Vietnam Cashew Market Analysis
Throughout the projection period, the Vietnam cashew nuts trend is expected to grow at a 5.0% CAGR (2022-2027).
Due to the COVID-19 epidemic and high transportation costs, Vietnam’s cashew industry faced several challenges in 2021. Cashew shipments rose in 2021 despite the outbreak’s negative impacts and rising sea freight costs. European and American importers turned their attention to buying cashew kernels from African cashew processing facilities. This is due to the unavailability of containers and high sea freight costs for importing goods from Vietnam, notably due to fast delivery and reduced pricing.
The Vinacas – 2022 projects that from 2022 to 2027, the global cashew nut market would grow by an average of 4.6% each year. In Vietnam, the market is anticipated to reach $7 billion by 2026. Nowadays, the nation exports the most cashew nuts worldwide. With a increase of 12.6% and 13.3%, respectively, the Vietnamese cashew sector recorded export volumes of 579,800 tons and a value of USD 3.64 billion in 2021.
Among all the countries that produce cashews, Vietnam makes up around 45% of the world production. In the previous five years, Vietnam rose to become the top cashew processing country in the world, processing 1.5–1.8 million metric tons of the raw nuts, vs 3.2 million metric tons overall.
Vietnam Cashew Market Trends
Expanding Processed Cashew Market
The Vietnam Cashew nuts trend will be better in the near future. To achieve high yields, Vietnam is implementing high-density planting, commercial farming, and seed programs. In order to reduce labor costs, improve uniformity, and increase cost competitiveness, it also substantially invested in automating the whole cashew processing process. Vietnam has grown to more than 85 nations in the previous eight years. The United States, China, the Netherlands, Australia, Canada, and New Zealand all receive the majority of their cashew imports from this country. Vietnamese cashew exports were USD 2,810,701 in 2016. They represented USD 3,294,05 in 2018, indicating a rise in demand for Vietnamese cashews throughout the world.
In the first quarter of 2021, processed cashew nut exports totaled 108 thousand metric tons, valued at USD 634 million. This represents a volume growth of 13.2% but a value decline of 5.8% over the same period in 2020. With corresponding shares of 25.1%, 16.8%, and 9.5% of Vietnam’s whole cashew nut export value, the US, China, and the Netherlands continue to be the country’s top three cashew import destinations. (Source: https://www.mordorintelligence.com/industry-reports/vietnam-cashew-market)
Favorable Government Initiatives are Supporting the Market’s Growth
One of the main exporters of cashews worldwide is Vietnam. To promote locally cultivated cashews among trade nations, the Vietnamese government is adopting a number of actions. The cashew has been registered as a geographical indicator in Binh Phuoc, Southeast Vietnam, which is recognized as the country’s cashew capital. The government also intended to increase plantations to 200,000 hectares by 2020. This made this area the primary cashew-growing region of the nation. The Vinacas linked MOUs with the Cashew Council and many other trading nations in order to encourage international trade and offer farmers technical guidance.
The Agricultural Science Institute for Southern Coastal Central of Vietnam (ASISOV) investigated several cashew types in order to boost cashew productivity, and trial production produced great yields. The Ministry of Agriculture and Rural Development (MARD) acknowledged these kinds and began industrial-scale production of them.
Vietnam also signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). And other agreements: the EU-Vietnam Free Trade Agreement (EVFTA), and the UK-Vietnam FTA in February 2022. This helps to gain access to the markets in Europe, the United States, and China (CPTPP).
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