China’s dried green onion sector is emerging as a cornerstone of global agricultural trade, even amid turbulent supply chains and shifting consumer priorities. With a projected steady production increase and a focus on sustainable agriculture, this market offers strategic advantages for buyers prioritizing quality, ecological responsibility, and supply-chain resilience.
Production Growth and Market Momentum
China’s dried onion production is poised for incremental growth, with gross output expected to rise at an annual rate of 0.25% from 2024 to 2028, building on a baseline of 10.14billion(PPP). By 2024, the market value is forecast to reach 926 million, reflecting a 5.2% year-on-year increase, though still below the 2022 peak of $951 million due to lingering post-pandemic disruptions.
This growth is anchored in China’s robust agricultural infrastructure, which includes advanced drying technologies and decentralized processing hubs. However, producers face challenges: labor costs, climate volatility, and competition for arable land.
Sustainability as a Strategic Pillar
China’s agricultural policymakers are aggressively promoting green practices to align with global ESG demands:
Soil conservation: Over 35% of degraded farmland has been rehabilitated since 2019 through initiatives like the “Zero Growth in Pesticides and Fertilizers” program.
Water efficiency: Drip irrigation adoption has reduced water use by 20% in key onion-growing regions like Shandong.
For buyers, these measures translate to products that meet stringent EU organic standards and cater to health-conscious consumers. Notably, Chinese dried onions are increasingly labeled with traceability QR codes, enhancing transparency from farm to port.
Challenges in Logistics and Pricing
Supply-chain instability remains a critical concern. The global container shortage, exacerbated by post-COVID demand surges, has slowed turnaround times from 30 days pre-pandemic to over 70 days for Beijing-to-Chicago shipments. Trucking capacity is similarly constrained, with the U.S. facing an 80,000-driver shortfall, directly impacting inland distribution.
Price volatility adds complexity. While production costs remain stable, prices for Chinese onions are projected to climb 3–5% annually through 2025 due to elevated logistics expenses.
China’s dried green onion market is a study in contrasts: immense production capacity meets persistent logistical friction, while sustainability innovations counterbalance cost pressures. As global demand shifts toward ethically sourced, nutrient-dense ingredients, China’s onion sector is not merely surviving but evolving.
