Dragon fruit exports from Vietnam, which historically garnered more than $1 billion annually, have plummeted to their lowest levels in over a decade. The first eleven months of last year saw exports decrease by 0.8% to $485.2 million, a low not seen since 2014, according to the Vietnam Customs.
Annual exports between 2014 and 2018 regularly exceeded $1 billion, peaking at $1.3 billion in 2018. However, shifts in international competition and consumption markets led to a stagnation and eventual decline in dragon fruit exports.
China remains the primary recipient of Vietnamese dragon fruit, with more than $301.7 million worth of exports recorded in the first 11 months, a figure that represents around 62% of total exports. Nevertheless, a decrease of 4.5% year on year revealed a slowing demand as China’s domestic supply becomes increasingly abundant.
While the key market dwindles, several new markets are demonstrating growth. Exports to India neared $41.8 million, marking a 6.4% increase, and exports to Thailand rocketed by 71.1% year on year. Despite this growth, the scale of these emerging markets is not yet sufficient to balance the decline in the main market.
Exporters attribute the fall in exports to rapidly increasing global supply and intensifying competition. China has dramatically expanded its dragon fruit cultivation area, with an output of around 1.6 million tonnes annually, hundreds of thousands of tonnes more than Vietnam. This expansion has substantially reduced China’s import demand.
India is also emerging as a dragon fruit producer, with an estimated 3,000–4,000 hectares dedicated to its cultivation, according to the Indian Council of Agricultural Research and industry reports. While India’s current output is a modest 12,000 tonnes annually, it displays a clear upward trend.
Mexico has successfully entered the dragon fruit market, directly contesting Vietnam’s dominance in the U.S. and Canadian markets. During the early 2010s, Vietnamese dragon fruit was smoothly exported to the U.S. However, Mexico’s geographic proximity to the North American market and expanded production from 2019 have significantly impacted Vietnam’s export of white-fleshed dragon fruit to these regions.
Industry representatives predict that dragon fruit output and export revenues are unlikely to rebound quickly, especially if China and India continue to expand production. Dang Phuc Nguyen, secretary-general of the Vietnam Fruit and Vegetable Association, highlighted the need for farmers and businesses to reevaluate markets and competitive advantages. He recommended improvements in product quality and presentation and adjustments in cultivation timing to boost off-season production.
Why have dragon fruit exports from Vietnam decreased?
Exports have fallen due to shifts in international competition and consumption markets, along with an increase in global supply, particularly from China and India.
Which countries are emerging as new markets for Vietnamese dragon fruit?
India and Thailand have demonstrated significant growth as new markets for Vietnamese dragon fruit.
What strategies are being suggested to improve the dragon fruit sector in Vietnam?
Industry experts advocate for improvements in product quality and presentation, reevaluating markets and competitive advantages, and adjusting cultivation timing to augment off-season production.
