Vietnam’s pepper exports surpass $1 billion

In the first half of August 2025, Vietnam’s pepper exports reached $71.8 million in value. Cumulatively, total Vietnam’s pepper export turnover since the beginning of the year to August 15, 2025, to reached $1.06 billion. For the U.S. market specifically, pepper exports in Quarter 3 will face difficulties due to retaliatory tariffs. However, the outlook will improve from Quarter 4 onward.

Vietnam’s pepper exports in July 2025 reached 22,000 tons, valued at $143 million. This brought the total export volume for the first seven months of the year to 145,300 tons. Accordingly, the export value reached  $991.1 million. These figures showed a decrease of 11.6% in volume but an increase of 29.9% in value compared to the same period in 2024. The average export price of pepper was worth at $6,823.2 per ton, up 46.9% year-on-year.

In the first seven months of 2025, the U.S., Germany, and India were the top three importers of Vietnam’s pepper exports. Three markets accounted for 26%, 8.9%, and 7.3% of total exports, respectively. Compared to the same period last year, export value to the U.S. increased by 28.4%, to Germany by 56.7%, and to India by 76.5%. Among the top 15 export markets, the UK recorded the highest growth with a 2.1-fold increase. In the meanwhile, the UAE saw the sharpest decline, down 18.1% year-on-year.

In the first half of August 2025, Vietnamese pepper businesses exported 10,830 tons, generating $71.8 million. Compared to July 2025, pepper exports in early August decreased slightly by 0.2% in volume. However, they increased by 2.1% in value, thanks to higher export prices.

In 2024, Vietnam set a record with pepper exports reaching $1.32 billion from 250,600 tons of various types. The average export price of black pepper was $6,476/ton, while white pepper fetched $8,198/ton.

In 2025, the U.S. has imposed a 20% tariff on Vietnamese goods, double the previous rate. However, Vietnamese pepper prices are rising and remain at very high levels. On August 21, 2025, pepper dealers listed pepper prices at around VND 148,000/kg, up VND 5,000/kg compared to early August.

However, experts notes that these prices are still much lower than earlier forecasts. They had projected pepper prices could reach VND 200,000/kg in 2025 due to supply shortages.

Earlier, at the end of Q1 2025, many dealers had stockpiled pepper at prices between VND 150,000–160,000/kg. Since April 2025, when the U.S. imposed a 10% tariff, prices plunged at one point dropping to just VND 120,000/kg. Although prices have now rebounded to around VND 150,000/kg, many dealers have yet to break even.

Pepper is a commodity with over 90% of its output exported, making the sector highly dependent on global market fluctuations. Recently, exporters have faced challenges in key markets: the U.S. with tightened tariffs and Europe with changes to certification regulations. As a result, experts have repeatedly called for policy support.

In 2025, pepper harvest in Vietnam has officially concluded with an estimate of 180,000 tons, down 10,000 tons from 2024. The decline is largely attributed to the lack of new planting area during the last crop cycle.

The sharp drop in pepper exports is primarily due to reduced imports from the U.S., Vietnam’s largest market. In the first five months of 2025, the U.S. imported over 36,000 tons of pepper, valued at $273 million. It showed a 3.3% decrease in volume. Imports from Vietnam specifically fell by 18% in volume. The top pepper suppliers to the U.S. this year include Vietnam, Indonesia, India, Brazil, and China.

In the first seven months of 2025, Vietnam exported nearly 33,000 tons of pepper to the U.S., down 24% year-on-year. However, due to higher prices, export value rose 21% to $248 million.

Specifically, the U.S. has cut its imports from Vietnam and increased sourcing from Indonesia and India. However, Vietnam remained the largest supplier, accounting for 64.4% of total U.S. pepper imports.

Experts stated that the 20% retaliatory tariff imposed by the U.S. on Vietnamese goods does not pose a major concern for Vietnam’s pepper exporters.

Pepper exports to the U.S. may face certain difficulties in Q3/2025 due to the tariff’s impact. However, the outlook is more optimistic from Q4 onward. Experts forecast a surge in U.S. orders in Q4/2025 and Q1/2026 as importers start stockpiling for the peak consumption season.

Although pepper exports to the U.S. dropped in the first seven months of 2025, this is likely a short-term adjustment to the new tariff policy. Vietnam still holds significant advantages over Brazil and India due to lower tariff rates and stable supply capacity, supporting the expectation of a strong rebound in the latter half of 2025.

“Global pepper prices are expected to rise in the second half of 2025 due to increased demand from major markets, creating favorable conditions for Vietnam’s exports,” experts forecast. It also predicts that Vietnam’s pepper export volume will decrease to around 220,000 tons in 2025.

However, thanks to higher prices, total export revenue could rise to $1.4 billion. Yet, due to the 20% U.S. tariff, the actual value retained by the industry may be only around $1.3 billion, roughly equal to last year’s performance.

Vietnamese source: https://vneconomy.vn/xuat-khau-hat-tieu-vuot-1-ty-usd.htm