Also known as cubilose, edible bird's nests are among the most expensive animal products consumed by humans with China being the world's largest consumer.
However, the increased appetite has driven smuggling of the rare treat, leading to potential health hazards.
"Our nests are imported from Malaysia and cost 10 yuan (Rs 102) per gram," boasted a shop owner at a stall in the Shanghai Kaixuanmen Market, a major wholesale healthmarket.
Repeating the question at dozens of other shops selling the nests, only one was able to show health certification.
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Others lack even basic details such as the date of manufacture or where it was produced, state-run Xinhua news agency reported.
"The legal imports cost at least five times of the current price. It is hard for you to find them in this market," the shopkeeper said, not offering his name.
Smuggled nests are also found online.
Edible bird's nests have been used in Chinese cooking for hundreds of years and is often used in beauty treatments.
Despite the nationwide crackdown, smuggled bird nests still end up on consumers' plates.
"Smuggling has even driven up the price of legal imports in the market," one manufacturer from Malaysia told Xinhua.
He said he had "reliable people" who can smuggle his products to China.
In mid-September, customs police in China's Guangdong Province seized more than 700 kilograms of edible bird's nests produced in Indonesia, worth over 100 million yuan.
In order to make more money, merchants usually spray water or brush gelatine on the nests to increase their net weight prior to sale.
But the practice can cause microbes to develop in the high-protein nests, which may lead to excessive nitrite that would fail an official health check.
Still, customers tend to prefer low price over high quality.
"I've bought bird nests without certificates for years and have had no health problems. The legal imports are too expensive," one customer at the Shanghai market said, adding he was buying one for his wife.