Challenges and Opportunities of Vietnam's Cashew Industry

The Export and Import Department (Ministry of Industry and Trade) stated that Vietnam remains the number one source of cashews in the German market due to stable supply and guaranteed quality.

The outlook for Vietnam's cashew exports to the German market is optimistic in 2022, thanks to the advantages provided by the Vietnam-EU Free Trade Agreement (EVFTA).

Moreover, the increasing demand for cashew imports from Germany will positively impact Vietnam's cashew industry.
 

Citing statistics from the International Trade Center (ITC), it is reported that due to transportation difficulties, Germany imported 45,200 tons of cashews from global markets in the first nine months of 2021, worth $324.43 million, a decrease of 9.5% in volume and 14.1% in value compared to the same period in 2020.

In the first nine months, the average import price of cashews in Germany reached $7,177 per ton, a decrease of 5.1% compared to the same period in 2020; among these, the average import price of cashews from Vietnam, India, and the Netherlands decreased, but increased from Indonesia and Ivory Coast.
 

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Due to the impact of the COVID-19 pandemic, Germany reduced cashew imports from Vietnam; however, the rate of decline in imports from Vietnam was still lower than the reduction from India and the Netherlands.

Specifically, in the first nine months of 2021, Germany imported 28.23 thousand tons of cashews from Vietnam, worth $201.21 million, a decrease of 1.7% in volume and 7.0% in value compared to the same period in 2020.

However, the market share of Vietnamese cashews in Germany's total import value increased from 57.51% in the first nine months of 2020 to 62.46% in the same period in 2021.

According to the Export and Import Department, Germany is the largest cashew import market in the European Union (EU). The demand for cashews in Germany continues to rise due to high demand from the food processing industries and final consumer needs.

Information from https://www.mordorintelligence.com shows that Germany's cashew consumption demand will grow at an average rate of 4.1% during 2020-2025.

The German cashew market focuses heavily on the snack segment, while the demand for broken cashews comes from the developing food industry. Notably, cashews are primarily used as a salted roasted snack in the German market.

Recently, cashew kernels have also been widely used in the food industry. German consumers increasingly favor cashews not only for their health benefits but also because they are more competitively priced than other nuts like almonds./.
Source: https://www.vietnamplus.vn/day-manh-tieu-thu-nong-san-nganh-dieu-thay-doi-chien-luoc-phat-trien-post503267.vnp