Vietnamese pepper accounts for 61.5% of the market share in the EU
Pepper imports in the EU are showing signs of recovery in the first months of 2024 after a decline last year.
Eurostat data shows that the EU imported 18,474 tons of pepper from foreign markets in the first 4 months of the year, worth 83.7 million EUR, an increase of 22.9% in volume and 27% in value compared to the same period last year. period 2023.
In April alone, the amount of pepper imported into the EU reached its highest level since the beginning of 2023 until now, with 5,440 tons, up 22.7% over the previous month and up nearly 40% over the same period. This is also the fourth consecutive month that EU pepper imports increased compared to the same period last year.
Source: Hoang Hiep compiled from Eurostat data
Regarding the supply market, the EU imported a total of 11,359 tons of pepper from Vietnam in the first 4 months of the year with a value of more than 48.5 million EUR, an increase of 25.1% in volume and 32.1% in value compared to with the same period last year. With this result, Vietnam continues to be a pepper supplier to the EU with a market share of 61.5% of the region's total import volume of this product.
EU pepper imports from other markets also increased sharply over the same period last year such as: Brazil reached 3,443 tons, an increase of 25.3%; Indonesia reached 1,384 tons, an increase of 32.2%; India reached 952 tons, an increase of 9.9%.
The EU's average imported pepper price from Vietnam reached 4,273 EUR/ton, from Brazil it was 3,665 EUR/ton, Indonesia 5,509 EUR/ton, and India alone reached 6,646 USD/ton.
In addition to competitive prices, Vietnamese pepper export businesses have an advantage over some exporting countries such as India, Malaysia, Indonesia,... thanks to the EVFTA Agreement, which helps reduce import taxes on ground or crushed pepper. EU reduced from 4% to 0%.
Source: Hoang Hiep compiled from Eurostat data
In the first 4 months of the year, the top pepper importing countries in the EU included Germany with 5,829 tons, accounting for 31.6% of the market share; Netherlands 4,588 tons, accounting for 24.8%; France 2,827 tons, accounting for 15.3%... The three countries mentioned above account for 71.7% of the EU's total pepper imports from the world.
Besides domestic consumption, importers also re-export a significant portion of pepper to other countries in the region.
Last year, due to the impact of economic recession, inflation and high interest rates, EU pepper imports from foreign markets only reached 50,264 tons, worth 217.4 million EUR, a decrease of 20.4% in terms of value. quantity and decrease 30.4% in value compared to 2022.
According to the Center for Promotion of Imports from Developing Countries (CBI), Europe does not produce pepper, so the region's consumption mainly depends on imported supplies.
This agency also said that up to 95% of pepper imported into the EU is consumed in countries in the region and only 5% of that is re-exported to countries outside Europe.
Black pepper consumption in Europe is expected to grow steadily in the near future, with an expected increase of about 0.5% in 2023 and 1.8% in 2024.
CBI forecasts that pepper imports from European countries will grow by 1-2% each year. The European market offers a price advantage over Asian markets for high quality and sustainably produced black pepper.
Meanwhile, the Ministry of Industry and Trade, citing sources from the Vietnam Pepper and Spice Association (VPSA), said that the EU is a potential market for Vietnamese pepper exports. However, to take advantage of these opportunities, the pepper industry must move towards sustainable production, because more and more European consumers are demanding certifications that ensure products are sustainable.
Recently, the EU market's requirements and regulations on non-tariff barriers continue to increase and become increasingly strict. This market also continuously has warnings about pesticide residues as well as increasing the frequency of control and tightening MRLs regulations for food in general, including Vietnamese spices.
Currently, the EU has issued more than 500 criteria on MRL and continues to have more and more new criteria issued. The criteria issued later are becoming more and more difficult and strict. At the same time, the area of active ingredients allowed to remain regulated is also wider.
According to VietnamBiz.
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