This morning, pepper prices rose by 2,000 VND/kg in Bình Phước and by 1,000 VND/kg in the remaining localities compared to the same time yesterday.

After remaining flat earlier this week, domestic pepper prices have picked up again. According to the Vietnam Industry and Trade Information Center (VITIC), recent price movements have been largely driven by speculation and profit-taking. Some exporters are showing signs of resuming purchases after a pause to monitor market conditions, helping support domestic prices.

The market is also awaiting the final decision on the U.S. retaliatory tariff on Vietnamese pepper after a 90-day postponement. Although the feared 46% rate may not be imposed, even a 10% tariff could significantly increase import prices to the U.S. and negatively impact global supply chains. In this context, all market participants are reassessing their purchasing and distribution strategies. Analysts forecast that black pepper—a widely used essential spice in the U.S.—is entering a strong price uptrend cycle, potentially lasting several years unless comprehensive solutions are implemented on both the production and international trade policy fronts.

Late last week, Brazilian exporters, via the Brazilian Spice Association (BSA), announced a suspension of all pepper offers and decided to hold inventory indefinitely. This move is seen as a response to sharply falling black pepper prices and has positively impacted the market sentiment.

In the latest trading session, the International Pepper Community (IPC) listed the following prices:

IPC continues to raise export prices for Indonesian pepper.

Global supply shortages and increasing demand for high-quality agricultural products present a strong opportunity for Vietnam's pepper industry to reclaim and strengthen its global export position. This requires not just higher export volumes, but also improved branding and value-added products. As of mid-May, Vietnam exported 84,844 tonnes of pepper worth 585.2 million USD. Though export volume fell by 10% year-on-year, revenue rose by 45% due to significantly higher prices. Black pepper averaged 6,749 USD/tonne (up 96%), and white pepper averaged 8,611 USD/tonne (up 73.8%). Rising prices were driven by lower supply and positive demand signals from key markets like the Middle East and Europe. Exporters are increasingly diversifying their market base. The US remained the largest importer (22.5% share), followed by India, UAE, and Germany. Notably, exports to China surged by 94.4%. Growth was also recorded in markets like Hong Kong, Australia, and Poland, while exports declined to the Netherlands, Russia, the UK, Egypt, Turkey, and France.

Vietnam also imported 18,388 tonnes of pepper worth 108.6 million USD, mainly from Brazil, Indonesia, and Cambodia, for reprocessing and re-export—part of its strategy to maintain global market dominance (currently holding about 60% market share).

A key challenge is Vietnam's continued focus on exporting raw pepper with limited branding efforts. Experts emphasized the need for improved brand recognition and stricter quality control to succeed in high-standard markets and ensure long-term competitiveness.

T.Huong

Source: Vitic