India Remains Vietnam's Largest Export Market for Star Anise

In the first nine months of 2024, Vietnam exported 9,822 tons of star anise, generating nearly USD 47 million in revenue. Despite a slight dip in export volume and value, India continues to be Vietnam's largest market for star anise, accounting for more than 6,264 tons of the total export volume.

Export Performance in 2024

Vietnam's star anise export reached a value of USD 704 million in September 2024 alone, with 9 tons exported. Prosi Thang Long led the charge with 3.2 tons, and several other exporters like Tuan Minh, Senspice Vietnam, and Hong Son Vietnam contributed significantly to the export figures.

While the export volume has decreased by 9.5%, the value has dropped even more—by 20.6%—compared to the same period in 2023. This shift reflects the global economic conditions and the impacts of climate change on agricultural output.

India: The Key Export Market

India remains the biggest destination for Vietnam's star anise, absorbing more than 6,264 tons, followed by other markets such as the United States, Taiwan (China), and China. In 2023, India alone imported 499 tons, making up 57% of Vietnam's total star anise exports, worth USD 83 million. As India's demand for star anise continues to grow, it remains a crucial market for Vietnamese exporters.

Why is Star Anise so Valuable?

Star anise, a spice native to Vietnam and China, holds immense value due to its rarity. Its flowers bloom just twice a year, adding to its high market demand. Star anise trees typically reach heights of 2–6 meters and become harvest-ready at around three years of age. With their distinct diamond-shaped leaves and evergreen appearance, these trees are harvested biannually, mainly in June and August–September.

The limited production makes each tree highly valuable, yielding just four harvests annually. Once a tree matures at five years, it can generate significant income—2 hectares of land can earn around VND 10 million per year. This high value and unique harvest cycle make star anise a sought-after commodity in global spice markets.

Regional Focus: Lang Son

Lang Son province, located in northern Vietnam, is the country's primary growing region for star anise. This area boasts over 43,370 hectares of star anise, making up nearly 70% of Vietnam's total star anise area. Farmers actively harvest more than 28,000 hectares, producing between 7,500 and 16,000 tons annually. The region's stable production ensures consistent supply to the global market, particularly India.

Vietnam's Position in the Global Spice Market

Vietnam is a dominant player in the global spice market, particularly for star anise. The country ranks second worldwide in star anise exports. In 2023, Vietnam's spice exports reached over USD 1.4 billion, with ambitions to reach USD 2 billion by 2025. The country's reputation for producing high-quality spices continues to grow, with star anise being a flagship product.

Outlook for 2024

Despite the challenges posed by the El Nino phenomenon, which has affected agricultural production globally, Vietnam's spice industry remains optimistic. Weather conditions are expected to influence the output of products like star anise, cinnamon, and other spices, particularly in areas prone to climate change. However, with the growing demand in markets like India, Vietnam’s spice exports are set to continue playing a significant role in the global trade.

Conclusion

Vietnam’s star anise remains a key export product, and India’s continued dominance as the largest export market underscores its importance. With consistent quality and an established position in the global spice market, Vietnam is poised to maintain its leadership in this sector. For buyers and traders, keeping an eye on global climate trends and supply conditions will be essential to making informed decisions on star anise procurement in the coming years.

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