By 2025, the export turnover of the whole pepper and spice industry is expected to reach about 2 billion USD, with a total output of 400,000 – 500,000 tons.
According to the statistics of the Vietnam Pepper and Spice Association (VPSA), in the first 2 months of 2023, Vietnam exported 40,814 tons of pepper with a turnover of 128.6 million USD. The result is up 33% (10,138 tons) in volume but down 9%, equivalent to 12.7 million USD in turnover compared to the same period last year.
China has surpassed the United States to become Vietnam’s largest pepper export market with 10,209 tons. This figure is up 8.6 times over the same period last year and equal to half of the pepper that Vietnam exported to this market in the whole of last year.
China’s market share in Vietnam’s total pepper exports has increased to 25% compared to about 4% in the same period in 2022.
Vietnam expects pepper and spice exports to reach about 2 billion USD by 2025.
According to Ms. Hoang Thi Lien – Chairman of VPSA, the average export price of pepper is about 3,177 USD/ton, down 31.4% over the same period in 2022. This is the reason why export turnover decreased by 9%. In February alone, pepper export prices reached the lowest level in a year, at about 3,006 USD/ton.
Currently, Vietnam’s pepper is among the top in the world and Vietnam is also the largest producer and exporter of pepper in the world. In 2022, Vietnam exported more than 232,000 tons of pepper alone with an export turnover of nearly 990 million USD.
The total export turnover of the whole pepper and spice industry is estimated at 370,000 tons, equivalent to over 1.4 billion USD. According to the Ministry of Industry and Trade, currently, Vietnam’s pepper and spice industry has only exploited 40-50% of its potential, so there are still plenty of development opportunities.
Accordingly, if the industry is supported to connect with the market along with the orientation of production and planning of sustainable goods, meeting the needs of importers, the export turnover of pepper and spices can reach 2 – 3 billion USD/year.
Ms. Hoang Thi Lien said that VPSA will focus on the strategy of diversifying the industry, market, products, and added value in the structure of pepper and spices. At the same time, VPSA will promote the application of science and technology, deep-processing, and sustainable farming in raw materials areas to build a sustainable value chain of Vietnamese pepper and spice.
“The target is that by 2025, the export turnover of the whole pepper and spice industry will reach about 2 billion USD with a total output of 400,000 – 500,000 tons,” Ms. Lien said./.