According to the Ministry of Industry and Trade, Vietnam’s pepper exports in 2022 reached 226,000 tonnes, worth 963 million USD. This result was down 13.3% in volume but up 2.7% in value compared with 2021. Vietnam’s average export price of pepper in 2022 is estimated at 4,257 USD/tonne, up 18.5% compared with 2021.
In 2022, global consumption of pepper declined due to rising inflation and China’s “Zezo COVID” policy. However, pepper prices in 2022 are higher than in 2021, leading to an increase in the value of imports from many markets.
The Ministry of Industry and Trade said that in the first 10 months of 2022, pepper imports of German, British, and French markets from Vietnam increased by 19.8%, 59.5%, and 31.5%, respectively, reaching over 53 million USD, 32.68 million USD, and 23.34 million USD. Vietnam’s market share of pepper in the total import value of the German, British, and French markets was at a high level, respectively at 45.52%, 54.14%, and 40.39% in 10 months of 2022.
Pepper exports increased by 2.7% in value compared with 2021. (Photo: Internet)
It is forecast that in the short term, pepper imports of the German, British, and French markets will remain low. Europe is facing an energy crisis that has caused high inflation and economic decline. In the long term, the demand for pepper consumption in Europe will increase again when energy issues and inflation are resolved. This will have a positive impact on Vietnam’s pepper industry. The EU-Vietnam Free Trade Agreement (EVFTA) and the UK-Vietnam Free Trade Agreement (UKVFTA) will help Vietnam’s pepper industry create more competitive advantages over countries that have not yet signed the agreement. To make good use of this potential market, Vietnam’s pepper industry needs to develop production areas, well comply with agricultural practices, and international standards; control and minimize the use of pesticides in pepper production, to create pepper products that meet the requirements of the European market.
Particularly for the Chinese market, according to the Chinese Customs, in 10 months of 2022, the import value of pepper from Vietnam reached 11.6 million USD, down 20.2%. Despite this, Vietnam’s pepper market share accounted for 32.11% of China’s total import value in 10 months of 2022, higher than the market share of 31.76% in the same period of 2021.
It is forecast that in 2023, Vietnam’s pepper exports will continue to face difficulties in the context of world prices under pressure due to low demand. Pepper demand will fall sharply in the first quarter of 2023 with a very difficult winter in the EU region, due to the energy crisis. China’s demand for pepper imports has not been able to make a strong breakthrough although this country has loosened the “Zero Covid” policy. It is expected that by the beginning of the second quarter of 2023, the purchasing power of the Chinese market can increase again./.