Vietnam’s pepper exports to China have experienced a dramatic reduction, plummeting by over 84% in2024. Between January and September 2024, Vietnam shipped approximately 200,894 tonnes of pepper, comprising 177,953 tonnes of black pepper and 22,941 tonnes of white pepper. Although the overall export volume saw a slight decrease of 1.7% compared to the prior year, the total export revenue surged by 46.1%, primarily driven by rising global prices. The average selling price for black pepper reached USD4.85 per kilogram, while white pepper was sold at USD6.46 per kilogram.

The notable drop in exports to China is striking, with only 8,905 tonnes imported from Vietnam—a staggering decrease of 84.1% from the previous year. Conversely, other nations such as the UAE and South Korea showed increased demand, with the UAE importing 13,159 tonnes (an increase of41.1%) and South Korea taking in5,710 tonnes (a59% rise).

Despite the significant decline in exports to China, Vietnam’s pepper trade with the Americas and Europe remains strong. Exports to the Americas have grown by 49.6%, with the United States being the primary destination, making up 28.5% of the total exports. In Europe, exports increased by 33.6%, with Germany and the Netherlands leading in imports.

Though prices are notably high, global demand challenges, particularly from major markets, have posed difficulties. Currently, the trading prices for dried black pepper in Vietnam range from USD 6.46 to USD 6.71 per kilogram, lower than earlier this year but still higher compared to 2023.

Looking forward, Vietnam, which accounts for nearly half of the global pepper supply, remains optimistic about the sector’s future. The pepper industry is anticipated to generate between USD 1.3 billion and USD 1.4 billion by the end of 2024, a substantial increase from USD 0.91 billion in 2023. The rise in processed pepper exports and the forthcoming main harvest season from February to April are expected to help stabilize prices and foster long-term growth.

In summary, while it is advisable to exercise caution in the short term due to diminished exports to China and various global market pressures, the long-term perspective for Vietnam’s pepper industry is encouraging, supported by strong demand from European and American markets.