US Now Largest Market for Vietnamese Coconuts

In the first seven months of this year, Vietnam’s coconut exports totaled over $306 million, marking a 40% increase compared with the same period of 2024. Meanwhile, exports to the United States reached approximately $82 million, twice the value recorded last year. Fresh coconuts accounted for $103 million of the total (+14.9%), while processed coconut products reached $203 million (+56.8%).

As a result, the United States has for the first time surpassed China to become Vietnam’s largest coconut export market, representing 26.8% of the country’s total coconut export value. Driven by strong demand from retail chains and the beverage industry, U.S. imports alone reached over $14 million in July, 2.3 times higher than the same month of last year.

China’s imports grew slightly year on year, totaling about $67 million in the first seven months, or roughly 22% of Vietnam’s total coconut export value.

Besides the United States and China, several other export markets also recorded strong growth. Exports to Australia increased by 77%, while shipments to the United Arab Emirates and Spain more than doubled. Conversely, exports to Thailand and South Korea experienced significant declines.

Nguyen Dinh Tung, CEO of fruit and vegetable export company Vina T&T, noted that the company ships approximately 80 to 90 containers of fruit to the United States each month by sea, along with an additional 60 to 70 metric tons by air, with coconuts representing a significant portion of this. He emphasized that coconuts are essential goods with stable orders and strong market demand. So far, the company’s exports to the United States have risen by around 25% compared with the same period of 2024, remaining largely unaffected by monetary policies or tariffs.

According to Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, demand for coconuts in the United States, China and Middle Eastern countries is growing rapidly, while the global supply remains limited, boosting the price competitiveness of Vietnamese coconuts. Since the United States opened its market to fresh Vietnamese coconuts in 2023, Vietnam’s domestic companies have quickly expanded their presence, diversified their product offerings, improved packaging quality and enhanced their overall competitiveness.

To meet the rising export demand, Vietnam has been importing coconuts for processing. In the first seven months of this year, the country imported over $31.2 million worth of coconuts, about 20 times the value recorded during the same period of last year. Most of these imports came from Indonesia, although importers have also explored suppliers in Papua New Guinea. Nonetheless, a lack of official access agreements has meant that trade with Papua New Guinea has remained limited.

In the first half of this year, coconut prices in Vietnam’s domestic market fluctuated between 18,500 Vietnamese dong ($0.70) and 19,000 dong ($0.72) per coconut, reaching a historic high. The retail price of premium-grade coconuts rose to 25,000 dong ($0.95) each, about six times higher than four years ago. The main factors driving this increase include drought and salinization in the Mekong Delta, as well as disease outbreaks in Vietnam’s central regions, which have reduced yields. The resulting high prices have generated substantial profits for coconut growers, encouraging the expansion of planting areas. Currently, Vietnam’s total coconut cultivation area exceeds 200,000 hectares, with an annual output of approximately 2 million metric tons.

The number of coconut processing plants in Vietnam has also grown rapidly, rising from just eight in 2015 to 45 in 2024, with major companies such as Betrimex, Luong Quoi and Beinco entering the sector. However, with cultivation areas and yields increasing only modestly, competition for raw materials has intensified. The Vietnam Coconut Association has advised farmers to focus on varieties that meet export standards to mitigate the risk of local oversupply during periods of fluctuating market demand.

Image: Pixabay