A survey of key producing regions shows that pepper prices increased across the board this morning. The strongest gains were recorded in Dak Lak and Dak Nong, where prices rose by VND 2,000 per kg, pushing buying prices up to VND146,000 per kg.
In Ba Ria–Vung Tau, prices increased by VND1,000 per kg to VND145,000 per kg.
Meanwhile, Gia Lai, Binh Phuoc, and Dong Nai recorded smaller increases of VND500 per kg, with prices commonly traded at VND144,000 per kg.
Overall, domestic pepper prices currently range between VND144,000 and VND146,000 per kg.
Global Pepper Market
At the close of the latest trading session, data from the International Pepper Community (IPC) showed that Indonesia’s Lampung black pepper export price reached USD6,966 per ton, up 0.14% (USD10 per ton) from the previous day.
Prices in other major producing countries were largely stable. Brazil’s ASTA 570 black pepper was quoted at USD6,050 per ton, while Malaysia’s Kuching black pepper (ASTA) stood at USD9,100 per ton.
Vietnam’s export black pepper prices remained steady at around USD6,400–6,500 per ton for 500 g/l and 550 g/l grades.
In the white pepper segment, Indonesia’s Muntok white pepper rose slightly by 0.15% to USD 9,280 per ton. Prices in Malaysia and Vietnam remained unchanged at USD 12,100 per ton and USD 9,150 per ton, respectively.
Industry Update
From March 3–5, 2026, the Vietnam Pepper and Spice Association hosted the Vietnam International Pepper and Spice Outlook (VIPO) 2026 conference in Da Nang, under the theme “Pepper in the Era of Global Trade Reshaping.”
One notable assessment from the conference is that global pepper supply is gradually tightening after several years of adjustment. During the prolonged period of low prices in the past, many farmers in major producing countries reduced investment or shifted to more profitable crops.
At the same time, extreme weather conditions, including drought, prolonged heavy rainfall, and crop diseases, have significantly affected yields and output in several key pepper-growing regions.
These factors mean global supply is no longer as abundant as before, laying the foundation for a new market cycle characterized by firmer and potentially higher prices.
Meanwhile, global demand for pepper continues to grow steadily. Pepper remains one of the most widely used spices in the global food processing industry and is commonly used in food products, beverages, pharmaceuticals, and nutraceuticals. The expansion of the food industry, along with growing consumer preference for natural ingredients, is further supporting demand for traditional spices such as pepper.
Within this broader context, Vietnam continues to reinforce its position as the world’s largest producer and exporter of pepper. With a modern processing system, an extensive network of exporting companies, and strong international trading experience, the country plays a crucial role in ensuring stable global supply.
However, Vietnam’s 2026 pepper crop is expected to face several challenges due to unfavorable weather conditions in many growing areas. Experts estimate that Vietnam’s pepper output this year could decline by around 12–15% compared with last year, mainly due to early-season drought, prolonged rainfall during the harvest period, and aging pepper plantations.
Nevertheless, the decline in Vietnam’s production reflects a broader trend in the global pepper industry, as several major producing countries are facing similar challenges.
In Brazil, another key supplier to the global market, production depends heavily on weather conditions and varies significantly across regions. States such as Espírito Santo, Pará, and Bahia are major production centers, but yields can fluctuate depending on rainfall and temperature during flowering and fruit-setting periods. Labor shortages during harvest and competition for resources with other crops are also affecting production.
Indonesia, one of the traditional global suppliers of pepper, is also experiencing production volatility. Pepper cultivation is spread across multiple islands and ecological zones, making output highly dependent on natural conditions and difficult to stabilize. When Indonesia faces poor harvests, supply pressure often shifts to other major exporters such as Vietnam and Brazil, increasing their role in balancing the global market.
Despite the opportunities arising from growing demand, the global pepper and spice industry is also facing increasingly stringent requirements for quality and sustainability. Major importing markets, particularly the European Union and the United States, are tightening regulations related to pesticide residues, heavy metals, traceability, and social responsibility standards within supply chains.
As a result, producers and exporters must invest more in quality management, monitoring systems, and sustainable production programs to maintain competitiveness in international markets.
Source: Vitic