The Spice is Right: Vietnam’s Peppercorn Monopoly

Vietnam’s Pepper Prices Soar: A Contrasting Trend in the Global Market

The Vietnam Pepper and Spice Association (VPSA) reported that in the first half of August, businesses exported nearly 11,000 tons, earning $72 million. This brings the total pepper export turnover from the beginning of the year to August 15 to $1 billion. Compared to the previous month, pepper exports in the first half of August decreased by 0.2% in volume but increased by 2.1% in value thanks to higher export prices.

The global pepper market in July witnessed a decline in most major producing countries. Black pepper prices in Brazil dropped by up to $425/ton to $5,750/ton, while Lampung black pepper in Indonesia also saw a decrease of $295/ton. This was mainly due to weak demand from the US and Europe, coupled with the wait-and-see psychology regarding the final results of the countervailing duties on Brazilian pepper.

Contrasting the global trend, pepper prices in Vietnam continued to rise. At Ho Chi Minh City’s ports, export prices for black pepper of 500g/l and 550g/l grades increased to $6,440 and $6,570/ton, respectively, a surge of $170/ton compared to the previous month.

According to VPSA, pepper prices are currently high and maintaining an upward trend. Recorded prices today (Aug 23) in the domestic market continued to increase by VND 500 – 3,000/kg, reaching VND 142,500 – 146,000/kg.

However, VPSA stated that this price is still much lower than the forecasts made at the beginning of the year, which predicted pepper prices to reach VND 180,000/kg or even VND 200,000/kg in 2025 due to market fluctuations.

The pepper harvest for this year in Vietnam has officially ended, with an estimated production of 180,000 tons, a decrease of 10,000 tons compared to 2024 due to the lack of expansion in pepper-growing areas in the previous crop year.

The lack of expansion, coupled with unfavorable weather conditions, has contributed to limited supply. This scarcity factor has pushed domestic pepper prices against the global trend.

VPSA also forecasts that global pepper prices will increase in the second half of the year as demand from major markets rises, creating more favorable conditions for Vietnam’s pepper exports.

Vietnam: The Leading Pepper Supplier to the US

From the beginning of the year until now, the largest exporters of pepper to the US are Vietnam, Indonesia, India, Brazil, and China. Vietnam remains the largest supplier to the US market, accounting for 64.4% of the total pepper imports into the country.

In the first seven months, Vietnam’s pepper exports to the US reached nearly 33,000 tons, a decrease of 24% compared to the same period in 2024. However, the turnover increased by 21%, reaching $248 million thanks to higher export prices. Vietnam maintains its position as the number one supplier.

According to VPSA, the 20% countervailing duty imposed by the US since April caused Vietnamese pepper prices to plummet , even touching a low of VND 120,000/kg. But since July, prices have rebounded and are currently fluctuating around VND 145,000/kg, helping businesses compensate for some of their costs.

VPSA predicts that despite challenges in the third quarter, orders from the US will increase significantly in the fourth quarter of this year and the first quarter of 2026 as importers start stockpiling for the peak season.

According to Mr. Le Viet Anh, VPSA Secretary-General, the 20% tax imposed by the US is not a significant threat as most other competitors face higher taxes. Brazil and India are subject to up to 50% taxes, while Indonesia’s tax rate is 19%, almost equivalent to Vietnam’s. With tax advantage, stable supply capacity, and leading position, Vietnamese pepper still holds competitive advantages.

VPSA forecasts that Vietnam’s pepper exports this year will reach about 220,000 tons, a decrease from 250,000 tons in 2024. However, thanks to the increase in prices, the industry’s turnover can still reach $1.3 billion, equivalent to last year’s turnover.