Vietnamese Star Anise Exports Decline Despite Higher October Turnover

Vietnam exported 11,152 tons of star anise between January and October 2024, generating $52,6 million in revenue. This marks a 13.3% decline in value compared to the same period last year, largely due to lower selling prices. However, October saw a significant boost, with exports reaching 1,330 tons and earning $5,8 million, an 89% increase in export turnover compared to September.

India Leads as Vietnam’s Top Star Anise Market

India continued to dominate as the largest importer of Vietnamese star anise in October, with shipments totaling 903 tons, reflecting a 121.3% rise from the previous month. For the first 10 months of the year, India imported 7,395 tons, representing 66.3% of Vietnam’s total exports.

The United States ranked second with imports of 411 tons, followed by China at 358 tons. Although export volumes to these markets remain steady, the overall decrease in value highlights the impact of lower global prices.

Lang Son: Vietnam’s Star Anise Hub

Vietnam is the second-largest producer of star anise globally, after China, with an annual production of 22,000 tons grown on 55,000 hectares of land. Lang Son province accounts for 72.7% of the cultivation area, producing high-quality star anise thanks to its unique soil and favorable climate.

The cultivation of star anise in Lang Son is a deeply rooted tradition, with trees that can produce harvests for over a century. The region is now focusing on organic farming practices to enhance sustainability and cater to international demand.

Applications and Global Recognition of Vietnamese Star Anise

Vietnamese star anise is renowned for its distinctive aroma and wide-ranging applications in the food, pharmaceutical, and cosmetic industries. Key export markets include India, Bangladesh, the Middle East, Japan, China, South Korea, the United States, and EU countries. Together, India and China account for 50% and 25% of Vietnam’s total star anise exports, respectively.

The spice has gained recognition from the World Spice Association for its value and limited harvest seasons, occurring only twice a year. Vietnam’s dedication to improving farming practices is solidifying its position as a global leader in the spice and flavoring market.

Vietnam’s Role in the Global Spice Industry

As part of the growing global spice and flavoring market, valued at $21,3 billion in 2021 and projected to reach $27,4 billion by 2026, Vietnam is bolstering its reputation as a key supplier. The country’s focus on quality and organic farming practices ensures its star anise remains a top choice for international buyers.

Conclusion

Vietnamese star anise exports faced a decline in revenue this year. However, the country remains a key player in the global spice market. India is its leading importer, while Lang Son province focuses on sustainable production. As a result, Vietnam is well-positioned to meet the rising demand for high-quality spices. Additionally, the surge in export turnover in October brings optimism for the coming months.

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