The world pepper market has been showing positive signals since the beginning of 2024. In addition to the increased consumption demand, the high pepper prices will have a good impact on Vietnam’s pepper industry.
Currently, key pepper growing areas in the Central Highlands and Southeast are entering the end of the harvest in 2024. The increase of black pepper prices somewhat slowed down in mid-April due to the decrease in demand from China, but then recovered again.
At the end of April 2024, the price of black pepper in the domestic market increased from 1,500 to 4,500 VND/kg (depending on the survey area) compared to the end of March 2024. Specifically, the price of black pepper in Dak Nong and Dak Lak increased by 1,500 VND/kg, to 96,500 VND/kg. In Binh Phuoc and Ba Ria – Vung Tau, the black pepper price increased by 2,500 VND/kg, to 96,500 – 97,000 VND/kg. In Dong Nai and Gia Lai, the price increased by 4,500 VND/kg, to 96,500 VND/kg.
According to statistics from the General Department of Customs, Vietnam’s pepper exports in the first quarter of 2024 reached 56,830 tons, worth 235.91 million USD. This result was down 5.2% in volume but up 3.3% in value compared to the fourth quarter of 2023. It was also down 25.5% in volume but up 0.9% in value against the first quarter of last year.
China and the EU have significantly increased pepper imports.
It is forecast that in the remaining months of the second quarter of 2024, Vietnam’s pepper exports will grow positively thanks to increased demand from European and American markets.
In April 2024, Vietnam’s pepper exports increased by 4.2% in volume and 5.1% in value compared to March 2024. It increased by 0.8% in volume and 20.1% in value compared to April 2023. Besides, Vietnam’s pepper industry is benefiting in price.
The average export price of Vietnam’s pepper in April 2024 was estimated at 4,342 USD/ton, which was up 0.8% compared to March 2024 and 37.4% compared to April 2023.
Notably, the Import-Export Department said that in the first quarter of 2024, there was a move in terms of export area. The proportion of Vietnam’s pepper exports to the Americas increased from 22.35% in the first quarter of 2023 to 30.6% in the first quarter of 2024 and exports to Europe from 19.65% to 28.2%. In contrast, the proportion of pepper exports to Asia decreased from 44.32% in the first quarter of 2023 to 34.55% in the first quarter of 2024.
In terms of market structure, in the first quarter of 2024, the proportion of Vietnam’s pepper exports to most markets increased compared to the first quarter of 2023, except for India.
In the first months of 2024, the US and Japan’s pepper imports decreased. In contrast, the EU, the UK, and China increased their imports, which had a positive impact on Vietnam’s pepper industry. Because these are the traditional and potential pepper export markets of Vietnam.
According to data from Chinese Customs, in the first quarter of 2024, the value of China’s pepper imports reached 16.54 million USD, up 128% over the same period in 2023. In particular, the value of pepper imports from Vietnam reached 6.27 million USD, up 250.2%. Vietnam’s pepper market share in China’s total import value increased from 24.71% in the first quarter of 2023 to 37.9% in the first quarter of 2024.
In general, the world pepper market has been showing positive signals since the beginning of 2024. In addition to increased consumption, pepper prices remaining at a high level will also have a positive impact on Vietnam’s pepper industry./.