Vietnamese pepper prices surge amid strong demand from China, US
Vietnamese pepper prices surge amid strong demand from China, US
Vietnamese pepper prices are surging past US$6.4 per kilogram due to strong demand from China and the United States, according to the Vietnam Pepper and Spice Association (VPSA).
Staff work at a pepper processing factory in Vietnam. Photo: Quang Dinh / Tuoi Tre |
On February 12, pepper prices in Vietnam increased by VND3,000-4,500 ($0.12-0.18) per kilogram compared to the previous day, pushing the rates up to VND164,000 ($6.41) per kilogram.
According to VPSA chairwoman Hoang Thi Lien, the recent spike in pepper prices is owed to supply and demand dynamics, particularly a rise in purchase orders from key markets such as China and the U.S..
“Vietnam's pepper market experienced a temporary halt in trading during the Tet [Lunar New Year] holiday [last month], leading to a supply bottleneck. After the holiday, demand surged, causing prices to climb," Lien explained.
“Additionally, businesses and traders are eager to secure fresh supplies from the most recent harvest season in the Central Highlands region.”
On Wednesday, domestic pepper prices varied across Vietnamese provinces.
In Gia Lai, pepper was selling for VND162,500 ($6.36) per kilogram, marking a VND4,500 per kilogram increase from Tuesday.
In Ba Ria-Vung Tau and Dak Nong Provinces, prices rose by VND3,000 per kilogram to VND161,000 ($6.30) and VND163,000 ($6.34) per kilogram, respectively.
Similarly, Dak Lak and Binh Phuoc Provinces saw price increases of over VND4,000 per kilogram, reaching VND164,000 ($6.41) and VND162,000 ($6.33) per kilogram, respectively.
The global pepper market remains unpredictable, with prices stabilized in some regions and high in others.
According to the International Pepper Community, Indonesia's pepper prices have slightly declined, with Lampung black pepper priced at $7,251 per metric ton, down $14, and Muntok white pepper at $10,010 per metric ton, down $18.
Meanwhile, Malaysia's pepper market remains stable, with black pepper at $9,000 per metric ton and white pepper at $11,600 per metric ton. In Brazil, pepper prices have jumped by $200 to $6,700 per metric ton.
Vietnam's pepper exports have remained stable and strong, with black pepper averaging $6,500 per metric ton and white pepper averaging $9,550 per metric ton.
According to experts, reduced pepper output in some regions may keep prices elevated throughout 2025, as global demand remains steady.
Notably, purchases from key markets such as the U.S. and China have spiked by 10-15 percent, signaling a promising year for Vietnamese pepper farmers and exporters.
Vietnam exported 7,313 metric tons of pepper in the first half of January, generating $48.3 million in revenue, according to the General Department of Vietnam Customs.
While export volume declined by three percent compared to the same period in 2024, revenue surged by 61.86 percent, reflecting strong price growth.
Exporters report that China’s demand for Vietnamese pepper is rising, partly due to re-exports to India.
Other major markets, including the U.S. and the EU, continue to place significant orders for both short-term and long-term deliveries.
With favorable pricing, strong market conditions, and rising global demand, 2025 is expected to be a lucrative year for Vietnamese pepper producers and exporters.
Currently, the Central Highlands region – encompassing the five provinces of Lam Dong, Dak Nong, Dak Lak, Kon Tum, and Gia Lai – has entered its pepper harvest season.
