Pepper Market on July 1, 2025

 

Domestic and export prices both increased sharply

Pepper prices today  (July 1) increased sharply by 3,000 - 4,000 VND/kg, reaching 141,000 - 142,000 VND/kg. In the world market, Vietnam's pepper export prices also increased by 440 - 470 USD/ton in the context of bustling trading activities again.

In the world market

At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Indonesian black pepper at 7,529 USD/ton, a slight increase of 1 USD/ton compared to the previous day.

Notably, Vietnam's black pepper  export  price  recorded a sharp increase of 440 - 470 USD/ton, up to 6,240 - 6,370 USD/ton for 500 g/l and 550 g/l black pepper.

In Malaysia, ASTA black pepper prices continued to remain high, reaching 9,000 USD/ton, unchanged from the previous session.

Meanwhile, the price of Brazilian black pepper ASTA 570 is currently the lowest among the monitored countries, at $5,850/ton.

Type name	World black pepper price list
	July 1 (Unit: USD/ton)	% change from previous day
Lampung Black Pepper (Indonesia)	7,529	+0.01
Brazilian Black Pepper ASTA 570	5,850	–
Kuching Black Pepper (Malaysia) ASTA	9,000	–
Vietnamese black pepper (500 g/l)	6,240	+7.05
Vietnamese black pepper (500 g/l)	6,370	+7.38

At the same time of survey, the price of Indonesian Muntok white pepper was traded at 10,169 USD/ton, a slight increase of 1 USD/ton. Meanwhile, Malaysian ASTA white pepper remained unchanged at 11,750 USD/ton.

In Vietnam, the export price of white pepper also increased by 150 USD/ton, to 8,950 USD/ton.

Type name	World white pepper price list
	July 1 (Unit: USD/ton)	% change from previous day
Muntok Indonesian White Pepper	10,170	+0.01
ASTA Malaysian White Pepper	11,750	–
Vietnam white pepper	8,950	+1.68

Update pepper information

In Ptexim's latest report, the company said that significant increase in demand from major markets such as the US, EU, Middle East and especially from China has caused prices to increase sharply.

Easing geopolitical tensions also helped boost the market, after Iran and Israel reached a ceasefire agreement. This move triggered a strong recovery in demand from the Middle East region – a major consumer market for pepper.

The deal is expected to open up a market opportunity worth $180 million, with demand growth in the region forecast to reach 35% in the third and fourth quarters of 2025.

A series of positive news related to reciprocal tariffs from the US to major global markets such as India, China and the EU has contributed to boosting  import  demand  from these markets.

At the same time, the administration of US President Donald Trump is considering extending or delaying the application of higher import tariffs on goods from many countries, expected to take effect from July.

Specifically, on June 26, the White House announced the possibility of delaying tariffs on goods from dozens of countries, further strengthening confidence in the global market. This move will likely delay the effective date of the tariffs scheduled for early July, creating more space for bilateral and multilateral trade negotiations.

On the supply side, the Brazilian Spice Association has recommended that local companies temporarily suspend pepper exports as prices have fallen sharply. This decision quickly created a wave of global purchasing shifts, focusing heavily on supplies from Vietnam – currently the main destination in the international pepper supply chain.

Market fundamentals suggest that the recovery trend will continue in Q3 and Q4 2025, with low inventories providing a solid foundation for sustained price gains.

According to VietnamBiz.vn

Pepper Market June 30, 2025

 

Price continues to increase sharply by 5,000 VND

Pepper prices today (June 29) are trading at 137,000 - 138,000 VND/kg, up 5,000 VND compared to the previous day. Despite the recent decline, most forecasts show a positive outlook in the long term.

In the world market

In the world market, world pepper prices generally did not record any new fluctuations on the first day of the week.

The International Pepper Community (IPC) is listing the highest price of Malaysian ASTA black pepper at $9,000 per tonne, followed by Indonesian black pepper at $7,528 per tonne, while Brazilian ASTA 570 black pepper is priced at $5,850 per tonne.

 Vietnam's black pepper  export  price fluctuates between 5,800 - 5,900 USD/ton for 500 g/l and 550 g/l black pepper.

Type name	World black pepper price list
	June 30 (Unit: USD/ton)	% change from previous day
Lampung Black Pepper (Indonesia)	7,528	–
Brazilian Black Pepper ASTA 570	5,850	–
Kuching Black Pepper (Malaysia) ASTA	9,000	–
Vietnamese black pepper (500 g/l)	5,800	–
Vietnamese black pepper (500 g/l)	5,900	–

At the same time of survey, the price of Indonesian Muntok white pepper was traded at 10,169 USD/ton, while Malaysian ASTA white pepper reached 11,750 USD/ton and Vietnam at 8,800 USD/ton.

Type name	World white pepper price list
	June 30 (Unit: USD/ton)	% change from previous day
Muntok Indonesian White Pepper	10,169	–
ASTA Malaysian White Pepper	11,750	–
Vietnam white pepper	8,800	–

Update pepper information

Normally, from April onwards, the spice market in general and pepper market in particular are the most active in the year. However, this year, the world pepper market is gloomy as trade tensions increase.  Import  demand  from many countries is low, and tariffs are unclear, making businesses cautious in signing contracts.

However, most forecasts suggest that the long-term pepper price outlook remains very positive.

The Import-Export Department (Ministry of Industry and Trade) forecasts that in the short term, domestic pepper prices are expected to stabilize or decrease slightly due to unstable export demand and tight supply. However, in the medium and long term, global supply shortages may support pepper prices to increase again.

The American Spice Trade Association (ASTA) recently warned about the risk of rising global pepper prices due to supply shortages and new US tariff policies, expected to take effect from July 9. In particular, the reciprocal tax rate of up to 46% on black pepper exported from Vietnam is causing concern for businesses and importers.

“The main reason for the decline in global black pepper supplies is a decline in production in Vietnam, the world’s largest exporter of black pepper,” Laura Shumow, executive director of ASTA, told EatingWell magazine.

“After pepper prices fell sharply in 2018 due to oversupply, many farmers in Vietnam switched to other crops. Since pepper plants take several years to produce fruit, the consequences of this switch are only now beginning to show.”

Although Indonesia, India and Brazil are also major producers, the farming decisions of Vietnamese farmers still have far-reaching impacts on global supply chains.

“Black pepper prices   are cyclical – production drops when prices are low and increases again when prices are high,” Shumow explains.

Recent crop reports from ASTA show that pepper production in Vietnam and many major exporting countries has been low for the past few years, and it is forecast that it will take a few more years for supply to catch up with demand.

The American Spice Trade Association (ASTA) predicts that global supply will not recover soon due to the chain reaction from farmers in Vietnam – the world’s largest black pepper exporter – switching crops.

In addition, geopolitical factors, climate change, rising transportation costs and new tax policies from the US are also putting pressure on pepper prices.

According to VietnamBiz.vn

Pepper Market June 23, 2025

 

Prices fell again at the beginning of the week

Pepper prices today (June 23) dropped to 120,000 VND/kg. Recently, Vietnam's pepper exports to the US have slowed down, while other major markets such as Germany, India, China... have increased quite strongly.

In the world market

In the world market, pepper prices in leading producing countries also remained stable.

At the end of the most recent trading session, the International Pepper Community (IPC) reported that the  export  price  of Indonesian black pepper was at 7,461 USD/ton, Malaysian ASTA black pepper reached 9,000 USD/ton, while the price of Brazilian black pepper ASTA 570 stood at 6,050 USD/ton.

In Vietnam, the export price of black pepper is fluctuating between 6,000 - 6,100 USD/ton for 500 g/l and 550 g/l.

According to information from Peppertrade, due to the sharp drop in black pepper prices in Vietnam, Brazilian exporters through the Brazilian Spice Association (BSA) have decided to suspend all offers and hold inventories for an indefinite period.

Type name	World black pepper price list
	June 23 (Unit: USD/ton)	% change from previous day
Lampung Black Pepper (Indonesia)	7,461	–
Brazilian Black Pepper ASTA 570	6,050	–
Kuching Black Pepper (Malaysia) ASTA	9,000	–
Vietnamese black pepper (500 g/l)	6,000	–
Vietnamese black pepper (500 g/l)	6,100	–

At the same time of survey, the price of Indonesian Muntok white pepper was recorded at 10,079 USD/ton, Malaysian ASTA white pepper reached 11,750 USD/ton and Vietnamese white pepper stood at 9,000 USD/ton.

Type name	World white pepper price list
	June 23 (Unit: USD/ton)	% change from previous day
Muntok Indonesian White Pepper	10,079	–
ASTA Malaysian White Pepper	11,750	–
Vietnam white pepper	9,000	–

Update pepper information

Recently, Vietnam's pepper exports to the US market have tended to slow down, while other major markets such as Germany, India, China, etc. have increased quite strongly.

Vneconomy reported that in the first 5 months of the year, the US continued to be the largest export market for Vietnamese pepper, accounting for 24.7% of total volume and 26.8% of total export turnover. In the first 5 months of 2025, the country  imported   24,687 tons of pepper, worth 184.9 million USD, with an average price of 7,489.6 USD/ton. Although the volume decreased by 13.7% compared to the same period last year, the turnover increased sharply by 43.5%, while the average export price increased by 66.3%.

In May 2025 alone, the US imported 6,926 tons, worth 52.37 million USD, with an average price of 7,561.7 USD/ton - the highest price among the markets. Thus, compared to April 2025, output increased by 2.4%, turnover increased by 6.2%, and price increased by 3.8%. Compared to the same period last year, it increased by 18.6% in volume, 81.9% in turnover, and 53.3% in price.

The German market ranked second. In the first 5 months of 2025, this country imported 8,451 tons of pepper from Vietnam, reaching a turnover of 63.67 million USD. Compared to the same period last year, output increased by 23.5%, turnover increased by 93.9%, or nearly double.

Notably, not only has the volume increased sharply, but the export price to Germany also tends to increase steadily, reflecting the shift in consumption towards high-quality, organic or sustainably produced products.

“With the rise of green retail channels and European restaurants prioritizing transparent supply, Vietnamese pepper has the potential to expand its market share in Germany if it takes advantage of the EVFTA,” said the Vietnam Pepper and Spices Association (VPSA).

India ranks third in the pepper import markets from Vietnam. As the world's leading spice consumer and producer, India is not only a competitor of Vietnam in the pepper market but also an important customer. In the first 5 months of 2025, India imported 7,501 tons of pepper, equivalent to 53.28 million USD, with an average price of 7,102.6 USD/ton. Compared to the same period in 2024, the volume increased by 10.1%, the turnover increased by 90.2%, and the export price increased by 72.8%.

These impressive figures reflect India's domestic supply shortage and growing demand in the premium consumer segment, especially from food, pharmaceutical and organic product processors.

In addition to the three key markets above, Middle Eastern countries such as the UAE also show clear potential. Although the export volume to this market in the past 5 months only reached 3,960 tons, down 28.8% compared to the same period, the turnover still reached 26.93 million USD, up 16.5% - thanks to a sharp increase in export prices.

According to VietnamBiz.vn

PEPPER TRADE JUNE 20 - WARNING INFORMATION...

 

Warning information about scams and commercial fraud in the UAE

The UAE is a major global hub for trade and business, making it a target for many forms of commercial fraud and scams. Fraudsters are constantly changing their tactics, forms and methods of fraud, but some of the common types of commercial fraud and scams observed in the UAE include:

I. Forms of fraud and commercial fraud

1. Receive goods without paying and then run away

Nowadays, it is very common in the Middle East for importers to flee to their home country or close their offices after receiving the goods. This makes it difficult to find and recover assets. Fraudsters impersonate buyers in their scams, and they often request payment by T/T upon receipt of goods or bank transfer or Western Union. When working with new buyers, never pay via T/T on delivery and do not use Western Union for business transactions.

Currently, this situation is very common, the purchasing business receives the goods and does not pay or the selling business receives the money but does not deliver the goods. Or the purchasing business does not receive the goods and does not pay (especially for fresh fruit, causing damage to the selling business).

2. Margin Fraud

Escrow is a valid method. It is a third party arrangement that holds the buyer’s funds until the seller delivers the goods. Escrow is a secure way to protect both parties – the seller and the buyer. However, like all international payment methods, scammers have found ways to cheat honest businesses out of their money using escrow.

Escrow fraud occurs when a scammer sets up a new online escrow service with low fees and attractive offers. Buyers and sellers sign up, the buyer sends money to the site, and the escrow site suddenly shuts down and the money disappears. When paying a company through escrow, first make sure the escrow company is legitimate.

3. Forging documents and papers from banks

Businesses need to be extremely careful not to be scammed by scammers who forge bank documents or papers such as money transfer orders, etc., then send them to businesses and deliver the goods. This is a common form of fraud, so businesses must check if the money has reached their account before delivering the goods.

4. Hacking business information during transactions

Many businesses that are victims of computer, email or account hacking have no choice in the matter as computers can be compromised while users are online. However, some of the disadvantages associated with getting the victim to open a file allow the scammer to access sensitive information. This is similar to phishing, in that the scammers “copy” legitimate documents that the victim is used to receiving. In many cases, fraudulent businesses modify LCs, modify bank payment orders, modify emails about payment accounts, payment banks, etc. to deceive partners. This phenomenon is very common today.

5. Fraud is the partner for transaction

Scammers send emails asking for the business’s banking details. These can be very convincing if the scammer is impersonating a company that the business regularly deals with, or a company that regularly pays deposits directly to the business. When asked to provide banking details, even bank account numbers, other payment methods. Therefore, businesses should be proactive and always call the partner company directly and ask directly if the request is valid and correct before transferring money.

6. Bank employees collude with buyers

In some cases, businesses buying and selling goods signed a DP payment contract through the bank. When the original documents were sent to the bank, bank officials colluded with the purchasing business and handed over all original documents to the purchasing business to pick up the goods without payment.

7. Delivering but not receiving the goods or leaving them for a while causing the goods to be damaged

Currently, a common form is that the purchasing enterprise completes the procedures to receive the goods but the payment terms are TT postpaid. When the goods arrive at the port, they do not receive the goods immediately (usually for agricultural products, fresh goods). Leaving them at the port for a while will cause the goods to lose quality, high storage costs, then refuse to receive the goods or force the price down, etc. Many export enterprises that apply TT postpaid payment and do not deposit will suffer great losses if the importing enterprise does not receive the goods. At that time, the exporting enterprise has to bear many costs such as transportation to and from, storage, and other costs.

8. Non-delivery scam

The exporter absconds when he receives the money and does not deliver the goods, the importer receives nothing or an empty container, this triggers an automatic shipping document and “proof” that the seller has completed the transaction, the seller has received the money and the buyer has received nothing. The complication here is that the payment and shipping documents can be very legitimate and international trade depends on them.

9. Issuance of guaranteed checks

Currently, in the Middle East, purchasing enterprises often apply the form of payment by issuing a check with the total contract value and giving it to the seller as a guarantee. That check will be recorded as valid for a certain period of time. After receiving the goods, the purchasing enterprise does not pay the seller. Usually, that guarantee check is a fake check, the purchasing enterprise does not have money in its account. In fact, there is no money in the account of the importing enterprise or if there is money, they will withdraw it immediately after receiving the goods.

II. How to prevent commercial fraud and scams

Here are some ways to ensure international transactions go as smoothly as possible:

1. Check contact information

When signing a transaction contract, the buyer or seller must have a phone number and be willing to agree to make a phone call, check via Skype or video. If the only way to contact is an email address, be careful. It is also helpful to see a physical address (not a PO box), but some companies that provide services rather than products, such as consultants, may work from home and are not willing to provide an address. Also, see how quickly the partner company responds to queries. If it takes several days to receive a response, it is worth noting. In addition, businesses can hire a consulting firm, law firm, etc. to verify the information of the partner company. Furthermore, businesses can also ask the Trade Office or the Vietnamese Embassy in the host country to verify information about the legality of the partner company.

2. Rely on international banks or escrow

Payment methods that bypass banks can be risky. While fees are higher and paperwork is more complicated, relying on an international bank to issue a letter of credit or using a trusted escrow service is a much safer alternative for both buyer and seller.

3. Avoid shipping fraud

No buyer wants to pay for goods that are not delivered, or are not delivered in the correct quantity, or are of poor quality. To avoid shipping fraud, use international payment methods such as documents of acceptance (D/A) or escrow and security services that allow the buyer to inspect the goods before paying. Additionally, buyers can request an independent cargo quality inspection unit to inspect the quality of the goods before loading them into containers.

4. Use free payment methods

The saying is true: “There is no such thing as a free lunch”. Offering huge profits or impressive profit margins for free products or services or “no strings attached” services can be scams. Nowadays, Vietnamese businesses are often asked by their partners to use TT payment method (due to low fees) and are often scammed.

5. Some places where scams often occur

We all wish it didn’t happen, but some regions have high levels of fraudulent activity. Some regions in the Middle East, Europe, Africa, and Central America are notorious for fraudulent transactions. When engaging trading partners from such regions, take extra precautions and safety measures.

6. Maintain evidence, documentation and paper trail

Sellers and buyers should have clear documentation that specifies the product, shipping method, payment method, expected delivery date, and any special terms such as pre-inspection or customs and tariff information. Additionally, retain correspondence such as mail, email, receipts, and third-party interactions (escrow services, etc.) in case of a dispute over non-payment or non-delivery of goods.

III. Measures to ensure safety when trading

1. Business Verification

Always verify the legitimacy of a business, especially a new or unfamiliar one. Check their licenses with the relevant economic departments (e.g. Dubai Economy and Tourism, UAE Ministry of Economy).

2. Be careful when trading online

Use trusted e-commerce platforms, check reviews and verify the authenticity of the seller. Avoid clicking on suspicious links in emails or SMS.

3. Protect personal and financial information

Never share sensitive information such as PINs, OTPs (One Time Passwords) or bank account information over phone, email or unverified websites.

4. Build contracts according to international standards

It is necessary to draw up the terms of the contract according to the international commercial contract standards (Incoterm). Before signing any commercial agreement, carefully read and understand all the terms and conditions. If necessary, seek legal advice.

5. Secure payment methods

Use secure payment methods and methods that provide business protection. Businesses should use banks as intermediaries (bank payments) to ensure safety for both sellers and buyers. Before transferring money, it is necessary to check multiple channels such as email, phone, text messages to ensure the correct account number and bank... to avoid cases where hackers hack emails to change the account number and bank name.

IV. How to deal with fraud and commercial fraud

No matter how careful you are, you can still fall victim to international trade fraud. When you find yourself in this situation, time is of the essence – act immediately.

1. The first step is to contact the buyer or seller. Sometimes the problem is simply a misunderstanding, a wrong order, or something beyond the trading partner’s control. If you are dealing with a reputable seller or buyer, they will be more than happy to talk to you to resolve the situation.

2. Step two is mediation , if the buyer or seller refuses to contact. Some escrow services and international payment sites offer mediation services, you can hire an independent mediator or contact the International Trade Council.

3. Step 3 is to work with your bank, scammed buyers who paid for their goods with a credit card or through their local bank can request a payment hold or chargeback. Again, timing is important here and holds/refunds are at the discretion of the financial institution and their policies.

4. As a final step, if contact, conciliation, credit/cheque retention or claim for reimbursement is unsuccessful, you can file a lawsuit with International Arbitration or Judicial Authority or contact the Vietnamese Embassy in the UAE and the Vietnamese Trade Office in the UAE for assistance.

List of UAE scam businesses

In recent years, fraud and commercial fraud have been very common in the UAE, not only for foreign enterprises, but also for enterprises in the UAE. In response to the above situation, the Vietnam Trade Office in the UAE would like to send a list of companies in the UAE that have committed fraud and commercial fraud against Vietnamese companies and companies in the UAE as follows:

1. Bab Al Rehab Foodstuff Trading LLC
2. Odessa Point Trading LLC
3.Digital Genius Technologies
4. Daemo International
5. Noor Al Sidra Trading
6. Fair Words Goods Trading
7. Wahat Al Rayan Trading
8. Max Clove Technologies
9. Future Star Electromechanical Works
10. Alpha Star Building Contracting
11. Harun Abdul Latif Foodstuff Co LLC
12. Max Clove Technologies LLC
13. Anoh Arya General Trading LLC
14. Green Rock General Trading LLC
15. Rasha Gulf Oil Trading FZC
16. Regal Plus General Trading LLC
17. Vision General Trading LLC
18. Grow Fresh General Trading LLC
19. Fresh Spice Foodstuff Trading LLC
20. Bab Al Rizq Foodstuff Trading LLC
21. Commodity King Trades LLC
22. Sohaz Foodstuff Trading Co LLC
23. Bab Al Rizq Foodstuff Trading LLC
24. White Jewel General Trading LLC LLC
25. Commodity King Traders LLC
26. Sama Al Ahlam Foodstuff Trading LLC
27. Al Jazan Foodstuff Trading LLC
28. Sky Max Star Trading LLC
29. Sana Manufacture of Plastic Bags LLC
30. Grow Fresh General Trading LLC
31. Kapaz General Trading LLC
32. Natal General Trading LLC
33. Reesha General Trading LLC
34. Agro Link Foods FZE
35. Qasr Alkaram Foodstuff Trading LLC
36. Ahmed Taha General Trading LLC
37. Mirzaaz Foodstuff Trading LLC
38. Crezantium International FZ LLC
39. Natal General Trading LLC
40. Max Star
41. Seven Emirates Spices LLC
42. Ultimate General Trading LLC
43. Foot Print General Trading LLC
44. MKN Fruits and Vegetables Trading LLC

Vietnam Trade Office in UAE

IMPORTANT STATEMENT REGARDING BRAZILIAN BLACK PEPPER TRADE

 June 19th. 

Due to the sharp drop in the price of Black Pepper in the VTN, BRAZILIAN exporters through the BSA (Brazilian Spice Association) decided to suspend all offers and hold their stocks for an indefinite period.

Pepper Market June 13, 2025

 

Pepper export price increased by more than 60% in the first 5 months of the year

Pepper prices today  (June 13) are stable at around 139,000 - 140,000 VND/kg. In the world market, Indonesian pepper prices continued to increase for the second consecutive day. In the first 5 months of the year, Vietnam's pepper exports decreased in volume but increased in value, mainly due to an average export price increase of 61.1%.

Update pepper price

In the domestic market

Pepper prices  today in key provinces and cities continue to be stable, fluctuating between 139,000 - 140,000 VND/kg, unchanged from yesterday.

According to the survey, Dak Lak currently records the highest price, reaching 140,000 VND/kg. In two other localities in the Central Highlands region, Dak Nong and Gia Lai,  pepper prices   are being traded at 139,000 VND/kg.

In the Southeast region, pepper prices in Ba Ria - Vung Tau, Dong Nai and Binh Phuoc provinces are also commonly at 139,000 VND/kg.

Province/district (survey area)	Purchase price on June 13 (Unit: VND/kg)	Change from previous day (Unit: VND/kg)
Dak Lak	140,000	–
Gia Lai	139,000	–
Dak Nong	139,000	–
Ba Ria – Vung Tau	139,000	–
Binh Phuoc	139,000	–
Dong Nai	139,000	–

In the world market

In the recent trading session, the International Pepper Community (IPC) continued to adjust the price of Indonesian black pepper to 7,526 USD/ton, up 0.17% (13 USD/ton) compared to the previous day.

Meanwhile, the  export  price  of Malaysian black pepper remains stable at 9,100 USD/ton; Brazilian black pepper ASTA 570 is 6,175 USD/ton. The export price of Vietnamese black pepper fluctuates between 6,300 - 6,400 USD/ton for 500 g/l and 550 g/l.

Type name	World black pepper price list
	June 13 (Unit: USD/ton)	% change from previous day
Lampung Black Pepper (Indonesia)	7,526	+0.17
Brazilian Black Pepper ASTA 570	6.175	–
Kuching Black Pepper (Malaysia) ASTA	9,100	–
Vietnamese black pepper (500 g/l)	6,300	–
Vietnamese black pepper (500 g/l)	6,400	–

At the same time of survey, the price of Indonesian Muntok white pepper increased by 18 USD/ton to 10,167 USD/ton.

The export price of Malaysian ASTA white pepper and Vietnamese white pepper continued to move sideways at USD 11,850/ton and USD 9,300/ton.

Type name	World white pepper price list
	June 13 (Unit: USD/ton)	% change from previous day
Muntok Indonesian White Pepper	10,167	+0.18
ASTA Malaysian White Pepper	11,850	–
Vietnam white pepper	9,300	–

Update pepper information

World pepper prices in early June in most major growing countries decreased, except for prices in Indonesia which increased.

 According to the Import-Export  Department  (Ministry of Industry and Trade), usually from April is the period when the spice market in general and pepper market in particular is most active in the year. However, this year, the world pepper market is gloomy as trade tensions increase. Import demand from many countries is low, and the tariff rate is unclear, making businesses cautious in signing contracts.

Along with the world trend, domestic pepper prices in early June 2025 decreased significantly compared to early May 2025.

In the short term, domestic pepper prices are forecast to remain stable or decrease slightly due to unstable export demand and tight supply. However, in the medium and long term, global supply shortages may support pepper prices to increase again.

According to data from the Customs Department, Vietnam's pepper exports in May reached 26.3 thousand tons, worth 182.2 million USD, down 0.4% in volume and 1.0% in value compared to April; down 15.3% in volume but up 30.6% in value compared to May 2024.

Vietnam's average pepper export price in May reached 6,923 USD/ton, down 0.6% compared to April, but up 54.3% compared to May 2024.

In terms of markets, Vietnam's pepper exports to many key markets decreased in volume compared to May 2024, while exports increased to markets such as India, the UK, Egypt, and Russia. Of which, exports to the largest market, the US, decreased by 9.3%, followed by the German market, which decreased by 13.8%...

In the first 5 months of the year, Vietnam's pepper exports reached 99.9 thousand tons, worth 690.4 million USD, down 12.5% ​​in volume but up 40.5% in value over the same period in 2024. Mainly due to the average export price reaching 6,910 USD/ton, up 61.1% over the same period in 2024.

In the first 5 months of the year, Vietnam's pepper exports to key markets had uneven growth in export volume, in which, exports to some markets decreased such as: USA, UAE, Netherlands, Thailand, Egypt, Russia... On the contrary, the amount of pepper exported to some markets increased such as: Germany, India, UK, South Korea...

Can the upward momentum of pepper prices be maintained in 2025?

 

Can the upward momentum of pepper prices be maintained in 2025?

Declining production is expected to be the main driver for pepper prices in 2025.

Pepper prices  increase for second consecutive year 

In 2024, the pepper market recorded the second consecutive year of strong growth in price and  export  turnover . Accordingly, domestic pepper prices at the end of this year nearly doubled compared to the beginning of the year to 140,000 VND/kg.

 Source: Giatieu.com (H.My compiled)

Regarding consumption, Vietnam exported 250,600 tons of pepper of all kinds, earning 1.3 billion USD, down 5.1% in volume but up 45.4% in value compared to the previous year. The main reason is that the average export price of black pepper in 2024 reached 5,154 USD/ton, up 49.7% and white pepper reached 6,884 USD/ton, up 38.9% compared to last year.

Declining manufacturing activity has contributed to pushing up domestic and export prices in recent times.

 Source: General Department of Customs (compiled by H.Mị)

According to the Vietnam Pepper and Spice Association (VPSA), unfavorable weather conditions have negatively affected pepper production. In Dak Nong, the capital of Vietnam’s pepper, output was recorded at the same level as last year.

In addition, the trend of crop conversion is also affecting output. Typically, in Dak Lak province, the province with the second largest pepper area and output in the country, it is assessed that it has decreased as people switch to growing durian and there is not much new planting.

It is expected that farmers will start harvesting pepper after Tet and it will last until the end of April.

Talking to us at the VPSA summary conference held on January 16, Mr. Thai Nhu Hiep - Chairman of the Board of Directors and Director of Vinh Hiep Company Limited, said that in recent years, the Central Highlands has had plants that have brought good economic efficiency, including coffee, durian, etc. As for pepper, although it also brings very high values, the cost of land improvement is very high, and this work is very difficult and risky. Therefore, the pepper growing area in Vietnam is increasingly narrowing.

Major pepper growing countries such as Indonesia and Brazil also recognize that growing  coffee   is more efficient and profitable. At the same time, coffee consumption is increasing while supply is decreasing. As for pepper, consumer demand has not increased at all, and price increases sometimes come from speculation and resale between traders.

“When prices are high, people can abstain from using pepper but cannot abstain from drinking coffee,” said Mr. Hiep.

Supply is decreasing, supporting pepper prices

The Chairman of Vinh Hiep Company believes that the trend of increasing export value but decreasing export volume will continue in 2025 when the world's inventory is not much left. Meanwhile, in Vietnam, the goods are mainly in the hands of speculators. They have been buying since the price was around 110,000 VND/kg. These people use money from taking profits from other agricultural products that have just experienced a hot period such as coffee, durian, ... to buy pepper.

“Speculators think that pepper prices could reach VND200,000/kg in 2025-2026. We cannot judge whether that view is right or wrong, but we can clearly see that output is gradually decreasing,” said Mr. Hiep.

According to VPSA's forecast, global pepper output in 2025 will continue to decrease compared to 2024, marking the fourth consecutive year of decline since 2022. This reflects the fact that pepper is no longer the main crop of many farmers, especially in the context of the significant increase in economic value of other crops such as durian, coffee and oil palm. In addition, climate change with extreme weather events has reduced productivity and increased the cost of maintaining pepper production.

“Global pepper prices in 2025 are expected to remain high due to reduced supply, while demand in major markets such as the US and Europe remains stable. Demand for pepper in the food and spice processing industries remains the main driver of the market,” VPSA said.

Regarding export activities, Mr. Hiep said that currently, businesses have also learned from the previous crop year when they only sign export contracts when they are sure they have purchased the goods.

“In the previous crop year, many businesses “short-sold” pepper, meaning they signed sales contracts and then purchased pepper from farmers. However, last year, farmers’ economic life improved a lot, so the pressure to sell pepper to make ends meet was not great. This put businesses at great risk when it was difficult to buy goods to deliver to  importing  businesses ,” Mr. Hiep shared.

According to VietnamBiz.vn