Pepper Exports Soar in 2024

Vietnam’s pepper industry is on fire this year! From January to September, the country exported nearly 184,000 tonnes of pepper, including 163,000 tonnes of black pepper and 21,000 tonnes of white pepper. This has driven a remarkable 43% increase in export turnover, pushing the total value to over USD 881 million. Black pepper alone accounted for USD 754 million, while white pepper contributed USD 127 million.

The average export price for black pepper jumped to USD 4,70 per kg, and white pepper surged to USD 6,33 per kg, reflecting a year-on-year price increase of USD 1,27 - 1,37 per kg, respectively. According to the Vietnam Pepper Association (VPSA), the industry is confidently moving toward its ambitious goal of reaching USD 1 billion in exports by the end of 2024.

“The US remains our key market and the largest importer of Vietnamese pepper. Especially after Brazil’s crop failure,” said Hoang Thi Lien, chairwoman of the VPSA. “This has created favorable conditions for Vietnam’s pepper industry to thrive and meet its targets.”

Chilli Exports Also Heating Up

It’s not just pepper that’s making waves—Vietnam’s chilli exports have also shown impressive growth during the first eight months of 2024. The country shipped 8,800 tonnes of chilli, generating a turnover of over USD 21 million, representing a 6% increase in volume and nearly 35% growth in value compared to last year. For context, Vietnam’s chilli exports in 2023 were valued at USD 20 million for 10,000 tonnes, already a significant leap from 2022. By August 2024, chilli exports had surpassed last year's total!

China remains the top market for Vietnamese chilli, accounting for 84% of total exports, with 7,377 tonnes shipped. However, this marks a slight dip from the same period last year. Laos came in second with 970 tonnes, a 48% increase, followed by the US, where exports skyrocketed by 140% to 163 tonnes.

Cinnamon Exports Continue to Rise

Vietnam’s cinnamon industry is also holding its own. By the end of August 2024, the country had exported 63,000 tonnes of cinnamon, generating USD 177 million in revenue. This represents a 1.7% increase in revenue compared to the same period last year. It’s clear that Vietnam’s spice industry is making its mark globally, one spice at a time.

Vietnam’s Growing Influence in the Global Spice Market

Vietnam has cemented itself as a powerhouse in the global spice market, contributing a whopping USD 1.50 billion annually to the global supply chain. The country’s spices are exported to 125 countries, making Vietnam a major player in the spice trade.

According to Phan Minh Thong, chairman of Phuc Sinh Group, Vietnam’s spice industry is gearing up for continued growth. "To stay competitive in demanding markets, we need to focus on raw material quality, food safety, and environmental standards," Thong emphasized.

“To meet these challenges, Vietnam is expanding into deep processing for products like freeze-dried pepper, pepper sauce, and pepper powder. We're also exploring fully processed natural products for other spices,” Thong added, signaling a bright future for Vietnam’s spice sector.

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