Vietnam Pepper Exports Expected to Hit Five-Year Low in 2024
Whole Black Peppercorn
Brazil
United States
Vietnam
Market & Price Trends
Anh Ho
Published Feb 2, 2024
In 2023, Vietnam's pepper industry faced significant challenges, with the Vietnam Pepper and Spice Association (VPSA) reporting that while the country exported 264 thousand tons of pepper, marking a nearly 14% year-over-year (YoY) increase from 2022, VPSA enterprises only managed to export over 200 thousand tons, the lowest in recent years. This disparity highlights the challenging year for the industry. Looking ahead to 2024, Vietnam is estimated to decrease pepper production by about 10 to 15% YoY, with an expected range of 160 thousand to 165 thousand tons.
VPSA Vice Chairman outlined several key challenges. Firstly, there has been a decline in market demand, particularly in traditional markets like Europe, the United States (US), and the Middle East, affected by high inventory levels post-COVID-19 and the Russia-Ukraine conflict, impacting pepper consumption.
Secondly, Vietnam faces fierce competition from other pepper-producing countries, notably Brazil, which consistently offers lower prices. Brazilian pepper stood at USD 300 to 500 USD/ton, posing a significant competitive challenge for Vietnam.
Thirdly, intense competition among Vietnamese enterprises in the pepper industry, particularly in pricing, adds to the industry's challenges.
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