Vietnam's cashew nut exports exceed 4 billion US dollars in 2024: stable demand from the United States, China, and the European Union

According to the latest data from the Vietnam Cashew Association (Vinacas), it is expected that Vietnam's cashew exports will reach 723800 tons in 2024, with a total export value of 4.34 billion US dollars. Compared with 2023, the export volume increased by 12.4% and the export value increased by 19.2%. Among them, the three major markets of Vietnamese cashew nuts in the United States, China, and the European Union continue to maintain a stable growth trend, driving overall export growth.

US market: Stable growth, demand recovery

The United States remains the largest export destination for Vietnamese cashews. In December 2024, Vietnam's exports to the United States reached 12700 tons, with an export value of 86.77 million US dollars. The annual export volume for 2024 is 192200 tons, with an export value of 1.154 billion US dollars.

The sustained stability of demand in the US market, especially against the backdrop of a rebound in consumer demand and a significant reduction in inventory, has driven the growth of Vietnamese cashew exports to the US.

The market share of Vietnamese cashews in the United States has maintained strong growth and is consistent with the trend of demand recovery in the past few years.

Chinese market: Strong growth, steady increase in market share

In the Chinese market, the market share of Vietnamese cashew nuts is as high as 89.65%. It is expected that the annual export volume to China in 2024 will be 126300 tons, with an export value of 746 million US dollars, ranking second in the Vietnamese cashew nut export market and showing significant year-on-year growth.

China's import demand for nuts continues to grow, especially cashews which are completely dependent on imports.

Vietnam has become the largest supplier of cashew nuts to China, with about 90% of imported cashew nuts coming from Vietnam in recent years, providing a vast market space for Vietnamese cashew exports to China.

In the first half of 2024, China ranked second in Vietnam's cashew nut export market with an import value of 362 million US dollars.

EU market: import volume growth, diversified supply sources

In 2024, the import volume of cashew nuts in the EU market increased by about 11%, with a total import volume of 8448 tons and a total import value of 1.027 billion euros, an increase of 13%.

South Africa remains the largest supplier of cashew nuts to the European Union, with an export volume of 4336 tons, but Vietnam, as the second largest supplier, saw a 7.3% increase in shipments, reaching 132118 tons.

Although Australia ranks third, its exports to the European Union have decreased by over 30% year-on-year, indicating an increase in Vietnam's market share in this market.

Other market dynamics: Growth and volatility coexist

In 2024, Vietnam will export cashew nuts to 33 countries, with an increase in export volume in most markets.

Lithuania became the country with the largest increase, with cashew imports from Vietnam increasing by 144%.

On the other hand, Pakistan's import volume has significantly decreased by 81%, making it the country with the largest decline.

However, the shortage of raw materials remains the main obstacle to the development of Vietnam's cashew nut exports. Vietnam requires approximately 3-3.5 million tons of raw materials for processing each year, but the area of cashew nut cultivation in the country continues to decrease, with domestic production only reaching 300000 to 350000 tons, far from meeting export demand. Therefore, Vietnam must rely on imported raw materials from Africa, Cambodia, and other places.

Raw material supply and cost pressure:

In the first eight months of 2024, the cashew industry in Vietnam paid $2.7 billion for imported raw materials, making exports almost equal to imports. Although the export price of cashew nuts has increased, due to the rise in raw material costs, companies are facing enormous financial pressure, which limits their profit margins and further expansion of export scale.

In addition, due to overcapacity in processing plants, some enterprises are considering reducing processing capacity, which may affect production efficiency and product supply stability, and is not conducive to the continuous expansion of export business.

Summary and outlook:

Export growth: Vietnam's cashew nut exports have significantly increased, especially driven by the growing demand for the US, China, and EU markets, resulting in an overall increase in exports.

Shortage of raw materials: Due to insufficient domestic production, the cashew industry in Vietnam relies heavily on imported raw materials, and the unstable supply of raw materials has become an important factor restricting the development of the industry.

Price fluctuations: Although the export price of cashew nuts has increased, it is still difficult to fully cover the cost increase due to the cost increase, and the enterprise is facing significant financial pressure.

Market potential: With the growing demand in the Indian and Chinese markets, Vietnam's cashew industry still has enormous export potential. But the industry needs to pay attention to raw material supply, cost pressures, and market changes.

Overall, Vietnam's cashew nut exports have shown strong performance in 2024, and there is still growth potential for exports in 2025. However, issues with raw material supply and market pressure remain key factors for the industry's development.