Vietnam Strikes Gold: Local Businesses Rake in $900 Million as ‘Black Gold’ Prices Soar
Global Pepper Prices Soar as Vietnam’s Supply Dwindles
Among the top three largest pepper export markets, Germany and the United Arab Emirates are driving up demand for this “black gold” from Vietnam, with exports to these countries experiencing significant growth.
Germany, in particular, has seen a twofeller increase in pepper imports from Vietnam, with the export value reaching over $57 million, a 152.5% year-over-year increase. Similarly, pepper exports to the United Arab Emirates have also seen a 40.2% volume increase and a 113.9% value increase.
As a result of reduced pepper supply from Vietnam, global prices of this commodity have been pushed up. As of the past eight months, the total pepper exports have already exceeded the 170,000-ton output of the 2024 harvest. Meanwhile, the remaining inventory from last year is estimated to be around 30%, equivalent to 50,000-55,000 tons.
According to the Vietnam Pepper and Spices Association (VPSA), the global pepper trade experienced a sharp decline in the first half of this year. Among the world’s five largest pepper-exporting countries, Indonesia and India saw their export volumes increase by 48.3% and 34.1%, respectively. However, Vietnam and Brazil, the two largest pepper-producing countries, saw their exports decrease by 6.8% and 6%, respectively, compared to the same period last year.
Ms. Hoang Thi Lien, President of VPSA, attributes the decrease in harvest output in Vietnam and Brazil as the main reason for the increase in pepper prices in the global market. With the country’s pepper inventory running low, exports are expected to be lower than in previous years and will likely last until March 2025, when the new harvest season begins. As a result, global pepper prices are expected to continue to rise and remain at a high level.
To meet consumption and production needs, Vietnamese businesses have spent around $85 million to import pepper, a 34.5% year-over-year increase. As domestic supply continues to dwindle, pepper imports are expected to increase, with the total import volume expected to rise in the coming months.