International Market:
The International Pepper Community (IPC) reported:

Vietnamese export pepper prices:

Market Insights:
According to Mr. Hồ Trí Nhuận, Director of Gohan Co., Ltd.:

This indicates that while the early-year pepper market presents opportunities for growth, it also faces challenges from price fluctuations and international demand dynamics.

• Black pepper: 220,269 tons
• White pepper: 30,331 tons

• Black pepper: $1.117 billion
• White pepper: $200.6 million

• Export volume decreased by 5.1%, but export value increased by 45.4%.
• Average export prices:
  • Black pepper: $5,154/ton (up 49.7%)
  • White pepper: $6,884/ton (up 38.9%)

• Volume: 99,874 tons (up 11.7%)
• Export value: $274.5 million (up 5.2%)

• United States:
  • Largest importer of Vietnamese pepper with 72,710 tons ($407.583 million, 28.9% share, up 33.2%).
  • Second-largest importer of cinnamon with 11,078 tons (11.1% share, up 9.0%).
  • Concerns over pesticide residues remain critical, with the U.S. issuing 481 warnings in 2024 for imported spices, up 39.4% from 2023.
• European Union:
  • Second-largest consumer of pepper globally (120,000–130,000 tons/year).
  • Vietnam supplies 45% of Europe’s pepper imports, followed by Indonesia and Brazil.
  • 77 warnings issued in 2024 for pesticide residues in spices (down by 2 from 2023).

• U.S. warnings for Vietnamese spices:
  • 15 total warnings, including:
    • 6 for cinnamon (up by 4 compared to 2023).
    • Overall, U.S. warnings for Vietnamese spices rose 150%.
• European warnings for Vietnamese spices:
  • 21 total warnings, including:
    • 11 for chili peppers,
    • 7 for cinnamon,
    • 1 for pepper (linked to Salmonella).
  • This marks a 7-fold increase compared to 2023.

• Global pepper production: Expected to decline for the fourth consecutive year due to:
  • Farmers shifting to more lucrative crops like durian, coffee, and oil palm.
  • Climate change causing extreme weather, reducing productivity, and increasing costs.
• Global pepper prices: Anticipated to remain high due to shrinking supply and steady demand in major markets (U.S. and Europe).
• Competitive dynamics:
  • Vietnam and Brazil continue to lead the global pepper export market.
  • Indonesia has emerged as a notable supplier but faces challenges in investment and adverse weather conditions.
  • Brazil: Expected to recover production levels in 2025.
  • India: Domestic production predicted to decline due to floods, reduced farmer investment, and inventory liquidation.

• Strengthen compliance with pesticide regulations to maintain access to high-value markets like the U.S. and Europe.
• Leverage the growing global demand for spices in food and seasoning industries.
• Address challenges related to climate resilience and diversification of crops to stabilize production and export value.

T.Huong

Source: Vitic