OPINIO
Trade4go
Feb 11th, 2025
Original content
The global pineapple production market is dominated by three key countries: the Philippines, Costa Rica, and Indonesia. According to Tridge data service, these three nations collectively account for approximately 42% of the world’s pineapple production and USD $1.5 billion in exports as of 2023. The sector also exhibits strong growth potential, with global pineapple export value increasing by 21% between 2020 and 2023. While the dominance of these major exporters pose significant entry barriers for emerging competitors, Vietnam is in a unique position to tap into a niche market of South Korea and Japan that only it can effectively capitalize on.
Figure 1. Global Pineapple Export Value Trend
To fully grasp this niche market, it is essential to analyze the distinct characteristics of the major pineapple-exporting countries. Costa Rica primarily exports fresh pineapples, with 53% of its total exports going to the United States (US) and 45% to the European Union (EU). In 2023, Costa Rica’s fresh pineapple export values to the US and EU reached USD $625 million and USD $469 million respectively. Pineapple juice is the country’s only processed pineapple product, holding a trade value of merely one-quarter that of fresh pineapple exports.
Similarly, the Philippines focuses predominantly on fresh pineapple exports but also places considerable emphasis on canned pineapple products. In 2023, the export value of fresh pineapples reached USD $345 million, while processed pineapples amounted to USD $214 million. Notably, 96% of the Philippines’ fresh pineapple exports are directed to Asian markets.
On the other hand, Indonesia takes a different approach to its substantial pineapple production. The country prioritizes domestic consumption, with only a small fraction allocated for export. This is particularly striking given Indonesia’s total pineapple production of 3.2 billion kilograms (kg), while its export value for fresh and processed pineapples amounted to just USD $5.9 million in 2022.
Figure 2. Major Pineapple Exporting Country Analysis
Given these market dynamics, Vietnam has successfully avoided direct competition with two major pineapple-producing nations. However, it faces unavoidable competition with the Philippines, a key rival that exports the same pineapple products to overlapping markets. Despite these challenges, Vietnam holds a strong opportunity to expand its export influence across Asia, thanks to the distinctive qualities of Vietnamese fresh pineapples—characteristics that set them apart from their Philippine counterparts.
Figure 3. Characteristics of Philippine and Vietnamese Pineapples
The MD2 pineapple is the dominant variety produced in the Philippines and is widely regarded as the most premium pineapple type in the market. These high-quality pineapples constitute approximately 95% of the country’s total export share, making them a preferred choice for Dole and Del Monte, which use them extensively in both canned and fresh fruit products. According to Tridge data service, MD2 pineapples were exported at around USD $1.20/kg, placing them among the highest price ranges in the global pineapple market in 2024. Despite their high pricing, successful branding as a Premium Golden Pineapple has driven strong demand from high-end markets such as Japan and South Korea, where export values grew by an average of 7.4% in 2023 compared to 2022.
In contrast, Vietnam’s Queen Victoria pineapples offer a more affordable alternative. In 2024, Queen Victoria pineapples are priced at approximately USD $0.63/kg, nearly half the price of MD2. Around 46% of total exports are shipped to Australia and Russia, while 9% are directed to South Korea and Japan as of 2022. Moreover, they have a more distinct flavor and a higher concentration of sweetness compared to MD2 pineapples. With their distinct taste profile and cost-effective pricing, Queen Victoria pineapples hold significant potential to capture a larger share of the Asian market.
Despite Vietnam’s strong potential in pineapple exports, several challenges have prevented the country from fully leveraging its competitive advantages. The two most significant barriers are outdated cold storage technology and a highly fragmented cold chain logistics system. According to Vietnam Briefing, a business news platform providing insights on foreign economic developments in Vietnam, there is a huge shortage in warehouse storages that is incompatible with the tropical fruit market’s rapid expansion. In 2023, Vietnam had only 48 cold storage warehouses, which could serve just 67% of export manufacturers. The technological limitations of these facilities further exacerbate the issue, particularly due to the lack of essential storage solutions, such as cryogenic and refrigerated storage, which are critical for preserving fresh fruit quality.
Additionally, Vietnam’s cold chain logistics sector remains fragmented, relying primarily on small and medium-sized service providers that do not offer end-to-end supply chain coverage. This inefficiency significantly hinders the swift and effective transportation of fresh produce from farms to storage facilities, exposing fruits and vegetables to deterioration and spoilage. As a result, the average food loss rate during the logistics process is estimated to be 39% of Vietnam’s total fresh food production.
Figure 4. Food Loss and Waste Percentage per Food Segment
To tackle Vietnam’s logistics and cold storage challenges, the government has introduced comprehensive plans aimed at modernizing these sectors and minimizing food waste. A key objective is to enhance agricultural infrastructure by promoting advanced storage technologies, such as refrigerated and cryogenic storage systems, which are essential for preserving the freshness of fruits and vegetables over extended periods, especially during transportation.
Additionally, the government is providing financial incentives to businesses that invest in building or upgrading cold storage facilities. These incentives include low-interest loans, free land rental, and subsidies for site preparation and infrastructure development. Beyond storage, Vietnam is also focusing on optimizing its transportation networks to ensure efficient movement of goods from farms to storage facilities, and ultimately, to markets and export destinations.
With these advancements, Vietnam aims to reduce logistical delays and maintain the quality of fresh produce throughout the supply chain. As a result, the cold storage logistics industry is projected to grow to USD $295 million by 2025, achieving an annual growth rate of 12%.
As health-conscious food consumption continues to rise, Vietnam should focus on the salad niche market in these countries to differentiate itself from competitors. Although Vietnam’s Queen Victoria pineapples are recognized for their distinctive flavor and cost-effectiveness, their popularity remains significantly lower than Philippine pineapples, which are more commonly consumed and incorporated into diverse food applications. Reducing dependence on markets dominated by the Philippines will allow Vietnam to strengthen its position in Asia’s expanding health food sector. Taking these aspects into account, expanding Vietnam’s pineapple exports to South Korea and Japan presents a highly strategic opportunity, particularly given the growing emphasis on healthy dietary trends in both markets.
South Korea’s functional food market has experienced significant growth in recent years. In 2022, total sales reached approximately KRW 4.17 trillion, reflecting a 3.4% increase from the previous year. This market is expected to expand further, reaching USD $430 billion by 2032, with a compound annual growth rate (CAGR) of 7.5%. Among various functional food categories, salads have shown the highest growth, with the salad market size more than doubling in just three years—from KRW 88.2 billion in 2019 to KRW 207.1 billion in 2022, according to the Korea Rural Economic Institute (KREI). Additionally, the number of salad franchise establishments surged by 600% between 2020 and 2022, underscoring a rapid shift in consumer dietary preferences toward healthier eating habits.
Figure 5. Salad Franchise and Market Size in South Korea
As salads continue to establish themselves as a mainstream dietary choice, the demand for low-calorie salad dressings has risen sharply. A notable example is Fontana’s zero-fat pineapple dressing, which has gained popularity due to its low-calorie formulation and use of natural, low-sugar sweeteners. Boasting over 8,000 customer reviews, this product is currently the best-selling salad dressing on Coupang, South Korea’s largest e-commerce platform.
This shift in consumer preference presents a strategic opportunity for Vietnam’s Queen Victoria pineapples, which possess a naturally sweeter and more refreshing flavor profile that pairs well with healthier dressings, particularly when compared to Philippine MD2 pineapples. However, due to their high sugar content, Queen Victoria pineapples are not commonly used in processed products such as salad dressings, as their intense sweetness can overpower the delicate balance of flavors in a salad. Instead, they are better suited for use as fresh pineapple chunks in salads, where their rich sweetness enhances the overall taste, creating a gourmet touch. Additionally, their smaller size and firmer texture make them easy to cut into uniform chunks, ensuring convenient preparation and a consistent eating experience.
Japan’s food trends closely mirror those of South Korea, with a strong emphasis on health-conscious eating habits. A key emerging trend in Japan is ‘Taipa’ (タイパ), a slang term derived from ‘time performance’, which reflects Generation Z’s growing focus on optimizing time efficiency in all aspects of life, including food consumption.
Figure 6. Activities Deemed Time Consuming To Japanese Consumers
According to a recent Otalab survey of approximately 1,000 Japanese consumers aged 18 to 27, 15.7% identified eating meals as the most time-consuming activity. As busy lifestyles drive demand for quick yet high-quality meal options, consumers are increasingly gravitating toward ready-to-eat (RTE) meals rather than traditional dining. Among these, bento—Japan’s iconic convenience store lunchbox—has gained substantial popularity, fueling the rapid expansion of the RTE food industry.
However, this shift toward convenience does not imply a lack of health consciousness among Japanese consumers. In fact, 52.3% of respondents reported regularly choosing bento containing rice and nutritious side dishes. Additionally, further research indicates that 70% of bento buyers opt for healthy beverages such as green tea, while 30.6% pair their meals with salads. This growing preference for nutritious, on-the-go meals presents a compelling opportunity for Vietnamese pineapples, as their nutrient-rich, sweet, and conveniently small-sized attributes make them an ideal addition to fresh salads and bento meals, catering to Japan’s evolving dietary trends.
Vietnam’s Queen Victoria pineapples are uniquely positioned to thrive in South Korea and Japan, because of their naturally sweet flavor, compact size, and cost-effectiveness as well as their high demand for healthy, convenient meals. However, Vietnam’s deficiency in logistics and storage technology is a major hurdle that must be resolved if it were to anticipate any practical growth in export potential. By leveraging its distinct product advantages and enhancing supply chain efficiency, Vietnam does have a chance to broaden its export reach and solidify its position in the Asian market.
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