VINAGRI News - Domestic pepper prices in Vietnam have hovered around VND 150,000 per kilogram over the past 10 days, reflecting a tug-of-war in market sentiment amid tightening global supplies and structural changes in production. Despite accounting for over 40% of global pepper output, Vietnam’s cultivation area continues to shrink due to crop switching and climate change impacts.
Domestic market: Prices stable across key regions
As of the latest survey, black pepper prices in major producing regions remained unchanged from the previous day, ranging between VND 148,000 - 150,000/kg.
Đắk Lắk, Bà Rịa - Vũng Tàu, Đồng Nai: VND 150,000/kg
Đắk Nông: VND 149,000/kg
Bình Phước, Gia Lai: VND 148,000/kg
Prices have stabilized near VND 150,000/kg for more than a week, indicating balanced sentiment between buyers and sellers.
Global market: Strong prices across origins
According to the International Pepper Community (IPC), global black pepper prices remain elevated:
Indonesia (Lampung Black): USD 6,945/tonne
Brazil (ASTA 570): USD 6,500/tonne
Malaysia (Kuching): USD 9,600/tonne
Vietnam’s export prices for black pepper remain competitive, ranging from USD 6,600 - 6,800/tonne for 500 g/l and 550 g/l grades.
For white pepper:
Malaysia (ASTA): USD 13,000/tonne (highest)
Indonesia (Muntok): USD 9,841/tonne
Vietnam: USD 9,250/tonne
Exports: Volume down, revenue up sharply
Data from Vietnam Customs show that as of September 15, the country exported 175,818 tonnes of pepper, valued at nearly USD 1.2 billion. This represents an 8.1% decline in volume but a 28.7% increase in export value year-on-year - the lowest export volume since 2018, yet the highest value recorded for the same period.
The average export price reached USD 6,789/tonne, up 40% from the same period in 2024, signaling strong international demand for high-quality and sustainably produced Vietnamese pepper.
The Industry and Trade News (Báo Công Thương) noted that global buyers are willing to pay a premium for sustainably certified and value-added products. As Vietnamese exporters upgrade processing capacity and meet higher quality standards, domestic farmers also benefit from a more stable and elevated price floor.
Global supply tightening, demand rising
Vietnam’s dominance in global supply is being challenged by shrinking cultivation areas and climate-related risks. Major producers such as Brazil, Indonesia, and India are also facing lower yields due to extreme weather. Meanwhile, demand in emerging markets continues to grow at 3 - 4% annually, creating a tight global balance that supports firm prices both internationally and domestically.
In addition to supply-demand dynamics, financial and trade factors are also boosting prices. The U.S. countervailing duties (40%) on certain imported raw materials have prompted stronger domestic procurement, pushing local pepper prices upward.
The USD/VND exchange rate has moved favorably for exporters, encouraging early contract signings and supporting pepper price momentum in the final months of 2025. However, exchange rate fluctuations and trade policy shifts remain key variables that could trigger short-term corrections.
Outlook 2025 - 2030: Opportunities and Challenges
Analysts forecast a positive five-year outlook for Vietnam’s pepper industry, provided it leverages free trade agreements (FTAs) and aligns with sustainable consumption trends. Strategic directions include:
Expanding organic cultivation and deep processing
Diversifying products and markets, especially premium destinations like the EU, U.S., and Japan
Strengthening traceability, quality control, and value chain linkages between farmers, enterprises, and associations
However, challenges remain. Unpredictable weather, rising input and labor costs, and disease risks pose threats to stable production. Maintaining consistent quality and output stability will be critical to ensuring Vietnam’s pepper not only reaches short-term peaks but sustains long-term competitiveness.
Conclusion
With robust global demand, constrained supply, and supportive trade conditions, Vietnam’s pepper prices are expected to remain strong through the rest of 2025. To secure its position as a global pepper powerhouse and achieve sustainable growth through 2030, the industry must focus on innovation, sustainability, and market diversification - the keys to pushing Vietnam’s pepper to new price milestones on the global spice map.
NPK/ Vinagri News
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