The Chinese consumers’ love for coconut products has spawned a hundred-billion-yuan import market, with a prominent core supply gap: the annual total demand hits 4 billion pieces (2.6 billion fresh coconuts), while domestic supply only accounts for 10%. Imports reached 1.22 million metric tons in 2023 and are expected to keep rising in 2025. Driven by this huge supply-demand imbalance, the four major Southeast Asian coconut-producing countries—Thailand, Vietnam, Indonesia and Cambodia—are all stepping up their layout to tap into business opportunities by leveraging their differentiated advantages.

Key Focuses: China’s Hundred-Billion-Yuan Coconut Supply Gap, Differentiated Advantages of the Four Countries, and Whole-Industry-Chain Cooperation

• Thailand: Boasting a prominent first-mover advantage, Thailand accounts for 60% of China’s imported fragrant coconuts. By jointly establishing factories with Chinese enterprises, Thailand has upgraded the entire industrial chain spanning cultivation, processing and branding, launched diversified products such as coconut juice, coconut powder and coconut shell products, and consolidated its status as the provider of the “fruit of friendship”.

• Vietnam: Endowed with outstanding geographical advantages, Vietnam signed the Quarantine Protocol for Export of Fresh Coconuts to China in 2024. Relying on the logistics efficiency of 3-day direct delivery to Yunnan ports, it is estimated that the export of fresh coconuts to China will generate 250 million US dollars in revenue in the same year, accounting for 25% of the total export volume of its coconut industry, with its cost competitiveness standing out distinctly.

• Indonesia: Holding a world-leading scale, Indonesia’s coconut export volume accounted for 38% of the global total in 2023. Taking advantage of the “Two Countries, Twin Parks” mechanism to launch the Fuzhou Industrial Park, it has realized localized cooperation featuring “Indonesian raw materials plus Chinese processing”, and the first production line has been put into trial operation.

• Cambodia: Driven by policy dividends, Cambodia obtained approval for exporting fresh coconuts to China in 2024. Relying on the tariff preferences under the China-Cambodia Free Trade Agreement and RCEP, the country has opened up stable export channels for its 258,000-metric-ton annual coconut output, boosting rural economic development and deepening China-Cambodia agricultural cooperation.

For Southeast Asian countries, the core business opportunities in the Chinese market have shifted from “selling raw materials” to the integration of the whole industrial chain linking cultivation, processing, cold chain logistics and branding. Only by understanding the needs of the Chinese market and proactively embracing cooperation can these countries seize the initiative in this “coconut race”.