Pepper Exports Soar to $1 Billion, Hitting a Seven-Year High in Global Markets
Vietnam’s pepper industry is experiencing a remarkable resurgence, driven by robust global demand and a tightening supply chain that has propelled export prices to new heights, according to the Vietnam Pepper and Spice Association (VPSA). In August, Vietnam exported 21,464 tons of pepper, generating $139.8 million in revenue. This marked a 2.6% increase in volume and a 1.7% increase in value compared to July.
Year-on-year comparisons show even stronger growth: export volume surged by 10.6% and earnings soared by 19.5%. From January to August 2023, Vietnam exported a total of 166,510 tons of pepper, comprising 142,627 tons of
black pepper and 23,883 tons of white pepper. While overall volume dipped by 9.4% compared to last year, this decline was more than offset by rising prices, with the average export prices reaching $6,666 per ton for black pepper and $8,732 per ton for white pepper—an impressive 41.5% and 38% increase, respectively.
The United States continues to be the largest market for Vietnamese pepper, despite a 31% decrease in shipments to 35,697 tons, accounting for 21.4% of the country’s total pepper export value. In contrast, exports to China have soared by 58% year-on-year, totaling 13,282 tons. Sales to the UAE and India also showed strong growth, rising by 9.7% and 13.7%, respectively. It’s an impressive balancing act, proving that while some doors may close, others swing wide open.
On the flip side, Vietnam has ramped up its pepper imports, bringing in 34,524 tons valued at $215.3 million, which represents a staggering 61.7% increase in volume and a striking 143.5% spike in value from the previous year. Brazil remains the top supplier, sending over 17,500 tons, followed by Cambodia and Indonesia.
Domestically, pepper prices have been on the rise since late August, with farm-gate prices climbing from VND142,000-143,000 (approximately $5.4) per kilogram to VND154,000-155,000 by early September before settling around VND152,000-153,000. VPSA attributes this price rise to dwindling on-farm stocks as the harvest season came to a close and a surge in demand from exporters.
Looking ahead, industry experts predict that limited supply will sustain high prices in the near term. This is especially pertinent as Vietnamese exporters strategize to cut back on importing raw pepper for processing and re-export to the U.S. in light of the reciprocal tariffs that can reach up to 40% on transshipped goods.
Questions & Answers
How did Vietnam’s pepper exports perform in August 2023 compared to previous months?
In August 2023, Vietnam exported 21,464 tons of pepper worth $139.8
million, reflecting a 2.6% increase in volume and a 1.7% rise in value
from July.
What factors have contributed to the rising prices of Vietnamese pepper?
Rising prices are attributed to dwindling on-farm stocks after harvest
and strong demand from exporters, particularly as global supply
tightens.
Which countries are the primary markets for Vietnam’s pepper exports?
The United States remains the largest market, despite a 31% drop in
shipments, while exports to China surged by 58%, indicating shifting
dynamics in the demand for Vietnamese pepper.
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Vietnam’s pepper industry is experiencing a remarkable resurgence, driven by robust global demand and a tightening supply chain that has propelled export prices to new heights, according to the Vietnam Pepper and Spice Association (VPSA). In August, Vietnam exported 21,464 tons of pepper, generating $139.8 million in revenue. This marked a 2.6% increase in volume and a 1.7% increase in value compared to July.
Year-on-year comparisons show even stronger growth: export volume surged by 10.6% and earnings soared by 19.5%. From January to August 2023, Vietnam exported a total of 166,510 tons of pepper, comprising 142,627 tons of black pepper and 23,883 tons of white pepper. While overall volume dipped by 9.4% compared to last year, this decline was more than offset by rising prices, with the average export prices reaching $6,666 per ton for black pepper and $8,732 per ton for white pepper—an impressive 41.5% and 38% increase, respectively.
The United States continues to be the largest market for Vietnamese pepper, despite a 31% decrease in shipments to 35,697 tons, accounting for 21.4% of the country’s total pepper export value. In contrast, exports to China have soared by 58% year-on-year, totaling 13,282 tons. Sales to the UAE and India also showed strong growth, rising by 9.7% and 13.7%, respectively. It’s an impressive balancing act, proving that while some doors may close, others swing wide open.
On the flip side, Vietnam has ramped up its pepper imports, bringing in 34,524 tons valued at $215.3 million, which represents a staggering 61.7% increase in volume and a striking 143.5% spike in value from the previous year. Brazil remains the top supplier, sending over 17,500 tons, followed by Cambodia and Indonesia.
Domestically, pepper prices have been on the rise since late August, with farm-gate prices climbing from VND142,000-143,000 (approximately $5.4) per kilogram to VND154,000-155,000 by early September before settling around VND152,000-153,000. VPSA attributes this price rise to dwindling on-farm stocks as the harvest season came to a close and a surge in demand from exporters.
Looking ahead, industry experts predict that limited supply will sustain high prices in the near term. This is especially pertinent as Vietnamese exporters strategize to cut back on importing raw pepper for processing and re-export to the U.S. in light of the reciprocal tariffs that can reach up to 40% on transshipped goods.
Questions & Answers
How did Vietnam’s pepper exports perform in August 2023 compared to previous months?
In August 2023, Vietnam exported 21,464 tons of pepper worth $139.8
million, reflecting a 2.6% increase in volume and a 1.7% rise in value
from July.
What factors have contributed to the rising prices of Vietnamese pepper?
Rising prices are attributed to dwindling on-farm stocks after harvest
and strong demand from exporters, particularly as global supply
tightens.
Which countries are the primary markets for Vietnam’s pepper exports?
The United States remains the largest market, despite a 31% drop in
shipments, while exports to China surged by 58%, indicating shifting
dynamics in the demand for Vietnamese pepper.
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