Vietnam Export Performance: January-September 2025
Vietnam’s pepper export sector delivered a remarkable financial performance during the first nine months of 2025, generating total revenue of USD 1.27 billion despite facing volume constraints. This achievement represents a substantial 28.7% year-over-year increase in export value, demonstrating the industry’s resilience and strategic positioning in global markets. The impressive revenue growth occurred even as physical export volumes declined by 6.3% compared to the same period in 2024, totaling 188,000 tons shipped to international buyers.
The average export price for that month reached USD 6,555 per ton, showing modest but positive month-over-month growth of 0.2% and a healthy 1.5% increase compared to September 2024. These figures suggest sustained pricing power despite the gradual moderation from peak levels earlier in the year.
The counterintuitive success of achieving higher revenues with lower volumes underscores a fundamental shift in Vietnam’s pepper export strategy. Rather than competing solely on volume and low prices, the industry has successfully positioned itself as a premium supplier capable of commanding substantial price premiums. This transformation reflects years of investment in quality improvement, certification compliance, and brand building within international markets. The limited supply situation, rather than being purely problematic, has enabled Vietnamese exporters to maintain pricing discipline and avoid the margin erosion that typically accompanies aggressive volume competition.
Strategic Market Expansion: Anuga 2025 Trade Mission
Under the framework of Vietnam’s National Trade Promotion Program 2025, the Vietnam Pepper and Spice Association (VPSA) orchestrated a high-impact business delegation to key European markets, specifically targeting Germany and the Netherlands. The centerpiece of this initiative was participation in Anuga 2025, the world’s leading international food and beverage trade fair held October 4-8 in Cologne, Germany. This prestigious event attracts thousands of buyers, distributors, and industry decision-makers from across the globe, making it an invaluable platform for market development and relationship building.
These internationally recognized certifications function as a commercial “passport” for Vietnamese spices, enabling smooth entry into the highly demanding European market. European buyers place extraordinary emphasis on food safety traceability, environmental sustainability, and ethical sourcing practices. Meeting these stringent requirements positions Vietnamese suppliers as reliable, professional partners capable of maintaining consistent quality standards across large-volume orders.
The Vietnamese pavilion attracted substantial buyer interest from the opening day of Anuga 2025, with consistent foot traffic from European procurement managers, distributors, and retail chain representatives. Several participating Vietnamese firms successfully concluded preliminary negotiations and signed Memoranda of Understanding (MOUs) establishing frameworks for future export cooperation. European buyers consistently praised Vietnamese spices for their superior quality, comprehensive safety documentation, and end-to-end traceability systems. These attributes were identified as sustainable competitive advantages that position Vietnam favorably for long-term partnership development rather than merely transactional supplier relationships.
Germany Market Analysis: Opportunities and Challenges
Germany occupies a position of strategic importance within Vietnam’s pepper export portfolio, functioning as both Europe’s largest pepper importer and the world’s fifth-largest consuming market. The German market demonstrates consistent annual demand ranging between 28,000 and 30,000 tons of pepper products, representing substantial commercial opportunity for qualified suppliers. Vietnam has established itself as Germany’s dominant pepper supplier, currently providing approximately 52% of total German import volume—a market leadership position built over years of consistent quality delivery and competitive pricing.
The 2024 calendar year represented a period of exceptional growth for Vietnamese pepper exports to Germany, with shipment volumes reaching 15,000 tons—a remarkable 58.2% year-over-year increase. This surge accounted for 5.8% of Vietnam’s total global pepper export turnover, demonstrating Germany’s material contribution to overall industry performance. The aggressive growth reflected both expanding market share gains against competing suppliers and increased penetration across German food processing, retail, and foodservice distribution channels.
However, the first eight months of 2025 revealed a significant reversal of this positive trajectory. Vietnamese pepper exports to Germany declined 27% year-over-year during this period, totaling only 8,800 tons. This sharp contraction raises strategic concerns about market sustainability and competitive positioning. Multiple factors contribute to this downturn, including intensified competition from alternative suppliers offering aggressive pricing, evolving regulatory requirements within the European Union that demand continuous adaptation, and potential shifts in buyer preferences toward different sourcing strategies.
Strategic Outcomes and Future Opportunities
According to assessments by the Vietnam Pepper and Spice Association, the Vietnamese delegation’s robust presence at Anuga 2025 delivered multiple strategic benefits extending beyond immediate commercial transactions. The participation successfully reaffirmed Vietnam’s reputation as a global leader in pepper production and export, while demonstrating the industry’s unwavering commitment to quality excellence, safety compliance, and sustainable business practices. This brand reinforcement proves particularly valuable in markets where buyer relationships span decades and reputation serves as a critical competitive differentiator.
Vietnamese pepper exporters who embrace these imperatives will position themselves advantageously for sustained growth despite supply constraints and intensifying global competition. The combination of Vietnam’s established production expertise, growing reputation for quality compliance, and strategic geographic positioning creates a solid foundation for continued industry expansion.
