The global coconut market is experiencing a price surge, driven by supply constraints due to climate change and pest issues in key producing countries. Vietnam, producing approximately 2 million tons annually, is the world's fifth-largest coconut exporter, with the U.S. and China as major consumers.
In the U.S., coconut oil prices in April rose 127% above the five-year average. The Philippines, a leading exporter, saw prices reach USD 2,658 per ton, the highest in three years. Climate change and pests have affected yields in Sri Lanka and the Philippines, reducing raw material supply for coconut oil.
Demand in the U.S., China, and the EU is rising. The USDA reported a nearly 30% increase in U.S. coconut oil imports in early 2025 compared to the previous year. Vietnam's coconut industry, concentrated in the Mekong Delta, covers 200,000 hectares, with one-third meeting organic standards for U.S. and EU markets.
In 2024, Vietnam's coconut and coconut product exports generated nearly USD 1.1 billion, with fresh coconuts contributing USD 390 million. The global shortage has driven local prices higher, with Tra Vinh coconuts priced between USD 8.40 and USD 8.82 per dozen. Export processing companies report strong demand but limited raw supply.
As of late April, coconuts were procured from farmers at USD 8.40 to USD 8.82 per 10 fruits, with transportation costs adding USD 0.63 to USD 0.84. Previously, Ben Tre's raw dry coconuts were priced at USD 2.10 to USD 2.94 per 10 fruits, but now reach USD 8.40.
Vietnamese coconuts are exported to 40 countries, with the U.S. and China as primary markets. In August 2023, the U.S. market opened to Vietnamese coconuts, leading to an 11-fold increase in exports within a year. Early 2024 saw a 46% rise in U.S. exports compared to the previous year.
Source: Vietnam.net