Vietnam’s pepper industry is experiencing a breakthrough thanks to the recovery of global prices and demand, along with a strategy of deep processing and market expansion. Thereby, the industry continues to maintain its leading position in the world.
According to the Ministry of Agriculture and Environment, in October 2025 alone, Vietnam exported about 19,800 tons of pepper, worth 131.8 million USD. In the first 10 months of the year, export volume reached 206,300 tons, valued at 1.4 billion USD. Despite a 5.9% decrease in volume, the value increased by 25.8% compared to the same period last year.
The average export price was 6,774 USD/ton, an increase of 33.7%. This shows a move toward deep processing and value addition rather than chasing volume. The figure of 1.4 billion USD is nearly equal to the historical record of 2016 (1.43 billion USD), making experts believe that the pepper industry could completely reach 1.5 billion USD this year.
The three largest consumer markets for Vietnamese black pepper were the United States (24.7%), Germany (7.9%), and India (5.6%). In particular, the export value to the UK nearly doubled (96.9%), showing that market diversification is yielding positive results.
Vietnam’s pepper exports set a new record.
According to the Vietnam Pepper and Spice Association (VPSA), the results achieved in the first 10 months are due to two main factors: rising global pepper prices and Vietnamese businesses’ strategy of deep processing and product diversification. Pepper production in 2025 is expected to reach only about 180,000 tons, a decrease of 10,000 tons compared to 2024 due to the lack of expansion in new planting areas. However, export value is expected to increase significantly thanks to high prices.
Additionally, importing countries tightened trade, which limited demand in the first half of 2025. Following the release of demand, the market experienced a strong recovery in the fourth quarter, which contributed to price stabilization and an increase in trading volume. This is the foundation for Vietnam to achieve a historic export milestone.
According to the VPSA, from now until the end of 2025, pepper prices and import demand will continue to increase due to the global recovery cycle. However, if global production increases as forecast in 2026, pepper prices could face downward pressure.
The potential for expanding planting areas in Vietnam is quite limited. Therefore, production increase mainly comes from optimizing yields on existing land.
Notably, Brazil, a country with significant production potential, could increase its exports, impacting the global supply and demand balance. In that context, Vietnam needs to maintain its competitive advantage through stable quality, international standards, and the brand reputation it has built over many years.
Major importers are limiting their purchases to reduce cost and inventory risks. This forces Vietnamese businesses to be more flexible in warehouse management, coordinating supply, and maintaining reasonable inventory.
The VPSA recommends that businesses proactively update tax policies, shipping costs, and regulations on the origin of goods, factors that are reshaping the global pepper market share structure. Vietnam, despite potentially losing market share in some small markets, still maintains its advantage in the high-quality segment thanks to its reputation and deep processing capabilities.