In the first 9 months of 2024, Vietnam exported 203,000 tons of pepper, worth more than 1 billion USD. This result was down 1.5% in volume but up 46.9% in value over the same period last year. It is forecast that the pepper industry will bring in 1.3 billion USD in 2024.
According to the General Department of Customs, in September 2024, Vietnam exported 20,000 tons of pepper, worth 125 million USD. The figures were up 10.4% in volume and up 84.9% in value over the same period last year. Overall, in 9 months of 2024, pepper exports reached 203,000 tons, worth more than 1 billion USD. This result decreased by 1.5% in volume but increased by 46.9% in value compared to the same period in 2023.
The average export price in 9 months reached 4,941 USD/ton, a sharp increase of 49.2% compared to the same period last year. Notably, in September alone, the average export price of pepper reached 6,239 USD/ton, up 67.5% compared to September 2023, and this is also the month with the highest export price in many years.
Pepper prices will continue to increase sharply in the coming time.
EXPORTS INCREASED SHARPLY IN EUROPE AND DECREASED IN ASIA
Asia remains the largest export region of Vietnamese pepper, accounting for 37.8%, reaching 75,859 tons. However, this result decreased by 33.7% over the same period last year, mainly from the Chinese market.
Exports to the Americas reached 62,634 tons, up 49.6%. The US was the largest export market with 57,289 tons, accounting for 28.5% of the market share, up 53.1% over the previous year.
Exports to European markets also recorded a strong increase of 33.6% to 50,769 tons.
The African region accounted for 5.8% of the market share and increased by 14.6% over the same period in 2023 to reach 11,632 tons.
PEPPER PRICES WILL CONTINUE TO RISE
Exactly a decade ago (2014), Vietnam’s pepper exports set a record turnover of 1.2 billion USD. After that, farmers massively expanded the growing area of pepper, even in unsuitable places. As a result, supply exceeded demand, causing a sharp decline in prices. Since then, pepper exports have lost the 1 billion USD mark.
However, after 9 months of 2024, for the first time in 10 years, pepper exports have hit 1 billion USD and likely set an all-time record of 1.3 billion USD by the end of 2024.
“Pepper has entered a new cycle of price increases. This cycle will last from 10 to 15 years, and the price may peak at 350,000-400,000 VND/kg.”
Mr. Hoang Phuoc Binh, Permanent Vice Chairman of Chu Se Pepper Association.
Experts said that in the long term, export pepper prices will be supported since Vietnam’s pepper output in 2025 is expected to decrease. According to the Vietnam Pepper and Spice Association, the amount of pepper in the community is almost gone, only in the agents and warehouses of the business. The source for exports by the end of the year will be lower than every year, and it will last until the new harvest in March 2025. Ms. Hoang Thi Lien, Chairwoman of the Vietnam Pepper and Spice Association, said that in the next 3–5 years, global pepper production is still not enough to meet consumer demand.