Vietnamese pepper accounts for 40% of the harvest and 60% of the global export market share. However, according to the Vietnam Pepper Association (VPA), the prolonged dry weather has caused pepper production to decrease by 10% this year, down to about 170,000 tons.
The supply decrease from Vietnam has had a significant impact on global prices. In the second quarter of 2024, domestic black pepper prices increased by 93% compared to the beginning of the year and 2.3 times compared to the same period in 2023. The increase in pepper prices will continue due to rising demand, while supply remains limited.
Despite being the world’s leading country in pepper production and export for over 20 years, Vietnam is still increasing imports from abroad to maintain its top position in global exports.
According to the VPA, in October 2024, Vietnam imported 4,818 tons of pepper, including 4,566 tons of black pepper and 252 tons of white pepper. The total import value was 29.3 million USD, a significant increase of 98.3% compared to the last month. Indonesia continues to be the main supplier of pepper to Vietnam, with 82.4% of market share. Brazil ranks second with 10.4%.
Vietnam’s pepper accounts for 60% of the global export market share.
By the end of October 2024, Vietnam had imported 28,596 tons of pepper of all types, with a total import value of 131.3 million USD. This is an increase of 27.1% in volume and a significant increase of 78.5% in value compared to the same period in 2023.
Notably, in terms of the import market, Indonesia has surpassed Brazil to become the largest supplier of pepper to Vietnam in the first 10 months of the year. This market accounts for 36% of the volume with 10,287 tons, an increase of 257.2% compared to the same period.
Next is Brazil with 9,013 tons., a decrease of 35.5%, and Cambodia with 6,695 tons, an increase of 96.7%.
Businesses are increasingly importing pepper from Indonesia and Cambodia. The reason may be due to the geographical location and low transportation costs. In addition, Indonesia’s pepper production this year is higher than last year, and the trading prices are quite stable compared to other sources.
Regarding the export situation, by the end of October 2024, Vietnam has exported 219,387 tons of pepper, including 193,892 tons of black pepper and 25,495 tons of white pepper.
The global pepper market is valued at 5.43 billion USD per year, with an average growth forecast of over 20% during the period 2024-2032.
Currently, 95% of the pepper harvest in Vietnam is exported, with domestic consumption accounting for only 5%. Although Vietnam has maintained its position as the world’s No. 1 exporter of pepper for over 20 years, the Vietnamese pepper industry is facing strong competition from other countries. In particular, Brazil has made significant breakthroughs in the past five years, with exports reaching 80,000 tons in 2023 and expected to reach 100,000 tons in 2024.
The VPA has encouraged improving product quality from the cultivation, with enterprises investing in deep and clean processing, diversifying products, and markets to come closer to the global pepper supply chain.