Vietnam’s pepper prices surge – Golden opportunity for exporters

Export prices surge

According to a report by the Agency of Foreign Trade under the Ministry of Industry and Trade, Vietnam exported 14,300 tonnes of pepper worth US$97.2 million in February 2025, up 10.7 percent in volume and 11 percent in value compared to January 2025. Compared to February 2024, exports increased by 7.2 percent in volume and 79.1 percent in value. In the first two months of 2025, Vietnam exported 27,200 tonnes of pepper, worth US$184.4 million, a decrease of 11.6 percent in volume, but an increase of 48.5 percent in value compared to the same period in 2024.

In February 2025, the average export price of Vietnamese pepper reached US$6,774 per tonne, up 0.3 percent from January 2025 and 67.1 percent higher than February 2024. In the first two months of 2025, the average export price stood at US$6,763 per tonne, reflecting a year-on-year increase of 68 percent.

The Vietnamese pepper and spice industry continues to affirm its crucial role in the international market

According to the Agency of Foreign Trade, in the first week of March, 2025, the export prices of both black and white pepper in major markets continued to rise compared to early February 2025.

Domestic pepper prices also increased in the first week of March 2025 across all major pepper-growing regions, ranging from VND159,000-161,500 per kg. Despite this rise, the increase has slowed down compared to the beginning of February 2025.

Opportunities for exporters

The Agency of Foreign Trade predicts that global pepper supply is expected to increase in the coming period, while demand remains weak, potentially putting downward pressure on prices.

However, the Vietnam Pepper and Spice Association (VPSA) forecasts that global pepper prices in 2025 will remain high due to reduced supply, while demand from major markets, such as the US and Europe, remains stable. The use of pepper in the food and spice processing industries continues to be the main driver of market growth.

VPSA believes that 2025 will be another promising year for the pepper industry, mainly due to the continued decline in global production while consumption remains steady.

Three key factors support this outlook include: 1) Vietnam’s pepper processing technology has reached international standards; 2) Vietnam’s pepper production remains relatively stable; and 3) Despite accounting for only 15 percent of coffee-growing areas and 12 percent of rubber-growing areas, pepper contributes 23 percent of the total export value of Vietnamese farm produce.

Vietnam’s pepper industry is facing a significant opportunity for sustainable development, with the participation of both domestic and foreign companies. According to VPSA President Hoang Thi Lien, businesses are shifting towards processed pepper products to enhance export value. However, challenges remain, including climate change, pest pressures, increasingly stringent international quality requirements, and rising transportation costs.

Vietnam the largest pepper supplier to Germany

According to the statistical office of the European Union (Eurostat), Germany’s pepper imports from non-EU markets in 2024 reached approximately 23.7 thousand tonnes, valued at US$137.79 million, marking a 43.6 percent increase in volume and an 80.6 percent rise in value compared to 2023.

In 2024, Germany imported pepper from non-EU markets at an average price of US$5,361 per tonne, up 25.8 percent from 2023. The import prices of pepper from key suppliers, such as Vietnam, Brazil, and Indonesia all saw double-digit increases, rising by 30 percent, 30.9 percent, and 12 percent, respectively.

Germany imported pepper from 51 non-EU markets in 2024, with Vietnam being the largest supplier, accounting for 63.2 percent of the total volume and 60.8 percent of the total value, up from 53.6 percent and 49.9 percent in 2023, respectively.

Germany’s pepper imports from Vietnam surged in 2024, reaching approximately 15,000 tonnes worth US$83.8 million, a 69.5 percent increase in volume and a 120.3 percent rise in value compared to 2023.

Germany’s pepper imports from Indonesia also rose sharply in 2024, totaling 1,600 tonnes, valued at US$11.3 million, reflecting a 116.4 percent increase in volume and a 142.4 percent jump in value year-on-year.