Almonds, dairy products and other premium foods are growing in appeal among China's increasingly health-conscious consumers, offering new opportunities for some California agricultural exporters despite ongoing trade challenges.

For California's almond industry, China remains a strategically important destination.

"We have been investing in market promotion and collaborating with Chinese industry partners for more than 30 years," Lindsay Tello, senior advisor for trade policy at the Almond Board of California, told China Daily. "It continues to be an important export destination for California almonds."

According to Tello, Chinese consumers have long associated almonds with health and nutrition.

"Chinese consumers are very aware of health and historically associate certain foods with nutritional benefits," she said. "Almonds, with their high vitamin E and heart-healthy properties, are well recognized in China and viewed as an important part of the daily diet."

According to Tello, the growing focus on health and wellness is creating new opportunities for almond-based products in China. Almonds, almond flour and almond paste are increasingly being used in products such as baked goods and daily nut snack packs, while the versatility of almonds in different forms allows food manufacturers to incorporate them into a wide range of products that offer both nutritional benefits and consumer appeal.

To support market development, the Almond Board continues to work with Chinese manufacturers and industry organizations.

"We work closely with Chinese manufacturers and associations in providing information on the benefits of a healthy diet which includes almonds," Tello said. "We have also engaged over the years with key Chinese organizations, such as the Chinese Nutrition Society."

At the same time, California exporters continue to face challenges stemming from tariffs and increased competition.

"In China, California is currently at a duty disadvantage to Australia," Tello noted. "However, Chinese manufacturers value the quality of California almonds as well as the commitments we have made over the years to growing the market."

Recent trade tensions have had a measurable impact on California agriculture. According to a study by the Giannini Foundation of Agricultural Economics of the University of California, the value of California's top agricultural exports to China fell from an average of $1.55 billion in 2024 to $554 million in 2025, a decline of 64 percent. Almond exports declined by an estimated $228 million, while pistachio exports dropped by approximately $478 million as buyers shifted purchases to alternative suppliers.

"Long-term trade relationships are fragile," Sandro Steinbach, a professor of agribusiness and applied economics at North Dakota State University and one of the study's authors, said in the report. "Trade policy shifts can easily destroy more than they protect."

The researchers noted that rebuilding market share can take years once overseas buyers establish new sourcing relationships.

Despite these challenges, Tello said the industry remains optimistic about China's long-term potential.

California's dairy industry is seeing similar opportunities as Chinese consumers seek products that combine nutrition, quality and convenience.

"We have seen growing interest in value-added dairy products as Chinese consumers become more focused on nutrition, quality and food safety," Matt Henderson, director of international sales at California Dairies Inc, told China Daily. "Demand is increasing for products with enhanced nutritional benefits, including high-protein milk and lactose-free milk, which address evolving dietary preferences and wellness goals."

Henderson said China's expanding coffee culture and premium food service sector are creating additional demand for dairy ingredients.

"We are also seeing strong growth in cream products driven by China's expanding coffee culture and premium food service sector," he said. "Cream is increasingly used in specialty beverages, pastries, desserts and cooking applications, reflecting consumers' willingness to seek higher-quality and more indulgent experiences."

Contact the writers at renali@chinadailyusa.com