Pepper is a key crop of Vietnam, bringing great economic value. This is one of the main agricultural exports of the country. Vietnam has been a world leader in the production and export of pepper for more than 20 years.
According to the Vietnam Pepper and Spice Association (VPSA), in October 2024, Vietnam exported 18,493 tons of pepper of all kinds with a total export turnover of 120.2 million USD. The average export price of black pepper in the month reached 6,284 USD/ton, down 28 USD, and white pepper reached 8,029 USD/ton, up 191 USD.
By the end of October 2024, Vietnam had exported 219,387 tons of pepper of all kinds, of which black pepper reached 193,892 tons and white pepper reached 25,495 tons. Total export turnover was more than 1.1 billion USD, up 48%. The average export price of black pepper in 10 months was 4,971 USD/ton, up 1,528 USD, and the white pepper price was 6,626 USD/ton, up 1,671 USD over the same period in 2023.
Vietnam earns more than one billion USD from pepper.
The USA is the largest export market of Vietnam’s pepper with 62,553 tons, up 46.8% over the same period last year. Next are the UAE with 14,540 tons, up 45.0%; Germany with 13,737 tons, up 77.2%; India with 9,428 tons, down 10.5%; and the Netherlands with 9,295 tons, up 41.2% over the same period. China was Vietnam’s sixth-largest export market, reaching 9,252 tons, but exports decreased by 84% over the same period.
In the third quarter of 2024, pepper prices in the world market remained high, especially in August and September. The cause is said to be limited supply and increased import demand in the markets. Entering October 2024, the price of pepper decreased due to the sell-off caused by liquidity demand.
Besides, the world pepper supply is added from Brazil and Indonesia, while the low demand from China has impacted the price of pepper on the world market. Despite a sharp decrease compared to the end of September 2024, the price in October 2024 remained high.
It is forecast that in the short term, world pepper prices will fluctuate in a downward trend. However, the downtrend will not last long due to limited supply and increased import demand due to seasonal factors.
According to the Import-Export Department, in the last months of this year, Vietnam’s pepper export activities will not be easy due to low domestic supply and low demand from China.
For the first time in 10 years, pepper exports have hit one billion USD in just nine months. It is likely to hit an all-time high of 1.3 billion USD by the end of 2024.
It is expected that from the beginning of 2025, Vietnam’s pepper exports will be facilitated thanks to the strong demand from the Chinese market. Meanwhile, after Indonesia’s last harvest, the world supply of pepper has not yet had significant supply until February 2025. This is said to be a favorable factor when Vietnam enters the new harvest in 2025.