Unpredictable Year For Vietnam’s Pepper Industry

Vietnam’s pepper industry is preparing for an unpredictable year in 2025, with global production declining for the fourth consecutive year. Farmers in key producing countries, including Vietnam, are shifting away from pepper cultivation in favor of more profitable crops such as durian, coffee, and oil palm. Additionally, extreme weather conditions and rising production costs are adding pressure to supply chains.

China, a major buyer of Vietnamese pepper, reduced its imports by 82% in 2024 while increasing purchases from Indonesia by 76.8%. Despite this shift, Vietnam is still expected to be a key supplier for China during the 2025 harvest. The US and European spice processing industries also remain crucial markets, providing opportunities for Vietnamese exporters as global supply tightens.

Stability And Uncertainty Are Two Sides For Vietnam’s Pepper Exports

Experts predict that 2025 will be a year of both stability and uncertainty for Vietnam’s pepper exports. While limited supply could support high prices, market fluctuations will depend on buying patterns. China is expected to increase purchases when Vietnam’s main harvest begins in March and April, while US buyers may delay imports due to stockpiles from 2024.

Industry leaders advise exporters to closely monitor market trends and adjust procurement, storage, and financial strategies accordingly. Maintaining a flexible approach will be key to sustaining export growth and maximizing profitability.

Sustainable Farming Practices Gain Traction

Vietnamese farmers are increasingly adopting intercropping techniques, growing pepper alongside coffee and fruit trees to lower costs, reduce disease risks, and promote sustainable agriculture. Organic fertilizers and biological pest control are replacing chemical inputs, enhancing product quality and ensuring long-term sustainability in global markets.

Vietnam’s Pepper Export Performance in 2024

According to Vietnam’s General Department of Customs, the country’s pepper exports reached nearly USD 1.4 billion in 2024, marking a 45% year-on-year increase. Strong demand for black pepper (USD 1.1 billion) and white pepper (over USD 200 million) fueled this growth. The US remained the largest importer, purchasing 72,311 tonnes, a 33.2% rise from 2023. Other key markets included the Middle East, Germany, the Netherlands, India, and China.

On the import side, Vietnam brought in over 36,700 tonnes of pepper in 2024, valued at USD 176.2 million, reflecting a 38% increase in volume and a 99.5% surge in value compared to 2023. Indonesia, Brazil, and Cambodia were the largest suppliers, with imports from Indonesia and Cambodia surging by 431.2% and 80.7%, respectively, while imports from Brazil dropped by 42.4%.

Conclusion: Balancing Challenges and Opportunities

Vietnam’s pepper industry faces a complex year ahead, balancing reduced global production with fluctuating demand. Exporters must stay agile, adapting to market shifts while leveraging sustainable farming practices to maintain competitiveness. With strong international demand, particularly from the US and Europe, Vietnam remains a key player in the global spice trade. However, careful planning and strategic decision-making will be crucial to navigating the uncertainties of 2025.





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