[ad_1]
23 February 2022
Australian peach and nectarine exporters now have market entry to Vietnam. This comes after Australia and Vietnam finalised a brand new protocol following 5 years of negotiations.
Entry to the Vietnam market is a significant enhance to exporters’ market diversification efforts. The brand new protocol offers Australia a first-mover benefit over rivals to cement market share.
It’s also well timed. Beneath the Regional Complete Financial Partnership, which got here into drive on 1 January 2022, Australian exporters pay no tariffs on peach and nectarine exports to Vietnam.
$64 million in peach and nectarine exports
Australian peach and nectarine exports have been valued at $64.0 million in 2021. Main export markets in 2021 embrace:
- China ($37.3 million or 58% of exports)
- Singapore ($5.1 million)
- Hong Kong ($3.6 million)
- United Arab Emirates ($3.3 million)
- Malaysia (A$3.0 million).
Determine 1: Australian peach and nectarine exports, high 5 markets
Supply: International Commerce Atlas, © IHS Markit (2022), accessed February 2022.
A rising marketplace for fruit
Vietnam was Australia’s fifth largest export marketplace for fruit, price $1.2 billion in 2021 (Supply: International Commerce Atlas, © IHS Markit (2022), accessed February 2022). It’s anticipated to turn out to be an necessary new marketplace for Australian peaches and nectarines.
The dimensions of the Vietnam marketplace for peaches and nectarines has grown quickly. The market skilled a 20% CAGR between 2016 and 2020, albeit from a low base. It’s anticipated to proceed rising over the subsequent 5 years (Supply: Euromonitor Worldwide, accessed February 2022).
China is the predominant provider of peaches and nectarines to Vietnam. Australia’s southern hemisphere rivals embrace Chile and South Africa.
Younger, prosperous inhabitants to gas spending
Vietnam’s per capita gross revenue is ready to greater than double over 2021–2040, a quicker charge than the regional common (Supply: Euromonitor Worldwide, accessed February 2022). The rise is underpinned by fast financial progress, sturdy home demand, and excessive ranges of overseas direct funding into manufacturing, which is in flip, rising manufacturing exports.
The World Financial institution predicts that over half of the Vietnamese inhabitants will enter the worldwide center class by 2035. It will gas additional progress in demand for imported fruits, pushed by Vietnam’s younger, more and more rich shoppers. These shoppers are prepared to pay extra for imported meals, significantly naturally wholesome, immune-boosting merchandise with clear and inexperienced credentials.
Progress in fashionable retail channels, significantly supermarkets and comfort shops, and a fast shift to e-commerce will assist shopper expenditure on fruit. Spending on fruit is anticipated to expertise a 7.4% CAGR between 2021 and 2025 (Supply: Euromonitor Worldwide, accessed February 2022).
Vietnamese shoppers understand Australian fruit to be protected and of top of the range. This permits for premium positioning, significantly towards competitor fruit which is considered as “much less protected”.
Vietnamese shoppers are identified for his or her love of meals. Shopper spending on meals and alcoholic drinks is forecast to succeed in round US$4,500 per family in 2040 (Supply: Euromonitor Worldwide, accessed February 2022). This makes Vietnam a precedence marketplace for Australian meals and beverage exporters over the approaching years.
Go additional, quicker with Austrade
[ad_2]
Source link