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Things you have to know about pepper wholesale market

Pepper – The King of spices is a powerful, nutrient-rich superfood with several benefits in its different forms. Therefore, the demand for pepper has increased for years. This makes the pepper wholesale market of great interest and notice. 

In the following article, we will provide you with the most critical and essential information about the pepper wholesale market you are looking for. 

Pepper wholesale market – The overview

World prices in the pepper wholesale market have been steadily rising in recent years due to a decline in global pepper supply, while demand from major markets such as the EU, US, and the Middle East has rebounded after the COVID-19 pandemic. Currently, the price of black and white pepper in the international pepper wholesale market has increased by 1.4-1.6 times compared to the beginning of this year.

Top countries with the largest pepper wholesale market in the world

According to IPC, Vietnam, Brazil and Indonesia are the top 3 exporting countries in the pepper wholesale market. In 2021, Vietnam continue to be of the top 1 pepper exporter in the world, but the volume was down 8.5% from 2020. The biggest decline was recorded in Indonesia, down to 32.2%; Brazil fell 2.6%.

Top 4 famous countries in the wholesale pepper market:

Countries Export (tons) Compared to 2022 (%)
Vietnam 260.989 -8.5%
Brazil 92.065 2.6%
Indonesia 35.057 -32.2%
India 20.549 29.0%
  • Vietnam: Vietnam’s pepper wholesale market is mainly producing black pepper, white pepper products only account for a small amount of about 10-15% of production output, customers who buy Vietnamese pepper also mainly ask to buy black pepper.
    The price’s black pepper 550 g/l is 4000 USD/ton.
  • Indonesia: In Indo’s pepper wholesale market, black pepper is at about 52%, white pepper at 42%. Indo pepper has a more spicy and intense taste than Vietnam pepper.
    Indo black pepper 550 g/l is about 3200 USD/ton
  • Brazil: The pulp is yellow to greenish after being mashed, and Brazil pepper is not extremely spicy. Some Italian regions particularly enjoy the aroma of the Brazilian pepper, especially when making fresh sausage.
    The price of black pepper 550 g/l in the Brazilian pepper wholesale market is 3025 USD/ton.

Pepper wholesale market – High-demand markets

Currently, USA, India, and China are the top 3 pepper importing countries
USA
In 2021, the pepper volume that pepper wholesale markets export to the US increased by 8,4% over the previous year and reached more than 80,5 tons.
With the exception of imports from Brazil, which recorded a decline, the U.S. increased imports from most other pepper wholesale markets. Leading the way was Vietnam with 55,091 tons, an increase of 13% and accounting for 68.5% of the total volume of product that pepper wholesale markets exported into the US in 2021, up from the market share of 65.7% in 2020.

Pepper importing volume of the USA in 2021:

Exporting country Import (tons) Compared to 2020 (%)
Vietnam 55.091 13
Brazil 9.205 32.9
India 7.132 80.4
Indonesia 6.02 18.7

INDIA
Data from India’s Ministry of Trade and Industry showed that India’s pepper wholesale market in 2021 reached 31,293 tons, up 38.6% from the same period last year. The largest supplier in India’s pepper wholesale market in 2021 was Sri Lanka with 10,892 tons, an increase of 2.4 times over last year.
Vietnam dropped to second place in terms of pepper wholesale market to India with 10,034 tons, up 4.8%. This was followed by Indonesia and Brazil with more than 4,153 tons and 4,096 tons, up 12% and 15.7%, respectively. In addition, the quantity that India’s pepper wholesale market export to UAE also increased sharply by 19.5 times to 1,850 tons.

CHINA
Following the complicated development of the COVID-19 epidemic, China has sharply reduced imports from pepper wholesale markets since June 2021, due to the decrease in demand for spicy food in China and the demand of processing companies.
Due to China’s strict quarantine measures, international transit operators have decided to extend the service suspension for at least six weeks until after the Lunar New Year holiday in 2021. This move caused further supply disruptions.
China’s pepper export turnover from other pepper wholesale markets decreased by 6.4% compared to 2020, reaching 45.79 million USD in 2021, according to statistics from the Chinese Customs Authority.

Price in the pepper wholesale market

In the first half of December 2021, the export price of some worldwide pepper wholesaler markets decreased due to slowing demand.
In India, after rising to $7,563 a ton in late November 2021, India’s pepper wholesale market fell 7% to $7,035 a ton in December 2021 due to pressure from Sri Lanka’s pepper wholesale market.
The price in Indonesia’s pepper wholesale market also fell 1.9% in the first half of December to $4,424 a ton as a result of the market having no trading.

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Black pepper price in the world in 2021

The price of black pepper 500 g/l and 550 g/l in December 2021, at the regional port of the Ho Chi Minh City of Vietnam, exported decreased by 2.3% (equivalent to 100 USD/ton) compared to the end of last month, to 4,190 USD / ton and 4,290 USD/ton. Thus, the price in the Vietnam pepper wholesale market has so far decreased by 200 USD / ton compared to the end of October this year.

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White pepper price in the pepper wholesale market in 2021

The pepper wholesale market in Malaysia and Brazil whose prices in the first half of December 2021 were stable at $5,200 a ton and $4,400 a ton.

Despite the cooling down, the price in the world pepper wholesale market was still 45-50% higher than at the beginning of 2021, while the price of black pepper has also increased by 45-57%.

The future prediction of the pepper wholesale market

According to research by Fior Markets, the global wholesale pepper is expected to grow from $3.9 billion in 2020 to nearly $6 billion in 2028, corresponding to an average growth rate of 5.5% in the period 2021-2028. Pepper is an important and widely used spice globally, grown in more than 25 countries, and produces between 310,000 and 320,000 tons.
The growing trend towards the consumption of black as a health-promoting food in emerging economies has driven the pepper wholesale market. Moreover, the market is expected to see significant demand from cosmetic manufacturers, as black pepper is widely used in skin care formulations.

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Future predict of pepper wholesale market

Currently, Sri Lanka and Vietnam are leading in India’s pepper wholesale market. But the fact that Sri Lanka is in a state of crisis with a series of alarms, some industry experts predict that Vietnam’s pepper wholesale market will rise back to the number one position in India in terms of consumption market share. Sri Lanka will also be a pepper wholesale market that is not able to export to the world market for quite a long time.

Key factors impact the price’s pepper wholesale market

The current price of wholesale pepper is fluctuating greatly, due to the volume of pepper produced in large quantities. Besides, there are also some other elements such as supply, demand, shipment, and government policy.

Pepper output of some pepper wholesale markets

Countries such as Indonesia, China, Malaysia, and Brazil entering new harvests in July and August could put pressure on pepper prices in the short term. Typically, in July 2022, the price in Vietnam’s pepper wholesale market decreased by 200 USD/ton compared to the previous month.

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Prediction of pepper output in the world pepper wholesale market

The total output of all pepper wholesale markets is anticipated to reach 570 thousand tons in 2022. Of which, Vietnam is expected to produce 200,000 tons of pepper by 2022. Approximately 105,000 tons of pepper would be produced in Brazil’s pepper wholesale market and 60,000 tons in India. The amount of pepper produced in Indonesia is thought to be between 50,000 and 60,000 tons.

Pepper wholesale market – Supply and demand

  • Demand: Due to a surplus of demand, many pepper wholesale markets have recently increased the pepper price. Due to the ease of social distance orders in many EU countries and the increased demand during significant holidays like Christmas and New Year, the price of pepper exported has grown dramatically and more suppliers join in the pepper wholesale market.

Table of pepper exporting volume in some top pepper wholesale markets

2017 2018 2019 2020 2021
Vietnam 200,000 230,000 260,000 240,000 180,000
Indonesia 70,000 73,000 78,000 77,000 79,000
Brazil 65,000 72,000 80,000 95,000 90,000
  • Supply: Global pepper production from the world pepper wholesale markets is anticipated to decrease in 2022 compared to 2021. However, in actuality, pepper production from the pepper wholesale market was still high in 2021, there isn’t much of a variation from every year. As long as production and consumption are in balance, the worldwide pepper wholesale market can remain stable in 2022.

Shipment has an effect on the price’s pepper wholesale market

Shipment is a key factor determining which pepper wholesale market to choose, particularly in the Covid-19 epidemic.

  • A drop in the volume of many pepper wholesale markets will result from higher logistics expenses caused by the circumstance where commodities transit is stalled. For instance, during the breakout of Covid-19 in the first few months of 2020, the overall container quantities handled at Chinese ports decreased by 10.1%.
  • Both important importers like the European Union and exporters like Brazil, India, and Vietnam experienced the same predicament. The most rapid and unique growth in Vietnam was seen on the sea freight routes, where a 40-foot container saw an increase of between $1,500 and $2,000 every two weeks.
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Shipment has an effect on the price’s pepper wholesale market

Moreover, input expenses including labor, fertilizer, gasoline, transportation fees, etc… are high now which would keep prices in the pepper wholesale market rising in 2022.
Below is the price list of shipments from Ho Chi Minh port, Vietnam’s pepper wholesale market, to some pepper exporting countries in the world:

From HCM Port to

Price (USD/ container 20ft)

Mundra, India

1,600

Chennai, India

3,200

Kolkata, India

2,400

Shanghai, China

230

USCHI, Chicago Il, US

12,039

Government policy affects the price of pepper wholesale market

The policies of the government have a significant impact on the success of suppliers in the pepper wholesale market. For instance, because the EVFTA has the support of the government, businesses in the pepper wholesale market can benefit from lower prices because the tariff has been reduced by 99%. This led to a drop in prices of some pepper wholesale markets when it was exchanged and the growth of the pepper business. Viet Nam is now among the top pepper wholesale market in the world as a result of the EVFTA Agreement.

The process of ordering products from the pepper wholesale market

The following actions are crucial if you want to purchase well in the pepper wholesale market:

  • Price haggling: Customers should use digital platforms to research the prices in the pepper wholesale market and write them down. Ask for a price that fits your budget while haggling with a supplier (often a reduction of 15–20% from the initial price).
  • Checking samples: Before signing the contract, get several samples from suppliers in the pepper wholesale market to ensure the quality of the goods. This can reduce the dangers of purchasing subpar goods.
  • Contract agreement: Make sure the conditions of the contract are accurate and advantageous to both parties before signing it. To minimize unfavorable risks, don’t forget to carefully review the final deal with suppliers from the pepper wholesale market.
  • Payment instrument: The supplier in the pepper wholesale market will suggest a payment instrument, but the buyer is free to choose another option if it is more advantageous to both parties. To ensure the product’s final state, the order should also be split into two independent installments: before and after receiving the product.

Top 3 famous suppliers in the global pepper wholesale market

Buyers may maintain high-quality sources by selecting reliable exporters in the pepper wholesale market. The top 3 well-known wholesale pepper providers are listed below for your consideration:

Pepperbrax Commercial Exportadora Ltda

Pepperbrax Commercial Exportadora Ltda is one of the largest companies in Brazil exporting pepper. Pepperbrax Commercial Exportadora Ltda was in the pepper wholesale market in 1989. This company has exported pepper to more than 20 countries in the world with high quality.
Contact information
Email: pepperbrax@pepperbrax.com.br
Ph: 55-91 3721-1925

K-Agriculture

K-Agriculture Factory, was founded in 1996, the best Vietnam exporter in the pepper wholesale market in the world. K-Agriculture Factory has been identified as a national representative that sells the best agricultural products to the international market thanks to cutting-edge milling and polishing techniques and government backing (Ministry of Industry and Trade).
Contact information:


Email: info@k-agriculture.com
Website: https://k-agriculture.com/
Whatsapp: +84855 555 837

Baria Pepper

When Baria Pepper was founded in 1985, its goal was to use its extensive product and market knowledge to expand its domestic and global customer base. Baria’s pepper wholesale market has come to the Middle East, America, Europe, and other Asian nations. Baria pepper has a significant advantage in managing the quality and cost of the pepper thanks to its close ties to neighborhood producers.

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