Pepper exports to the United States recorded a record increase
According to Vietnam Pepper and Spice Association, in 2024, Vietnam exported 250,600 tonnes of pepper of all kinds, of which, black pepper reached 220,269 tonnes and white pepper reached 30,331 tonnes. Total export turnover reached nearly 1.32 billion USD, of which black pepper reached nearly 1.18 billion USD and white pepper reached 200.6 million USD. Compared to 2023, export volume decreased by 5.1%, but the export turnover increased by 45.4%. Average export price of black pepper in 2024 reach 5,154 USD/tonne, up 49.7% and white pepper reach 6,884 USD/tonne, up 38.9% compared to last year. Olam Vietnam is the largest pepper exporter in 2024, reaching 27,800 tonnes, accounting for 11.1% and increasing by 36.9% compared to 2023. Next are the following enterprises: Phuc Sinh reaching 22,293 tonnes, accounting for 8.9%, up 41.1%; Nedspice Vietnam reaching 20,420 tonnes, accounting for 8.1%, up 6.4%; Haprosimex JSC reaching 17,899 tonnes, accounting for 7.1%, up 63.8%; Pearl reached 16,210 tonnes, accounting for 6.5%, down 2.0% compared to 2023.
In addition, there are also a number of other enterprises with a sudden increase in export volume such as Simexco Dak Lak reaching 13,352 tonnes, up 150.3%; Lien Thanh reaching 12,224 tonnes, up 32.4%; Intimex Group reaching 5,171 tonnes, up 42.8%; Sinh Loc Phat reaching 4,119 tonnes, up 50.7%; Hanfimex reaching 3,426 tonnes, up 68.2%.
The United States is Vietnam's largest pepper export market in 2024, reaching 72,311 tonnes, accounting for 28.9% and increasing by 33.2% compared to 2023, which is also the highest record export volume ever, up 21% compared to the previous record year of 2021 reaching 59,778 tonnes.
Following are the markets: UAE reaching 16,391 tonnes, up 35.1%, accounting for 6.5%; Germany reaching 14,580 tonnes, up 58.2%, accounting for 5.8%; Netherlands reaching 10,745 tonnes, up 35.2%, accounting for 4.3%; India reaching 10,617 tonnes, down 17.1%, accounting for 4.2%.
China's imports ranked 6th with 10,549 tonnes, down 82.4% and accounting for 4.2% of the market share.
On other hand, in 2024, Vietnam imported 36,727 tonnes of pepper of all kinds, of which black pepper reached 31,755 tonnes, white pepper reached 4,972 tonnes, total import turnover reached 176.2 million USD, compared to 2023, import volume increased by 38.4%, turnover increased by 99.5%.
Indonesia, Brazil and Cambodia are the 3 largest pepper suppliers to Vietnam with 17,194 tonnes, 9,558 tonnes and 6,798 tonnes, of which imports from Indonesia and Cambodia increased by 431.2% and 80.7% while imports from Brazil decreased by 42.4%.
Olam Vietnam is the largest importer with 12,462 tonnes, up 36.5% and accounting for 33.9% of the market share, followed by Tran Chau with 4,167 tons, Harris Spice with 2,379 tonnes, Phuc Sinh with 1,999 tonnes and Phuc Thinh with 1,920 tonnes.
Domestic prices in the last 3 months of 2024 did not fluctuate much and remained at an average of 140,000 - 150,000 VND/kg. Compared to the beginning of the year, domestic prices of black pepper increased by 75.6% and white pepper increased by 68.8%, similarly, export prices also increased by 30.7% for black pepper and 28.6% for white pepper.
Pepper output is forecast to continue to decline
Impact of climate change in 2024 has somewhat affected pepper production by farmers. However, some areas of the provinces recorded favorable weather conditions.
In Dak Nong, capital of Vietnam's pepper, output was recorded to be equivalent to last year. Production in some areas in the remaining key provinces such as Gia Lai, Binh Phuoc, Dong Nai and Ba Ria - Vung Tau also had a positive trend when pepper prices increased, so farmers boldly invested in caring for and restoring existing pepper gardens.
Meanwhile, in Dak Lak province, the province with the second largest pepper area and output, it is assessed to have decreased when people switched to growing durian trees and there were not many new plantings. It is expected that farmers will not start harvesting pepper until after Tet and this will last until the end of April 2025.
Global pepper output in 2025 is forecast to continue to decrease compared to 2024, marking the fourth consecutive year of decline since 2022. This reflects the fact that pepper is no longer the main crop for many farmers, especially in context of significant increase in economic value of other crops such as durian, coffee and oil palm. In addition, climate change with extreme weather events has reduced productivity and increased the cost of maintaining pepper production.
Commenting on the export market, Ms. Hoang Thi Lien - President of Vietnam Pepper and Spice Association - said that in 2024, China will reduce pepper imports from Vietnam by 82.4% but increase imports from Indonesia by 76.8%. However, this increase in imports is still not enough to meet total consumption demand in China.
Pepper inventories in this market are low, while expectations of a price drop have not materialized as prices have remained stable at VND140,000/kg for the past three months. It is predicted that China will probably wait until Vietnam's main harvest (after Tet) to start buying again.
Global pepper prices in 2025 are expected to remain high due to a decrease in supply, while demand in major markets such as the United States and Europe remains stable. Demand for pepper in the food and spice processing industries remains the main driver of the market.
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On business side, Mr. Ho Tri Nhuan - Director of Gohan Company Limited - said that with assessments of supply and market demand, pepper exports in 2025 will have many advantages but also many unpredictable factors.
Specifically, stable market demand and reduced output in some places will help pepper prices continue to remain high. However, depending on the purchasing pace of important markets such as the United States and China, the price increase margin may increase sharply or only about 10-15% compared to present.
According to Mr. Ho Nhuan Tri, it is forecasted that China will increase purchases as soon as Vietnam enters the main harvest season in March - April 2025, while the US may buy more slowly due to large inventories from 2024. Vietnamese pepper will also be under competitive pressure from other pepper producers. Enterprises need to closely monitor market developments and purchasing movements from partners to have appropriate purchasing, storage and cash flow plans, both increasing output and export turnover and ensuring business efficiency.

Source: Vitic/ congthuong.vn