Vietnamese pepper: decline in volume, surge in value

A farmer tends to her pepper plants in the central highlands province of Đắk Nông. VNA/VNS Photo

Despite a 5.1 per cent drop in export volume, Việt Nam’s pepper industry recorded a 45.4 per cent increase in export turnover in 2024, reaching nearly US$1.4 billion, according to the Việt Nam Pepper and Spice Association (VPSA).

In December 2024, Việt Nam exported 15,265 tonnes of pepper of all types, including 12,771 tonnes of black pepper and 2,494 tonnes of white pepper, generating a total turnover of $100.6 million. Compared to November, export volume decreased by 4.3 per cent, while turnover fell by 5.5 per cent. The average export prices stood at $6,476 per tonne for black pepper and $8,198 per tonne for white pepper, a slight decline from the previous month.

The US remained the largest market for Việt Nam’s pepper, accounting for 29.5 per cent of December’s exports with 4,509 tonnes, despite an 11.4 per cent decline compared to November. Olam Việt Nam was the leading exporter for the month, contributing 2,551 tonnes, followed by Nedspice and Phúc Sinh.

Over the past year, Việt Nam exported 250,600 tonnes of pepper, including 220,269 tonnes of black pepper and 30,331 tonnes of white pepper. The total export turnover reached $1.3 billion, with black pepper contributing $1.1 billion and white pepper $200.6 million. Despite a decrease in export volume compared to 2023, the significant surge in turnover was attributed to higher export prices. Black pepper prices averaged $5,154 per tonne, a 49.7 per cent increase, while white pepper reached $6,884 per tonne, up 38.9 per cent.

The price increases reflect the country's efforts to improve the quality and brand image of its pepper in recent years, making the switch to producing high-quality, premium-priced products.

The United States imported a record-breaking 72,311 tonnes of pepper in 2024, marking a 33.2 per cent increase from 2023 and accounting for 28.9 per cent of Việt Nam’s total exports. Other key markets included the UAE, Germany and the Netherlands, all showing strong growth, while exports to India and China experienced notable declines.

On the import side, Việt Nam bought 36,727 tonnes of pepper in 2024, valued at $176.2 million, representing increases of 38.4 per cent in volume and 99.5 per cent in value compared to 2023. Indonesia was the leading supplier, providing 17,194 tonnes, a 431.2 per cent surge from the previous year.

Olam Việt Nam emerged as the top performer in exports and imports in 2024, exporting 27,800 tonnes and 12,462 tonnes. Other major exporters included Phúc Sinh, Nedspice Việt Nam and Haprosimex JSC.