Vietnam pepper prices are at a high level since the beginning of the year

According to Vietnam Customs, in the first month of this year, Vietnam's pepper export price averaged USD 6,756 per ton. It is the highest price in the past 9 years (since February 2017) and increased by 69% compared to January 2024.

Vietnam's pepper export prices in many markets increased significantly compared to the same period last year. In January, pepper export prices to the US market averaged USD 7,680 per ton, up 85%; to the German market, USD 7,065 per ton, up 55%; to India, USD 7,158 per ton, up 76%... In particular, the average pepper export price to Pakistan doubled compared to January 2024, to USD 6,780 per ton.

Thus, from the beginning of the year, Vietnam's pepper export prices were high, thanks to which pepper export turnover still increased while export volume decreased. Specifically, in January, Vietnam's pepper exports reached 13 thousand tons, worth more than USD 88 million, compared to January 2024, down 26% in volume but up 25% in value.

In the domestic market, pepper prices did not fluctuate much in the first month of the year but have been increasing sharply since the beginning of February. Mr. Hoang Phuoc Binh, owner of a pepper farm in Chu Se town, Chu Se district, Gia Lai province, said that in the first days of March, pepper prices were around VND 160,000 per kg.

The increase in pepper prices in Vietnam has many causes, such as the lack of supply from the previous crop and the 2025 harvest being late due to unfavorable weather. Unfavorable weather in many major pepper-growing areas also leads to a decrease in productivity and output.

Meanwhile, US and EU customers need pepper imports. Especially high demand from Chinese traders after a year of sharp decline in pepper exports to this country (in 2024, Vietnam's pepper exports to China reached nearly 11,000 tons, worth USD 32 million, down 82% in volume and 77% in value compared to 2023).

At the beginning of this year, pepper export data to the Chinese market clearly shows that Chinese traders' demand for Vietnamese pepper is increasing again. According to Vietnam Customs, in January 2025, pepper exports to the Chinese market doubled in volume and 2.65 times in value compared to the same period in 2024, reaching 947 tons, worth USD 3.5 million. China's market share in Vietnam's total pepper export volume increased from 2.7% in January 2024 to 7.3% in January 2025.

Hoang Phuoc Binh said he had just attended Vietnam International Pepper and Spice Outlook 2025 (VIPO 2025). As someone who has attended VIPO many times, Binh realized there had never been as many Chinese traders participating as this time, with about 20 businesses. This shows that China will still need to buy a lot of pepper in the future.

Pepper-growing provinces in Vietnam are currently harvesting pepper for the 2025 crop. This year, pepper harvesting is slow due to labor shortages and the impact of climate change. Meanwhile, many farmers and traders expect pepper prices to continue to increase. Therefore, the general trend of pepper households this year is not to rush to sell, or if they need to sell to solve some work, they will only sell a part. After selling coffee and durian, many farming households also use the money to buy pepper, anticipating the price increase in 2025.

Binh commented that Vietnam is in the pepper harvest season, but pepper prices are still high. Last June, pepper prices reached VND 180,000 per kg. Therefore, this year, pepper prices in Vietnam could ultimately exceed VND 200,000 per kg. The time to reach this milestone could be from May onwards when the pepper crop has been harvested.

According to statistics, by the end of 2024, the pepper growing area will reach 110,500 hectares with an average yield of 260 kg per hectare, double the global average (127 kg per hectare), and an output of about 200,000 tons.

In 2024, pepper export turnover will reach USD 1.32 billion. Notably, the pepper growing area is only about 15% of the coffee growing area and 12% of the rubber growing area. Still, it contributes about 23% of the coffee export value (USD 5.6 billion) and more than 38% of the rubber export value (USD 3.4 billion), opening up great development potential if the industry is adequately exploited.

In addition, Vietnam is also a leader in the production and export of other spices such as cinnamon (nearly 200,000 hectares, accounting for about 20% of the global cinnamon growing area), star anise (55,000 hectares, second in the world after China); other spices: ginger, turmeric, ... serving domestic demand and many international markets.

* $1 = VND 25.690 - Source: Vietcombank.