Updated Jan 10, 2023 20:53

Buckwheat Market in Vietnam

Market Overview
In , the Vietnamese buckwheat market was finally on the rise to reach $ after nine years of decline. In general, consumption, however, faced a abrupt descent. Over the period under review, the market hit record highs at $ in 2010; however, from 2011 to , consumption failed to regain momentum.

In value terms, buckwheat production amounted to $ in estimated in export price. Over the period under review, production posted mild growth. The pace of growth appeared the most rapid in 2011 when the production volume increased by % against the previous year. As a result, production attained the peak level of $. From 2012 to , production growth remained at a lower figure.


Consumption
In , consumption of buckwheat increased by % to tons for the first time since 2015, thus ending a six-year declining trend. Over the period under review, consumption, however, recorded a abrupt decline. Buckwheat consumption peaked at tons in 2015; however, from 2016 to , consumption stood at a somewhat lower figure.

The size of the buckwheat market in Vietnam surged to $ in , growing by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption, however, recorded a deep slump. Over the period under review, the market hit record highs at $ in 2010; however, from 2011 to , consumption remained at a lower figure.


Market Forecast
Depressed by shrinking demand for buckwheat in Vietnam, the market is expected to continue its downward consumption trend over the next eight-year period. The performance of the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to depress the market volume to tons by the end of .

In value terms, the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Driven by a growing demand, the share of imports in total supply in Vietnam increased significantly over the last fifteen-year period (from % to %). Buckwheat market in Vietnam consists almost entirely of imported products. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports increased moderately ( percentage point) over the period under review.


Trade Balance
Vietnam remains a net exporter of buckwheat; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.