These achievements stem from Vietnam’s successful access to major markets. In 2022, Vietnam gained export licenses for the U.S. and New Zealand, the UK in 2023, and South Korea in early 2024. Expanding into these significant markets not only enhances the economic value of Vietnam’s agricultural sector but also solidifies the quality and reputation of Vietnamese grapefruit on the global stage.
Abundant Output, Good Quality, but Low Export Turnover
Despite Vietnam’s abundant grapefruit production and high quality, the country faces significant challenges that limit export turnover:
Transportation Costs
Vietnamese grapefruit thrives mainly in the Mekong Delta and the Red River Delta. Its proximity to China enables a quick transportation time of about 1.5 days, which helps keep costs low and preserves freshness. However, shipping to more distant markets like Europe and the U.S. takes between 30 to 45 days by sea. This extended transportation period necessitates stringent preservation measures, increasing overall costs. The longer shipping times can compromise the quality of grapefruit upon arrival, making it difficult to meet the freshness standards demanded by consumers in these markets. As a result, Vietnamese grapefruit struggles to compete with local products or those from countries that are closer in proximity.
Limited Official Exports to China
China is the largest market for Vietnamese grapefruit, generating $18.9 million in turnover during the first half of 2024, which accounts for 66.2% of Vietnam’s total grapefruit exports. However, Vietnamese grapefruit is not officially permitted for export to China. This limitation arises because China has a robust domestic grapefruit production capacity, yielding about 5.2 billion kilograms per year—more than enough to meet its own consumption needs. Consequently, China tends to restrict imports of common grapefruit varieties, favouring only high-end and speciality types to diversify its domestic market.
Currently, only a few speciality grapefruits from Vietnam, such as Doan Hung, green-skin pomelo, and Dien grapefruits, have found their way into the Chinese market, primarily through unofficial channels. This situation results in low export volumes and a lack of consistent production stability, posing difficulties for Vietnamese farmers and businesses when it comes to planning and scaling operations. While official exports would enhance credibility and stability, the absence of formal recognition from China complicates efforts to increase output and secure a reliable export market. It is crucial to note that for most of Vietnam’s key fruits—except coconut—60-80% of export output is directed toward China, highlighting the pressing need for official export pathways to this vast market.
Export Prospects for Vietnamese Grapefruit
While current exports of Vietnamese grapefruit are not yet abundant, there is significant potential for rapid growth, especially as favourable cooperation agreements are reached. This mirrors the success seen with Vietnamese durian and coconut. Vietnamese grapefruit boasts several competitive advantages that are prioritized in market opening negotiations. Its exceptional quality, characterized by a moderate sweetness, aligns well with the preferences of consumers in the European Union (EU) and the United States.
Green-skin pomelo, a speciality of Ben Tre, occupies over 9,400 hectares, representing 34% of the province’s total fruit cultivation area. This variety is particularly noteworthy as it was the first grapefruit type permitted for import into the U.S. Currently, Vietnamese green-skin pomelo is sold in American supermarkets at prices ranging from $6.99 to $7.99 per pound, with each fruit weighing around 3 pounds (nearly 1.5 kg). This pricing is significantly higher than that of grapefruit imported from China or Thailand, which is about $2 per pound.
Initially, U.S. importers were hesitant to embrace Vietnamese grapefruit, but consumer acceptance has led to a dramatic increase in import volumes. The preference for green-skin pomelo stems from its balanced sweetness, easy-to-separate segments, and absence of sticky membranes, making it a favoured choice among consumers.
Market Prospect
In the first five months of 2024, Vietnam emerged as the second-largest supplier of grapefruit to the U.S., following Mexico, despite receiving import licenses only in 2023. Export turnover saw a remarkable growth of 400%, enabling green-skin pomelo to capture 30.9% of the market share in the first half of 2024. This trend highlights the increasing popularity of Vietnamese grapefruit products in the U.S. market, signalling a wealth of opportunities for further expansion in the coming years. Additionally, markets in New Zealand and the UK present promising prospects for the growth of green-skin pomelo.
Successful Varieties
Doan Hung grapefruit, a renowned speciality from Phu Tho province, successfully exported its first batch to the Russian Federation in early 2022. Recently, the Plant Protection Department granted nine growing area codes for over 366 hectares of Doan Hung grapefruit, paving the way for nearly 4,500 tons to be eligible for export to the U.S. Similarly, red grapefruit has also made strides, with its first batch of over 5,000 fruits exported to the UK in November 2022. This variety is celebrated for its vibrant colour, sweet flavour, and high nutritional value, particularly its abundant vitamin C content, which is beneficial for health.
To further enhance the export potential of grapefruit, the Vietnamese government and agricultural departments are strengthening production standards to ensure products meet international quality requirements. This includes implementing traceability processes and organic certification to attract consumers who are increasingly interested in healthy foods. Additionally, Vietnam actively participates in international exhibitions to showcase the quality of its grapefruit and open new sales channels.
Accessing these key markets not only boosts the economic value of Vietnam’s agricultural sector but also reinforces the quality and reputation of Vietnamese grapefruit on the international stage. As global demand for healthy and natural foods rises, the Vietnamese grapefruit industry is expected to experience higher growth in the future. Through cooperation with international customers and trade partners, Vietnam will continue to promote the international development of the grapefruit industry and contribute to the sustainable growth of the agricultural economy.
Potential Markets for Vietnamese Grapefruit/Pomelo Exports
1. United States
The U.S. ranks ninth globally in grapefruit imports, with import turnover skyrocketing from $12.77 million in 2018 to $27.7 million in 2022—a remarkable increase of 2.1 times over the past five years, according to data from the U.S. International Trade Center (ITC). Historically, the U.S. relied on imports from Israel and Mexico, which accounted for approximately 47% and 22% of the market share, respectively. However, with the introduction of Vietnamese green-skinned pomelo, Vietnam quickly climbed to fourth place in the U.S. market within just one year, capturing nearly 8% of the market share. This surge indicates significant potential for Vietnamese grapefruit in one of the world’s largest markets.
Despite this promising growth, Vietnamese grapefruit exports to the U.S. face challenges. Compliance with stringent packaging procedures and irradiation requirements of a minimum dose of 150 Gy, along with the necessity of a Phytosanitary Certificate, can create hurdles for many Vietnamese exporters.
2. China
China, while being the world’s leading grapefruit producer, is also the second-largest importer of grapefruit. Its import turnover has surged nearly 9.5 times, rising from $12.6 million in 2011 to $132.77 million in 2021. Thailand and Laos dominate the Chinese market, accounting for 39.2% and 38.1% of grapefruit imports, respectively, followed by Israel and Egypt with market shares of 11.5% and 10.6%.
Vietnam has yet to establish a formal export protocol with China for grapefruit. Consequently, most exports occur through informal channels, focusing on speciality grapefruits from northern regions, such as red grapefruit and Dien grapefruit. These varieties are often used for significant holidays or as gifts due to their attractive appearance and delicious flavor.
3. South Korea
According to ITC statistics, South Korea imported $9.5 million worth of grapefruit in the first five months of 2024, marking a 0.9% increase compared to the same period in 2023. The primary suppliers of grapefruit to South Korea include Israel, the U.S., Vietnam, and South Africa, with Israel holding a substantial 60% market share. Currently, Vietnam primarily exports processed grapefruit products to South Korea, generating an annual turnover of approximately $549,000 to $600,000. This figure remains relatively low considering the grapefruit’s potential in this market.
However, promising developments are on the horizon. In early 2024, Vietnam and South Korea concluded negotiations regarding the conditions for exporting fresh grapefruit from Vietnam. This agreement is expected to enhance Vietnam’s market share in South Korea significantly shortly.
CONCLUSION
Vietnam’s grapefruit industry is poised for remarkable growth, supported by its status as the second-largest producer globally, with an annual output of approximately 950,000 tons. Despite facing challenges in export turnover due to factors like transportation costs and limited market access, the future appears promising.
The recent surge in export activities, especially with green-skin pomelo entering the U.S. market and gaining traction, underscores the potential for Vietnamese grapefruit on the international stage. Furthermore, ongoing negotiations and successful market entries into regions like South Korea and the UK have opened new avenues for growth. With countries such as New Zealand also expressing interest in Vietnamese grapefruit, the landscape for export partnerships is expanding.
To maximize these opportunities, forming strategic partnerships with knowledgeable sourcing companies is essential. Vncommex specializes in connecting international buyers with the best grapefruit products from Vietnam. With our extensive network and understanding of global trade dynamics, we can facilitate your entry into this flourishing market. Let Vncommex be your trusted partner in sourcing premium Vietnamese grapefruit, ensuring you stay competitive and well-positioned in the ever-evolving international market.
Read More: Why Import Pomelo from Vietnam? A Guide for International Buyers
