Advantages of shifting the fruit juice supply chain to Vietnam

Amidst the fluctuations of the market, politics and economy, many beverage factories are facing a crucial decision: whether to switch to fresh fruit juice supplies or not. Is this a new trend or not? Should we switch to fruit juice to match the gradually changing needs of the market? And should we choose Vietnam as the next land to exploit abundant cheap supply when competitors are gradually moving to Vietnam? So let this article help you have a better overview of the issues you are concerned about above!

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General challenges of the global fresh fruit juice supply chain 

Fresh fruit juice is a valuable product, with a global market of $154.18 billion in 2019 and projected to reach $201.66 billion in 2027. However, the global fresh fruit juice supply chain is encountering many general challenges, affecting the production, business and consumption activities of enterprises and consumers. Some general challenges are: 

• Pandemic effects: The COVID-19 pandemic has posed many difficulties for the fresh fruit juice supply chain, due to the lockdown measures, social distancing, travel and trade restrictions. According to a report by the International Fruit Juice Association (IFU), the demand for fruit juice dropped by 10% globally in 2020. Moreover, fruit juice producers also faced shortages of raw materials, labor, equipment, packaging and transportation, increasing costs and reducing product quality. 
• Political conflicts: Political disputes between major countries are also a cause of disruption for the fresh fruit juice supply chain. For instance, the trade war between the US and China has raised import tariffs on many agricultural products, including fruit juice. According to a study by the Peterson Institute for International Economics (PIIE), the US import tariffs on Chinese fruit juice rose from 0.7% to 21.6% in the period 2018-2019. This reduced the export of Chinese fruit juice to the US, and affected the fruit juice industry of both countries. 
• Internal strife: Internal strife in some fruit-producing countries is also a factor that hampers the fresh fruit juice supply chain. For example, the political and social instability in Venezuela has undermined its economy and agriculture. According to a report by the Food and Agriculture Organization of the United Nations (FAO), Venezuela’s fruit production declined by 56% in the period 2014-2018. This reduced the supply of raw materials for Venezuela’s fruit juice industry, as well as the importing countries from Venezuela. 

Therefore, it can be seen that the global fresh fruit juice supply chain is facing many general challenges, due to the effects of the pandemic, political conflicts and internal strife. These are big challenges that require businesses and international organizations to have innovative and effective solutions to overcome and develop.

Shifting the fruit juice application chain to Vietnam

Conclude

Fruit juice is a promising business, but also full of challenges. The current fruit juice supply chain is facing many issues such as high costs, low consumption, lack of diversity and product quality. To address these issues, a sensible solution is to shift the fruit juice supply chain to Vietnam, a country with many advantages in terms of raw material sources, consumption market and business environment. 

Furthermore, Vietnam has also exported fruit juice to neighboring markets such as China, Japan, Korea, Southeast Asia and Europe, as Vietnamese fruit juice has high quality, variety and matches the taste of consumers. Shifting the fruit juice supply chain to Vietnam not only brings economic benefits, but also has a positive impact on the environment and society. Effectively utilizing the abundant labor force of young, passionate and creative people. 

Moreover, shifting the fruit juice supply chain to Vietnam will also foster cooperation and peace between countries by sharing experiences and enhancing cultural exchanges. 

In conclusion, shifting the fruit juice supply chain to Vietnam is a sensible and effective solution, bringing many benefits in terms of economy, environment and society for the parties involved. We encourage businesses and organizations interested in the field of fruit juice to research and invest in Vietnam, as well as cooperate with local partners to create a sustainable and efficient supply chain. Vietnam is not only the country of delicious fruits, but also the country of golden opportunities for the fruit juice industry. Let’s explore and enjoy the wonderful products from Vietnamese fruit juice!

If you are looking for a trustworthy partner to invest in the Vietnamese agricultural market, please contact us right away. WTP Agri will ensure to bring you satisfaction in the cooperation process with goodwill and the highest quality. Please contact our team at agri.crm@wtp.vn or call us at (+84)971279099. And remember that we can also provide tailored services if you need