Vietnam’s Pepper Exports Soar Past $1B in First 7 Months, Up 10.1% YoY

In the first seven months of this year, Vietnam experienced a significant boost in its pepper export industry, achieving a total value of US$1.08 billion, which reflects a 10.1% increase from the same period last year. According to data from the Vietnam Pepper and Spice Association, the quantity of exported pepper reached a total of 168,429 tonnes, marking a 16.1% growth year-on-year.

Global Markets for Vietnamese Pepper

Asia continued to be the leading buyer of Vietnamese pepper, with imports totalling 76,845 tonnes. This figure represents a 12.3% increase from the previous year and accounts for 45.6% of Vietnam’s total pepper exports. Meanwhile, exports to America surged by 34% to 45,470 tonnes, and exports to Europe grew by 7.5%, reaching 36,140 tonnes. Africa also saw a 10% rise in imports, with a total of 9,964 tonnes.

Within these regions, the U.S. remained the largest single market, with imports totalling 40,712 tonnes, reflecting a 31.8% increase year-on-year. Following closely behind, China imported 17,110 tonnes, marking a notable 55.8% growth. Other significant importers included the Netherlands and Thailand, which imported 6,136 tonnes and 6,913 tonnes, respectively. However, not all markets showed growth; exports to Germany and India declined by 18.1% and 26.4% respectively.

On the other hand, Vietnam’s pepper imports reached a total of 48,812 tonnes, valued at $279.3 million. This represents a substantial increase of 55.1% in volume and 43% in value compared to the previous year. The leading supplier was Cambodia, which accounted for a staggering 52.1% of all inbound pepper, with imports increasing by 256.9% to a total of 25,413 tonnes.

Vietnamese Pepper Industry’s Future Outlook

Le Viet Anh, chairman of the Vietnam Pepper and Spice Association, anticipates that pepper prices will remain stable in the foreseeable future, assuming there are no major geopolitical disruptions. Despite facing increasing competition for land and stringent regulations, particularly the European Union Deforestation Regulation, the Vietnamese pepper industry remains optimistic.

The association has suggested that the industry should shift its focus from expanding production to enhancing the quality, branding, and value addition of its products. In response to this, companies are being encouraged to increase investments in certified raw materials, strengthen collaborations with farmers, improve pesticide residue controls, enhance traceability systems, and fulfil all technical standards required by importing markets.

Moreover, embracing sustainable practices such as regenerative agriculture, circular economy models, lower carbon emissions, and smarter water usage is recommended. These measures align with the rising trend of green consumption and can contribute to the industry’s resilience and future success.