W4 Cashew Update: Vietnamese Cashew Exports Soar 32% in Jan-24 Amidst Global Vegan Demand Surge, Urgent Call for Expanded Local Production to Meet Processing Demand

Vietnam's Cashew Exports Surged Due to Increasing Global Demand for Vegan Diets

During the first half of Jan-24, Vietnam experienced a remarkable surge in cashew exports, reaching 29.9 thousand metric tons (mt) valued at USD 161.7 million. This reflects a substantial year-on-year (YoY) increase of 38% in volume and 32% in value. The growth can be attributed to increasing global demand due to the rising popularity of vegan and plant-based diets. In addition, the market projections indicate a steady expansion at an average rate of 4.6% from 2022 to 2027.

Vietnam's Cashew Industry Calls for Expansion: Heavy Reliance on Imports Spurs Urgency for Increased Planting Area

In 2023, Vietnam's cashews planting area decreased to 314 thousand hectares (ha), decreasing by 8.3 thousand ha compared to 2022, according to the Ministry of Agriculture and Rural Affairs (MARD). Despite being the fourth-largest global cashew nut producer, Vietnam's production only satisfies approximately 12% of processing companies' requirements, leading to a record-high import of 2.9 mmt of raw cashew nuts in 2023. In response, Vietnamese cashew processing enterprises are collaborating with the Ministry of Agriculture and Rural Affairs to boost local production by offering loans and reducing trade barriers.

Additionally, in 2023, Vietnam shipped 644 thousand mt of cashews, valued at USD 3.644 billion. This marked a substantial YoY increase of 24% in volume and 18% in value. However, the average export price experienced a slight decline, settling at USD 5,657/mt, down 5% from the previous year. Notably, major export markets, including the United Arab Emirates (UAE) with a 72.3% YoY increase, followed by China with a 50% YoY, Saudi Arabia experienced a rise of 46.3% YoY, and the United Kingdom (UK) with 24.1% YoY, all exhibited significant expansion in 2023.