2025 // Week 3 – Vietnam Pepper Market: Global Trends and Opportunities
Vietnam Pepper Market Overview: Domestic Prices
Domestic pepper prices in Vietnam’s key markets remained stable, ranging between 149,000 – 150,000 VND/kg. This stability reflects a balance between supply and demand, with consistent export volumes and stable global prices contributing to the overall market equilibrium.
Vietnam Pepper Exports: A Record Year for the U.S. Market
The U.S. emerged as Vietnam’s largest pepper export market in 2024, with a significant surge in both volume and value. Vietnam exported 73,710 tons of pepper to the U.S., a 34% increase in volume and 84.2% increase in value compared to 2023. This marks a new record for Vietnam’s pepper exports to the U.S., highlighting the strong demand and growing popularity of Vietnamese pepper in the American market.
Data from the United States International Trade Commission (USITC) indicates a robust global pepper import market in 2024. The U.S. imported 90,655 tons of pepper in the first 11 months of the year, a 44.3% increase in volume compared to the same period in 2023. This reflects the rising global demand for pepper and its increasing integration into diverse culinary applications.
*Vietnam remains the top supplier of pepper to the U.S., accounting for 78% of total pepper imports in the first 11 months of 2024. Vietnam’s market share has slightly increased from 77.5% in 2023, solidifying its position as the dominant supplier of pepper to the American market. This dominance is attributed to the high quality and consistency of Vietnamese pepper, alongside strong trade relationships and efficient supply chains.
Shifting Supply Dynamics: Indonesia Emerges as Vietnam’s Top Supplier
Indonesia replaced Brazil as Vietnam’s largest pepper supplier in 2024. This shift can be attributed to several factors. Brazil’s previous competitive advantage in low prices was eroded due to ongoing shipping challenges, which increased costs. As a result, Vietnamese companies shifted their sourcing focus to Southeast Asian countries, where shipping costs were more manageable.
Brazil’s Pepper Exports: Impact of El Niño and Production Decline
Brazil, the world’s second-largest producer and exporter of black pepper, faced significant challenges in 2024. Low production impacted by El Niño resulted in a significant drop in exports for the third consecutive year. Total pepper exports from Brazil in 2024 were 61,665 tons, a 23.6% decrease compared to 2023. This production decline has impacted both global supply and Vietnam’s reliance on Brazil as a supplier.
International Pepper Prices: A Look at Key Markets
International pepper prices, as listed by the International Pepper Community (IPC), show a range of prices depending on variety, origin, and quality. Black pepper from Lampung, Indonesia, is currently priced at $6,841/ton, while Kuching, Malaysia, black pepper with an ASTA grade of 570 is priced at $8,700/ton. White pepper prices vary depending on the origin, with Muntok white pepper priced at $8,953/ton and Malaysian white pepper with an ASTA grade priced at $11,100/ton.
Future Outlook: Factors Shaping the Vietnam Pepper Market
The Vietnam pepper market is poised for continued growth, driven by strong global demand, rising consumer awareness of pepper’s health benefits, and ongoing innovation in culinary applications. However, several factors could influence the market’s future trajectory, including potential climate change impacts on pepper production, fluctuating global prices which impact the competitiveness of pepper exporters in the global market., and competition from other pepper-producing nations.