A Top Vietnamese Product: Leading Global Supplier and Manufacturer

Vietnam is a leading global producer, processor, and supplier of cashew nuts. The country has witnessed positive growth in cashew production and yield in recent years.

According to the General Department of Vietnam Customs, in May 2024, Vietnam’s cashew nut exports reached 67,710 tons, valued at $370.34 million. This marked a 1.0% increase in volume and a 3.3% rise in value compared to April 2024. Moreover, these figures also represent an impressive 18.1% and 9.0% surge in volume and value, respectively, when contrasted with May 2023. Cumulatively, for the first five months of 2024, Vietnam exported 285,100 tons of cashew nuts, generating $1.53 billion in revenue. These numbers translate to a substantial 29.5% hike in volume and an 18.5% escalation in value compared to the same period last year.

In May 2024, the average export price of Vietnamese cashew nuts stood at $5,469 per ton, reflecting a 2.2% increase from April 2024 but a 7.7% decrease from May 2023. For the first five months of 2024, the average export price settled at $5,387 per ton, indicating an 8.4% decline compared to the corresponding period in 2023.

Vietnamese cashew nuts are favored by many countries worldwide, including the United Kingdom. Cashew nuts have consistently been one of the key export commodities in Vietnam’s trade relationship with the UK market.

The United Kingdom does not cultivate cashew nuts, and as a result, all products used for processing, domestic consumption, or re-export are imported. As outlined in the “Cashew Export Handbook to the UK Market” by Vietnam’s Ministry of Industry and Trade, the consumption of cashew nuts in the UK is predominantly in the form of roasted and salted nuts within the broader nuts segment.

According to statistics from Vietnam Customs, in the first five months of 2024, the export volume of cashew nuts to the UK market surpassed 8.1 million tons, with a value of over $40.1 million. This signifies a robust 13% increase in volume and a 5.8% rise in value compared to the same period last year. The UK is currently the sixth-largest market for Vietnamese cashew nut exports.

Data from the International Trade Center further underscores this positive trend. In the first quarter of 2024, the UK imported 6,060 tons of cashew nuts from around the world, valued at nearly $33.48 million. These figures translate to a notable 20.4% increase in volume and a 14.4% surge in value compared to the first quarter of 2023.

During the first quarter of 2024, the UK primarily sourced its cashew nut imports from Vietnam, amounting to over 5,550 tons and valued at nearly $30.47 million. These numbers represent a significant 23.9% jump in volume and a 19.8% rise in value compared to the same period in 2023. Vietnam’s market share in the UK’s total cashew nut imports from the world increased from 89.06% in the first quarter of 2023 to 91.63% in the first quarter of 2024.

According to Statista, the nuts segment in the United Kingdom is projected to attain an annual growth rate of approximately 4.99% for the entire 2023-2028 period. This presents a valuable opportunity for Vietnam to expand its exports to this market.

When exporting cashew nuts to the UK market, experts advise that Vietnamese enterprises enhance their competitiveness, rigorously control the production process, embrace scientific and technological advancements, and foster linkages across the production/processing to export chain. Additionally, businesses should strategically select market segments and distribution channels that align with their products and scale. It is also crucial to thoroughly understand the market’s preferences and characteristics.