Pepper prices are currently fluctuating between VND159,000 and VND161,000 per kilo, marking the highest levels in nearly a decade. 

Meanwhile, export prices of Vietnamese pepper products are hovering between US$7,000 and US$7,200 per tonne, depending on the type of pepper. 

The global market's demand for pepper is robust, with forecasts indicating a reduction in global pepper production in 2025, primarily due to shrinking cultivation areas in Vietnam and adverse weather conditions in India.

Vietnam’s pepper output for the 2024-2025 crop year is predicted to reach 172,000 tonnes, representing a 2% year-on-year decrease and a significant 47% drop compared to previous years. However, while global demand for pepper remains strong,  this could lead to further increases in prices.

In the first two months of 2025, Vietnam exported 27,416 tonnes of pepper, generating a turnover of US$184.9 million. Although the export volume decreased by 11.9% compared to the same period in 2024, the export turnover increased by an impressive 48.1%. 

This indicates that the export value of Vietnamese pepper continues to remain high, driven by a strong average export price of US$6,648 per tonne for black pepper and US$8,501 per tonne for white pepper.

Vietnam now accounts for about 40% of total global output and nearly 55% of the world’s pepper export turnover. Despite facing growing competition from other nations, Vietnam’s pepper and spice industry continues to assert its importance on the international stage. 

To maintain its competitive edge, Vietnam's pepper industry is focusing on improving product quality, enhancing risk management practices, and expanding international cooperation.

The surge in pepper prices is having a positive impact on farmers. High prices are not only generating substantial income but also motivating farmers to invest in their crops and improve the care of their pepper gardens. 

Additionally, the high price environment is encouraging farmers to stockpile their pepper, reducing the pressure to sell immediately after harvest.

As the global competition in the pepper industry intensifies, Vietnam is not only aiming to maintain its output but also focusing on developing deeply processed pepper products to add more value. 

The country is gradually transitioning from exporting raw pepper to exporting value-added products. This shift is intended to boost profitability and generate sustainable economic benefits.

The Deputy Director of the Department of Crop Production and Plant Protection, Ministry of Agriculture and Environment, Nguyen Quy Duong, pointed out that Vietnam’s favourable climate and soil conditions make it the largest pepper producer and exporter in the world. 

In 2024, Vietnam reached a total pepper growing area of 110,500 hectares, with an average yield of 26 quintals per hectare, which is double the global average. 

This will result in an estimated output of around 200,000 tonnes, with pepper export turnover reaching approximately US$1.32 billion, making a significant contribution to the country’s agricultural economy.

Looking ahead, Vietnam’s pepper development strategy aims to stabilise the growing area at about 80,000 to 100,000 hectares, with an output of 200,000 to 230,000 tonnes by 2030. 

The plan also includes a target of having 40% of the growing area certified under international standards like GAP, VietGAP and GlobalGAP. 

Furthermore, Vietnam is focusing on expanding organic pepper production, with the goal of cultivating 5,000 hectares of organic pepper by 2030, which will account for five per cent of the country’s total pepper-growing area.

The chairwoman of the Vietnam Pepper and Spice Association, Hoang Thi Lien, said that many enterprises are now shifting towards developing deeply processed products to enhance export value. This transition is expected to not only increase profitability but also strengthen Vietnam’s position in the global pepper market.

However, Vietnam's pepper industry faces several challenges, including climate change, the threat of harmful organisms, stricter quality requirements from international markets, along with rising transportation costs.

Pepper export value hits nearly US$190 million in 2 months

Vietnam's pepper export value surged by 52% in the first two months of 2025, despite a 9.4% decline in export volume.