The black pepper price on the world market has witnessed a constant fluctuation during the past few years. The main reason is due to the scarcity of supply and the rapid increase in demand.
An overview about black pepper price
In general, the black pepper price in Vietnam, Malaysia, India, and Brazil fell by 3.5–3.8% in the first month of 2022. After the Lunar New Year break (February 7 to February 15), the prosperity of the Vietnamese market boosted the upward momentum of international pepper prices.
Movements of black pepper price in the global markets
- Brazil: The black pepper wholesale price in Brazil reached 4,050 USD/ton on February 15, up 2.5% from the end of January but still 1.2% below the end of 2021.
- India: Black pepper price in India reached $6,993/ ton in mid-February, up 3.3% from the end of January but down 0.6% from the same time previous year.
- Indonesia: The Indonesian black pepper wholesale price at the Lampung ASTA port climbed by 2.6% from the end of January, but fell by 3.7% from the end of the previous year, hitting $4,238/ton. Black pepper price, in particular, was constant about 5,200 USD/ton at the Malaysian port of Kuching.
- Vietnam: 500g/l and 550g/l black pepper export price at the port of Ho Chi Minh City fluctuated at $4,150-4,350/ton as of February 15, up 2.4-2.5% (equal to 100 USD/ton) from the end of previous month but 50 USD/ton lower than the end of December 2021.
Forecasts about black pepper price
The global black pepper market is steadily expanding. The major variables driving global black pepper price in the future will be changes in the output of the pepper harvest in 2022, which will take place in Vietnam.
In terms of consumption demand in 2022, greater expenditure on food goods and increased disposable income in developing countries are driving the market. According to the International Pepper Association (IPC), the United States has placed orders for 2022, but the Chinese market’s purchasing power is slowing and Europe is wary of importing. The purchasing power of the Middle Eastern market is not expected to expand anytime soon, according to forecasts. In general, worldwide pepper demand is constant, while global supply is not growing.
During the projected period 2021-2028, the global black pepper market is expected to develop at a CAGR of 5.5%, from USD 3903.5 million in 2020 to USD 5990.65 million in 2028.
Black pepper price in big pepper exporters
Referring to big exporters with the best black pepper price in the world, it is impossible not to mention Vietnam and Brazil.
According to preliminary statistics of the General Department of Customs, after the 2022 Lunar New Year, Vietnam’s pepper market has been active again, key growing areas have begun to harvest new crops and black pepper price tends to increase.
- Black pepper export price
The entire export turnover in January 2022 was 74.2 million USD, up 4.7% from the previous month and 53% from the same period last year, according to preliminary information from the General Department of Customs. In which, the black pepper price to the major markets remains relatively high, although exports to China alone have been declining since the fourth quarter of last year.
In January, the average black pepper price of Vietnam reached $4,200/ton, down slightly by 0.2% from the previous month but still increasing by 62.9% over the same period.
- Black pepper wholesale price in domestic markets
As expected, from February 7 to February 15, the domestic black pepper price increased by 3,500 – 4,000 VND/kg (an increase of 5% respectively) to 83,500. 86,500 VND/kg.
Specifically, black pepper wholesale price reached the highest in Ba Ria – Vung Tau with 86,500 VND/kg; followed by Binh Phuoc with 85,500 VND/kg; in Dak Lak and Dak Nong provinces fluctuated at VND 85,000/kg; black pepper price in Gia Lai was purchased at 83,500 VND/kg; and in Dong Nai trading at 84,000 VND/kg.
Compared to last year’s pepper crop, the increase of black pepper price this year took place earlier when buyers actively bought in fear of higher prices after the harvest.
In Brazil, the black pepper wholesale price has climbed by 12.69% year over year. In W4 February 2021, the black pepper price was USD 4.05/kg, but it quickly grew, reaching a high of USD 6.49/ kg in W5 June 2021 (+77% YoY). In W3 Dec 2021, the price steadily reduced to 5.33 USD/ kg.
Brazil was hit hard by drought in early 2021, resulting in slowed black pepper production.
- As a result, in W5 June 2021, the Brazilian black pepper price reached its maximum value of USD 6.49/ kg.
- Brazilian exports climbed by 90.6% year on year in June 2021, from USD 12.1 million in 2020 to USD 23 million in 2021.
Despite poor production, black pepper output is expected to improve by 6% YoY to 95,000 tons in 2021. More new plantings in Brazil’s southern state of Espirito Santo, as well as in Bahia and Minas Gerais, explain the trend. Due to plentiful availability, the black pepper price in Brazil fell to 5.33 USD/kg in W3 December 2021.
Brazil, as the world’s second-largest exporter of peppercorn (HS Code: 090411), which includes black pepper), will earn 187.51 million dollars in 2020. Germany (+4.85% YoY) and the United States (+39.12% YoY) were the top importers of Brazilian black pepper. Black pepper price increases compared to the previous year due to increased consumer demand for Brazilian black pepper as many countries and territories loosen social barriers and reopen restaurants and bakeries in 2021. Because low prices in late-2021 entice importers, Brazilian black pepper is expected to be exempt from tariffs in Germany and the United States, giving Brazil a greater incentive to ship to these markets until the following season.
Price fluctuation is a common occurrence for every export commodity, and Indonesian black pepper price is no exception.
- In 2017, black pepper price reached IDR 121,000/ kg.
- After a year, Indonesian pepper exports increased by 11.5%, from 42,600 tons in 2017 to 47,600 tons in 2018.
- In 2019, black pepper price reduced to IDR 22,000/ kilogram.
- The excess in the global market was blamed for the steep drop in pepper prices.
- On the other hand, the rise in customer consumption was less than the increase in pepper production that year, indicating that demand and supply were out of balance.
- According to data from the Indonesian Ministry of Trade’s International Relations Division, consumption increased by 2%, which was less than the average yearly increase in pepper production, which was 7%.
Factors affecting black pepper price in the world
There are a lot of elements which can impact on black pepper price such as: supply, demand, shipment…
According to information from the International Pepper Association (IPC), in 2021, the total global pepper production is estimated at 514,950 tons, down 61,050 tons, or 11% lower than in 2020 (576,000 tons).
In general, black pepper price in recent years is no longer attractive, so pepper farmers have reduced investment costs, leading to a decrease in global pepper production in 2021. In 2021, global pepper enters a bullish cycle. The scarcity of goods in many major pepper producing countries in the world along with the increase in freight rates have pushed black pepper price to increase sharply by 45-55% compared to the beginning of the year.
The demand for black pepper in the world is increasing day by day due to the basic epidemic situation being well controlled. Many countries around the world have allowed the reopening of restaurants, pepper orders have skyrocketed since the beginning of 2021. Basically, global pepper demand tends to increase while global supply does not increase which makes black pepper price rise to a high level.
Transportation challenges have arisen as a result of the Covid-19 outbreak, including a lack of suitable containers and high shipping costs. As a result, black pepper price has risen, and customers will have to pay more to obtain it.
Top 3 reliable suppliers with the best black pepper price
Here are top 3 reliable suppliers with the best black pepper price.
Arco Associados – one of the reliable exporters in Brazil
Arco Associado is a company based in Vitória, Brazil, that was founded in 2008. Arco Associados is an exporter with over ten years of expertise supplying and exporting agricultural commodities such as rice and black pepper, white pepper, black pepper powder,.. to a variety of international markets. The EU, Germany, the United Arab Emirates, and Pakistan are Arco Associados’ key pepper export markets.
PT Agri Spice- a well-known Indonesian supplier
For the past 25 years, Pt. Agri spice (Indonesia) has been one of Indonesia’s leading spice processors and exporters. It specializes in delivering high-quality agricultural commodities to North America, Europe, Asia, and Australia, such as vanilla, nutmeg, black pepper, white pepper, black pepper powder and cinnamon.
K- Agriculture – the best supplier in Vietnam
K-Agriculture, located in Hanoi-Vietnam, is one of the reputable suppliers with 25-year experience in exporting agricultural goods including rice, coffee…,especially many types of pepper to many fastidious markets. Its main pepper export markets are Africa, the USA, and Japan.. Supported by the Ministry of Industry and Trade, K-Agriculture has brought the best Vietnamese agricultural products to the international market. Working with the slogan “Quality is King”, K-Agriculture always guarantees the best quality products at the most competitive price. The company has already got many certificates such as HACCP, ISO 9000, or FSSC 22000.
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