Vietnam Cashew Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Vietnam Cashew Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Vietnamese cashew market is projected to register a CAGR of 5.0% during the forecast period.

• Vietnam is the largest producer and exporter of processed cashew nuts globally. The Vietnam Cashew Association (Vinacas) projects that from 2022 to 2027, the global cashew nut market will grow by an average of 4.6% each year. In Vietnam, the market is anticipated to reach USD 7 billion by 2026. The nation exports the most cashew nuts worldwide. With an 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.
• The cashew exports in the first half of 2022 fell 9.2% against the same period last year to over 1.5 billion USD. The Russia-Ukraine conflict is a significant cause for the falling exports, as Russia was the 14th largest importer of Vietnamese cashews. However, the average export price increased by 1.45% in 2022 compared to 2021, reaching about 5,792 USD per tonne, driving the market's growth.
• Cashew nut is one of the important nut species in Vietnam and contributes about 45% to global production among all the cashew-producing nations. For instance, the production increased by 5% in 2022 to 294.9 thousand metric tons from the previous year due to the increasing demand from the processing industry.
• Vietnam's cashew production and the harvested area will continue to grow during the forecast period because of increasing investment opportunities in Vietnam's cashew industry, from cultivation to processing and trading.

• Vietnam carries out high-density planting, commercial farming, and seed programs to ensure high yields. The cashew nut industry in Vietnam has developed rapidly due to the development of domestic technology to cut production costs and ensure quality. The country's focus on advanced processing technology and improving the mechanization of the entire cashew processing has resulted in an increase in the profit margin by saving on labor and bringing consistency and cost competitiveness.
• Vietnam's cashew nut export has expanded to over 85 countries in the last eight years. It is the largest supplier of cashew to the United States, China, the Netherlands, Australia, Canada, and New Zealand. In 2021, Vietnam's cashew exports accounted for USD 3,088.9 thousand, an increase of 8.6% from the previous year.
• The increase in market value is associated with significant demand for Vietnam's cashew globally. The export volume of processed cashew nuts in the first quarter of 2021 reached 108 thousand metric tons, valued at USD 634 million, an increase of 13.2% in volume but a decrease of 5.8% in value over the same period in 2020. The United States, China, and the Netherlands remained Vietnam's three largest cashew import markets, accounting for 30.7%, 13.4%, and 12.1% of the total cashew nut export value, respectively.

• Vietnam is one of the major cashew exporters across the world. The Vietnamese government is taking various measures to expand production and promote the regionally grown cashew among the trading countries. The government established the Vietnam Cashew Association, abbreviated as Vincas, to develop the production of cashew nuts in the country. Various initiatives, such as training farmers and providing seeds, positively impacted cashew production and quality.
• With an area of ​​175,000 hectares, Binh Phuoc is considered the "capital" of cashew nuts in the country. This is also the land that is considered to have the best quality cashew nuts in the world. The government made this region the country's main cashew-growing area by expanding plantations to 200,000 ha in 2020 to meet the growing demand. The country's cashew association (Vinacas) signed a memorandum of understanding (MOU) with the cashew council and many other trading countries to support trading between the countries and provide technical advice to producers.
• To increase cashew productivity, the Agricultural Science Institute for Southern Coastal Central of Vietnam (ASISOV) tested wide varieties of cashews, with trial production resulting in high productivity. These varieties are recognized by the Ministry of Agriculture and Rural Development (MARD) and put into mass production.
• Further, in February 2022, to access the European, American, and Chinese markets, Vietnam undertook the EU-Vietnam Free Trade Agreement (EVFTA), UK-Vietnam FTA (EVFTA), and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

• The market estimate (ME) sheet in Excel format
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