In the first 6 months of the year, the export price of Vietnamese pepper increased significantly, with black pepper averaging 6,665 USD/ton, up nearly 94%; white pepper reached 8,079 USD/ton, up 63% compared to the same period last year. This is the highest level in many years.
According to the Vietnam Pepper and Spice Association (VPSA), the 2025 pepper harvest ended with an estimated total output of 180,000 tons, a decrease of 10,000 tons compared to 2024. The main reason is the lack of new planting areas in the recent season, while some of the old areas are aging and yielding low productivity.
Although pepper prices generally remain high compared to the same period in 2024, investment attraction has declined. Many farmers and businesses are shifting towards more economically valuable crops such as durian and coffee, as these have vibrant export markets and more stable prices.
The domestic pepper market from April to June witnessed significant fluctuations. At the beginning of the second quarter, the price in the domestic market reached 157,000 VND/kg, then began to decrease in May to around 148,000 – 150,000 VND/kg. At the beginning of June, the price continued to go down to 147,000 VND/kg.
The sharply rising export price of pepper has caused the turnover to increase.
The situation became even worse when the amended Value Added Tax Law took effect on July 1, 2025, without any specific guidelines, causing businesses to fall into a state of waiting and limiting transactions. The widespread procrastination mentality led to a sharp drop in pepper prices, reaching 123,000 VND/kg in mid-June, the lowest since the beginning of the year.
However, the downward trend did not last long. Just a week later, pepper prices unexpectedly recovered strongly, returning to 140,000 VND/kg and remaining stable until now. The rapid recovery is believed to be due to the stockpiling needs of businesses when prices were low, along with expectations of a rebound in exports by the end of the year.
By the end of June, Vietnam had exported more than 124,000 tons of pepper. Black pepper accounted for a large proportion with 106,000 tons, and the remaining 18,200 tons were white pepper. Although the export volume decreased by 12.9% compared to the same period in 2024, the export turnover reached 850.5 million USD, a significant increase of 34.1%.
The impressive growth of the industry mainly comes from the increase in export prices, with black pepper at 6,665 USD/ton, up 93.6%, while white pepper reached 8,079 USD/ton, up 63% compared to the same period last year. This is the highest price level in many years, clearly reflecting the recovery trend of the global pepper market and the improvement in quality and added value in Vietnam’s production chain.
Mr. Le Viet Anh, Secretary General of the VPSA, said, “Thanks to the global supply decrease and stable consumer demand, world pepper prices have maintained a high level and are expected to continue rising in the coming months.”
The United States remains the largest export market for Vietnamese pepper, accounting for 23.6% of the total pepper export volume (nearly 25,000 tons). India, the UAE, China, and Germany also maintain stable imports. Notably, although China has shown a slight improvement in import volume, it has not returned to the massive purchasing levels of 2023 due to competition from Indonesia, which increased its pepper exports to China by over 100.7% in the first four months of the year.
Mr. Le Viet Anh also noted that, in the context of geopolitical instability, tariffs, and changing consumer habits, international importers are shifting to a strategy of small, consistent, and controlled purchases instead of bulk buying as before. This requires Vietnamese businesses to update seasonal demand, maintain stable quality, and respond quickly to global policy fluctuations.
Forecasts indicate that in the last months of the year, the US market will significantly increase orders in Q4 and early Q1/2026 to prepare for the peak consumption season.