
and the import value surged from US$ 1.06 billion to US$ 1.61 billion, with a CAGR of up to 51.9
percent.
27
Figure 2-2 Global Import Volume and Import Value of Onions and Shallots, 2011-2021
Sources: FAO
2.1.2.2 Proportion of Import Value and Import Volume of Major Importing
Countries
The combined imports of the world’s top 10 importers of onions and shallots increased slowly in
the past ten years, and the CAGRs in import volume and import value reached 1.4 percent and 1.6
percent respectively. Their proportion in global imports showed a downward trend, decreasing by
nearly 6 percentage points in import volume and nearly 5 percentage points in import value. This
shows that the consumption of onions and shallots in areas other than the main consumption areas
was increasing rapidly. The top 10 importing countries of onions and shallots were mainly
distributed in Asia, Europe and the USA. Different from onions and shallots exports, the import
proportion of a single country was not high, and the figures for each of them were below 10%. In
terms of the proportion of import value, except for the USA, who took a share of above 10 percent,
all other countries reported a percentage of below 10 percent.
In terms of import volume, the USA, Bangladesh and Malaysia were the top importers in 2021,
accounting for 8.1 percent, 7 percent, and 5.9 percent of global imports of onions and shallots
respectively. Bangladesh saw the fastest growth in the import volume of onions and shallots, with
a CAGR of 7.9 percent between 2011 and 2021. The CAGR of the USA was 5.4 percent during
the same period, ranking second. Malaysia witnessed the slowest growth in import volume, with
a CAGR of only 0.7 percent. Russia, Japan and the UK ranked among the world’s top five in terms
6,352.1 6,313.0 6,753.3 6,713.3 6,846.0 7,357.2 7,493.8 7,919.5 8,209.6 8,365.9 8,199.4
3,015.5
2,465.2
3,271.1
2,953.6 3,064.0 2,921.9 3,022.8 3,130.0
3,714.8 3,593.1
3,856.5
0
1,000
2,000
3,000
4,000
5,000
0
2,000
4,000
6,000
8,000
10,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Import Quantity (1,000 tons) Import Value (million USD)
28
of import volume in 2011, but their imports generally showed a downward trend in the past decade.
From the perspective of import value, US imports were much higher than that of other countries,
reaching US$ 537 million, accounting for 13.9 percent of global import value. Mexico, Peru and
Canada were the main suppliers of onions and shallots imported by the US, respectively
accounting for 69.8 percent, 16.3 percent, and 10.1 percent of US imports. The US was followed
by Vietnam and Malaysia, whose imports were US$ 220 million and US$ 207 million respectively,
accounting for 5.7 percent and 5.4 percent of global import value of onions and shallots. The vast
majority of onions and shallots imported by Vietnam came from China, accounting for 96 percent
of its total import value. Malaysia’s suppliers of onions and shallots mainly included Pakistan,
India, the Netherlands and China, which accounted for 37.2 percent, 28.6 percent, 12.1 percent
and 7 percent of its total import value respectively.
Table 2-2 The World’s Top 10 Importers of Onions and Shallots in 2011, 2016, and 2021
Units: kiloton, million US$
2011
Area
Import Quantity
Proportion
Area
Import
Value
Proportion
Malaysia
453.7
7.1%
USA
294.3
9.8%
Russia
453.3
7.1%
Germany
239.4
7.9%
USA
394.1
6.2%
UK
231.5
7.7%
Japan
373.1
5.9%
Russia
208.2
6.9%
UK
356.7
5.6%
Malaysia
191.5
6.4%
Saudi Arabia
323.1
5.1%
Japan
176.2
5.8%
Germany
278.4
4.4%
Netherlands
131.7
4.4%
Bangladesh
268.1
4.2%
Saudi Arabia
121.2
4.0%
Netherlands
205.5
3.2%
Canada
119.1
4.0%
Canada
178.3
2.8%
Bangladesh
89.6
3.0%
Total
3,284.3
51.7%
Total
1,802.7
59.8%
2016
Area
Import Quantity
Proportion
Area
Import
Value
Proportion
Malaysia
577.7
7.9%
USA
456.1
15.6%
USA
521.2
7.1%
Malaysia
166.4
5.7%
Saudi Arabia
364.9
5.0%
UK
153.4
5.3%
UAE
358.4
4.9%
Canada
152.6
5.2%
Iran
353.0
4.8%
Germany
152.2
5.2%
29
Bangladesh
322.2
4.4%
Saudi Arabia
148.3
5.1%
Japan
279.0
3.8%
Japan
140.1
4.8%
UK
255.7
3.5%
UAE
88.6
3.0%
Germany
248.5
3.4%
France
85.2
2.9%
Sri Lanka
235.4
3.2%
Belgium
74.2
2.5%
Total
3516.0
47.8%
Total
1617.1
55.3%
2021
Area
Import Quantity
Proportion
Area
Import
Value
Proportion
USA
666.4
8.1%
USA
537.3
13.9%
Bangladesh
571.3
7.0%
Vietnam
220.4
5.7%
Malaysia
484.9
5.9%
Malaysia
207.1
5.4%
UAE
363.1
4.4%
UK
198.4
5.1%
Netherlands
313.6
3.8%
Canada
188.8
4.9%
Saudi Arabia
295.4
3.6%
Germany
183.6
4.8%
UK
292.0
3.6%
Bangladesh
172.3
4.5%
Sri Lanka
270.2
3.3%
Netherlands
162.9
4.2%
Iran
260.7
3.2%
Japan
127.8
3.3%
Canada
248.4
3.0%
Sri Lanka
118.7
3.1%
Total
3766.0
45.9%
Total
2117.3
54.9%
Sources: FAO
2.2 China’s Onion Trade
2.2.1 China Onion Trade in the Past Decade
From 2015 to 2022, China’s exports of fresh or chilled onions were much higher than its imports,
with a perennial surplus of more than US$ 400 million. In terms of trade volume, the export
volume remained above 600,000 tons, while the import volume fluctuated widely, ranging from
90 tons to 14,000 tons. On trade value, the export value kept above US$ 400 million, while the
import value ranged between US$ 30,000 and US$ 4.0 million.
30
Table 2-3 Fresh or Chilled Onion (HS: 07031010) Trade in China, 2015-2022
Year
Trade Volume (kiloton)
Trade Value (million US$)
Import Volume
Export Volume
Import Value
Export Value
2015
0.77
854.3
0.40
460.2
2016
13.5
694.0
3.99
435.0
2017
4.56
903.2
1.09
485.5
2018
5.99
887.6
1.29
478.9
2019
3.25
958.5
0.50
573.4
2020
0.09
858.6
0.03
469.3
2021
0.17
641.5
0.08
408.1
2022
9.85
795.8
1.61
532.4
Sources: The General Administration of Customs of China (GACC)
2.2.2 Onion Exports in China
2.2.2.1 Analysis of China’s Export Volume and Export Value of Onions
China’s export volume of fresh or chilled onions fell from 854,000 tons in 2015 to 796,000 tons
in 2022, registering a decrease of 6.79 percent, while the export value increased from US$ 460
million in 2015 to US$ 532 million in 2022, with a growth rate of up to 15.65 percent. China’s
onion exports were dominated by yellow onions. Due to the outbreak of the COVID-19 epidemic
in recent years, foreign demand for yellow onions decreased, and the export volume dropped by
10~30 percent from 2020 to 2022. China’s harvested area and production of yellow onions
decreased in 2022, resulting a price hike. Under the market pattern of weak supply and strong
demand, the export price also rose significantly, which pushed the export value up greatly.
31
Figure 2-3 Export volume and value of China’s fresh or chilled onions in 2015-2022
Sources: The General Administration of Customs of China (GACC)
2.2.2.2 Proportion of Different Destinations of Chinese Onions and Export
Time
China’s onions are exported to more than 40 countries (regions) around the world, including the
main sales areas such as Japan, South Korea, Southeast Asia and South Asia, as well as Russia,
the Middle East, Europe and the United States. From the distribution of China’s export destinations
in 2015 and 2022, Japan, South Korea, Vietnam and Malaysia were the largest sales areas of
Chinese onions. In 2022, these four countries accounted for 78 percent of China’s onion exports,
and the percentages of Japan and Vietnam both exceeded 30 percent.
854.3
694.0
903.2 887.6
958.5
858.6
641.5
795.8
460.2
435.0
485.5 478.9
573.4
469.3
408.1
532.4
0
200
400
600
800
0
300
600
900
1,200
2015 2016 2017 2018 2019 2020 2021 2022
Export Quantity（1,000 tons）
Export Value(million USD)
32
Figure 2-4 Proportion of Export Destinations of China’s Fresh or Chilled Onions
in 2015 and 2022 (Unit: kiloton)
Sources: The General Administration of Customs of China (GACC)
From the perspective of onion exports in 2022, the peak export season of Chinese onions starts
May to January of the following year, and the period from February to April is the off-season. The
centralized export time of onions in China is basically consistent with the harvest time and the
supply time. From the monthly exports of onions to various countries, Japan imported a large
amount of onion from China, with an average monthly import of 21,000 tons. Onion exports to
Vietnam, Malaysia and Thailand mainly occurred from May to January of the following year, and
the export volume to Vietnam was the highest, with the monthly average reaching 25,000 tons.
Local onions in Southeast Asia appear on the market from February to April and take a dominating
position in onion supply in this period. South Korea imported onions from China mainly from
August to December, and the monthly average import volume stood at 14,000 tons.
33
Figure 2-5 China’s Monthly Export Volume of Fresh or Chilled Onions in 2022
Sources: The General Administration of Customs of China (GACC)
2.2.3 China’s Imports of Onions
2.2.3.1 Analysis of China’s Import Volume and Import Value of Onions
From 2015 to 2022, China’s import volume of onions fluctuated greatly, with the maximum
reaching tens of thousands of tons and the minimum registering only dozens of tons. China
imported onions only from 2~6 countries (regions), including India, Southeast Asia, Europe and
the US.
From the import data between 2015 and 2022, China’s onion imports peaked in 2016, with an
import volume of 14,000 tons and an import value of US$ 3.99 million. The country’s imports fell
to a trough in 2020 and 2021, with the import volume dropping to 90 tons in 2020 and 170 tons in
2021, and then surged to 9,850 tons in 2022.
26.8 18 23.8 20.6 24.2 22.4 22.6 19.7 18.5 21.1 18.1 18.9
27.1
7.3 2.3 1.7
18.4 22.2 23.2 25.7 28.7 24.4 26.7 27.4
8.5 13.1 15 18.7 15.6
4.2
3.7 3.7 4.2 5.7 11.4 12.6 7.3
5.2
4.6 6.6 5
9.3 5.6 4.5 5.1
3.3
2.1 3.6 3.7
8.3
14 16.7 6.1
11.8 15 19.5 18.8
0
30
60
90
120
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sept. Oct. Nov. Dec.
Export Quantity (1,000 tons)
Japan Vietnam South Korea Malaysia Thailand Others
66.9
29.2 33 27.9
53.3
68.4 74.9
87.1 92.5 93.1
100.1
69.2
34
Figure 2-6 Changes in Import Volume and Import Value of Fresh or Chilled Onions
in China, 2015-2022
Sources: The General Administration of Customs of China (GACC)
2.2.3.2 Proportion of Import Sources of Onions and Import Time
From 2015 to 2022, China imported onions from 10 countries (regions).
China imported onions from India most frequently, and the import volume was also high, basically
reaching more than 100 tons. In 2016, China’s imports of Indian onions were as high as 13,000
tons. In addition, the imports from Vietnam, Myanmar, South Korea, and Egypt were relatively
high. Myanmar started to export onions to China in 2022, and the export volume stood at nearly
10,000 tons in 2022 and 274.5 tons in the first half of 2023. China also imported onions from
Taiwan, France, and the US, but the imports from most of them except for France were lower than
1 ton, and they haven’t exported onions to China since 2021.
0.77
13.50
4.56
5.99
3.25
0.09 0.17
9.85
0.40
3.99
1.09 1.29
0.50
0.03 0.08
1.61
0
1
2
3
4
5
0
4
8
12
16
2015 2016 2017 2018 2019 2020 2021 2022
Import Quantity (1,000 tons) Import Value (million USD)
35
Table 2-4 Distribution of the Origin Countries/Regions for Imported Onions in China, 2015-2023H1
Unit: ton
Years
2015
2016
2017
2018
2019
2020
2021
2022
2023 H1
India
762.0
13,489.6
4,443.2
5,935.9
1,734.5
87
-
29
256.2
Vietnam
10.5
-
-
2.9
96.8
-
167
-
Myanmar
-
-
-
-
-
-
-
9,818
274.5
South
Korea
-
-
-
2.4
1,415.0
-
-
-
Taiwan,
China
-
0.6
-
-
-
-
-
-
France
-
0.2
2.0
0.6
0.9
1.4
-
-
Italy
0.02
-
-
-
-
-
-
-
Belgium
-
-
0.2
0.8
0.4
-
-
-
USA
0.07
0.1
0.4
0.6
-
-
-
-
Egypt
-
-
58.2
-
-
-
-
-
Sources: The General Administration of Customs of China (GACC)
From the monthly imports of onions in 2015, 2017, 2019, and 2022, China didn’t import onions
all year round, and the time of centralized imports was not fixed.
In 2015, China imported onions mainly in October and November, and no onions were imported
in the May-to-September period and December. China imported onions all year round in 2017,
with the monthly average imports reaching 379.7 tons, and it saw the peak imports of 1,193.3 tons
in June and the lowest imports of 87 tons in August. In 2019, China imported onions mainly in the
first quarter, and July and August, and the monthly average import volume was 515.9 tons in the
first quarter and the figure in July and August reached 700.5 tons. In 2022, China witnessed
centralized imports of onions in the February-to-June period, and the imports registered 4,881.1
tons in April and 3,324.3 tons in May, peaking.
36
Figure 2-7 Monthly Imports of Onions in 2015, 2017, 2019 and 2022
Sources: The General Administration of Customs of China (GACC)
2.2.3.3 Analysis of China’s Import Prices of Onions
From the perspective of the import CIF price of onions from 2017 to the first half of 2023, China’s
weighted average import CIF price fluctuated between US$ 0.15/kg and US$ 0.5/kg. Thanks to
large import quantities of onions from India, Myanmar, and South Korea, the import CIF price
was low, basically fluctuating between US$ 0.15/kg and US$ 0.3/kg. As China’s imports of onions
from France, Belgium, and the US were low, the CIF prices were high and stood at US$ 5~7/kg,
US$ 1~3/kg, and US$ 1.2~3/kg respectively.
From the changes in the monthly import prices, China’s import prices of onions fluctuated between
US$ 0.2/kg and US$ 0.3/kg from 2016 to May 2018, after deducting the impact of the import
prices of onions from Europe and the US. The import CIF price dropped below US$ 0.2/kg in the
first half of 2018 and 2019. China imported onions mainly from Myanmar in 2022, and the import
price fluctuated around US$ 0.15/kg.
1月2月3月4月5月6月7月8月9月10月11月12月
2022 576.5 718.4 4,881.1 3,324.3 283.2 34.7 29.1
2019 501.1 427.1 619.5 86.5 58.0 58.0 618.9 782.0 96.0 0.2 0.4
2017 325.0 458.9 139.4 303.4 108.0 1,193.3 648.1 87.0 199.2 697.9 253.1 143.3
2015 10.5 0.02 0.03 0.5 239.9 522.4
239.9 522.4
325.0 458.9 303.4
1,193.3 648.1 697.9 253.1
143.3
501.1 427.1 619.5
618.9
782.0
576.5 718.4
4,881.1
3,324.3
283.2
0
1,000
2,000
3,000
4,000
5,000
6,000
Import Quantity (1,000 tons)
37
Table 2-5 China’s Import CIF Prices of Onions, 2016-2022
Unit: US$/kg
Month
2016
2017
2018
2019
2020
2021
2022
Jan.
1.18
0.26
0.22
0.13
7.58
Feb.
0.31
0.23
0.22
0.14
6.38
0.16
Mar.
1.22
0.25
0.21
0.16
0.16
Apr.
0.28
0.20
0.29
0.16
0.49
0.17
May
0.30
0.18
0.26
0.15
0.49
0.15
Jun.
0.30
0.24
0.18
0.18
0.15
Jul.
0.29
0.24
0.15
0.16
Aug.
2.45
0.23
1.67
0.17
0.15
Sept.
2.45
0.37
1.67
0.07
0.22
Oct.
0.25
0.2
7.10
0.20
Nov.
0.26
0.18
0.16
6.63
Dec.
0.25
0.21
0.17
6.98
0.4
Weighted Average
CIF Price
0.30
0.24
0.22
0.15
0.32
0.49
0.16
Sources: The General Administration of Customs of China (GACC)
2.2.3.4 Regional Distribution of Consignees of Imported Onions
From 2017 to 2022, the regeneration places of the consignees of imported onions in China were
mainly Beijing, Shanghai, Fujian, Zhejiang, Jiangsu, Shandong, Guangdong and Yunnan. Among
them, Beijing, Shandong, Guangdong, Yunnan were the top importing cities. China imported
onions mainly from India between 2017 and 2019, with Beijing, Shandong, and Guangdong as the
top importers. In 2022, China imported a large quantity of onions from Myanmar, which borders
Yunnan, making the province’s imports increased significantly.
38
Figure 2-8 China’s Onion Imports by the Registration Place of Consignees, 2018-2022
Sources: The General Administration of Customs of China (GACC)
2.2.3.5 Onion Imports in Hong Kong, China
From the import data from 2012 to 2022, Hong Kong saw surge in imports only in 2012, 2013,
2020, and 2021, and the imports in other years remained relatively stable.
Hong Kong’s import volume of onions in 2012, 2013, 2020, and 2021 reached 21,000 tons, 37,000
tons, 24,000 tons, and 37,000 tons respectively, and the corresponding import value stood at
US$ 8.10 million, US$ 23.5 million, US$ 24.4 million, and US$ 38.7 million respectively. The
import volume in other years was less than 10,000 tons, and kept stable with a decline between
2014 and 2019. Specifically, the import volume decreased from 10,700 tons in 2014 to 6,500 tons
in 2019, while the import value fell from US$ 6.3 million to US$ 4.5 million. In 2022, Hong
Kong’s import volume increased somewhat from 2019, and the import value rose to US$ 6.6
million.
1,160.0 1,768.9 667.0 87.0
308.0 864.0
2,566.4
927.0
1,345.6
740.3
167.0
9,818.4
0
3,000
6,000
9,000
12,000
2017 2018 2019 2020 2021 2022
Import Quantity (tons)
Beijing Shanghai Fujian Zhejiang Jiangsu Shandong Guangdong Yunnan
39
Figure 2-9 Onion Imports in Hong Kong, China, 2012-2022
Sources: UN Comtrade
The import price of onions showed an upward trend from 2012 to 2022, rising from US$ 0.39/kg
to US$ 0.96/kg. Compared with onion imports in the Chinese mainland, the import price in the
Hong Kong area was higher during this period expect for 2015, and the price gap was expanding.
Figure 2-10 Changes in Onion Import Prices in Hong Kong, China, 2012-2022
Sources: UN Comtrade
In 2021, India, New Zealand, the Netherlands, China and Australia were the top five suppliers of
Hong Kong’s imported onions, and aggregately exported 34,000 tons of onions to Hong Kong,
accounting for 93 percent of its total imports. Hong Kong’s import volume from India, its largest
supplier of onions, reached 23,500 tons in 2021, accounting for 64 percent of its total imports.
20.5
37.1
10.7 11.1 10.4 10.1 8.9
6.5
23.5
36.8
6.9
8.1
23.5
6.3 5.2 5.0 5.0 5.0 4.5
24.4
38.7
6.6
0
10
20
30
40
50
0
10
20
30
40
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Import Quantity (1,000 tons) Import Value (million USD)
0.39
0.63 0.59
0.47
0.48 0.49 0.56
0.69
1.04 1.05
0.96
0.52
0.30 0.24 0.22
0.15
0.32
0.49
0.16
0.0
0.3
0.6
0.9
1.2
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
CIF（USD/kg）
China, Hongkong China
40
In 2022, the Netherlands, New Zealand, China, Australia and the US were the top five suppliers
of Hong Kong’s imported onions, with a total of 6,322 tons of onions exported to Hong Kong,
accounting for 92 percent of its total imports. Of them, the Netherlands and New Zealand were
the top two import sources.
Figure 2-11 Hong Hong’s Onion Imports from Various Sources
and Proportion in 2021 and 2022（Unit: kiloton）
Sources: UN Comtrade
2.2.4 Regulations and Laws and Quality Requirements for Vegetable
(Onion) Imports in China
2.2.4.1 Regulations and Laws for Vegetable (Onion) Imports in China
Imported fresh or chilled onions (HS: 07031010) belong to edible agricultural products. The
quality and safety management of edible agricultural products primarily adhere to the regulations
of the "People's Republic of China Agricultural Product Quality and Safety Law." In addition, the
market sales of edible agricultural products, the establishment of relevant quality and safety
standards, the publication of relevant safety information, and the management of agricultural
inputs in the production process must also comply with the relevant provisions of the "People's
Republic of China Food Safety Law."
Regarding the import of agricultural products, China has relevant laws and regulations, including
the "Customs Law of the People's Republic of China," "Import and Export Commodity Inspection
Law of the People's Republic of China," "Border Health and Quarantine Law of the People's
41
Republic of China," "Import and Export Animal and Plant Quarantine Law of the People's
Republic of China," and "Regulations of the People's Republic of China on Import and Export
Tariffs" among others.
42
Table 2-6 Laws and Regulations Related to Vegetables (Onions) Imports in China
Names of laws and
regulations
Important clauses and contents
Date of
publication
/revision
Effective
date
Agricultural Product Quality
Safety Law of the People's
Republic of China
Agricultural products for sale must comply with the agricultural product quality and safety standards. Agricultural products that meet
any of the following conditions shall not be sold:
① Products containing pesticides, veterinary drugs, or other compounds prohibited by the state.
② Products with chemical residues such as pesticides, veterinary drugs, heavy metals, or other toxic and harmful substances that do
not meet the agricultural product quality and safety standards.
③ Products containing pathogenic parasites, microorganisms, or biotoxins that do not meet the agricultural product quality and safety
standards.
2022.9.2
2023.11.11
Food Safety Law of the
People's Republic of China
Edible agricultural products that enter the market for sale should comply with the national food safety standards regarding the use of
food additives such as preservatives and packaging materials in packaging, preservation, storage, and transportation.
2021.4.29
2015.10.1
Implementation Rules of
Food Safety Law of the
People’s Republic of China
The import and export section of food regulations specifies the responsibilities of the food inspection units for imported food, as well as
the responsibilities that importers, overseas food exporters, and manufacturers should fulfill.
2019.10.11
2019.12.1
Customs Law of the People's
Republic of China
For import and export goods, unless otherwise specified, the customs declaration and taxation procedures can be handled by the
consignee or consignor of the import/export goods themselves. Alternatively, they can choose to entrust a customs declaration company
to handle the customs declaration and taxation procedures on their behalf.
2021.4.29
1987.7.1
Frontier Health and
Quarantine Law of the
People's Republic of China
When containers, goods, waste materials, and other items arrive at a port for entry or exit, the carrier, agent, or consignor must declare
and undergo sanitary quarantine by the health quarantine authorities.
2018.4.27
1987.5.1
Law of the People's Republic
of China on Import and
Export Commodity
Inspection
The national quality inspection department formulates and adjusts the Catalog of Import and Export Commodities Subject to Inspection
that must undergo inspection, and publishes its implementation.
Inspection includes sampling, testing, and examination; assessment, verification, and quality assurance; registration, recognition, and
approval, as well as their combinations.
2021.4.29
1989.8.1
Regulation on the
Implementation of the Law of
the People's Republic of
China on the Inspection of
Imported and Exported
Commodities
The entry-exit inspection and quarantine authorities conduct inspections (statutory inspections) on import and export commodities listed
in the Catalog, as well as other import and export commodities that are required by laws and administrative regulations to undergo
inspection by the entry-exit inspection and quarantine authorities.
For import and export commodities outside the scope of statutory inspection, random inspections are conducted in accordance with
national regulations.
2019.3.2
2005.12.1
Law of the People's Republic
of China on the Entry and
Exit Animal and Plant
Quarantine
For the import of animals, animal products, plant seeds, seedlings, and other reproductive materials, an application must be submitted in
advance to obtain quarantine approval.
The consignor or their agent should present the quarantine certificates, trade contracts, and other documents from the exporting country
or region to the entry port's animal and plant quarantine authority for inspection before or upon entry of animals, plants, animal and
2009.8.27
1992.4.1
43
plant products, and other quarantine items.
Regulations for the
Implementation of the Law of
the People's Republic of
China on the Entry and Exit
Animal and Plant Quarantine
Foreign production, processing, and storage units that export animal and plant products to China are subject to a registration system.
They are required to undergo registration and obtain approval before engaging in such activities.
1996.12.2
1997.1.1
Measures on The
Administration of
Examination and Approval of
the Quarantine of Entry
Animals and Plants
The units applying for quarantine approval procedures (referred to as the applicant units) should have independent legal personality and
directly enter into trade contracts or agreements with external parties.
Before signing a trade contract or agreement, the applicant unit should submit an application to the approval authority and obtain a
"Quarantine Permit."
2023.3.9
2002.9.1
Administrative Measures of
the People's Republic of
China on Customs Inspection
of Import and Export Goods
Customs inspections conducted within the regulatory zone are not subject to fees. However, if customs seals are applied to containers,
container trucks, or other goods, a seal fee is charged in accordance with regulations.
2010.11.26
2006.2.1
Regulations on the National
Defense Mobilization of Civil
Transport Resources
Goods obtained entirely in one country (region) are considered as originating from that country (region). For goods produced with the
involvement of two or more countries (regions), the country (region) where the final substantial transformation occurs is considered as
the country (region) of origin.
2019.3.2
2005.1.1
The Provisions on the
Declaration for Exit-Entry
Inspection and Quarantine
The scope of inspection includes:
① Goods that must undergo inspection and quarantine according to national laws and regulations.
② Goods that must be accompanied by inspection and quarantine certificates for entry as stipulated by the importing country or
region.
③ Goods that require inspection and quarantine as specified by relevant international treaties.
④ Goods for which an application for the issuance of a certificate of origin or a preferential certificate of origin is made.
2018.11.23
2000.1.1
Sources: Information compiled by BOABC, based on public information
44
2.2.4.2 Relevant Standards and Quality Requirements
The Chinese standard system consists of national standards, local standards, industry standards,
association standards, and enterprise standards. BOABC has compiled 13 standards related to
onions, among which 5 national standards are considered the most important.
Table 2-7 Chinese Standards Related to Onions
No.
Category
Standard No.
Standard Name
Issuing Authority
1
Mandatory
National
Standard
GB 2763-2021
National food
safety standard—
Maximum residue limits for
pesticides in food
National Health Commission
Ministry of Agriculture
and Rural Affairs
State Administration for
Market Regulation
2
GB 2762-2022
National food
safety standard—
Limits of Contaminants in
Food
National Health Commission
State Administration for
Market Regulation
3
Recommended
national
standard
GB/T 5009.218-2008
Determination of Multiple
Pesticide Residues in Fruits
and Vegetables
Former Ministry of Health
Standardization Administration
of China
4
GB/T 25869-2010
Onions—Guide to storage
Former General Administration of
Quality Supervision, Inspection,
and Quarantine
Standardization Administration
of China
5
Guiding
national
standard
GB/Z 26589-2011
Production technical
practice for onion
Former General Administration of
Quality Supervision, Inspection,
and Quarantine
Standardization Administration
of China
6
Local
standards
DB62/T 4699-2023
Technical regulations for
green food production of
Onion in the open Field
Gansu Administration
for Market Regulation
7
DB37/T 702-2007
Production technical
Shandong Bureau of Quality and
Technical Supervision
8
DB32/T 613-2003
Export Yellow Onion
the Criterions for Production
Techniques
Jiangsu Bureau of Quality and
Technical Supervision
9
Industry
standards
NY/T 1584-2008
Grades and Specifications
Of Bulb Onions
Former Ministry of Agriculture
10
NY/T 744-2020
Green Food—
Allium Vegetables
Former Ministry of Agriculture
11
GH/T 1139-2022
Onion
All-China Federation of Supply
and Marketing Cooperatives
12
SB/T 10578-2010
Onion Circulation
Specifications
Ministry of Commerce
13
Enterprise
standards
Q/320581LBSW003-
2021
Field Onion Production
Technical Regulations
Jiangsu Lvbo Biological
Technology Co., Ltd.
Sources: Information compiled by BOABC
In the national standards of food safety, the 'Maximum Residue Limits for Pesticides in Food'
(GB 2763-2021) and the 'Limits of Contaminants in Food' (GB 2762-2022) are mandatory
45
standards that must be followed. The standard 'Determination of Multiple Pesticide Residues in
Fruits and Vegetables' (GB/T 5009.218-2008) and the 'Storage Guidelines for Onions' (GB/T
25869-2010) are recommended standards that the country encourages adoption of. The
'Technical Specifications for Onion Production' (GB/Z 26589-2011) is a national standardization
guidance document, which is generally referred to as a guiding standard and serves as a
necessary supplement. The focus will be on introducing GB 2763-2021 and GB 2762-2022.
The 'Maximum Residue Limits for Pesticides in Food' (GB 2763-2021) specifies the maximum
residue limits for 10,092 items of 564 pesticides. Specifically for onions, GB 2763-2021 sets the
maximum usage requirements for 203 pesticides (including 44 pesticides with exempted
maximum residue limits).
Table 2-8 The Maximum Residue Limits (MRLs) of Pesticides such as Abamectin in Onions
Unit：mg/kg
Pesticide name
MRL
Pesticide name
MRL
abamectin
0.05
mancozeb
0.5
chlorothalonil
10
zineb
0.5
dichlofluanid
0.1
dichlobenil
0.01
difenoconazole
0.5
acetamiprid
0.1
benalaxyl
0.02
spinosad
0.1
imidacloprid
0.1
diazinon
0.05
fluazifop and fluazifop-P-butyl
0.3
dinotefuran
0.1
penthiopyrad
0.7
haloxyfop-methyl and
haloxyfop-P-methyl
0.2
pymetrozine
0.5
fluopicolide
1
pyraclostrobin
1.5
fluopyram
0.07
propiconazole
0.1
fluazinam
0.05
flumioxazin
0.02
sulfoxaflor
0.01
propineb
0.5
oxathiapiprolin
0.04
glufosinate-ammonium
0.1
fluxapyroxad
0.6
metiram
0.5
thiram
0.5
fludioxonil
0.5
spirotetramat
0.4
Acibenzolar-S-methyl
0.15
cypermethrin and
beta-cypermethrin
0.01
methiocarb
0.5
dicloran
0.2
metalaxyl and metalaxyl-M
2
malathion
1
methoxyfenozide
0.05
fenamidone
0.15
dimethenamid-P
0.01
cyprodinil
0.3
46
pirimicarb
0.1
azoxystrobin
2
pyrimethanil
0.2
fenvalerate and esfenvalerate
0.5
bentazone
0.1
cycloxydim
3
folpet
1
mandipropamid
0.1
cyromazine
0.1
propamocarb and
propamocarb hydrochloride
2
1-naphthylacetic acid and
sodium 1-naphthalacitic acid
0.1
trifloxystrobin
0.05
tebuconazole
0.1
deltamethrin
0.05
clethodim
0.5
spinetoram
0.8
dimethomorph
0.6
iprodione
0.2
cyantraniliprole
0.05
maleic hydrazide
15
ethametsulfuron
0.01
isofenphos-methyl
0.01
crotoxyphos
0.02
carbaryl
1
paraquat
0.05
methoxychlor
0.01
azinphos-methyl
0.5
myclobutanil
0.06
fenthion
0.05
monocrotophos
0.03
fenamiphos
0.02
carbofuran
0.02
chloropropylate
0.02
dimethoate
0.01
chlornitrofen
0.01
binapacryl
0.05
2,3,6-TBA
0.01
phosphamidon
0.05
trichlorfon
0.2
endosulfan
0.05
dichlorvos
0.2
phosfolan
0.03
fonofos
0.01
cadusafos
0.02
carbosulfan
0.01
chloroneb
0.01
boscalid
5
cyhalothrin and lambda-
cyhalothrin
0.2
chlorfenvinphos
0.01
chlorsulfuron
0.01
hexachlorophene
0.01
permethrin
1
chlorpyrifos
0.02
chlorthal
0.01
parathion
0.01
chlorthal-dimethyl
0.01
naled
0.01
isazofos
0.01
flupyradifurone
0.01
dalapon
0.01
fipronil
0.02
tridiphane
0.05
fluoronitrofen
0.01
methomyl
0.2
2,4-Dichlorophenyl
benzenesulfonate
0.01
acequincyl
0.01
heptenophos
0.01
ethoprophos
0.02
cycloprate
0.01
demeton
0.02
47
methamidophos
0.05
fluorodifen
0.01
phorate
0.01
dicofol
0.01
metsulfuron-methyl
0.01
triazophos
0.05
parathion-methyl
0.02
chlordimeform
0.01
Phosfolan-methyl
0.03
tetrachlorvinphos
0.01
fenitrothion
0.5
chlorobenzilate
0.01
methidathion
0.05
erbon
0.05
isocarbophos
0.05
indanofan
0.01
mevinphos
0.01
coumaphos
0.05
terbufos
0.01
sulfotep
0.01
dinoterb
0.01
aldrin
0.05
aldicarb
0.03
DDT
0.05
dinosam
0.01
dieldrin
0.05
kinoprene
0.01
camphechlor
0.05
hydroprene
0.01
HCH
0.05
dinex
0.01
chlordane
0.02
phoxim
0.05
mirex
0.01
methyl bromide
0.02
heptachlor
0.02
omethoate
0.02
endrin
0.05
acephate
0.02
Sources: National food safety standard Maximum residue limits for pesticides in food(GB2763-2021), information compiled by
BOABC
Table 2-9 List of Pesticides Exempted from Establishing Maximum Residue Limits (MRLs) in Food
Number
Pesticide name
Number
Pesticide name
1
Bacillus thuringiensis
23
Helicoverpa armigera nucleo
polyhedrovirus virus(HaNPV)
2
Pseudomonas fluorescens
24
Autographa californica multiple
nucleo polyhedro virus(AcMNPV)
3
Bacillus subtilis
25
triacontanol
4
Bacillus cereus
26
trimedlure
5
Bacillus licheniformis
27
polygalacturonase
6
Empedobacter brevis
28
harpin protein
7
Paenibacillus polymyza
29
S-abscisic acid
8
Agrobacterium radibacter
30
entinan
9
Trichoderma spp.
31
chltosan
10
Beauveria spp.
32
glucosan
48
11
Paecilomyces lilacinus
33
oligosaccharins
12
Verticillium chlamydosporium
34
Bacillus amyloliquefaciens
13
Conidioblous thromboides
35
Bacillus methylotrophicus
14
Metarhizium anisopliae
36
Mamestra brassicaenucleo polyhedro
virus ( MbMNPV)
15
Pythium oligadrum
37
Plant activator protein
16
Pierisrapae granulo virus(PiraGV)
38
Nosemalocustae
17
Ectropis obliqua nucleo
polyhedro virus(EcobNPV)
39
oligosaccharide
18
Dendrolimus punctatus
cypovirus(DpCPV)
40
Coniothyrium minitans
19
Spodoptera eM nucleo polyhedro
virus(Sexigua multipeNPV)
41
Z-8-dodeceny-1-yl acetate
20
Pseudaletia unipuncta granulo
virus(PuGV)
42
E-8-dodeceny-1-yl acetate
21
Plutella xylostella granulo
virus(PlxyGV)
43
Z-8-dodecen-1-ol
22
Spodopteralitura nuclo
polyhedrovirus(SINPV)
44
Mixed fatty acids
Sources: National food safety standard—Maximum residue limits for pesticides in food(GB2763-2021), information compiled by
BOABC
According to the "Limits of Contaminants in Food" (GB 2762-2022) national standard, the
following are the limit indicators for various contaminants in food, including lead, cadmium,
mercury, arsenic, tin, nickel, chromium, nitrite, nitrate, benzo[a]pyrene, N-nitrosodimethylamine,
polychlorinated biphenyls, and 3-chloro-1,2-propanediol. The specific limit indicators for each
contaminant in onions are as follows:
Table 2-10 Limit Standards for Pollutants in Onions
Unit：mg/kg
Pollutant name
Limit
Pollutant name
Limit
Pb
0.1
As
0.5
Cd
0.05
Sn
250
Hg
0.01
Cr
0.5
Sources: National food safety standard—The Limitations of Contaminants in Food (GB2762-2022), information compiled by
BOABC
49
2.2.5 Import Process and Details of Onions in China
2.2.5.1 Import Process
(1) Obtaining Access Qualifications
According to the "List of Plant Products Allowed for Import, Including Fresh Vegetables and
Seasonings, and the Countries and Regions of Origin" issued by the General Administration of
Customs of China in June 2023, a total of 12 countries (regions) have been allowed to export fresh
or chilled onions to mainland China. These countries include Brazil, Belgium, Germany, France,
South Korea, the United States, Myanmar, Japan, Ukraine, India, Vietnam, and Taiwan, China.
Among them, there are four European countries (three EU member states and Ukraine).
Currently, the Netherlands has not been approved to export fresh or chilled onions to China. In the
future, the Netherlands can promote the signing of bilateral quarantine agreements with China
(such as the Protocol on Phytosanitary Requirements for Dutch Onion Exports to China,
Memorandum of Understanding, Agreements, etc.) when the time is right to obtain access
qualifications.
(2) Enterprise Registration
According to the "Implementation Regulations of the People's Republic of China on the Customs
Law," China implements a registration system for foreign production, processing, and storage
units that export animal and plant products to China.
After Dutch fresh or chilled onions are approved to enter the Chinese market, domestic production,
processing, and storage units in the Netherlands (referred to as "export enterprises") are reviewed
and approved by the competent authorities in the Netherlands and recommended to the General
Administration of Customs of China. The General Administration of Customs of China examines
the recommended materials and may send experts to the Netherlands for inspection and evaluation
of the export enterprises if necessary. If the inspection is qualified, the General Administration of
Customs of China will register and publicly announce it.
(3) Handling Quarantine Licenses
According to the "Law of the People's Republic of China on Import and Export Animal and Plant
Quarantine" and the "Administrative Measures for Import Animal and Plant Quarantine
50
Approval," combined with the feedback from BOABC Consulting to the General Administration
of Customs, the following conclusions can be drawn: Chinese importers of onions should apply
and obtain quarantine licenses from the approval authority before signing trade contracts or
agreements. The validity period of the quarantine license is twelve months. If the quarantine
approval procedures are not followed according to the law, upon arrival, the port animal and plant
quarantine authorities can choose to return or dispose of the onions based on specific
circumstances.
(4) Import Customs Clearance
When the exporting country (such as the Netherlands) meets the access qualifications, the export
enterprise has completed the registration, and the Chinese importer has obtained the quarantine
license, the Chinese importer can sign a trade contract or agreement with the exporting country's
enterprise. The exported onions can officially enter China and flow into the Chinese consumer
market after customs clearance.
The import customs clearance process for Chinese vegetables (onions) is mainly as follows:
Declaration Pre-Recording - Document Exchange - Inspection and Quarantine - Goods Inspection
- On-Site Declaration - Payment of Taxes and Fees - Customs Clearance and Delivery
① Declaration Pre-Recording
According to the "Customs Law of the People's Republic of China" and the "Regulations of the
People's Republic of China on the Administration of Import and Export Goods Declaration," both
the consignee and the entrusted customs declaration enterprise can declare to the customs. In
practice, the consignee generally entrusts a customs declaration enterprise to make the declaration.
Before submitting the paper customs declaration form on-site, the customs declarer can make a
pre-recording through the customs pre-recording system, submit an electronic data customs
declaration form, and have the customs system perform electronic document review. Pre-recording
can greatly improve the efficiency of enterprise customs clearance.
② Document Exchange
After the goods arrive at the port, the consignee or the customs clearance agent presents the bill
of lading (B/L) issued by the shipper to the shipping company (or shipping agent) to obtain the
delivery order (D/O). They also need to pay the delivery order fee to the shipping company.
51
③ Inspection and Quarantine
Starting from August 1, 2018, China implemented integrated customs declaration and inspection
procedures. The customs declaration form and inspection form were merged into a single customs
declaration form, following the principle of "one customs declaration form, one set of
accompanying documents, one set of parameter codes, and one declaration system" for
management. In practice, goods that require inspection still need to undergo inspection before
proceeding with the customs clearance process.
China Customs implements import supervision (supervision condition: A) on fresh or chilled
onions (HS: 07031010). The customs at the port of declaration need to conduct commodity
inspection for onions, as well as conduct inspection and quarantine for imported plants, plant
products (inspection and quarantine category: R), and imported food hygiene supervision and
inspection (inspection and quarantine category: P).
Materials and accompanying documents to be submitted during the inspection mainly include the
customs declaration form, quarantine permit, phytosanitary certificate from the exporting country
or region, trade contract, delivery order, packing list, letter of credit, invoice, certificate of origin,
fumigation certificate (required for wooden packaging or pallets, or an IPPC mark is also
acceptable), etc. If the customs declaration is handled by a customs clearance agent, a power of
attorney for customs clearance representation should also be submitted.
④ Goods Inspection
If the consignee (or agent) receives a "Customs Inspection Notice," they will need to undergo
goods inspection. The inspection rate for imported agricultural products is around 30%, and
agricultural products being imported for the first time must undergo inspection.
If Dutch onions are to enter the Chinese market in the future, the first batch of products will need
to undergo goods inspection.
⑤ On-Site Declaration
After the customs complete the examination of the electronic data customs declaration, the
consignee (or agent) submits the paper customs declaration form and accompanying documents
to the customs at the location of the goods to proceed with the necessary procedures.
During the customs declaration process, if the customs have doubts about the declared value of
52
the goods, they will initiate a valuation procedure to examine and determine the dutiable value of
the imported goods.
In addition to the required documents for inspection, the customs declaration form should be
accompanied by the "Certificate of Entry-Exit Goods Inspection and Quarantine" (or other
quarantine certificates issued by the General Administration of Customs' Animal and Plant
Quarantine Department) and the "Health Certificate." If there is a need for inspection, the
consignee (or agent) should also provide inspection records signed and confirmed by the consignee.
⑥ Payment of Taxes and Fees
Based on the value of the goods or the assessed value, the customs will calculate import duties
and value-added tax (VAT). The consignee (or agent) should pay the relevant taxes and fees to the
customs.
The customs will issue an Import Customs Duty Payment Certificate and an Import Value Added
Tax Payment Certificate. The consignee (or agent) can pay the taxes using methods such as checks
or online payments.
⑦ Customs Clearance and Delivery
After receiving the customs duties, the customs will stamp the customs clearance seal on the
delivery order. The consignee (or agent) presents the delivery order at the port to collect the goods.
At this stage, the consignee is also required to pay container deposit (container usage deposit).
After unloading the cargo, the consignee must return the container within the specified time limit
in order to receive the deposit refund from the container owner. If the container is not returned
within the specified time limit, the consignee will be responsible for paying demurrage fees.
Notes: It's important to note that the import customs clearance process may vary slightly
depending on the specific circumstances.
53
2.2.5.2 Import Taxes and Other Customs Clearance Fees
(1) Import Taxes
The following table shows the tariff rates implemented by China on the exporting countries
(regions) of imported onions in 2023. Among them, the countries (regions) that implement the
most favored nation tariff rate (13%) include Belgium, Germany, France, Ukraine, Brazil, and
Taiwan, China. The countries that implement the preferential tariff rates include Vietnam (0%),
Myanmar (0%), South Korea (1.3%), India (6.5%), and Japan (10.6%). The United States is
subject to a special agreement tariff rate (43%).
Table 2-11 Tariff Rates for Imported Fresh or Chilled Onions (HS:07031010) in China in 2023
HS code
Product
Name
MFN Rate
Conventional
Tariff Rate2
Prefere
ntial
Tariff
Special
conventional
tariff
General
Tariff
Rate
07031010
Fresh or
Chilled
Onions
13%
Belgium,
Germany,
France,
Ukraine,
Brazil,
Taiwan
China
0%
Vietnam,
Myanmar
(AS)
0%
Myanm
ar (LD)
43%
USA
70%
1.3%3
South Korea
(KR)
6.5%
India (AP)
10.6%
Japan(ASR)
Sources: Information compiled by BOABC
According to the "Administrative Measures for the Levy of Import and Export Duties of the
People's Republic of China," customs duties are levied based on ad valorem and specific duties.
Calculation formula for ad valorem duties: Customs duty payable = Customs value × Tariff rate
Calculation formula for specific duties: Customs duty payable = Quantity of goods × Unit duty
amount
According to the "Customs Law," the customs value should include the price of the goods,
transportation and related expenses incurred before unloading at the place of importation in China,
2
Goods imported by countries (regions) that have signed regional trade agreements with China containing tariff
preference clauses are subject to the agreed tariff rates. Onions, whether fresh or chilled (HS: 07031010), are covered by
agreements such as the "China-ASEAN Comprehensive Economic Cooperation Framework Agreement" (AS), the "China-
Korea Free Trade Agreement" (KR), the "Asia-Pacific Trade Agreement" (AP), and the "Regional Comprehensive
Economic Partnership Agreement" (ASR).
3
According to the China-South Korea Free Trade Agreement, starting from 2024, China exempts tariffs on imported onions
from South Korea
54
and insurance fees, which is the CIF price.
Imported onions are subject to ad valorem duties. In addition to customs duties, imported onions
are also subject to a 9% value-added tax (VAT), calculated as follows:
VAT payable = (Customs value + Actual customs duty amount) × VAT rate (9%)
Therefore, the cost of imported onions including taxes and fees is calculated as:
CIF * (1 + Tariff rate) * (1 + VAT rate)
Taking imported onions from India as an example, the import cost would be:
CIF * (1 + 6.5%) * (1 + 9%)
(2) Other Customs Clearance Fees
According to industry research, in addition to paying taxes and fees, the customs clearance of
imported onions from the port of arrival to the goods clearing requires additional customs
clearance fees ranging from 6,500 to 9,000 yuan per TEU, as shown in the table below.
The fees for replacing a bill of lading mainly include the fee for changing the delivery order,
terminal handling charges (THC), document fees, data transmission fees, unpacking fees, as well
as various additional charges. The fees for replacing a bill of lading for a container range from
2,000 to 2,200 yuan.
Port charges refer to a series of fees related to goods after they arrive at the port, including
document handling fees, loading and unloading fees, lifting fees, container handling fees,
transportation fees, refrigeration fees, and storage fees incurred due to customs declaration,
inspection, quarantine, and examination of goods. The charging standards vary among different
ports. The port charges for a standard container of onions generally range from 3,000 to 4,000
yuan.
During the customs declaration and inspection process, it mainly involves customs declaration
fees (200 yuan per declaration), inspection and quarantine fees (300-500 yuan per declaration), as
well as randomly occurring customs inspection-related expenses. The costs can vary significantly
depending on the handling procedures during customs inspection.
If customs declaration and inspection are carried out through an agent (customs declaration agency
or import/export agency), the consignee will also need to pay a customs clearance service fee,
55
which is approximately 1% of the import value.
Table 2-12 The Customs Clearance Fees and Charges for Importing Vegetables (Onions) into China
4
Fee Item
Amount (RMB)
Remarks
Delivery Order Fee
2,000~2,200 yuan/TEU
Collected by the shipping company or
shipping agent.
Port Charges
(calculated for 3-5 days)
3,000~4,000
yuan/TEU
Collected by the port operating unit.
Customs Declaration Fee
≈200 yuan/declaration
Under the condition of customs declaration
through an agent, the customs declaration
fee is paid by the agent.
Inspection and Quarantine Fee
300~500
yuan/declaration
Goods Inspection Fee
(random)
200-1,500
yuan/declaration
Customs Clearance
Service Fee
Approximately 1% of
the value of the goods
There is a minimum fee, approximately
800-1,000 yuan/declaration.
Total
≈6,500-9,000
yuan/TEU
For reference only, the fees may vary
depending on factors such as the shipping
route, destination port, importing country,
and the value of the goods.
Sources: Information compiled by BOABC
4
Customs clearance fees are calculated based on the clearance time of 3 to 5 days and the goods in a single container.
56
Chapter Three Analysis of Circulation and
Consumption of Vegetables and Onions in China
3.1 Analysis of Onion Circulation
5
in China
3.1.1 Analysis of China’s Onion Industry Chain
Figure 3-1 Diagram of China’s Onion Industry Chain
China’s onion supply chain can be roughly divided into five links.
The front-end industry refers to the upstream link of onion cultivation, with suppliers of onion
seeds, fertilizers, plant protection products and agricultural film, and distributors of agricultural
machinery (can serve ploughing, planting, managing and harvesting) as the main players. Seeds,
fertilizers, plant protection products, and agricultural film are agricultural means of production,
and generally sold by the sales department of agricultural materials.
Onion cultivation: Vegetables including onions, are mainly grown by farmers, cooperatives,
family farms, and enterprises. The production and planting modes include “company + farmer”,
“company + cooperative + farmer”, and “company + base + farmer”.
Processing, distribution and other circulation links: Onions are mainly purchased by
agricultural product brokers from farmers, and then distributed through merchants in wholesale
5
Refers to the wholesale link.
Front-end
Industry Processing, distribution
and other circulation links Retails Terminal
Consumption
Onion
Growing
Seeds
Fertilizers
Plant
protection
products
Agricultural
machinery
Agricultural
film
Farmers
Cooperatives
Family farms
Enterprises
Main distribution
channels
Farmers’
markests
Vegetable shops
in communities
Supermarkets/co
nvenience stores
Online retail
channels
Retail
Channels
Social catering
Group meals
Catering
Services
Agricul
tural
brokers
Wholesale
Markets
B2B
platforms
Food supply
chain
companies
Household or personal
consumption
Processing
57
markets of agricultural products (such as Beijing Xinfadi Market and Guangzhou Jiangnan
Market), B2B e-commerce platforms of agricultural products (such as Yimutian), food supply
chain enterprises (such as Shenzhen Wangjiahuan Group and m.meicai.cn), and processors. These
distributors and processors can also purchase directly from the onion production base. Onions are
mainly consumed fresh, and only a small part of onions flow into processors.
Retails: The retail of onions is divided into two parts, namely traditional retail channels and
catering. Traditional retail channels include offline farmers’ markets, community vegetable stores,
supermarkets and convenience stores, and online retail e-commerce platforms (such as Tmall) and
new e-commerce formats (such as WeChat Mall). Catering channels mainly include catering
enterprises (such as halal restaurants) and group meal enterprises (such as Kinghey) .
Terminal consumption includes personal consumption (singles and students) and household
consumption.
3.1.2 Analysis of Onion Circulation Channels
Onions are mainly consumed fresh, so this report focuses on the distribution channels of onions.
3.1.2.1 Wholesale Markets of Agricultural Products
According to statistics, there are more than 4,100 wholesale markets of agricultural products in
China, and more than 1,300 of them reported an annual transaction volume of above 100 million
yuan. In 2019, the transaction volume of wholesale markets of agricultural markets in China was
up to 5.7 trillion yuan, while the trading volume reached 970 million tons. Currently, about 70
percent of agricultural products are distributed through wholesale markets, which are still the main
channel for the circulation of agricultural products in China, especially fresh agricultural products.
The production and consumption features of vegetables in China determine the importance of
wholesale markets in the circulation system, and the same is true for onions. “Concentrated
producing areas + scattered sales areas” is a distinguishing feature of onion circulation in China.
Future development trends:
1.The market share of wholesale markets will decline. Wholesale markets are irreplaceable in
China’s circulation system of agricultural products, which will remain so in the future. However,
the proportion of fresh agricultural products distributed through wholesale markets will decline
58
somewhat, which can be explained by two factors. The circulation form of agricultural products
will be increasingly diversified, and the proportion of agricultural products after primary
processing will rise.
2.More and more wholesale markets will make digital and intelligent transformation, and the
traceability system of agricultural products and food as well as the wholesaler management
system will be gradually improved.
3.1.2.2 B2B E-commerce Platforms of Agricultural Products
B2B e-commerce platform of agricultural products are online wholesale markets of agricultural
products. Compared with retails, the penetration rate of e-commerce in China’s wholesale sector
of agricultural products is relatively low, and the figure estimated by BOABC is lower than 10%.
At present, B2B e-commerce platforms of agricultural products in China mainly include Yimutian,
Pinduoduo, and CNHNB. COM. In 2022, the service network of Yimutian covered 9,790 stalls in
110 markets of 65 cities in China, with an annual sale of 6.0 million tons of agricultural products
and a matchmaking transaction volume of more than 300 billion yuan.
3.1.2.3 Food Supply Chain Enterprises
Food supply chain distribution enterprises link suppliers (direct procurement bases and factories,
brand manufacturers, and merchants in the first-tier wholesale market of agricultural products)
with B-end customers (brand catering companies, group meal distribution companies, and
canteens in units). They form a supply chain management platform spanning agricultural primary,
secondary and tertiary industries through order agriculture and prepared food processing. The
advantage of the food supply chain distribution channels lies in their ease of scaling, while the
disadvantage is that the profit margins of suppliers are limited.
As the lengthy middle links are cut off, food supply chain companies not only reduce the supply
chain costs of downstream customers, but also meet the high requirements of special customers
for food quality, realizing the innovation and upgrading of the food supply chain.
59
3.1.3 Analysis of Onion Sales Volume in Circulation
3.1.3.1 Onion Sales Volume
Figure 3-2 Weekly Sales Volume of Onions in Weifang City, Shandong Province,
May 2020 to August 2023 (unit: ton)
Sources: Industry Research, information compiled by BOABC
From May 2020 to August 2023, the weekly average sales volume of onions in Shandong’s
Weifang City stood at 46.1 tons. To be specific, the weekly average sales figure was 52.6 tons in
2020 (May to December), 49.6 tons in 2021, 43 tons in 2022, and 38.3 tons in 2023 (January to
early August).
Figure 3-3 Weekly Sales Volume of Onions in Wuhan City, Hubei Province,
June 2020 to August 2023 (unit: ton)
0
50
100
150
200
250
2020/5/14
2020/5/28
2020/6/11
2020/6/25
2020/7/9
2020/7/23
2020/8/6
2020/8/20
2020/9/3
2020/9/17
2020/10/1
2020/10/15
2020/10/29
2020/11/12
2020/11/26
2020/12/10
2020/12/24
2021/1/7
2021/1/21
2021/2/4
2021/2/18
2021/3/4
2021/3/18
2021/4/1
2021/4/15
2021/4/29
2021/5/13
2021/5/27
2021/6/10
2021/6/24
2021/7/8
2021/7/22
2021/8/5
2021/8/19
2021/9/2
2021/9/16
2021/9/30
2021/10/14
2021/10/28
2021/11/11
2021/11/25
2021/12/9
2021/12/23
2022/1/6
2022/1/20
2022/2/3
2022/2/17
2022/3/3
2022/3/17
2022/3/31
2022/4/14
2022/4/28
2022/5/12
2022/5/26
2022/6/9
2022/6/23
2022/7/7
2022/7/21
2022/8/4
2022/8/18
2022/9/1
2022/9/15
2022/9/29
2022/10/13
2022/10/27
2022/11/10
2022/11/24
2022/12/8
2022/12/22
2023/1/5
2023/1/19
2023/2/2
2023/2/16
2023/3/2
2023/3/16
2023/3/30
2023/4/13
2023/4/27
2023/5/11
2023/5/25
2023/6/8
2023/6/22
2023/7/6
2023/7/20
2023/8/3
20
40
60
80
100
2020/6/25
2020/7/9
2020/7/23
2020/8/6
2020/8/20
2020/9/3
2020/9/17
2020/10/1
2020/10/15
2020/10/29
2020/11/12
2020/11/26
2020/12/10
2020/12/24
2021/1/7
2021/1/21
2021/2/4
2021/2/18
2021/3/4
2021/3/18
2021/4/1
2021/4/15
2021/4/29
2021/5/13
2021/5/27
2021/6/10
2021/6/24
2021/7/8
2021/7/22
2021/8/5
2021/8/19
2021/9/2
2021/9/16
2021/9/30
2021/10/14
2021/10/28
2021/11/11
2021/11/25
2021/12/9
2021/12/23
2022/1/6
2022/1/20
2022/2/3
2022/2/17
2022/3/3
2022/3/17
2022/3/31
2022/4/14
2022/4/28
2022/5/12
2022/5/26
2022/6/9
2022/6/23
2022/7/7
2022/7/21
2022/8/4
2022/8/18
2022/9/1
2022/9/15
2022/9/29
2022/10/13
2022/10/27
2022/11/10
2022/11/24
2022/12/8
2022/12/22
2023/1/5
2023/1/19
2023/2/2
2023/2/16
2023/3/2
2023/3/16
2023/3/30
2023/4/13
2023/4/27
2023/5/11
2023/5/25
2023/6/8
2023/6/22
2023/7/6
2023/7/20
2023/8/3
60
Sources: Industry Research, information compiled by BOABC
From June 2020 to August 2023, the weekly average sales volume of onions in Wuhan City, Hubei
Province reached 61.4 tons. Specifically, the weekly average sales figure was 66.8 tons in 2020
(June to December), 66.1 tons in 2021, 57.3 tons in 2022, and 55.4 tons in 2023 (January to early
August).
Notes: Affected by the control and prevention of the COVID-19 epidemic from 2020 to 2022,
catering consumption and household consumption were suppressed to varying degrees.
Meanwhile, the supply chain of fresh agricultural products such as onions experienced phased and
regional disruptions, impacting the sales of onions to a certain extent.
3.1.3.2 Demand in Major Consumer Cities
Figure 3-4 Weekly Demand of Onions in Beijing from July 2020 to August 2023 (Unit: ton)
Sources: Industry Research, information compiled by BOABC
0
20
40
60
80
100
120
140
2020/7/16
2020/7/30
2020/8/13
2020/8/27
2020/9/10
2020/9/24
2020/10/8
2020/10/22
2020/11/5
2020/11/19
2020/12/3
2020/12/17
2020/12/31
2021/1/14
2021/1/28
2021/2/11
2021/2/25
2021/3/11
2021/3/25
2021/4/8
2021/4/22
2021/5/6
2021/5/20
2021/6/3
2021/6/17
2021/7/1
2021/7/15
2021/7/29
2021/8/12
2021/8/26
2021/9/9
2021/9/23
2021/10/7
2021/10/21
2021/11/4
2021/11/18
2021/12/2
2021/12/16
2021/12/30
2022/1/13
2022/1/27
2022/2/10
2022/2/24
2022/3/10
2022/3/24
2022/4/7
2022/4/21
2022/5/5
2022/5/19
2022/6/2
2022/6/16
2022/6/30
2022/7/14
2022/7/28
2022/8/11
2022/8/25
2022/9/8
2022/9/22
2022/10/6
2022/10/20
2022/11/3
2022/11/17
2022/12/1
2022/12/15
2022/12/29
2023/1/12
2023/1/26
2023/2/9
2023/2/23
2023/3/9
2023/3/23
2023/4/6
2023/4/20
2023/5/4
2023/5/18
2023/6/1
2023/6/15
2023/6/29
2023/7/13
2023/7/27
61
The weekly average demand of onions in Beijing reached 100.5 tons from July 2020 to
August 2023. To be specific, the weekly average demand was 74.8 tons in 2020 (July to
December), 108.8 tons in 2021, 104.1 tons in 2022, and 101.5 tons in 2023 (January to early
August).
Figure 3-5 Weekly Demand of Onions in Shanghai from July 2020 to August 2023 (unit: ton)
Sources: Industry Research, information compiled by BOABC
The weekly average demand of onions in Shanghai stood at 100.5 tons from July 2020 to August
2023. To be specific, the weekly average demand figure was 114.2 tons in 2020 (July to
December), 106.5 tons in 2021, 86.3 tons in 2022, and 103.7 tons in 2023 (January to early
August).
0
20
40
60
80
100
120
140
160
2020/7/23
2020/8/6
2020/8/20
2020/9/3
2020/9/17
2020/10/1
2020/10/15
2020/10/29
2020/11/12
2020/11/26
2020/12/10
2020/12/24
2021/1/7
2021/1/21
2021/2/4
2021/2/18
2021/3/4
2021/3/18
2021/4/1
2021/4/15
2021/4/29
2021/5/13
2021/5/27
2021/6/10
2021/6/24
2021/7/8
2021/7/22
2021/8/5
2021/8/19
2021/9/2
2021/9/16
2021/9/30
2021/10/14
2021/10/28
2021/11/11
2021/11/25
2021/12/9
2021/12/23
2022/1/6
2022/1/20
2022/2/3
2022/2/17
2022/3/3
2022/3/17
2022/3/31
2022/4/14
2022/4/28
2022/5/12
2022/5/26
2022/6/9
2022/6/23
2022/7/7
2022/7/21
2022/8/4
2022/8/18
2022/9/1
2022/9/15
2022/9/29
2022/10/13
2022/10/27
2022/11/10
2022/11/24
2022/12/8
2022/12/22
2023/1/5
2023/1/19
2023/2/2
2023/2/16
2023/3/2
2023/3/16
2023/3/30
2023/4/13
2023/4/27
2023/5/11
2023/5/25
2023/6/8
2023/6/22
2023/7/6
2023/7/20
2023/8/3
62
3.2 Overview of Fruit, Vegetable and Onion Consumption in China
3.2.1 Fruit, Vegetable and Onion Consumption
3.2.1.1Fruit & Vegetable
（1）Vegetables
Figure 3-6 Direct Consumption of Vegetables & Edible Mushrooms
in China, 2013-2021 (unit: million tons)
Sources: The National Bureau of Statistics
From 2013 to 2021, the direct consumption of vegetables (including edible mushrooms, similarly
hereinafter) in China increased from 133 million tons to 155 million tons, with a CAGR of about
1.9 percent.
In 2018, the direct consumption of vegetables registered a year-on-year decline of 2.8 percent, and
then increased rapidly. In 2020 and 2021 especially, the year-on-year growth rates reached 5.3
percent and 5.9 percent respectively.
133.31 133.38 135.28
139.37 138.89
135.06
139.03
146.44
155.10
2013 2014 2015 2016 2017 2018 2019 2020 2021
63
Figure 3-7 China’s Per Capita Consumption of Vegetables
and Edible Mushrooms, 2013-2021 (unit: kg)
Sources: NBS
From 2013 to 2021, the annual per capita vegetable consumption of Chinese residents increased
by 12.6 percent from 97.5 kg to 109.8 kg; the figure for urban residents grew by 7.9 percent from
103.8 kg to 112 kg, and that for rural residents rose by 18.1 percent from 90.6 kg to 107 kg. Overall,
the per capita consumption of urban residents was higher than that of rural residents, and the
growth rate of the former was lower than that of the latter.
（2）Fruits
Figure 3-8 Consumption of Dried and Fresh Melons and Fruits in China, 2013-2021 (unit: million tons)
Sources: NBS
From 2013 to 2021, China’s consumption of dried and fresh melons and fruits increased from
97.5 96.9 97.8 100.1 99.2
96.1 98.6
103.7
109.8
103.8 104 104.4
107.5 106.7
103.1 105.8
109.8 112
90.6 88.9 90.3 91.5 90.2 87.5 89.5
95.8
107
2013 2014 2015 2016 2017 2018 2019 2020 2021
residents urban residents rural residents
55.65
58.09
61.56
67.25
70.15
73.22
79.53 79.50
86.17
2013 2014 2015 2016 2017 2018 2019 2020 2021
64
55.65 million tons to 86.17 million tons, with a CAGR of about 5.6 percent.
Figure 3-9 China’s Per Capita Consumption of Dried and
Fresh Melons and Fruits, 2013-2021 (unit: kg)
Sources: NBS
From 2013 to 2021, the annual per capita consumption of dried and fresh melons and fruits of
Chinese residents increased by 49.9 percent from 40.7 kg to 61 kg; the figure for urban residents
grew by 32.5 percent from 51.1 kg to 67.7 kg, and that for rural residents jumped by 77.6 percent
from 29.5 kg to 52.4 kg.
3.2.1.2 Total Consumption and Per Capita Consumption of Onions
Figure 3-10 China’s Onion Consumption in Recent Five Years
Sources: Information compiled by BOABC, based on surveys
40.7 42.2 44.5 48.3 50.1 52.1 56.4 56.3 61
51.1 52.9 55.1 58.1 59.9 62
66.8 65.9 67.7
29.5 30.3 32.3
36.8 38.4 39.9 43.3 43.8
52.4
2013 2014 2015 2016 2017 2018 2019 2020 2021
residents urban residents rural residents
3,590
3,290
4,010 4,130
3,660
2.55
2.33
2.84 2.92
2.59
0.00
0.80
1.60
2.40
3.20
2,000
2,500
3,000
3,500
4,000
4,500
2018 2019 2020 2021 2022
total consumption(‘000 tons)
per capita consumption(kg)
65
In the past five years, China’s annual consumption of onions remained at 3.2~4.2 million tons, and
the annual per capita consumption stood at 2~3 kg. Compared with India (more than 13 kg per
capita), Japan ( over 10 kg per capita) and the United States ( about 10 kg per capita), China’s
annual per capita consumption of onions was relatively low, and still has great room for increase.
Figure 3-11 Changes in China’s Onion Consumption Structure in 2017 (L) and 2022 (R)
Sources: Information compiled by BOABC, based on surveys
3.2.2 Analysis of Onion Prices
Figure 3-12 Prices of Onions in China’s Main
Producing Provinces and Prices of Imported Onions, 2018-2022
Sources: Information compiled by BOABC, based on surveys
In recent years, the CIF price of imported onions was generally higher than the price of
2018 2019 2020 2021 2022
Jiangsu Province Yellow Skin Onion Jiangsu Province Red Skin Onion Shandong Province Red Skin Onion
Henan Province Red Skin Onion Sichuan Province Yellow Skin Onion Sichuan Province Red Skin Onion
Gansu Province Red Skin Onion Gansu Province Yellow Skin Onion Imported Onion
66
homegrown onions. In 2019 and 2022, China’s import CIF prices of onions were lower than the
prices of red onions in Shandong and Gansu provinces.
3.2.3 Analysis of Consumption Characteristics
(1) Varieties purchased
Chinese residents’ consumption habits of vegetables show obvious seasonal characteristics. They
buy solanaceous vegetables (peppers, eggplants, and tomatoes) and leaf vegetables in summer and
autumn, and prefer Chinese cabbage, potatoes, white radish, onions and other easy-to-store
vegetables. In terms of the structure of purchased varieties, taking Beijing as an example, leafy
vegetables accounted for more than 85 percent in the vegetables purchased by residents, followed
by solanaceous vegetables, taking a share of about 70 percent. The percentages for tubers, flower
vegetables, and edible fungi reached about 50 percent, 40 percent and 35 percent respectively.
(2) Purchasing frequency
Taking Beijing city as an example, the purchasing frequency of vegetables can be divided into
once a day, once every two days, once every three days, and once a week. 80% of residents buy
vegetables once a day or once every two days, which fully reflects that consumers are more willing
to choose hand-to-mouth buying mode to enjoy the freshness and delicious taste of vegetables.
Moreover, fresh vegetables are more nutritious and beneficial to human health. Also, a small
number of residents buy vegetables once every three days or even once a week mainly due to work
pressure and working hours, and they don’t have enough time to buy fresh vegetables every day.
(3) Purchase places
According to surveys, more than 60 percent of households buy vegetables in large supermarkets
and farmers’ markets, about 50 percent in small supermarkets, and the proportion of online
channels is above 20% and has increased rapidly in recent years. Other channels (fruit and
vegetable specialty stores, and street vendors) are not well represented. Convenience is more
considered by residents when choosing purchase places. Large supermarkets, farmers’ markets,
and small supermarkets in communities are generally near the residential area and provide various
commodities including aquatic products, meat, poultry eggs, fruits and snacks in addition to
vegetables.
On the whole, residents pay more attention to convenience, quality, freshness and varieties when
67
choosing purchase places.
(4) Quality Safety
Vegetables can be divided into ordinary vegetables, green vegetables, and organic vegetables.
Overall, people prefer to vegetables with green food certification, which have more quality
assurance as compared to ordinary vegetables. Organic vegetables are the best, but fewer
consumers regularly purchase such vegetables as their prices are higher than that of green
vegetables.
The processing of vegetables before eating is also important. Most residents prefer to wash
vegetables only with water for several times before cooking, while a small number of households
use special detergents for cleaning.
(5) Impact of the COVID-19 Epidemic
From 2020 to 2022, the outbreak of the COVID-19 pandemic had a huge impact on China’s
production and life, including the vegetable industry. Multi-point and scattered lockdowns of roads
led to increased loss of fresh vegetables, and occasionally triggered anxiety of stocking up
vegetables. The epidemic has also changed consumers’ preference for vegetables, stimulated the
vigorous development of China’s prepared food industry, and driven up the demand of vegetables
suitable for processing and condiments (such as onions). As a result, the consumption of
vegetables for processing increased significantly.
3.3 Analysis of Main Retail Channels of Onions
3.3.1 Farmers’ Markets
Farmers’ markets, as a circulation channel, have a history of more than 40 years since China’s
reform and opening up, with high freshness, variety, and low prices of vegetables as the main
advantages.
At present, farmers’ markets are still the main channel for consumers to purchase fresh agricultural
products. According to survey results from the China Agriculture Wholesale Market Association
(CAWA), the annual transaction volume of farmers’ markets in the country in 2020 accounted for
about 57 percent of the retails of fresh agricultural products. The share for the farmers’ markets in
the first-tier cities and new first-tier cities was about 48 percent, and the proportion in other cities
68
exceeded 60 percent.
Individual consumers, restaurants and group purchases are the main sales channels of merchants
in farmers’ markets. Individual consumers contributed to 59 percent of the sales of merchants,
while restaurants and group purchases accounted for about 41 percent. In recent years, 50 percent
of merchants in farmers’ markets saw a decline in sales from restaurants and group purchases. On
the one hand, the epidemic has had a greater impact on the catering industry, resulting in a decrease
in the purchase volume of catering companies. On the other hand, the purchase channels of
catering companies are changing rapidly. More chain catering companies are building their own
supply chains, and small and medium-sized restaurants are choosing more specialized suppliers
that can provide door-to-door delivery.
However, after years of development, some drawbacks of farmers’ markets have gradually
emerged, especially during the period of preventing and controlling the COVID-19 epidemic, such
as poor shopping environment, lack of health and safety guarantee, difficulties in tracing the
quality of vegetables. As the income level of Chinese residents increases and the demand for
consumption upgrading rises, the transformation and upgrading of farmers' markets is a matter of
great urgency.
Compared with leaf vegetables, onions feature better storage stability and lower pesticide residues,
and have low food safety risks in farmers’ markets.
3.3.2 Fresh Food Shops in Communities
Fresh food shops in communities are generally near the entrances and exits, and largely meet the
purchase needs of singles, office workers, and people with reduced mobility. These shops mainly
serve residents in surrounding communities and the service radius is small, and the sales of
vegetables are not high. In addition, the types of vegetables in such stores are less and the quality
is also difficult to trace, so they are inferior to supermarkets in terms of the health and safety of
vegetables. Due to a small people flow and a high rent of fresh food shops in communities, the
price of vegetables is higher than that in farmers’ markets and supermarkets, but the freshness is
not as good as the latter two.
Onions are frequently used in Chinese home cooking and easy to store, so vegetable shops in
communities account for a certain proportion in the retail system of onions.
69
3.3.3 Supermarket Channel
Fresh food areas of large supermarkets and fresh food supermarkets are uniformly classified as
the supermarket channel in this report, the channel accounts for more than 10% of the retail market
for fresh produce. As supermarket formats were introduced into China in 1990s, vegetables also
flowed into supermarkets from the traditional farmers’ markets. Compared with farmers’ markets,
supermarkets have many advantages such as higher hygiene and safety, traceability, more
comfortable and tidy shopping environment, and better services.
The supermarket channel is directly oriented to end consumers, and product sales mostly rely on
brand awareness, on-site promotion activities, and the guidance of shopping guides. For suppliers
who want to build onion brands, supermarkets are a desirable choice. But long account period and
high channel costs of supermarkets (slotting fees, barcode fees, promotion expenses, and wear and
tear) require suppliers to have strong lean management ability.
3.3.4 Fresh Food E-commerce
Fresh food e-commerce is a subbranch of online retail channels, with vegetables, fruits, meat, and
poultry eggs as the core commodities. Consumers place orders online, while e-commerce
platforms or businesses deliver goods to consumers through traditional express, take-out services,
in-store pick-up, community group buying, and cycle purchasing. At the moment, fresh food e-
commerce in China consists of traditional e-commerce business, community group buying,
forward warehouses and new retail, and its proportion in the retail market of fresh food is lower
than 7 percent. In terms of the proportion of various e-commerce models, traditional e-commerce
of fresh food (such as Taobao, Tmall, JD.com and Pinduoduo) accounted for about 2.9 percent,
community e-commerce platforms (Meituan Grocery, Duoduo Grocery, and Taocaicai) made up
about 1.0 percent, and the combined proportion for new retail (Freshippo and 7 Fresh) and forward
warehouses reached approximately 0.6 percent.
Online platforms such as Pinduoduo, JD.com, Tmall, Freshippo, Douyin (Chinese Tiktok), and
Meituan allow consumers to make impulse buying anytime and anywhere, as well as obtain
relevant consumer data in real time (such as visits, shopping cart list, payment, and return). These
platforms can accurately profile consumers, helping suppliers and brand companies to better base
production on sales prospects. E-commerce platforms are the best channel to launch new products,
70
create hot products, and build brands. However, the customer acquisition cost for online platforms
is increasingly higher, and they can still rely on their own channels to lift channel cooperation
costs.
3.3.5 Catering Channel
Figure 3-13 Revenue and Growth Rate of China’s Catering Industry, 2011-2022
Sources: NBS
The market size of China’s catering industry has reached 4.0 trillion yuan. Before the outbreak of
the COVID-19 epidemic, China registered a CAGR of 10.8 percent in the revenue of the catering
industry from 2011 to 2019, a relatively fast increase. However, under the shock of the pandemic,
the country’s catering revenue fluctuated sharply between 2020 and 2022, and the market size in
2022 hasn’t yet recovered to the pre-epidemic level (2019).
Social catering: The market size of the catering industry is large. Amid the epidemic, the share of
dine-in services declined, but the proportion of take-out services increased significantly. Due to
the outbreak of the COVID-19 epidemic, many cities in China have restricted dine-in services
since 2020, resulting in a significant drop in the consumption of vegetables. Fortunately, Chinese
people’s consumption habits and behaviors changed in the post epidemic era. With dine-in services
blocked, take-out services in the catering industry emerged suddenly, making the base of the entire
catering market hardly affected. From 2023 onwards, all walks of life in China resume normal
operations, and the catering industry will also recover rapidly.
Group meal: This channel (nutritional meals for students, corporate working meals, and
customized meals in canteens of units such as military and government agencies) can easily raise
2,063.5 2,344.8 2,556.9
2,786.0
3,231.0 3,579.9
3,964.4 4,271.6
4,672.1
3,952.7
4,689.5 4,394.1
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
-
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
revenue from the catering industry(billion RMB) growth rate
71
sales volume and features high standardization, but the gross profit margin is not high. The unit
price of group meals limits the choice of vegetables.
3.4 Main Factors Influencing Consumption of Fruits, Vegetables and
Onions in China
Based on the supply-side structural reform of China’s agriculture and food industry, China has
seen steady growth in imports of agricultural products and food and gradual transformation of
export modes. The consumption pattern of agricultural products, food and catering is iterating
rapidly. Meanwhile, China is facing the challenge of declining birthrate and population aging.
With the structural demographic dividend gradually fading, the demographic quality dividend is
increasing, which is driving the upgrading and stratification of agricultural products and food
consumption in China.
3.4.1 Relevant Policies and Measures for the Industry and Consumer
Markets
(1) The National Development Plan for the Vegetable Industry (2011-2020)
The National Development Plan for the Vegetable Industry (2011-2020) (referred to as the Plan)
was officially announced in 2011. The Plan highlights the following contents in the section of
Developing Focuses of Circulation. It’s necessary to improve the wholesale market system of
agricultural products and build infrastructures for circulation such as refrigeration houses,
processing and distribution facilities, electronic settlement, information and traceability platforms,
quality and safety testing, trading rooms, and waste disposal facilities. Retail outlets such as
urban farmers’ markets and community vegetable stores shall be increased and convenient
conditions shall be provided for mobile vegetable retailers and farmers, facilitating residents’
purchases. We shall strengthen the connection between production and sales, and support large
supermarket chains and farmers’ professional cooperatives to carry out agriculture-supermarket
jointing. We shall strengthen the building of vegetable cold chain logistics systems, focus on the
construction of grading, packaging, and pre-cooling facilities, and improve the processing capacity
of vegetable pre-cooling in advantageous producing areas. Vegetable circulation information
network platforms shall be improved to regularly collect and publish vegetable prices and supply
72
and demand information.
(2) Onions on Accelerating the Development of Cold Chain Logistics to Ensure Food Safety and
Promote Consumption Upgrading
The General Office of the State Council issued the Opinions on Accelerating the Development of
Cold Chain Logistics to Ensure Food Safety and Promote Consumption Upgrading in 2017. The
document proposed to encourage agricultural producing areas and some field markets to build
moderate-scale cold chain facilities for primary processing such as pre-cooling, storage and
preservation, promote the application of advanced cold chain equipment, and move faster to make
up for the weakness in agricultural producing areas.
(3) The 14th Five-Year Plan for the Development of the Market System in Agricultural Product
Producing Areas (the Plan)
The Plan was officially announced in 2022, emphasizing the need to develop state-level vegetable
markets in advantageous vegetable and fruit producing areas, build large-scale facilities for pre-
cooling, refrigeration and preservation, and trading, as well as automated and intelligent primary
processing production lines, carry out cross-regional supply all year round, promote the circulation
of domestic and international agricultural products, and meet the great consumption demand of
cities.
(4) Guiding Opinions on Strengthening the Construction of Circulation System for Fresh
Agricultural Products
The General Office of the State Council issued the Guiding Opinions on Strengthening the
Construction of Circulation System for Fresh Agricultural Products in 2011. The Opinions
proposed to improve the allocation and transportation system of reserves to strengthen the
emergency control capacity. A sound reserve system for important agricultural products shall be
established. The cross-regional transport and adjustment mechanism of agricultural products shall
be improved. Governments in urban areas need rationally determine the dynamic stocks of shelf-
stable vegetables according to consumer demand and seasonal changes to ensure emergency
supply and prevent sharp price fluctuations.
73
3.4.2 Analysis of Resident Income, Consumption Expenditure, and
Engel’s Coefficient
（1）Resident Income
Figure 3-14 Per Capita Income of Chinese Residents, 2013 - 2022 (Unit: CNY)
Sources: NBS
In recent years, Chinese residents’ income has steadily increased. From 2013 to 2022, the national
per capita income increased from 18,311 yuan to 36,883 yuan, with a CAGR of 8.1 percent; the
per capita income of urban residents grew from 26,467 yuan to 49,283 yuan, with a CAGR of 7.2
percent; and the per capita income of rural residents jumped from 9,430 yuan to 20,133 yuan, with
a CAGR of 8.8 percent.
18,311 20,167 21,966 23,821 25,974 28,228 30,733 32,189 35,128 36,883
26,467 28,844 31,195 33,616 36,396 39,251 42,359 43,834 47,412 49,283
9,430 10,489 11,422 12,363 13,432 14,617 16,021 17,131 18,931 20,133
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Per capita income of the national residents Per capita income of urban residents Per capita income of rural residents
74
Figure 3-15 China’s Per Capita GDP, 2013-2022 (Unit: USD)
Sources: NBS
China’s per capita GDP exceeded US$ 10,000 for the first time in 2019. Even during the three-
year prevention and control period of the COVID-19 epidemic, the per capita GDP still increased
year on year, registering US$ 12,700 in 2022. China is a developing country, but its per capita
GDP has reached the upper middle level.
（2）Consumption Expenditures
Figure 3-16 Per Capita Consumption Expenditure of Chinese Residents, 2013 - 2022 (Unit: CNY)
Sources: NBS
With the increase in the income level of Chinese residents, the per capita consumption expenditure
also experienced continuous growth in the past decade (2020 saw the first and only year-on-year
7,023.3 7,636.9 8,015.2 8,097.0 8,826.1
9,903.3 10,158.4 10,413.5
12,612.6 12,741.1
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
13,220 14,491 15,712 17,111 18,322 19,853 21,559 21,210
24,100 24,538
18,488 19,968 21,392 23,079 24,445 26,112 28,063 27,007
30,307 30,391
7,485 8,383 9,223 10,130 10,955 12,124 13,328 13,713 15,916 16,632
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Per capita consumption expenditure of residents Per capita consumption expenditure of urban residents
Per capita consumption expenditure of rural residents
75
decline in per capita consumption expenditure due to the COVID-19 epidemic). From 2013 to
2022, the national per capita consumption expenditure increased from 13,220 yuan to 24,538 yuan,
with a CAGR of 7.1 percent; the per capita consumption expenditure of urban residents grew
from 18,488 yuan to 30,391 yuan, with a CAGR of 5.7 percent; and the per capita consumption
expenditure of rural residents rose from 7,485 yuan to 16,632 yuan, with a CAGR of 9.3 percent.
（3）Engel’s Coefficient of Residents
Figure 3-17 Engel’s Coefficient of Chinese Residents, 2013-2022 (%)
Sources: NBS
From 2013 to 2019, the Engel’s coefficient of Chinese residents fell from 31.2 percent to 28.2
percent, a decrease of 3 percentage points. The Engel’s coefficient of urban residents stood at 27.6
percent in 2019, a drop of 2.5 percentage points from 2013, and the coefficient of rural residents
was 30 percent in 2019, a decline of 4.1 percentage points from 2013.
Affected by the COVID-19 pandemic, the Engel’s coefficient of Chinese residents increased
somewhat between 2020 and 2022, reaching 30.5 percent in 2022. The Engel’s coefficients for
urban residents and rural residents in 2022 rose to 29.5 percent and 33 percent respectively,
basically on par with that in 2015.
3.4.3 Analysis of Changes in Population Structure and Family Structure
in China
31.2 31 30.6 30.1
29.3
28.4 28.2
30.2 29.8 30.5
30.1 30 29.7 29.3 28.6
27.7 27.6
29.2 28.6
29.5
34.1 33.6 33
32.2
31.2
30.1 30
32.7 32.7 33
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Engel's coefficient of residents Engel's coefficient of urban residents Engel's coefficient of rural residents
76
（1）Population Changes
Figure 3-18 China’s Population, 2008 -2022 (Unit: million people)
Sources: NBS
Since the Reform and Opening-Up, China’s population growth has gone through several different
stages. The population surged from 1.0 billion to more than 1.1 billion only in 8 years from 1981
to 1988. The figure broke through the 1.2 billion barrier at the end of 1995 the 1.3 billion barrier
at the end of 2005, and the 1.4 billion barrier at the end of 2017. From 2018 to now, China’s
population entered a slow growth stage, peaking at 1.413 billion in 2021, and the figure in 2022
decreased by 850,000 on a yearly basis.
（2）Total Dependency Ratio
Figure 3-19 China’s Total Dependency Ratio, 2008-2022 (%)
Sources: NBS
1,328.02 1,334.50 1,340.91
1,349.16
1,359.22 1,367.26
1,376.46 1,383.26
1,392.32 1,400.11 1,405.41 1,410.08 1,412.12 1,412.60 1,411.75
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
37.4 36.9
34.2 34.4 34.9 35.3 36.2 37 37.9
39.3 40.4 41.5
45.9 46.3 46.6
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
77
It is generally acknowledged that if a country’s total dependency ratio is lower than 50%, it means
there are more working population than dependents and the age structure of the entire society is
relatively young. At present, China’s total dependency ratio is still lower than 50 percent, but it
has increased for successive years since 2010, reaching 46.6 percent in 2022. The ratio is expected
to exceed 50 percent around 2030.
（3）Population Aging
Figure 3-20 Proportion of Population Aged over 65 in China, 2013-2022
Sources: NBS
China formally came into an aging society (the proportion of population aged over 65 exceeded
7%) in 2001. After 20 years of demographic shifts, China entered a deeply aging society in 2021
(the population aged over 65 took a share of more than 14 percent). It’s forecast China will step
into a super-aging society (the proportion of population aged over 65 will exceed 20%) in 10
years, which is before 2035.
Increasingly serious aging problems will have a lasting impact on China’s production and
consumption. The elderly people will have greater demands for special medical foods, special
dietary foods, and health foods. There will be large market space for extracting effective functional
ingredients from onions to produce functional foods in the future.
9.7% 10.1% 10.5% 10.8% 11.4% 11.9% 12.6% 13.5% 14.2% 14.9%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
78
（4）Urbanization Rate
Figure 3-21 China’s Urbanization Rate, 2013-2022
Sources: NBS
China’s urbanization rate reached 65.22 percent in 2022, an increase of 10.7 percentage points in
the past 10 years. China has competed the target (an urbanization rate of 65%) proposed in the 14th
Five-Year Plan ahead of schedule, but there’s still a gap of about 15 percentage points from the
average of about 80 percent in developed countries around the world.
（5）Family Structure
Figure 3-22 Average Size of Households in China Since 1953 (unit: people)
Sources: Previous Chinese censuses
China’s family size is getting smaller and smaller. According to the data of China’s seventh census
54.49% 55.75%
57.33%
58.84%
60.24% 61.50% 62.71% 63.89% 64.72% 65.22%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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(2020), the average size of each household was about 2.62 people, less than 3 people, about 60
percent of that in 1990.
In recent years, with the economic development, the rise in urbanization rate, and the change in
people’s life consciousness, there are more singles, late marriage and late childbearing, and DINK
families, making the average size of households continue to decrease. At the same time, the
consumption habits of Chinese households are also changing. For example, product packaging
becomes smaller, and prepared foods (ready to cook, ready to eat, ready to heat) are favored by
more people.
3.5 Future Development Trends of Fruit, Vegetable and Onion
Consumption in China
3.5.1 Development Trends of Fruit and Vegetable Consumption
（1）Consumption Will Further Upgrade
As per capita disposable income of Chinese residents continues to increase, and consumers pay
more attention to shopping experience, high-quality, safe, green and cost-effective fruits and
vegetables will become increasingly popular among consumers. The COVID-19 epidemic has also
changed and reshaped the demand preferences of consumers, and prepared fruit and vegetable
products will see a rapid development in both supply and demand.
In terms of vegetables, the variety of vegetable supply will be more abundant, and seasonal
variations will be significantly reduced. Vegetable consumption will also transform and upgrade
rapidly, and the sales of branded vegetables will continue to grow.
(2) The Penetration Rate of Fresh Food E-commerce Will Steadily Increase
According to industry research institutions, the penetration rate of China’s fresh food e-commerce
reached 4.67 percent in 2019. After the outbreak of COVID-19, many consumers chose to
purchase fresh food and daily necessities online in order to keep distance from crowds. This online
shopping habit has been developed and strengthened, and the penetration rate of fresh food e-
commerce in China exceeded 10 percent in 2022.
In the future, more consumers will purchase fresh fruits and vegetables through online channels,
80
and the purchase frequency and per customer transaction will also increase, thus boosting the
penetration rate of fresh food e-commerce to steadily rise.
(3) Generation Z Will Become the Main Consumer Force
According to global definitions, Generation Z is used to describe the generation born between
1995 and 2009. Consumers of the generation after 90s and Generation Z were born and grew up
during a period when China’s economy was booming. They have accustomed to a life of material
and spiritual affluence, and are becoming the main consumers in China, whose consumption trends
deserve attention.
On the whole, Generation Z is full of confidence in the future. They are more likely to make
impulse purchases beyond budget, desire for unique products and services, have higher loyalty to
the brands of agricultural products and foods, prefer sellers with high transparency and quality
assurance, and are more influenced by online public praise when making purchasing decisions.
3.5.2 Future Development Trends of Onion Consumption
Currently, the demand for onions in the Chinese market is stable. Due to factors such as
consumption habits and dietary structure, onions in China are primarily consumed in traditional
stir-frying dishes and in smaller quantities as a direct ingredient. However, the vegetable
consumption pattern in China is gradually shifting from quantity-oriented to quality-oriented, with
increasing demand for onions in terms of quality, safety, nutritional value, and taste. Additionally,
As the pace of residents' work accelerates and the development of restaurant chains progresses,
the consumption of processed and semi-processed onion products will steadily increase.
From a consumption market perspective, onions in China are mainly used in the catering industry
and the pre-packaged food sector. The COVID-19 pandemic has led to an increase in home
consumption frequency, resulting in rapid growth in the pre-packaged food industry and driving
innovation and transformation in the supply chain of the catering industry. Currently, large chain
restaurant brands in China are starting to build their own supply chains, gradually moving towards
industrialization and modernization in the catering sector. This raises higher requirements for the
supply level, quality safety, and freshness of ingredients. In terms of onion consumption, to meet
the supply needs of catering enterprises and consumer demand, restaurants will increasingly
choose onions with high production volume, stable quality, high freshness, and unique varieties.
81
In terms of household consumption, with the improvement of Chinese consumers' living standards
and faster work pace, demands for assured quality, food safety, high nutritional value, diverse taste,
and convenience will become mainstream in onion consumption. For example, onions can be
roughly processed into diced onions, onion rings, or undergo other pre-cooking treatments, with
packaging sizes and designs that are convenient for purchase and portability.
Currently, the domestic market demand for deep-processed onion products is relatively low. Onion
powder, onion sauce, onion oil, onion juice, and other onion seasoning products are still
uncommon on Chinese households' shopping lists, with restaurants and food processing
companies being the main consumers of onion seasoning products in China. However, in the future,
the per capita consumption of processed onion products is expected to achieve stable growth.
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Chapter Four Analysis of Trade Policies and
Tariffs of Major Onion Trading Countries
Import tariffs and trade policies in 14 onion-consuming countries (regions) in Asia are analyzed
in this chapter. For these countries (regions), we selected eight onion sources to make a
comparative analysis on the import tariffs of onions. Overall, the Chinese mainland, Hong Kong,
Japan, Vietnam, Bangladesh, Cambodia, Myanmar, Malaysia, and Indonesia impose low tariffs
and even a zero tariff.
(1) China: China’s onion import policy has been analyzed in section 2.2 of the chapter two, and
won’t be repeated here. According to the List of Categories of Fresh Vegetables and Seasonings
Permitted to Be Imported and Exporting Countries (Regions) published in 2023, China hasn’t
approved the import of onions from New Zealand, Egypt, Netherlands, Argentina, and Turkey. If
onions from the above countries are allowed to enter China in the future, a 13% MFN rate will be
levied for Egypt, Netherlands, Argentina, and Turkey in accordance with the Customs Import and
Export Tariff of the People’s Republic of China (2023), and a zero tariff for New Zealand
according to the Regional Comprehensive Economic Partnership (RCEP).
(2) Hong Kong, China: Hong Kong is a duty-free port and does not impose any customs duties on
imported and exported goods. Other taxes and fees only include a customs declaration fee of HKD
0.2.
(3) Japan: According to the World Trade Organization agreement, a tariff rate of 8.5% is applied
to China, Egypt, Argentina, and Turkey. Under the Regional Comprehensive Economic
Partnership (RCEP) agreement, in the first year of its implementation, Japan grants onion imports
under the product code 0703.10.013 duty-free status. Japan has a free trade agreement tariff rate
of 1.6% and 0% with India and the United States, respectively. Under the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP), imports from New Zealand are
exempt from tariffs.
83
Table 4-1 Import Tariff Rates of Major Onion Consuming Countries for Each Exporting Country
Unit: %
HS code in
destinations
Country of origin
Destination
China
New Zealand
India
USA
Egypt
Netherlands
Argentina
Turkey
0703.10.10
China
-
0
6.5
43
13
13
13
13
0703.10.10
Hong Kong, China
0
0
0
0
0
0
0
0
0703.10.0116
Japan
8.5
0
1.6
0
8.5
0
8.5
8.5
0703.10.0127
0703.10.0138
0703.10.1010
South Korea
KRW 135
or 180 /kg
50
50
KRW 27
or 36 /kg
50
KRW 135
or 180 /kg
50
50
0703.10.10006
Taiwan, China
25
6.3
25
25
25
25
25
25
0703.10.19
Vietnam
0
0
0
15
15
5
15
15
0703.10.19
Bangladesh
5%*(CIF
+1%*CIF)
5%*(CIF
+1%*CIF)
5%*(CIF
+1%*CIF)
5%*(CIF
+1%*CIF)
5%*(CIF
+1%*CIF)
5%*(CIF
+1%*CIF)
5%*(CIF
+1%*CIF)
5%*(CIF
+1%*CIF)
0703.10.1900
Laos
0
10
10
10
10
10
10
10
0703.10.19
Cambodia
5
5
0
7
7
7
7
7
0703.10.19.000
Thailand
0
127.8
142
142
60
142
142
60
0703.10.19.00
Myanmar
0
0
0.5
10
10
10
10
10
0703.10.19.00
Malaysia
0
0
0
0
0
0
0
0
0703.10.19
Indonesia
0
0
5
5
5
5
5
5
0703.10.19
The Philippines
40
5
40
40
40
40
40
40
Sources: Information compiled by BOABC
6
Not more than 67 yen/kg in value for customs duty.
7
More than 67 yen/kg but not more than 73.70 yen/kg in value for customs duty.
8
More than 73.70 yen/kg in value for customs duty.
84
Other taxes include consumption tax and local consumption tax. When the Cost, Insurance, and
Freight (CIF) value is less than 1,000 yen, no consumption tax is applied. When the CIF value is
1,000 yen or more, a consumption tax of 7.8% is levied. For local consumption tax, if the
consumption tax is less than 100 yen, no tax is imposed, but if the consumption tax is 100 yen or
more, a local consumption tax of 2.2% is charged.
With a low self-sufficiency rate in agricultural products, Japan relies heavily on importing a large
quantity of agricultural products and food each year. To ensure the health of its citizens, the
Japanese government continuously strengthens food safety management. Strict quarantine and
sanitary measures are implemented for plants and plant products entering the country. Relevant
laws include the Food Sanitation Law, Plant Protection Law, Food Safety Basic Law, and the Law
on Standardization and Rationalization of Agricultural and Forestry Products. In 2006, the Food
Sanitation Law was further amended to include the "Positive List System" and on May 29 of the
same year, residual limit standards for pesticides, including 295 types of pesticides, were
established for onions.
(4) South Korea: South Korea offers a general tariff rate of 50% for New Zealand, India, Egypt,
Argentina, and Turkey, and imposes conventional tariffs on China, Netherlands, and the United
States. The conventional tariff rates for China and Netherlands are 135 percent (or WON 180/kg),
and the rate for the US is 27 percent (or at least WON 36/kg)
Other taxes mainly include VAT, which is calculated at 10 percent of the CIFD.
Onions are a common vegetable in Korean cuisine. In order to protect the domestic market, South
Korea has imposed tariff barriers on Chinese and Spanish onions. Meanwhile, extremely high
quality and safety standards are implemented for vegetable products, and higher entry thresholds
have been set to increase the difficulty of vegetables to enter the market. The country implements
a tender procurement system for imported vegetables.
South Korea’s technical regulations on the safety supervision of imported vegetables include the
Plant Epidemic Prevention Law, the Rules for the Implementation of the Plant Epidemic
Prevention Law, the Food Hygiene Law, the Special Law on the Administration of Imported Food
Safety, the Rules for the Implementation of the Special Law on the Administration of Imported
Food Safety, and the Guidelines for the Marking of the Origin of Agricultural and Aquatic Products.
The Food Standards and Specifications stipulates limit standards of pesticide residues, heavy
85
metals and pollutants, and banned chemicals in imported vegetables and fruits.
In accordance with the Guidelines for Origin Marking of Agricultural and Aquatic Products, South
Korea implements mandatory rules on the marking of origin for agricultural products sold in the
local market, covering 222 local products, 161 imported agricultural products, and 268 processed
agricultural products.
(5) Taiwan, China: Taiwan provides a conventional rate of 25 percent for the Chinese mainland,
India, the United States, Egypt, Netherlands, Argentina and Turkey, and a FTA rate of 6.3 percent
for New Zealand.
Other taxes include a 5% VAT and a 0.04% trade promotion fee when the CIF price is higher than
or equal to NT$100.
(6) Vietnam: Vietnam is duty-free on onions imported from China, New Zealand and India, and
provides a MFN rate of 15 percent for the United States, Egypt, Argentina, and Turkey and a
conventional tariff rate of 5 percent for Netherlands. Other taxes include a 5% VAT.
(7) Bangladesh: Bangladesh imposes a general tariff rate on imported onions ,i.e., 5%*
(CIF+1%*CIF). Among other taxes, the VAT and supplementary tax on onion imports are both
zero, and the import regulatory tax is 5%* (CIF+1%*CIF).
(8) Laos: Laos exempts Chinese onions from tariffs under the China-ASEAN Comprehensive
Economic Cooperation Framework Agreement, and imposes a 10% tariff rate for other countries
according to the World Trade Organization Agreement.
Other taxes include a 10% VAT.
(9) Cambodia: Cambodia implements a conventional tariff rate of 5% for China and New Zealand,
and is duty-free for India. For other countries, a general tariff rate of 7% is applied. Other taxes
also include a 10% VAT.
(10) Thailand: Thailand imposes a general tariff rate of 60% for Egypt and Turkey. Under the
China-ASEAN Comprehensive Economic Cooperation Framework Agreement, Thailand is duty-
free on onions from China. According to the WTO Agreement, Thailand offers a tariff rate of 142%
to India, the United States, Netherlands and Argentina. According to the Australia New Zealand
Closer Economic Relations Trade Agreement, Thailand imposes a conventional tariff rate of 127.8%
on onions from New Zealand. Other taxes include a 7% VAT.
86
(11) Myanmar: Myanmar imposes a general tariff rate of 10% on onions from the United States,
Egypt, Netherlands, Argentina, and Turkey. According to the China-ASEAN Comprehensive
Economic Cooperation Framework Agreement and the ASEAN-Australia-New Zealand Free
Trade Agreement, Myanmar is duty-free on onions from China and New Zealand, and imposes a
FTA rate of 0.5% for India. Other taxes are exempt.
(12) Malaysia: Malaysia implements a duty-free policy for imported onions, and all other taxes
are zero.
(13) Indonesia: Under the China-ASEAN Comprehensive Economic Cooperation Framework
Agreement, Indonesia offers tax exemption for Chinese onions. Under the ASEAN-Australia-New
Zealand Free Trade Agreement, Indonesia exempts New Zealand onions from duty. For other
countries, a general tariff rate of 5% is imposed. Other taxes include income tax of 2.5%
(registered importers) or 7.5% (non-registered importers).
(14) Philippines: The Philippines provides an FTA rate of 5% to New Zealand and a tariff rate of
40% to other countries. Other taxes include a 12% VAT .
87
Chapter Five Conclusion
5.1 The Future Chinese Onion Import Market has Great Growth
Potential
The Chinese onion imports are still limited, with around 10 thousand tons, while the exports are
around 20% of the production. In the future, the imports are expected to grow, based on climatic
and economic developments and through shift in demand or substituting partly the exports in
seasonal demands and variety differences.
In the future, Chinese onion consumption (fresh, primary processing, and deep processing) will
steadily increase, and onion exports will also experience a recovery-driven growth. However,
domestic onion production in China is constrained by various subjective and objective factors,
making significant growth challenging. To meet domestic consumption demands and alleviate the
supply-demand tension caused by increased exports, the Chinese onion import market will witness
steady growth and holds significant development potential.
5.1.1 There is Significant Room for Per Capita Onion Consumption to
Increase
The per capita onion consumption in China is approximately 2-3 kilograms, which is significantly
lower compared to countries like the United States, Japan, the Netherlands, and India. If the per
capita consumption doubles in the coming years or within a decade, the onion consumption in
China would exceed 7 million tons. According to BOABC's forecast, as the consumption structure
of Chinese residents continues to optimize and upgrade, there will be a significant increase in fresh
onion consumption, primary processing consumption (mainly ready-to-cook food), and deep
processing consumption, supporting the goal of doubling per capita consumption.
Fresh consumption: Onions play an important role in Chinese cuisine. They are a key ingredient
in many traditional Chinese dishes and are widely used in Western-style cooking and fast food as
well. Chinese consumers have a high demand for onions in both home cooking and the food
service industry. With the recovery and entering a phase of new growth in the foodservice sector,
the consumption of onions in Chinese cuisine, including categories such as cold dishes, hot dishes,
88
barbecues, and fried rice, will increase at a fast pace. Additionally, the market share of Western
and Indian cuisines will steadily rise, driving the increased proportion of onions in vegetable
consumption.
Processing consumption: ready-to-cook foods, onion powder, onion sauce, onion oil, onion juice,
and other onion-based seasoning products, as well as functional foods and health products made
with onion extracts, will experience rapid growth in the future, particularly in the case of ready-
to-cook foods.
5.1.2 China Onion Exports Will Achieve a Recovery-driven Growth
Onions are one of the important categories in China's vegetable exports. Since 2015, the average
annual onion export volume from China has been around 824,000 tons. However, in 2021 and
2022, the export volume has declined due to the impact of the COVID-19 pandemic. It is expected
that in the future, Chinese onion exports will experience a recovery-driven growth.
5.1.3 Chinese Domestic Onion Production is Experiencing Sluggish
Growth and Requires Increased Imports
Against the backdrop of rapid growth in domestic onion consumption and the recovery of export
trade, it will be challenging for China to achieve significant growth in onion production. This
necessitates increasing imports to meet the demand.
The increasing aging population and urbanization rate in China have led to a decrease in
agricultural labor force, resulting in higher domestic cultivation costs for onions. China has entered
a deeply aging society, with a gradual reduction in the working-age population. Simultaneously,
urbanization in China is steadily progressing, with a large number of agricultural laborers
migrating to cities every year. Under the dual influence of aging and urbanization, the agricultural
labor force in China is shrinking, and labor costs are continuously rising. Coupled with factors
such as rising land rents and increased costs of agricultural inputs, the cultivation costs of onions
in China have become increasingly high, gradually weakening its previous comparative advantage.
Furthermore, under the guidance of China's agricultural industry policies, land in China, especially
high-standard farmland, is primarily prioritized for the cultivation of staple food crops. Driven by
market profitability, protected horticulture in China is mainly focused on high-value-added fruits,
89
such as tomatoes and strawberries. Therefore, there is significant pressure on expanding the
cultivation area for onions in the future.
Additionally, like other countries, China's onion production will also face challenges such as water
scarcity and extreme weather, which pose risks of reduced yields and decreased marketability.
In conclusion, China has limited potential for growth in onion production and even faces the risk
of reduced production. There will be a supply gap in the future, and there is an urgent need to
import onions to meet domestic market demand. Imported onions are primarily intended to satisfy
the demand of large cities and consumers for diverse varieties and high-quality onions.
5.2 Dutch Onions Have Favorable Conditions to Enter the Chinese
Market
5.2.1 As the Largest Exporter of Onions, Dutch Onions Have the
Advantages of Excellent Quality and Stable Supply
In recent years, Dutch onions have consistently ranked among the top three in global exports,
taking the first position globally in 2021. As a major participant in the global onion trade, the
Netherlands exports over 1.2 million tons of onions to approximately 140 countries worldwide
each year, accounting for around 15% of the global market share. In 2021, Dutch onion exports
reached 1.691 million tons, capturing a market share of 19.8%.
Dutch onion exports have several advantages, which can be highlighted as follows:
Quality and variety advantage: The Netherlands is renowned for its advanced agricultural
technology and management expertise, and the onion industry is no exception. Dutch onions are
recognized for their high quality and diverse varieties, offering excellent taste and shelf life,
meeting the demand of consumers in other countries for high-quality vegetables.
Traceability and food safety: The production process of Dutch onions strictly adheres to quality
control standards, ensuring excellent traceability. The Netherlands is known for its advanced
production techniques and stringent food safety controls in agriculture, providing consumers with
confidence and assurance.
90
Supply stability and reliability: The Netherlands is one of the major onion-exporting countries in
the world, with a stable supply chain and extensive export experience. Dutch onion producers can
provide a stable and reliable supply to meet the demands of foreign markets. Thanks to excellent
storage capabilities and a robust supply chain network, Dutch onions can be exported throughout
the year.
Market positioning and brand influence: Dutch onions enjoy a good reputation and brand influence
in the international market. They are widely recognized for their high quality and reliability,
facilitating the establishment of a favorable market positioning and brand image in foreign markets.
5.2.2 India is a Major Source of Onion Imports for China, but Indian
Policies are Subject to Frequent Changes, with Occasional Export Bans
being Implemented
India is one of the main sources of onion imports for China, but the ever-changing policies in India
have brought about certain uncertainties to onion exports. In the past few years, India has
implemented multiple export bans or restrictions on onions, leading to instability in onion supply
and price fluctuations.
The Indian government typically adjusts onion export policies based on domestic market
conditions and price fluctuations. When there is a shortage of onion supply or price increases in
India, they may temporarily suspend or restrict onion exports to ensure domestic market supply
and stable prices. These policy changes pose risks to importing countries like China, potentially
resulting in supply disruptions or price hikes.
Therefore, Chinese onion importers need to closely monitor policy developments in India and
consider the uncertainty of Indian policies in their supply chain management. It is also advisable
to seek alternative potential sources of onion supply to reduce dependence and ensure supply
stability and sustainability.
For China, importing onions from the Netherlands in the future is an effective way to ensure the
stability and sustainability of onion imports.
91
Chapter Six Analysis and Recommendations for
the Opportunities of Dutch Onions Entering the
Chinese Market
6.1 Opportunity Analysis for Dutch Onions Entering the Chinese
Market
Based on the continuously growing demand in the Chinese onion consumer market, as well as the
advantages of Dutch onions in terms of quality, traceability, food safety, and sustainable
production, coupled with the supply stability mentioned earlier, there is a high feasibility for Dutch
onions to enter the Chinese market in the future.
Market demand: With its large population, China is one of the largest consumers of onions in the
world, and the demand for onions continues to grow. As people's focus on health and nutrition
increases, onions, as a low-calorie, high-fiber, and vitamin C-rich vegetable, are becoming
increasingly popular among Chinese consumers. The urbanization process and changes in
lifestyles in China have also had an impact on the onion consumption market. With the increase
in urban population, there is a growing demand for convenient foods and dining out, which further
drives the demand for onions and onion products. Therefore, due to the increase in urban
population and consumption upgrading, there is a growing demand in the Chinese market for high-
quality and diverse onion products, which provides opportunities for Dutch onions to develop.
Quality advantage: Dutch onions are known for their excellent quality and diverse varieties. The
Netherlands has advanced agricultural technology, and Dutch onions have a good taste and shelf
life, meeting the demand of Chinese consumers for high-quality onions. The quality advantage of
Dutch onions can become a competitive edge for entering the Chinese market.
Traceability and food safety: Chinese consumers are increasingly concerned about food safety and
quality traceability. The production process of Dutch onions strictly adheres to quality control
standards and has good traceability. The Netherlands is renowned for its advanced production
techniques and strict food safety controls in agriculture, which helps to enhance the confidence of
Chinese consumers in Dutch onions.
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Sustainable production methods: Based on the advanced agricultural production practices in the
Netherlands and the advocacy of environmental protection, low carbon emissions, and
biodiversity by the Netherlands and the European Union, the production methods of Dutch onions
are more sustainable. This will help Dutch onions gain favor among Chinese consumers,
particularly the LOHAS (Lifestyle of Health and Sustainability) group and environmentally
conscious individuals, who are often high-end consumers.
Supply Stability: Firstly, thanks to excellent storage capacity and a strong supply chain network,
Dutch onions can be exported throughout the year. Secondly, the export trade policy in the
Netherlands is relatively stable, unlike India, which frequently imposes export bans that disrupt
the onion supply chain. Thirdly, compared to major onion-producing countries like India and
Egypt, the Netherlands has better capacity to cope with climate change challenges and maintain
production stability. Therefore, in the future, after Dutch onions are granted access to the Chinese
market, the Netherlands will become an important source for onion imports in China.
Note: After Dutch onions are allowed to enter the Chinese market in the future, the annual export
volume will depend on various factors such as competition from other onion-exporting countries,
shipping costs, landed prices, branding efforts, marketing strategies, and market dynamics. It will
also be influenced by the latest trends in the Chinese onion market, supply and demand
relationships, consumer preferences, and trade policies.
6.2 Recommendations for Dutch Onions Entering the Chinese
Market
Before obtaining approval to enter the Chinese market, the Dutch side can accelerate the market
access process through marketing promotion and seeking high-quality partners.
Market promotion: Dutch onions can strengthen brand building by enhancing brand awareness
and recognition in the Chinese market through marketing promotion and advertising activities.
Establishing a brand image associated with high quality, reliability, and food safety can attract the
attention and trust of Chinese consumers.
Finding partners: Establishing partnerships with Chinese importers, distributors, or retailers can
expedite the entry of Dutch onions into the Chinese market. Partners can provide market insights,
channel networks, and support in brand promotion, helping Dutch onions better meet the demands
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of the Chinese market in the future.
In the future, after Dutch onions are granted entry into the Chinese market, the Dutch side can
expand its market share in the Chinese onion consumption market through customization,
strengthened quality control, and continuous innovation.
Customization: Understand Chinese consumer habits, preferences, and specific demands, and
adjust product packaging, specifications, and varieties according to market needs. Customized
products can better meet the demands of Chinese consumers and enhance competitiveness.
Strengthen quality control: Strictly control quality during onion cultivation, harvesting, storage,
and transportation processes to ensure freshness and quality. Establish a quality management
system, including third-party certifications and testing, to provide reliable onion products to
Chinese consumers.
Continuous innovation: Continuously engage in research and development and innovation to offer
new onion varieties and processed products to meet the growing demands and diverse
consumption trends in the Chinese market.
