What does surging global coconut demand mean for businesses?

What does surging global coconut demand mean for businesses? - The Coconut Cooperative -

The global demand for coconuts has surged dramatically, leading to a significant increase in prices. As international interest in coconuts continues to grow, local markets are experiencing supply challenges and rising costs, affecting both vendors and exporters.

In this blog, The Coconut Cooperative explores the different factors driving this surge, the impact on local and international markets, and how businesses can navigate the evolving landscape of the coconut industry.

Rising coconut prices in local markets

Rising coconut prices in local markets - The Coconut Cooperative -

The increased consumption of coconuts, particularly during the hot season, has driven up prices in Ho Chi Minh City and other southern provinces.
Vendors are struggling to source sufficient coconuts despite the willingness of customers to pay higher prices.

Vendor experiences

Coconut vendor experiences - The Coconut Cooperative -

Nguyen Huu Nho, a coconut vendor in Go Vap District, has witnessed a sharp price increase. At the beginning of 2025, coconuts were priced at VND11,000 per fruit, but they have now risen to VND13,000. To maintain a reasonable profit margin, he sells coconuts at VND16,000 per fruit, making a small but steady income.

Similarly, Ho Thi Ha, a fruit store owner in District 12, reports a 30% decline in fruit imports compared to 2024. The prolonged heat has led to a limited supply from Mekong Delta gardeners. Specialty coconuts, previously available for VND10,000 per fruit, now cost VND20,000, making them scarce and expensive.

Insights from the Vietnam Coconut Association

Insights from the Vietnam Coconut Association - The Coconut Cooperative -

According to Cao Ba Dang Khoa, General Secretary of the Vietnam Coconut Association, the fresh coconut market has experienced a staggering 110% price increase year-over-year. Meanwhile, dried coconuts have seen an even more dramatic rise of 150%.

Price volatility has been a key challenge throughout the year, making it difficult for businesses to predict costs and plan accordingly.

International demand and competition

International coconut demand and competition - The Coconut Cooperative -

Vietnamese coconuts are in high demand globally, with importers from China, Malaysia, and Thailand actively sourcing them. The opening of US and Chinese markets to Vietnamese coconuts has further intensified competition.

Moreover, foreign investors are increasingly interested in Vietnamese coconut products, further driving up demand and pricing.

Local initiatives in Ben Tre Province

Local initiatives in Ben Tre province - The Coconut Cooperative -

In response to this growing demand, Ben Tre Province has expanded its green coconut cultivation to establish a sustainable coconut value chain. This initiative aims to support local farmers while ensuring a stable supply of coconuts for export and domestic consumption.

Export activities

Coconut export activities - The Coconut Cooperative -

Nguyen Dinh Tung, General Director of Vina T&T Company, highlights the rising demand for Vietnamese coconuts, particularly from China.

Following the signing of an export protocol, Vietnam now exports approximately 30 containers of coconuts to China every month, significantly boosting the industry’s revenue.

Current coconut supply challenges

Current coconut supply challenges - The Coconut Cooperative -

The Department of Agriculture and Environment of Ben Tre Province reports that out-of-season coconut output has dropped by 50%. With coconut processing companies facing high demand from the U.S. and European markets, raw coconut prices continue to climb.

The cost of by-products such as coconut water, shells, and fiber has also increased, further adding to the overall price hike.

Coconut cultivation: Statistics in Ben Tre Province

Coconut cultivation and statistics in Ben Tre Province - The Coconut Coop -

Ben Tre Province plays a vital role in Vietnam’s coconut industry, with over 133 designated coconut-growing areas and 14 enterprises granted export codes to China.
The total coconut-growing area covers approximately 80,000 hectares, producing nearly 700,000 tons annually.
Dry coconuts account for nearly 80% of production, while drinking coconuts make up about 20%, covering 16,000 hectares.
Coconut farming remains the primary livelihood for many farmers in the province, reinforcing its economic significance.

Conclusion: The coconut industry’s next steps in a competitive global market

Conclusion - The coconut industry’s next steps in a competitive global market - The Coconut Coop -

As the global demand for coconuts continues to rise, Vietnam’s coconut industry is experiencing unprecedented growth. However, supply challenges, rising costs, and fierce competition present hurdles that both local vendors and exporters must navigate.

In ensuring long-term success for the coconut industry, sustainable farming practices and strategic market expansion will be crucial.