The year of 2025 is a milestone year for Vietnam’s pepper and spice industry. More specifically, the export value of Vietnamese pepper and spices surpassed USD 2 billion for the first time. This achievement reaffirmed Vietnam’s position as a central hub on the global spice map. Amid modest production growth — and even signs of stagnation — Vietnam pepper exports still recorded impressive gains. These gains were driven by high export prices and a strong shift from “volume-driven growth” to “value-driven growth.”
According to the Vietnam Pepper and Spice Association (VPSA), total export turnover of pepper and spices in 2025 reached USD 2.124 billion. This figure was up 20.1% year-on-year compared with 2024. Vietnam pepper exports alone accounted for more than 78% of the sector’s total export value.
Beyond pepper, several other spice products also made strong contributions. In particular, Vietnamese cinnamon generated approximately USD 300 million. Also, Vietnam’s ginger and turmeric reached USD 61 million. Vietnamese star anise reached nearly USD 59 million. These figures indicate that Vietnam’s spice export structure is becoming increasingly diversified. As a result, the sector is reducing its heavy reliance on a single commodity.
Vietnam pepper exports
According to data from the General Department of Customs, in 2025 Vietnam pepper exports reached more than 246,000 tons. This represented a decline of 1.5% year-on-year. However, thanks to a sharp rise in the average export price to nearly USD 6,750 per ton, export value still surged by more than 26%. This brought total export value to approximately USD 1.66 billion.
The United States remained the largest market for Vietnamese pepper, but 2025 saw a significant decline. Export volume to the U.S. fell to about 55,000 tons, down nearly 24% from the previous year. This decrease was due to the impact of tariff policies and a trend among U.S. importers to prioritize clearing inventories to mitigate risks.
In this context, other markets such as the UAE, China, India, and Germany are playing an increasingly important role. These markets help diversify risk and maintain stable outlets for Vietnam’s pepper industry.
Mr. Le Viet Anh is the Secretary General of the Vietnam Pepper and Spice Association (VPSA). He noted that current export developments clearly reflect a strategic shift in the pepper sector. Rather than pursuing expansion in cultivated area and output, the industry is focusing on improving quality, deep processing, and brand building. This approach helps increase value per unit of Vietnam pepper exports.
Black pepper from Vietnam
Not only in export markets, domestic pepper prices have also remained high. By the end of 2025, pepper prices ranged between VND 150,000 and 152,000 per kilogram. This helped farmers significantly improve incomes after many difficult years, while also creating financial room for Vietnamese spice enterprises to reinvest in raw material areas and processing technologies.
According to the VPSA, Vietnam’s pepper output in 2025 is likely to reach at around 195,000 tons. This accounts for 36.3% of global supply and maintains Vietnam’s position as the world’s leading producer. Vietnam pepper exports reached approximately 246,000 tons, equivalent to 57.5% of total global pepper exports. This figure far exceeds those of other major suppliers such as Brazil, Indonesia, and India.
With this leading role, Vietnam is not only the world’s largest supplier of pepper. It is also helping to shape a new global price benchmark for the pepper market amid increasingly tight global supply.
However, according to the VPSA, the outlook for pepper supply in the coming years is not entirely favorable. Entering the 2025–2026 crop year, output is forecast to decline slightly. This is due to the impacts of climate change, prolonged rainfall and storms, rising pest and disease pressures, and increasingly extreme weather. Meanwhile, pepper cultivation areas are unlikely to expand rapidly. High investment costs and farmers’ cautious sentiment following a prolonged period of low prices are key constraints.
Tight domestic supply, coupled with low global pepper inventories, is seen as a factor supporting prices at elevated levels in the short to medium term. At the same time, this situation underscores the urgent need to improve production efficiency and ensure more sustainable use of raw materials.
White pepper from Vietnam
At the same time, major markets such as the EU, the United States, and Japan are imposing increasingly stringent requirements. These include standards on traceability, chemical residues, environmental, social, and governance (ESG) criteria, as well as overall sustainability. Vietnamese pepper companies that fail to meet these criteria will find it difficult to maintain their foothold in international markets.
In practice, enterprises that have made well-structured investments in standardized raw material areas and modern processing facilities are enjoying clear advantages in trade negotiations. At the same time, they are expanding into higher-value segments and niche markets.
High prices and strong export growth present significant opportunities for Vietnam’s pepper industry. However, they also pose considerable challenges related to supply, quality, climate change, and processing capacity. In this context, promoting deep processing, building sustainable raw material zones, and diversifying markets are no longer merely strategic options. They have become mandatory requirements.
If this “golden period” is effectively leveraged to restructure the industry toward sustainability and higher value, Vietnam pepper exports will not only maintain their position as a global powerhouse. They may also enter a new growth cycle that is more stable, more efficient, and less dependent on fluctuations in global output and prices.