In 2023, Vietnam’s pepper industry faced numerous challenges due to economic downturn and persistently high inflation. Simultaneously, the global financial market experienced significant fluctuations, impacting the overall demand for commodities and specifically, pepper. By the end of the year, Vietnam exported various types of pepper totaling 264,094 tons, marking a 13.8% increase compared to 2022. However, the export value decreased by 8.0%.
Asia emerged as Vietnam’s largest pepper export market, constituting 52.7% of total exports. Compared to 2022, the export volume to Asia increased by 29.6%. China led the market with 60,135 tons, capturing a 22.8% share and experiencing a remarkable 174.0% growth. Other key markets included India, the Philippines, and the Americas, with the latter holding the second-largest export share at 22.8%, and a marginal 0.3% growth. The United States, Vietnam’s second-largest export market, witnessed a 0.8% decrease, with 54,271 tons, constituting 20.5% of the total export.
From January to November 2023, Vietnam’s pepper export value to Europe, the Americas, and Africa sharply declined by 22%, 22.2%, and 9.7%, respectively, compared to the same period in 2022. In contrast, exports to Asia and Oceania surged significantly, with growth rates of 11.4% and 157.3%, respectively.
In the broader market context, towards the end of 2023, global pepper prices experienced uneven fluctuations. Prices sharply declined in Indonesia and India by over 20%, remained stable in Malaysia, and notably, Vietnam was the only country recording an 18% increase in export volume.
In recent times, Vietnam’s pepper industry has witnessed positive recovery, driven by increased global demand. Pepper prices, both domestically and in exports, have seen significant upward trends, creating positive prospects and high expectations for the pepper industry to quickly reclaim its status as a billion-dollar export in 2024.
In mid-December, the domestic pepper market saw a noteworthy advancement, with black pepper prices in the Central Highlands provinces unexpectedly rising by 14% (8,500 – 10,000 VND/kg). This brought prices to their highest level since March 2022, showcasing an impressive price increase. From early November, domestic pepper prices have seen substantial growth, reaching approximately 20-22%, creating a positive market situation for farmers and businesses in the industry.
However, when comparing domestic and international markets, particularly data from the International Pepper Community (IPC), it is evident that the price increase of domestic pepper far surpasses that of export pepper. From early November to date, the export price of Vietnam’s black pepper increased by only about 6% (equivalent to 200 USD/ton), maintaining at 3,700 – 3,800 USD/ton for both 500 g/l and 550 g/l types. This discrepancy may reflect various factors, including competition and market dynamics in the domestic market compared to the international market.
Visimex, with over 20 years of experience, has solidified its position as a pioneer in organic agriculture in Vietnam. This presents not only a challenge but also an opportunity as the international market increasingly focuses on organic and sustainable pepper. Visimex is not just an exporter of pepper but also a representative of the transformation in Vietnam’s agricultural model. The company has set high standards for quality and food safety in the production of organic pepper. Exporting organic agricultural products not only brings profits but also an opportunity to enhance the image and reputation of Vietnamese agricultural products in the international market.
In the context of the international emphasis on environmental protection and human health, Visimex may leverage these opportunities to expand its reputation and market in the future. This also underscores the importance of integrating sustainable values into the business strategy of enterprises in the agricultural export sector.
