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All things to know about the wholesale black pepper in the world

The wholesale black pepper is a key industry for an agricultural country. As an important product with a large export/import volume, the price, production, and factors that affect different sides of the wholesale black pepper industry are necessary to both buyer and supplier.

An overview of wholesale black pepper in the world

Black pepper – traded under the HS Code 090411 is the world’s most traded spice and is expected to grow at a CAGR of 5% from 2019 – 2024. It is extremely popular in several countries, including China, the United States, the United Arab Emirates, India in particular.

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Black pepper

Wholesale black pepper price

In August and the first half of September, world pepper prices increase and reach their peak in 4 years because of the shortage of supply while demand in the international market such as the U.S, China, and Europe remain high.

According to IPC, the wholesale black pepper price witnessed a noticeable fluctuation from 1/1/2021 to 11/2021:

Countries Range of price (USD/MT)
Indonesia $3000/MT to $4543/MT
Brazil $2800/MT to $4402/MT
Malaysia $3673/MT to $6016/MT
India $4422/MT to $7566/MT
Vietnam $2888/MT to $4490/MT

Wholesale black pepper production

According to IPC, the total pepper production in 2020 (467,076 MT) increased by 1.46% compared to 2019 (460,349 MT). The wholesale black pepper output in 2021 is expected to be 413,017 MT, a decrease of 7.7% compared to 2020.
The projection of black pepper production in 2021 is quite low due to several external impacts. Specifically, experts reckon that in Vietnam one of the main reasons for the hot and dry weather made the tree not bear fruit. Brazil also struggled with drought between June and September.

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The proportion of worldwide black pepper production in 2020

Proportion of wholesale black pepper compared to other types of pepper

Black pepper occupied most of the pepper export in agricultural countries. International Pepper Community reported:

  • 2018: The amount of black pepper exported was 353,538 MT out of a total of 422,721MT. Black pepper occupied 83,6% of the total pepper exported.
  • 2019: Black pepper accounted for more than 85% of the total pepper exported. Black pepper exported in 2019 was 408,016 MT out of a total of 478,824 MT.

The upward trend is estimated to continue in 2020 due to the amount of black pepper exported being 482,711, accounting for 88,4% of the total pepper exported in the world.

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Wholeslae black pepper witnessed upward trend in 2020

The growing trend towards black consumption will be promoted due to the increasing demand for health-promoting food in developing economies. The market will witness significant demand from cosmetic manufacturers, as black pepper is widely used in skincare formulations. According to research by Fior Markets, the global black pepper market is expected to grow from $3.9 billion in 2020 to nearly $6 billion in 2028, representing an average growth rate of 5.5% throughout 2021-2028.

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Proportion of wholesale black pepper compared to other types of pepper

Recently, the structure of pepper exports of the leading pepper industry in the world – Vietnam witnessed a downward trend for whole pepper and an increase for ground pepper:

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The proportion of export pepper in Vietnam in 8/2021

The wholesale black pepper export amount reached 13.019 tons, accounting for 73.8% while the black and white grounded pepper reached 12.8% and 3.5%, respectively.

Leading wholesale black pepper exporting and importing countries

Leading import/export wholesale black pepper countries have their advantage, which needs to be acknowledged by suppliers and buyers.

Wholesale black pepper exporting countries

Statistics from Tridge in 2020 indicate that Vietnam is the largest wholesale black pepper supplier, accounting for 43.32%, followed by Brazil, Indonesia, and Sri Lanka:

Countries Production (MT) Export value (USD) Share in export value (%)
Vietnam 240,000 $522.5M 43.43%
Brazil 33,000 $187.5M 15.55%
Indonesia 77,000 $156.1M 12.94%
Sri Lanka 20,000 $52.0M 4.31%

Top 4 wholesale black pepper suppliers in 2020

Each country has its competitive advantages in the wholesale black pepper industry:

  • Vietnam wholesale black pepper supply: Vietnam has been the world’s biggest black pepper producing and exporting country due to its large pepper growing area of 140.00 ha and reasonable prices compared to other countries. In 2020, Vietnam mainly exported to 2 large markets: China (93.54M) and the U.S (92.45M). In addition, an agreement that reduces 99% tariffs – EVFTA also promotes the export activities of Vietnam to EU countries.
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Vietnam wholesale black pepper supply

  • Brazil wholesale black pepper supply: Brazil has been a leading country in exporting black pepper. Large growing area (30.000 ha), product’s diversity, together with the geographical condition including lowlands, a suitable amount of rain, and mild winter are major contributors to this country’s large manufacturing productivity.
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Brazil wholesale black pepper supply

  • Indonesia wholesale black pepper supply: The planted area for pepper in Indonesia reaches 117.900 ha. Besides, pepper cultivating companies in Indonesia are smallholder plantations, that still use traditional cultivation techniques for pepper cultivation. Other factors that can be announced are: human and capital resources and technology application. Although pepper production is not as high as in Vietnam and Brazil, Indonesian black pepper has a quite high quality.
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Indonesia wholesale black pepper supply

  • Sri Lanka wholesale black pepper supply: Although black pepper produced in Sri Lanka contains high amounts of piperine, a natural antioxidant, it does not meet the stringent standard of the developed market like the U.S. The high piperine amount of pepper in Sri Lanka is adored by the low-end market such as India. More importantly, the preference import tax under SAFTA, pepper in Sri Lanka has flooded in India.
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Sri Lanka wholesale black pepper supply

Wholesale black pepper importing countries

As reported in Tridge, the largest importer of whole black pepper in 2020 is the U.S with a total value of 180M. Here are the top 5 countries leading the wholesale black pepper market:

Countries Import Value (USD) Share in import value (%)
U.S $180M 16.41%
India $92.5M 8.43%
Germany $87.3M 7.96%
Vietnam $74.8M 6.82%
China $61.7M 5.62%

The high demand for wholesale black pepper in these 5 countries stems from the population and exporting activities. Additionally, China uses pepper for domestic demand, and India uses it for the production of the oil and oleoresin.

Factors affecting the wholesale price of wholesale black pepper suppliers

Environmental, political impacts can significantly affect the output and price of the wholesale black pepper industry.

  • Demand and supply volume: Wholesale price of black pepper is governed by production and demand. As reported, the peak of wholesale black pepper price this year stems from the high demand in Christmas or New Year events and the scarcity of supply due to the effect of the COVID – 19 epidemic. According to IPC, the price was 62-83% higher than the same period of 2020.
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Demand and supply volume affect the price of wholesale black pepper

  • Social-Economic situation: Covid – 19 pandemic has strongly affected the trade flows in recent years. The circulation of goods is adversely affected, causing the freight and storage costs to increase. The strict management to fight off the epidemic also makes it extremely difficult and expensive to transport black pepper to other countries and increases the black pepper price when purchased in bulk.
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Social-economic situations affect wholesale black pepper price

  • Politics: The supportive accompany of the government also plays an important role in the wholesale black pepper industry. Agreements such as SAFTA, EVFTA,… to eliminate tariffs decrease pepper prices when being traded and prompt the development of the pepper industry.
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Politics support the wholesale black pepper activities

Buyers must acknowledge these factors to choose a suitable supplier and get a reasonable price.

Ways to find prestigious wholesale black pepper suppliers

Finding a prestigious wholesale black pepper supplier is necessary because this directly affects the company’s long-term business:

  • Search for wholesale black pepper suppliers on the digital platform: social media and e-commerce with keywords: agriculture company, black pepper supplier, prestigious pepper factory,…
  • Find a trustworthy and knowledgeable intermediary for a cheaper price.
  • Take part in international agricultural trade fairs organized by the government.

Note: Here are some details and documents proving a qualified wholesale black pepper supplier

  • Validity of business license and address
  • Detail profile and product information
  • Transparency in payment, cooperation, paperwork, and other exchange activities
  • Legal issues
  • Financial

Detailed procedures to work with wholesale black pepper suppliers

If you want to buy wholesale black pepper, the following steps are very important:

  • Price negotiation: Buyers should research the wholesale black pepper price on the market via digital platforms and note the price down. When negotiating with a supplier, ask for a price that is suitable to your budget (usually a decrease of 15 – 20% to the original price).
  • Sample checking: Ask the wholesale black pepper suppliers for some samples before signing the contract to verify the product quality. This can avoid the risks of poor-quality goods.
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Price negotiation and sample checking

  • Contract agreement: Before signing the contract, make sure the terms are correct and benefit both parties. Remember to double-check the final contract carefully to avoid unfortunate risks.
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Contract agreement and payment instrument

  • Payment instrument: The wholesale black pepper supplier will recommend the payment instrument but the buyer can also require other methods that are more suitable for both parties. In addition, the order should be divided into 2 distinctive installments: before and after receiving the product to make sure the product’s final condition.

Top 3 wholesale black pepper suppliers in the world

There are millions of wholesale black pepper suppliers in the world, but here are 3 recommended representatives for you to consider.

Hanfimex

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Hanfimex

Hanfimex is a top manufacturer, exporter of Foods and Spices in Vietnam such as Cashew, Pepper, Cinnamon, Coffee, and coconut,… With more than 17 years of experience and a prestigious customer network, Hanifimex is trusted by the Ministry of Industry and Trade and is believed to be one of the leading agricultural exporting companies.

K-Agriculture

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K-Agriculture

As the best wholesaler of Rice, Coffee, and Spices from Vietnam, K-Agriculture Factory has exposed its products to more than 80 countries worldwide. Due to advanced milling and polishing with and the support from the government (Ministry of Industry and Trade), K-Agriculture Factory has been recorded to be a national representative, who exports the best agriculture products to the international market.
Contact information:
Email: info@k-agriculture.com
Website: https://k-agriculture.com/
Whatsapp: +84855 555 837

Baria Pepper

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Baria Pepper

Established in 1985, Baria pepper aimed to take considerable knowledge of both the product and the local market to reach more customers domestically and internationally. Baria pepper has been exported to America, Europe, the Middle East, and other countries in Asia. With the strong connection with local farmers, Baria pepper has a great advantage in controlling the quality and price of the pepper.

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