Vietnam’s fresh coconut imports to the US experience four-digit growth

As per the International Trade Center (ITC), the United States imported 45,000 tons of fresh, husked, and partially dehusked coconut into the country during the first eight months of this year, with a value of 47 million USD. This represents a 12% increase in volume and a 19% increase in value when compared to the same period the previous year.

The US imported fresh, husked and partly dehusked coconut from 17 countries and territories. In which, the main suppliers were Mexico, Thailand, Vietnam, Costa Rica, and Dominica. 

Vietnamese fresh coconuts exhibited the most significant growth among the sources of fresh coconut supply to the U.S. market. The United States imported roughly 3,900 tons of fresh coconuts from Vietnam in the first eight months of this year, with a value of USD 4 million. Vietnam's fresh coconut exports to the United States increased by 1,156% in volume and 934% in value compared to the same period last year. This growth rate significantly outperformed that of other suppliers, including Mexico (10% increase in volume and 18% in value) and Costa Rica (50% increase in volume and 236% in value). 

The United States increased its imports of fresh coconuts from Vietnam, but it decreased its imports from markets such as the Dominican Republic and Thailand. Thailand continues to be the second-largest supplier of fresh coconuts to the United States. The United States imported 11,000 tons of fresh coconuts from Thailand during the first eight months of 2024, with a value of USD 14 million. This volume and value decrease was 15% and 13%, respectively, in comparison to the same period last year. Thailand's market share in total U.S. imports decreased considerably from 32% in the first eight months of 2023 to 24% in the same period of 2024, despite being the second-largest exporter of fresh coconuts to the U.S. 

In the interim, Vietnam's market share in the total U.S. fresh coconut imports increased from 0.76% in the first eight months of 2023 to 8.59% in the same period of 2024. This expansion enabled Vietnam to enhance its position as one of the major exporters of fresh coconuts to the United States. Vietnam ranked fifth among suppliers to the U.S. market in the first eight months of last year. However, in the same period this year, Vietnam surpassed Costa Rica and the Dominican Republic to rank third, just behind Mexico and Thailand. 

The U.S. Department of Agriculture's Animal and Plant Health Inspection Service (APHIS) sent a letter to Vietnam's Plant Protection Department (under the Ministry of Agriculture and Rural Development) in August 2023, announcing the opening of the U.S. market to Vietnamese fresh coconuts. According to the letter, Vietnamese coconuts that are eligible for importation to the United States must either be young coconuts with at least 75% (3/4) of the green husk removed or have their outer shell and fiber entirely removed. This sanction marked the return of Vietnamese fresh coconuts to the U.S. market following a period of interruption. 

The Import-Export Department, which is part of the Ministry of Industry and Trade, has reported that Vietnamese coconuts have performed exceptionally well in the U.S. market since exports resumed. This has created substantial opportunities for Vietnam's coconut industry. Vietnam is one of the top 10 countries in the world that produces coconuts, which suggests that it has a significant export potential. 

The United States is the greatest consumer market for coconut products. The demand for processed coconut products, such as coconut drink, coconut oil, and coconut flour, is on the rise in the United States as consumers tend to favor healthful, plant-based products. In order to satisfy domestic consumption requirements, the United States imports a substantial quantity of coconuts annually. 

Grandview Research estimated that the U.S. coconut market was worth USD 3.88 billion in 2022, which accounted for 19.2% of the global coconut product market. According to projections, the U.S. coconut market is expected to reach USD 6.55 billion by 2030, with a compound annual growth rate (CAGR) of 6.8% from 2023 to 2030. Coconut oil, coconut water, and coconut milk are the most frequently consumed coconut products in the United States.