Honesty is quality

Business News

Business News

Vietnam Cashew Nuts Are Increasingly Popular in the Market

14/02/2022 1886 Viewed

The Covid-19 pandemic has not affected the demand for cashew nut consumption, but has impacted transportation and distribution channels. The supply of raw cashew nuts from West Africa to Asia was interrupted. Delays in collection and transportation eventually resulted in lower than normal yields, further reducing the overall supply of kernels.

Cashew nuts are one of the foods that are favored by consumers thanks to their benefits to human health. In the context of the complicated development of the Covid-19 epidemic, the demand for healthy foods has increased sharply.

Vietnamese Cashew Nuts Are Increasingly Popular in the Market

According to information from https://www.mordorintelligence.com, the global cashew nut market is forecasted to reach an average growth rate of 4.6% in the period 2021 - 2026. The cashew nut price in 2021 is at a low level. , promoting increased consumption demand.

According to CBI.EU, in 2021 the retail price of cashew nuts in Europe will continue to decrease, boosting consumer demand in the EU area. In particular, due to distancing measures, consumption in the industrial and food service segments decreased significantly and there was a shift from eating out to eating at home. However, closures, healthy food trends and attractive prices have boosted total cashew consumption. Statistics show that cashew nut imports from the US, China, UK, France and Japan markets all grew positively in the first 11 months of 2021 compared to the same period in 2020.

In which, Vietnam plays the role of the world's leading cashew nut export market. Vietnam's cashew nut market share in the total import value of the US and China accounted for 88.99% and 89.12% respectively in the first 11 months of 2021. Nuts have become a major ingredient in the regime Chinese people's diet since the introduction of the National Health Policy called "Dietary Guidelines for the Chinese People", which emphasizes the daily consumption of nuts. The increase can also be attributed to the Chinese cashew nut manufacturers' new campaign to sell new products "everyday nuts", including cashews, in ready-to-eat packaging.

The Import-Export Department (Ministry of Industry and Trade) said that 2021 is a successful year for Vietnam's cashew exports, with the export volume reaching 579.8 thousand tons, worth 3.64 billion USD, an increase of 12 .6% in volume and 13.3% in value compared to 2020. Notably, cashew nut export value to all regions increased compared to 2020. In which, cashew nut export speed to Africa increased by 35.2%, but the value was low. Followed by Asia, export growth is 24%, the proportion of Vietnam's cashew nut exports to Asia will increase from 31.11% in 2020 to 34.12% in 2021. Nut exports Cashew to the EU increased by 6.8%, but the proportion of exports decreased from 28.51% in 2020 to 26.92% in 2021.

In 2021, the export value of cashew nuts to many main markets will increase, except for the Netherlands, Australia, and Italy. The proportion of Vietnam's cashew exports to most of the main markets decreased, except for the proportion of exports to China which increased from 15.91% in 2020 to 16.88% in 2021; to Canada will increase from 2.9% in 2020 to 3.07% in 2021.

It is forecasted that in 2022, Vietnam's cashew nut exports will continue to grow positively thanks to global consumer tastes increasingly favoring products with health benefits and long shelf life.

On the side of the Ministry of Agriculture and Rural Development, it also sets a target of 2022 cashew nut export turnover of 3.8 billion USD, an increase of 200 million USD compared to 2021. Tax rate for products processed from imported cashew nut Imports into the EU from Vietnam will be reduced to 0% immediately after the EVFTA takes effect from August 1, 2020. This reduction is very important because before the EVFTA took effect, the tariff on cashew nuts imported into the EU from Vietnam ranged from 7 to 12%. Therefore, there is still a lot of room for the growth of cashew nut exports in the European market, as well as taking advantage of the EU-Vietnam Free Trade Agreement (EVFTA) is one of the goals that this industry achieves. are aiming.

Source: Vietnam Ministry of Industry and Trade