PEPPERTRADE SPICES BOARD BLOG #Pepper #Spices

 

US market – 'new horizon' for Vietnam's spice industry

The United States is considered a 'new horizon' for Vietnam's spice industry. In the first 7 months of 2025, Vietnam exported nearly 35,700 tons of pepper, accounting for 78.6% of total US imports.

Global position of Vietnamese spices

In the volatile global trade picture,  the United States  has always been one of Vietnam's most important markets. Not only because of its huge and diverse purchasing power, but also because of its complementary trade structure and less direct competition.

For the spice industry, especially pepper and cinnamon, the US market is opening up a “new horizon”, both challenging and full of potential for Vietnamese businesses.

Sharing at the event “Opening new horizons in trade” held at the Vietnam House, Washington DC, Mr. Do  Ha Nam  - Chairman of the Vietnam Food Association, former Chairman of the Vietnam Pepper Association emphasized that Vietnam is currently the world’s largest pepper exporting country, accounting for over 50% of global output. Each year, Vietnam exports about 80,000 tons to the United States, accounting for 60% of the total pepper imports of this market.

Along with pepper, cinnamon and star anise are also making a strong impression. Vietnamese cinnamon currently accounts for 50.6% of the global export market share. Vietnamese spice products are present in more than 120 countries, of which the United States, Europe and China are key markets.

Mr. Do Ngoc Hung - Commercial Counselor, Head of the Vietnam Trade Office in the United States also said that Vietnam's spice export turnover in 2024 will reach more than 1 billion USD, an increase of 41% compared to the previous year and accounting for 11% of the global market share. In particular, pepper has maintained its "champion" position for two decades, accounting for 35% of global output and 55% of global export turnover.

In the first 7 months of 2025, Vietnam exported nearly 35,700 tons of pepper to the United States, accounting for 78.6% of the country's total pepper imports.

Although pepper exports showed signs of decline in the first eight months of the year, the overall trend remained stable, despite trade fluctuations. What is particularly important is that the United States does not produce pepper at all. This market is therefore completely dependent on imports, opening up a sustainable and long-term space for Vietnamese businesses. Therefore, despite short-term difficulties, the United States remains a key market for the Vietnamese spice industry.

Challenges from quality standards and competition

Great opportunities come with great challenges. The US market is famous for its strictness in terms of quality, food safety, traceability and sustainability. Therefore, to maintain its position, Vietnamese enterprises not only need to increase output but, more importantly, invest in quality, green production, and develop raw material areas that meet international standards.

In addition, competition from other exporting countries is also increasingly fierce. Vietnamese enterprises need to affirm their advantages through competitive prices and diverse designs, while at the same time improving their ability to adapt to market fluctuations, from  exchange rates  to trade policies.

Faced with new demands, the Vietnamese spice industry has proactively changed direction. Businesses and associations are promoting green production, expanding clean raw material areas, and meeting international standards. This is not only a mandatory requirement to penetrate deeply into the US market, but also an inevitable trend for sustainable development.

Along with production, trade promotion plays a key role. The Vietnam Trade Office in the United States recommends that businesses actively participate in fairs and exhibitions, and take advantage of promotional channels to connect directly with local importers and distributors. Events such as “Opening new horizons in trade” have proven to be effective in enhancing the image and brand of Vietnamese spices.

Mr. Do Ngoc Hung suggested that in order for Vietnamese spices to continue to stand firm, businesses need to develop a more systematic approach strategy. Large businesses must proactively use resources, invest in improving overall competitiveness, apply innovation and strictly comply with rules of origin. Small and medium-sized businesses should strengthen their connections with industry associations, the Ministry of Industry and Trade and the Trade Office to receive timely support in terms of information and direction.

In particular, Trade Counselor Do Ngoc Hung said that it is necessary to fully exploit the benefits from new generation FTAs, diversify export markets to reduce risks, and avoid dependence on a few main markets. This will help Vietnamese spices not only maintain, but also expand their position in the context of global competition.

From pepper – the “black gold” of Vietnamese agriculture to cinnamon, star anise and many other products… Vietnamese spices are asserting their important role on the dining table and in the global supply chain.

Challenges remain, but opportunities are more open than ever. With the support of the Government, the Ministry of Industry and Trade, the trade system and especially the initiative of businesses, Vietnamese spices can completely conquer the US market, not only by output but also by quality, brand and sustainability.