With long roots, Vietnam’s pepper export has gradually become famous around the world for its large production and good quality and has become one of Vietnam’s key export industries. In this article, we will see an overview of Vietnam pepper export, how has it been recently? Its updated price and how’s the trend? What are its advantages and the challenges it must face?
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Vietnam pepper export overview
Vietnam pepper export is one of the important industries of Vietnam and contributes big benefits to its economy. With a 40% share of the global pepper production and having exported to 110 nations so far, Vietnam is now the top pepper producer in the world. Beating other producing countries like Brazil, India, and Indonesia…, Vietnam pepper export has taken the top spot, holding nearly ⅔ (60%) market share of global pepper export quantity just over a period of ten years. On the other hand, the quality of Vietnam pepper export has been increasingly improved, and the structure of export categories has gradually shifted to high-processed pepper instead of raw export as before.
Market share of Vietnam pepper export in 2020
Currently, whole-grain black pepper is still the most exported variety, but its share in total exports has decreased to 65-70% (previously about 80%). Instead, varieties of black pepper, the proportions of ground black pepper, white pepper, and pepper soaked in vinegar, green, pink, red, pinhead… increased significantly. (Vietnam Pepper Association, VPA)
The Vietnam pepper export (over the years) is as below:
Vietnam’s pepper exports in 2021 – 2022
- It was estimated that Vietnam pepper export output increased by roughly 19.3% over the same time in 2018 in the first four months of 2019. Compared to the first quarter of 2018, the total export income decreased by around 17.7 percent.
- In 2020, in spite of the impact of the Covid 19 pandemic on global export activities, Vietnam pepper export remained stable. According to the General Department of Vietnam Customs, there were 285,000 tonnes of Vietnam pepper exports with the price gradually increasing.
- In 2021, it is estimated that Vietnam pepper export quantity was around 260,000 tonnes, earning approximately US$950 million. According to VPA, Vietnam pepper export increased 44% in value but declined 9% in volume year over year.
- Vietnam pepper export has been exported up to 99,540 tonnes of pepper in the first five months of 2022, valued at 460.54 million USD, a 17.8% decrease in volume but a 21.6 percent increase in value compared to the same period in 2021
- Compared to the same period last year, in the first 5 months of 2022, most of the main markets increased their pepper imports from Vietnam, except for the UK and Pakistan. In particular, the export speed of Vietnam pepper export to many markets with double-digit growth, including India, UAE, Netherlands, Germany, Philippines, Korea, Thailand…
Main markets of Vietnam pepper export
In 2021, Vietnam pepper export has a shift in market structure. The proportion of exports to the US, EU, United Arab Emirates, and Pakistan markets increased, while the proportion of Vietnam pepper exports to China and ASEAN markets decreased sharply.
Main markets of Vietnam pepper export in 2021
Main markets of Vietnam pepper export in January 2022
- The US accounted for 35% of Vietnam pepper export volume, reaching 5,380 tons, which is equivalent to roughly 25.83 million USD, with an average price of 4,801 USD/tonne in January of this year. This represents a volume increase of 30.5 percent, a turnover increase of 28.7 percent, and a price decrease of 1.4 percent compared to December of 2021. This means, compared to January 2021, Vietnam pepper export did rise in both volume, price and turnover, with increases of 35.8 percent, 117 percent, and 59.9 percent respectively.
- The German market ranked second place which accounted for 5.9 percent in volume and 7 percent in total turnover of Vietnam pepper exports. Vietnam pepper exported to Germany reached 934 tonnes, which is equivalent to 5.15 m USD with the price of 5,517 USD/tonne on average. In comparison to December 2021, the volume increased remarkably by 68.3%, while turnover was 88.9% and the average price was about 12.2%.
- Meanwhile, compared to January 2021, Vietnam pepper export to the Netherlands increased strongly by 39.2% in volume, 100% in turnover, and 43.7% in price.
Trends of Vietnam pepper export price
Vietnam pepper export price has changed a lot over the years, such as about 5.20 USD/kg in 2017; and 7.77 USD/kg in 2018 but then sharply decreased 67,368% in 2019, equivalent to just 2.54 USD/kg. However, from 2021, the price of Vietnam pepper export has bounced back.
1. Pepper prices have changed over time all throughout the world.
As we can see, in the period from 2005 to 6/2015, the price of pepper saw an increasing trend, then to 10/2020, it experienced a declining trend. After that, the global pepper export price has seen an upward trend until now. In particular, from 2005 – 2014, pepper price took a total of ten years to rise from 2,000 USD per ton to its peak of 10,000 USD per ton. After reaching a height of 10,000 USD/ton, there was a reversal, and the pepper price dropped back to its prior level, just about 2,000 USD/ton.
Global black pepper production & Average price
In general, prices of pepper have increased during the last ten years, fell for the previous 4.8 years, and are already starting to grow again. In 2022, the price still follows the increasing trend though its volume has jumped significantly, and this trend also affects Vietnam pepper export price.
2. The prediction for Vietnam pepper export prices in 2022 still seems to be high.
Although labor shortages and high logistic costs had a detrimental impact on pepper exports in 2021, Vietnam pepper export, nevertheless, showed significant growth. The sector is expected to benefit from the anticipated continuation of strong pepper export prices in the year 2022
Black pepper export price in Vietnam 2020 – 2021
The average price for Vietnam pepper export in May 2022 was 4,504 USD per ton, rising 31.4 percent from May 2021 but decreasing 2.7 percent from April 2022. In general, first five month of this year, the average price of Vietnam pepper exports has been recorded at 4,627 USD/ton, a 47.9% increase over the same time in 2021.
Black pepper export price of Vietnam in 2022
Forecast for the second half of 2022, the majority of analysts, exporters, and pepper producers agree that Vietnam pepper export price will continue to rise as the supply-demand balance for peppers is progressively returning to equilibrium. If the situation with the production is not good, there can even be a scarcity.
Trends of Vietnam’s pepper export price in 2022 quarterly
Due to severe weather conditions and historically low pepper prices, it is anticipated that the primary producing nations’ supply would decline in 2022. As a result, producers have not focused on practices that might impact pepper productivity. In the meanwhile, the Covid-19 epidemic has had a variety of effects, such as increased fertilizer costs and a manpower shortage, both of which have an impact on the output of Vietnam pepper export in 2022.
Factors affecting Vietnam pepper crop in 2022
On the other hand, as the IPC (World Pepper Association) analyzed, Brazil is now the only country that has an increasing supply because of the harvest in its northern areas, while other countries may be in limited supply. Vietnam is also affected, however, it is still anticipated to reach about 200,000 tons of Vietnam pepper export in 2022.
Recent dramatic increases in Vietnam pepper export prices have led many farmers and market vendors in primary marketplaces to refuse to sell their wares in the hopes that the price will rise even further. The market’s supply has been impacted as a result. That’s why the price of Vietnam pepper export as well as other countries are expected to keep increasing.
The advantages of Vietnam pepper export
According to reports, Vietnam has surpassed other developing countries like Brazil, India and Indonesia to become the leading pepper exporter in the world.
Advantages of Vietnam’s pepper export
Vietnam pepper export has a competitive price when compared to pepper export price from other countries due to some main factors including suitable soil, favorable weather as well as affordable labor cost. In addition, Vietnam pepper export quality has significantly increased to satisfy all market segments. In fact, Vietnamese stakeholders came together to highlight these outstanding accomplishments by adhering to good manufacturing procedures (GMP) and incorporating pest management (IPM) to produce high-quality Vietnam pepper export for the market.
With a manufacturing capacity of 120.000 tons annually, Vietnam now has more than 30 companies investing in and utilizing modern technology in producing and processing, that in return improves the competitiveness of Vietnam pepper export in the global market.
It is also notably marked that Vietnamese farmers are becoming more aware of the advantages of sustainable agriculture, so they are focusing more on growing Vietnam pepper export using sustainable farming practices, leading to an expansion of pepper growing regions that have been certified for worldwide organic standards.
Besides, the strong competitiveness of Vietnam pepper export can be explained by its stable quantity. The quantity of Vietnam pepper export is guaranteed and is consistent throughout time due to its extensive growing region. In particular, from 51.300 hectares in 2010, it expanded to 140.200 ha in 2019, peaking in 2017 with a total of 152.000 growing acres. In Vietnam, only 5% of pepper amount is used domestically, while 95% of the rest is exported – Vietnam pepper export.
Challenges of Vietnam pepper export
In spite of being the largest pepper exporter in the world, Vietnam pepper export, in general, is considered to be unstable and unsustainable for some reasons.
Challenges of Vietnam’s pepper export
Firstly, the pepper crop is being expanded too fast and cultivated even in many inappropriate places. Additionally, farming has been carried out too intensively during times of high selling prices, while there are not enough effective techniques and methods that help against the diseases damaging the plants. There are also many weak points leading to the unstable situation of pepper production, including the limit in choosing breeds, growing, and nurturing works… These can affect the sustainability of Vietnam pepper export supply.
Vietnam pepper export also has to face a lot of difficulties, such as the competition from Brazil and India, or the recessive economy of its export markets in recent years.
Where to buy quality Vietnam pepper export ?- Top 4 Vietnamese credible companies you must know
Below are top 4 Vietnamese credible companies you must know
Top credible companies in exporting pepper in Vietnam
1. Phacol
As a manufacturer, KING PEPPER VIETNAM specializes in producing spices such as star anise, pepper, cashews, and cinnamon (cassia). Although the business has only been around for ten years, it is already one of the top exporters of cashews and spices to Vietnam.
Contact information:
Tell: +842462605612
Fax: +842462 815 418
Email: info@phalcospices.com
2. K-Agriculture
With nearly 25 experienced years in producing and exporting Vietnamese agricultural products to the world, K-Agriculture is proud to be one of the leading manufacturers pioneering in the application of modern technology with standard processes in producing and is a popular exporter of rice, coffee, cashew, and spices from Vietnam. The company has an open partner network with a presence in all-around 40 countries, K-Agriculture is appreciated for its high-quality products at competitive prices, and is an option not to be missed if you want to buy Vietnam pepper export.
Contact information:
Email: info@k-agriculture.com
Website: https://k-agriculture.com/
Whatsapp: +84855555837
3. Hanfimex
Another credible address to buy Vietnam pepper exports is Hanfimex. Hanfimex Vietnam has been operating for more than 30 years and is currently one of the largest cashew nut export companies in the country, exporting to the European Union, Middle East, USA, Asia markets… With a wealth of experience and understanding, Hanfimex has established a network of potential partners in the agricultural export market for many years, leading to a long-term cooperation relationship.
Contact information:
Email: export@hanfimex.com
Website: hanfimex.com
4. Visimex
In 2002, Visimex was founded and joined the NIC GROUP. To service both local and foreign markets, the company intends to build a sustainable agricultural business with goods that are beneficial to the environment. With certifications like HACCP, BRC, Halal, Kosher, and ISO 22000: 2007, Visimex pledges to only provide high-quality goods that adhere to global food safety standards and has exported to nearly 70 countries around the world.
Contact information:
Email: sales.hcm@visimex.com
Website: www.visimex.com
Contact K-Agriculture to get the latest and cheapest Vietnam pepper export price!
Email: info@k-agriculture.com
Website: https://k-agriculture.com/
Whatsapp: Call Me
- Ms. Grace: +84 (855) 555-782
- Ms. Kris: +84 (855) 555-837
