While Vietnam’s pepper export volumes soared by 16.6% to 267,000 tons in 2023, the value dropped by 6% to US$912 million, according to the Vietnam Customs.
The average export price of Vietnamese pepper, which constitutes 60% of global supply, dropped by 19.4% from the previous year, to US$3,420 per ton.
Black pepper made up 71.2% of Vietnam’s exports, and white pepper comprised the remainder.
The U.S. remained the top purchaser of Vietnamese pepper, accounting for 23.5% of the total export value, followed by China 14.1%, India 5.4% and Germany 4.3%.
The U.S. decreased its pepper imports from India in favor of Vietnamese pepper, which is recognized for its favorable pricing and improving quality.
The Vietnam Pepper and Spice Association notes that Vietnamese pepper holds a competitive edge over other pepper-exporting nations such as Indonesia and India, bolstered by the European Union-Vietnam Free Trade Agreement, which has slashed the import tax on ground and crushed pepper to the EU to zero.
It is forecast Vietnam’s pepper export slow down because domestic supply is no longer abundant. The pepper inventory in 2024 will be at its lowest in many years.
This year’s pepper crop is projected to decrease by 10-15% to around 165,000 tons due to smaller cultivation areas and unfavorable weather conditions.