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World Pepper Export Market: The overall picture and things you need to know

In recent years, with the continuous rise in demand for pepper expenditure, pepper export brings high value to suppliers. However, there are many suppliers of pepper with different qualities in which importers need to have certain knowledge to import the right type of pepper.

Pepper Export Market – The overview

The worldwide supply of pepper decreased, while demand from major markets such as the EU, US, and the Middle East increased again after the COVID-19 pandemic last year.

Current pepper export situation of major suppliers

In general, the global pepper export market is constantly fluctuating that has a not small impact on the world‘s major pepper exporters

  • In August and September in 2021, pepper exports of Brazil and Indonesia increased again because the supply of pepper is replenished from the new harvest, while Vietnam’s pepper exports continue to decrease.
  • However, from the beginning of this year, the largest pepper suppliers such as Brazil, Vietnam, Indonesia all declined by 3.2%, 8.7%, and 9.5% respectively over the same period last year. India is the only country that achieved high export growth in the first months of this year, up 43% in 7 months and reaching 13,414 tons.
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The average pepper export volume of some major suppliers in the first eight months of 2021

Types of export peppers

There are four typical types of peppers that are being exported in the global markets.

  • Black pepper export: Black pepper is the most common type of pepper export. In this category, black pepper is divided into different types of black pepper with different quality standards based on the main factors: Density (GL), moisture, impurities. Black pepper is usually harvested in June-July.
  • White pepper export: White pepper, also known as skull pepper, is a type of pepper with the outer shell removed. To make white pepper, people need to harvest it when the pepper is ripe.
  • Green pepper export: Green pepper is the product harvested when the pepper is still green, green pepper is usually produced in small quantities, usually only in small quantities to supply the domestic market (on the spot).
  • Red pepper export: Red pepper is a product of pepper harvested when ripe, and with the skin on, but this product is less common, and is produced in small quantities.
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Types of export peppers

Because the import standards and regulations of each country are different, and depending on the market (rich or poor, demanding high or medium quality), pepper export is divided into many product lines. Example: Same product as black pepper, but we have a FAQ for products with capacity 400, 500, or 550 depending on market requirements and customer’s asking price. Markets that require high quality, have standards for comparison that are mandatory for importers to achieve such as the US has Asta, the EU has ESA…

Pepper export price

Nowadays, pepper export prices in most major producing countries in the world have increased due to scarce supply and difficult transportation. In addition, increased import demand at the end of the year also had a positive impact on pepper prices.

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Pepper export price

  • In Brazil, in October 2021, the black pepper export price increased by $200/ton compared to September 30, 2021, to $4,200/ton.
  • In Vietnam, on October 29, 2021, the black pepper export price of 500g/l and 550g/l both increased by $200/ton compared to September 30, 2021, to 4,390 USD/ton and 4,490 USD/ton. The export price of white pepper increased by $200/ton compared to September 30, 2021, to $6,390/ton.

Demand for pepper export all over the world

According to IPC (the International Pepper Organization), compared to 2019, the global pepper exports in 2020 increased by 2% and reached over 459,000 tons. In which, Vietnam exported more than 282,000 tons, accounting for nearly 60% of the whole world.

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Demand for pepper export all over the world

  • On the globe, in February 2021, the major producing countries except Indonesia witnessed the rise in black pepper export price, while Malaysia, Vietnam, and Indonesia saw a sharp increase in the price of white pepper for export.
  • According to the forecast, the planet’s demand is currently at 510,000 tons of pepper annually and boosts by 2-3% a year, while production of pepper worldwide increases by 8-10%.
  • Production of pepper around the world will achieve more than 660,000 tons in 2021, forecasted up to 1 million tons in 2050, and requests for global pepper will also increase, but not in rate to supply.

The biggest pepper importers are the United States, China, and Korea.

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The biggest pepper importers

  • In the first eight months in 2021, the United States imported 9949 tons of pepper, increasing by 29.3% compared to the same period in 2020.
  • Followed by China with 10,401 tons, decreasing by 26% to the last period.
  • The third place is Korea, which reaches 4,568 tons.
Country United States China Korea
Pepper import volume (tons) 9,949 10,401 4,568

Top of the biggest pepper export countries around the world

The country with the biggest pepper export volume is Vietnam with 232K tons, followed by Brazil with over 56K tons. The third position was occupied by Indonesia with over 23K tons.

Vietnam

Vietnam is leading in pepper export with the biggest pepper export volume worldwide.

  • In Vietnam, pepper is grown mainly in the central regions, concentrated in some provinces: Daklak, Binh Phuoc, Dong Nai, Dak Nong, Gia Lai, Ba Ria Vung Tau…. Vietnam has favorable soil conditions (soil, weather) suitable for pepper plants to grow. So it is a big advantage and great potential for export. Vietnam’s main export products are black pepper, white pepper only accounts for a small amount of about 10-15% of production output.

Unit: Thousand tons

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Vietnam’s pepper export volume in 2020-2021 (Source: Vietnam General Department of Customs)

Overall, Vietnam’s pepper export volume in the first 9 months of 2021 has a slight fluctuation which decreased by 3.2% compared to the same period in 2020.

  • Acquired in the first 9 months of 2021, Vietnam pepper exports reached 212,983 tons with a value of 719.2 million USD; however, compared to the same period in 2020, export volume decreased by 3.2% but revenue increased strongly by 47%.
  • Thanks to the sharp boost in price, pepper export turnover in the first 9 months of the year has surpassed the figure of $ 660.6 million achieved in the whole year of 2020. With the current increase in pepper prices, Vietnam’s pepper industry is expected to return a billion USD export item this year.
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Vietnam exports pepper to many markets in the world

Vietnam’s pepper exports to most markets have grown positively both in terms of volume and value in the first 9 months of this year, reaching over 200,000 tons with a value of nearly 720 million USD.

  • In which, the US is the largest pepper export market with 46,653 tons, worth 169.6 million USD, up 9.7% in volume and 59.7% in value compared to the same period last year.
  • Exports to the UAE reached 13,615 tons, worth USD 47.4 million, up 37% in volume and up 115.9% in value over the same period.
  • The amount of pepper exported to the Indian market also increased 1.6%, Pakistan up 12.6%, Netherlands up 20.5%…

According to estimates, Vietnam’s pepper exports in the coming years will reach more than 300,000 tons with nearly 1000 million USD.

Brazil

The increased supply from the new harvest makes Brazil’s pepper export volume rise again. Brazil’s dominant pepper product is black pepper.

Unit: Tons

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Pepper export volume of Brazil in the first 9 months of 2021 (Source: MDIC )

According to data from the Brazilian Ministry of Industry, Foreign Trade and Services (MDIC):

  • In the first 9 months of the year, Brazil’s pepper exports reached 61,845 tons, down 8.7% compared to the same period last year.
  • However, export turnover still increased sharply by 38.4% to 184.3 million USD, thanks to an increase in export prices by more than 1.5 times in the past 9 months (average of 2,987 USD/ton by Delivery form FOB)

About the export market, Brazil’s pepper exports to the US and Vietnam tend to decrease, but Germany, Pakistan, and especially the United Arab Emirates United (UAE) increased strongly in the first 9 months.

Indonesia

Unit: Tons

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Pepper export volume of Indonesia to some markets in the first 8 months of 2021

Indonesia’s Central Bureau of Statistics (BPS) announced that Indonesia’s pepper exports in August were 3,167 tons, which brings the total volume of export pepper in months to 26,273 tons, down 9.5% compared to the same period in 2020.

In the first eight months of this year, about 47% of Indonesia’s pepper exports are white pepper (reaching 12,413 tons) and 37% are whole-grain black pepper (9,701 tons), the remaining proportion is small others.

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Pepper of Indonesia

Viet Nam and China are the two largest pepper consumption markets of Indonesia. However, both declined import volume from this country in the first eight months of this year, with a loss of 25.6% and 36.7% respectively, down to 5,741 tons and 4,404 tons. The reason is that the epidemic lasted for a long time, and the demand for pepper in large restaurants decreased. On the other hand, Indonesia’s pepper exports to the Netherlands, Germany, and India increased dramatically.

Pepper export: Elements that impact on export price

There are many factors affecting pepper export price, but the following factors are the main ones.

  • Supply of pepper export

According to IPC, the decline in global output in 2021 is mainly due to a contraction of 8% in Vietnam, while Indonesia’s output increased slightly by 3% and Brazil remained stable. The global pepper trade is mainly being distributed by Vietnam, Indonesia, and Brazil. In which, Vietnam and Brazil are dominating pepper prices.

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Estimated global pepper production of IPC ( Source: IPC)

Because of the shortage in supply of pepper, pepper prices will rise, suppliers will profit more.

  • Pepper exports are in high demand

Demand for pepper exports in the world increased in the previous two months with millions of people were restricted in their homes due to the pandemic. According to calculations, the world demand is currently at 510,000 tons of pepper per year and on average only increases by 2-3% per year, while global pepper production increases by 8-10%. Global pepper production will be over 660,000 tons in 2022, estimated to boost to 1 million tons by 2050, and world pepper consumption demand will also increase, but not in rate to supply. Therefore, VPA also warned that pepper export prices may remain volatile for many more years.

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Pepper exports are in high demand

  • Logistics

The global economy is recovering after the Covid epidemic, however, the price of logistics is still high. This is a disadvantage because it will prevent pepper importers from ordering and buying products and reduce pepper import volume in the markets.

  • Government Policies

Today, the number of free trade agreements has increased significantly, many countries in the world tend to associate with each other and participate in many bilateral and multilateral trade agreements in economic and diplomatic terms. These agreements create favorable conditions for the exchange, import, and export of goods between countries without tariffs. For example, thanks to the EVFTA Agreement, the two-way trade turnover between Vietnam and the EU has grown in a more sustainable direction, both in terms of quality and quantity, with both import and export achieving positive results. With the strong commitments to cut tariffs brought about by new-generation trade agreements, it is expected that export prices of commodities in general, as well as pepper export prices in particular, will tend to decrease due to tax reductions.

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Government Policies affect to pepper export

In conclusion, a variety of factors influence the pepper export price, but pepper prices in the market tend to rise in general. To prevent being sold at exorbitant prices, shoppers must pay attention and update the price of pepper in the market on a regular basis.

Top 3 the best pepper export companies

There are so many pepper exporters all over the globe, but it’s not simple to find the best suppliers. So, here is a list of three reliable pepper export companies that you can need.

Arco Associados – one of the reliable exporters in Brazil

Arco Associado, established in 2008, is located in Vitória, Brazil. Arco Associados is an exporter who has over 10-year experience in supplying and exporting agricultural commodities such as rice, pepper to many markets in the world. Arco Associados’main pepper export markets are EU, Germany, UAE, and Pakistan.

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Arco Associados-one of the reliable exporters in Brazil

PT. Agri spice – a famous supplier in Indonesia

Pt. Agri spice (Indonesia) has been one of the major processors and exporters of Indonesian spices for the past 25 years. It specializes in supplying agricultural commodities with high quality such as vanilla, nutmeg, black pepper, cinnamon… to North America, Europe, Asia, and Australia.

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PT. Agri spice-a famous supplier in Indonesia

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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K- Agriculture – the best supplier in Vietnam

For more information, contact us:
Website: https://k-agriculture.com/
Email: info@k-agriculture.com
Phone/WhatsApp: +84855 555 837

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