Surging Demand for Vietnamese Jackfruit Led to The Price Increase in Jul-23

Published 2023년 7월 28일

Price increases of 23% month-on-month (MoM) and 145% year-on-year (YoY) were observed in Vietnam's jackfruit market in Jul-23, breaking a previous decreasing trend. The main reason for this increase was the rising demand for jackfruit, especially from China. However, unfavorable weather, characterized by extended periods of heavy rain, has presented difficulties for jackfruit growers, resulting in fruit rot and other issues. Despite these challenges, Vietnamese jackfruit consumption in China has grown people's growing interest in plant-based diets. Vietnam now has more export opportunities, thanks to its proximity to China, and the Chinese market appears to have room to grow and expand.

In the Mekong Delta, Vietnam, jackfruit prices witnessed a sharp increase to VND 27,000/kg in Jul-23, rising by 23% MoM and 145% YoY. Previously, prices reflected a downward trend throughout the end of 2022. However, prices bounced back at the beginning of 2023 and have remained high. The primary driver behind this price surge was the rising demand for jackfruit, particularly from China. On the other hand, heavy rains have dampened Vietnamese jackfruit production. The surge in international demand coupled with unfavorable weather has driven up prices.

Source: GSO Vietnam

The adverse weather conditions, as well as heavy and prolonged rainfall, have been a matter of particular concern for jackfruit growers in Vietnam. Vinh Long, a city in the Mekong Delta region, had cumulative rainfall in the first H1-23 of 464.60mm, whereas in H1-22 was 162.57mm. Continued rainfall has created an environment conducive to fungi and bacteria growth, leading to fruit rot. To mitigate the impacts of fruit rot, growers have taken proactive measures, such as spraying pesticides and adopting improved drainage systems However, in addition to fruit rot, jackfruit growers have also expressed concerns about other issues like black fibrous jackfruit, pus-filled trunk, color cracking, and stem cracking. These problems have been attributed to the influence of heavy rains, exacerbating the challenges faced by growers in the region.

Source: National Center for Hydrometeorological in Vietnam

Despite the issues posed by weather conditions, Vietnamese jackfruit's popularity in China has continued to rise, making it a significant destination market for jackfruit. Historically, in certain regions of China, such as Guangdong, Guangxi, and Yunnan provinces, jackfruit has held cultural significance and has been considered a traditional and auspicious fruit symbolizing luck and prosperity. This cultural association has contributed to the jackfruit’s long-standing popularity in these regions. However, with the full re-opening of China’s border in March 2023, facilitating an easy purchase of Vietnamese jackfruits, eliminating supply disruptions, and further fueling demand for Vietnamese jackfruit.

Moreover, jackfruit's meat-like texture has gained attention in recent years, aligning with China’s growing interest in vegan and plant-based diets. As more consumers in China seek healthier and sustainable food alternatives, jackfruit's nutritional value and versatility have made it an appealing choice in plant-based and vegan recipes, further driving its demand.

The geographical proximity of Vietnam to China provides Vietnamese farmers and traders with a convenient source for jackfruit in the Chinese market. This has opened up export opportunities and allowed Vietnam to capitalize on the increasing demand for jackfruit in China.

While Vietnam faced challenges due to adverse weather conditions, the overall outlook for the jackfruit market appears promising, with continued opportunities for growth and expansion in the Chinese market. By addressing weather-related issues, such as improving cultivation practices to meet international quality standards, the Vietnamese jackfruit industry can position itself favorably to capitalize on the growing demand for jackfruit in the years ahead.