Following rice, coffee, cocoa, and pepper, the global market is now witnessing a coconut craze, driven by the fruit’s refreshing properties and its derivative products.

In the US, for instance, coconut oil prices in April surged 127 percent compared to the five-year average. In the Philippines, the world’s leading coconut oil exporter, prices hit $2,658 per ton, the highest in three years.

The sharp rise in coconut and coconut product prices stems from climate change which reduces yields in major producing countries. Widespread pests affecting coconut trees in Sri Lanka and the Philippines have further strained the supply of raw materials for coconut oil production.

Meanwhile, demand for coconuts in major markets like the US, China, and the EU is soaring. According to the US Department of Agriculture (USDA), US. coconut oil imports in the first quarter 2025 rose nearly 30 percent compared to the same period last year.

Coconut farming is a strength of many provinces in the Mekong Delta. Vietnam is the world’s fifth-largest coconut exporter.

The Ministry of Agriculture and Environment reported that Vietnam has about 200,000 hectares of coconut plantations, with an estimated output of 2 million tons annually. One-third of this growing area meets the standards for the US and EU to be recognized as organic.

In 2024, total coconut and coconut product export revenue reached nearly $1.1 billion, with fresh coconuts alone contributing $390 million.

The global coconut shortage has driven up Vietnam’s coconut prices. In Tra Vinh, coconuts were purchased by traders for domestic consumption and export at VND100,000-120,000 per dozen. But prices have jumped to VND200,000-210,000.

An export coconut processing company reported high demand from markets, while raw coconut supply from Mekong Delta is scarce. Factories struggle to find raw materials for production but the supply is not high enough.

In late April, coconuts were collected from farmers at VND200,000-210,000 per 10 fruits, while the transportation cost was VND15,000-20,000 per 10 fruits, which means the material price of VND215,000-230,000 per dozen.

Previously, raw dry coconuts in Ben Tre ranged from VND50,000-70,000 per 10 fruits. Now, businesses and traders are snapping them up at VND200,000 per 10 fruits.

Vietnamese coconuts and coconut products are exported to 40 countries and territories, with the US and China as key markets.

In August 2023, the US officially opened its market to Vietnamese coconuts. Within less than a year, fresh coconut exports to this market grew 11-fold. In the first two months of this year, exports to the US surged 46 percent compared to the same period last year.

Tam An