In the first 8 months of 2024, Vietnamese enterprises earned about 891 million USD by selling 185,000 tons of pepper, a slight decrease of 1.4% in volume but an increase of 44.9% in value.
In August 2024 alone, Vietnam’s pepper exports increased by 9.7% in volume and 75.1% in value over the same period in 2023. This is because the average export price increased by 69.6%.
In the first 8 months of 2024, the average export price of pepper was about 4,810 USD/ton, up 47% over the same period in 2023. Notably, in 2024, pepper export prices have continuously increased, averaging an increase from 4,000 USD/ton in January to 5,954 USD/ton in August.
The US, Germany, and the UAE are Vietnam’s three largest pepper export markets. In particular, the US remains the largest customer of Vietnamese pepper when spending up to 205.3 million USD to buy nearly 43,170 tons, up 47.5% in volume and 74.9% in value.
According to the Vietnam Pepper and Spice Association (VPSA), global pepper trade declined sharply in the first half of 2024. Currently, among the world’s five largest pepper exporters, Indonesia and India saw their exports increase by 48.3% and 34.1%, respectively. Meanwhile, the two largest pepper-producing countries in the world, Vietnam and Brazil, decreased by 6.8% and 6%, respectively, compared to the same period in 2023.
The VPSA said that the sharp increase in supply from Indonesia and India still did not offset the decline in Vietnam and Brazil.
Vietnam currently accounts for a large market share of pepper exports in the world.
It is forecast that the pepper price in the world will continue to increase and maintain at a high level in the near future. The inventory of pepper in Vietnam is not much, so the export of this product in the last months of the year will be lower than every year. This situation will last until about March 2025, when the new harvest comes.
To meet the demand for consumption and production, in the past 8 months, Vietnamese enterprises had to spend about 85 million USD to import pepper, up 34.5% over the same period last year. In the coming time, pepper imports are forecast to increase because the supply in the country is running out.
In the past 8 months, Vietnam’s pepper exports have surpassed the production of 170,000 tons of the 2024 harvest. Meanwhile, inventory from 2023 to this year is only about 30% left, equivalent to 50,000–55,000 tons.
Vietnam’s pepper now accounts for about 60% of the world’s export output. Vietnam has also been the world leader in the production and export of this item for more than 20 years, accounting for 40% of the harvest and 60% of the global export market share.
Vietnamese pepper has been exported to more than 100 countries and territories. In particular, traditional export markets of Vietnam include China, the US, and the UAE.
In 2024, Vietnam’s pepper production will only reach about 170,000 tons. This is the lowest level in the last 5 years. This is mainly because many farmers cut down pepper plants to switch to other crops with higher economic values.