Vietnamese pepper accounts for 60% of the world’s exports. Vietnam has been the world leader in the production and export of pepper for more than 20 years, accounting for 40% of the harvest and 60% of the global export market share. Vietnam’s pepper and spices have now been exported to more than 120 countries and territories, occupying many important markets.
According to the General Department of Customs, Vietnam’s pepper exports in July 2024 reached 21,803 tons with a value of more than 129 million USD, down 22.4% in volume and 8.6% in value compared to the previous month.
In the first 7 months of the year, pepper exports reached more than 163,000 tons with a value of more than 760 million USD, down 2.7% in volume but up 40.7% in value compared to the same period last year.
Germany constantly hunts Vietnamese pepper.
In terms of market, the US continued to be the largest importer with 43,168 tons and a turnover of more than 205 million USD. This was an increase of 48% in volume and 75% in value over the same period last year. The average price was 4,755 USD/ton, up 20%.
Notably, Germany is hunting for Vietnamese pepper, with the strongest increase among the main markets. In the first 7 months of the year, Vietnam exported 11,028 tons of pepper to Germany, worth more than 57 million USD, up 100% in volume and 152% in value compared to the previous year. The average price reached 5,280 USD/on, up 26%.
The United Arab Emirates (UAE) has risen to become the third-largest customer of Vietnam, with 10,922 tons of pepper and a turnover of more than 55 million USD. This was an increase of 40% in volume and 113% in value over the same period last year. The average price reached 5,085 USD/ton, an increase of 1.5 times.
The global pepper market is valued at 5.43 billion USD per year and is expected to have an average growth rate of more than 20% in the period 2024–2032. In addition to the domestic growing area, Vietnam is increasing its imports of pepper from many markets to maintain its position as the world’s leading exporter.
According to the Vietnam Pepper Association (VPA), prolonged dry weather has caused pepper production to decrease by 10% this year, to about 170,000 tons. Falling supply has had a major impact on prices globally. In the second quarter of 2024, the price of black pepper in Vietnam increased by 93% compared to the beginning of the year and 2.3 times over the same period in 2023. The increase in pepper prices will continue due to increased demand while supply is limited.
It is forecast that world demand for pepper is increasing, and the EU remains a major consumer market for Vietnamese pepper. Besides, the pepper processing capacity of Vietnamese enterprises is very large, reaching 140,000 tons per year. This is an opportunity to help the Vietnamese pepper industry develop in the coming time.
Currently, consumers around the world are willing to pay a high price for high-quality pepper. In particular, the US, EU, or Middle East have increased the demand for products that meet the sustainability of social, environmental, and economic aspects throughout the supply chain.
Experts said that due to the supply shortage over global demand and the rapid increase in freight costs and port congestion in Asia, prices in import markets will be affected and will increase in the medium and long term.