Vietnam’s pepper prices surge to near-decade highs

Vietnam's pepper output in the 2024-2025 crop year is forecast to reach 172,000 tonnes - photo: baochinhphu.vn

Pepper prices in Vietnam have surged to around VND160,000 per kilogram, the highest level in nearly a decade. Forecasts suggest that prices will continue to rise as global demand remains strong.

The pepper harvest is currently underway in the Central Highlands and Southeast regions of Vietnam, with prices fluctuating between VND159,000 and VND 161,000 per kilogram. This marks the highest price level in almost 10 years. Meanwhile, Vietnam’s export prices for pepper are hovering around US$7,000-7,200 per tonne, depending on the variety.

The average export prices for black and white pepper stood at US$6,648 per tonne and US$8,501 per tonne, respectively. Vietnam currently accounts for approximately 40% of global pepper production and nearly 55% of total export turnover.

Global pepper production is projected to decline in 2025, primarily due to shrinking cultivation areas in Vietnam and unfavorable weather conditions in India. At the same time, global demand remains robust, which could further drive up prices in the coming months.

Vietnam’s pepper output for the 2024–2025 season is expected to reach 172,000 tonnes, down 2% from the previous year and a staggering 47% drop compared to the 2018–2019 crop.

According to the Vietnam Pepper and Spice Association, the country exported 27,416 tonnes of pepper in the first two months of 2025, generating US$184.9 million in export revenue. While export volume fell by 11.9% year-on-year, export revenue surged by 48.1%, underscoring the high value of Vietnamese pepper in the global market.

In 2024, Vietnam’s pepper cultivation area reached 110,500 hectares, with an average yield of 2.6 tonnes per hectare—twice the global average of 1.27 tonnes per hectare—producing around 200,000 tonnes in total.

Vietnam’s pepper exports generated US$1.32 billion in 2024. By 2030, the country aims to stabilize its pepper cultivation area at 80,000–100,000 hectares, with an annual output of 200,000–230,000 tonnes. Around 40% of the cultivation area is expected to meet international standards such as GAP, VietGAP, and GlobalGAP. Additionally, Vietnam is prioritizing organic pepper production, targeting 5,000 hectares by 2030, accounting for 5% of the total pepper-growing area.