Vietnamese exported star anise has experienced a turbulent period marked by both opportunities and challenges. In April, the country exported 1,370 tonnes of Vietnamese star anise, generating more than USD 5.4 million in export revenue. From a short-term perspective, this represented a strong rebound. Export volume and value increased by 13.8% and 15.9%, respectively, compared with the previous month.
However, agricultural trade is a long-term game rather than a story of monthly gains. Compared with April 2025, Vietnamese exported star anise volume fell by 43.8%. This sharp decline dragged cumulative exports in the first four months of the year down to just over 4,300 tonnes, worth a total of USD 17.2 million.
The figures represent a decline of more than 25% in volume and 21% in value compared with the same period in 2025. The slowdown reflects a broader trend. International markets are imposing stricter quality standards, leaving unprocessed raw products increasingly vulnerable to fluctuations in global demand.
Despite weaker export volumes, the industry’s key strength remains its relatively stable commercial value. Unlike many Vietnamese agricultural commodities that suffer from severe price swings during bumper harvests, Vietnamese exported star anise has maintained a strong market position due to its distinctive characteristics.
Vietnamese exported star anise
In April, the average price of Vietnamese exported star anise remained high at USD 3,941 per tonne. This premium pricing has helped protect profit margins for both Vietnamese spice exporters and growers during a challenging period. It also highlights the significant potential for further value creation through advanced processing.
Star anise is a highly demanding crop that thrives only under specific natural conditions. Globally, only the border regions of Vietnam and China possess the ideal combination of altitude, climate, and soil. These conditions are necessary to produce commercially viable essential oil content.
Thanks to this unique advantage, Vietnam is the world’s second-largest producer of star anise. The country has approximately 55,000 hectares of cultivation. These are present mainly in the mountainous provinces of Lang Son and Cao Bang, with an annual output of around 22,000 tonnes.
However, natural advantages alone cannot guarantee long-term competitiveness. This is particularly true as major markets continue to tighten regulations on food, pharmaceutical, and cosmetic ingredients. As traditional sun-drying methods and raw exports become increasingly unsustainable, these practices are losing their viability. Accordingly, growers and exporters are accelerating the transition toward internationally recognized organic production standards.
Vietnamese star anise materials
Organic star anise production involves far more than eliminating excessive chemical use. It requires a comprehensive transformation of farming and processing practices. Producers of Vietnamese exported star anise are replacing weather-dependent drying methods with modern closed-system drying technology.
This effectively controls moisture, preserves the spice’s natural color, and maximizes its essential oil content. Vietnamese star anise products that meet stringent organic standards are highly possible to overcome technical trade barriers. They can also access premium international markets with significantly higher added value.
The growing maturity of Vietnamese exported star anise reflects in its ability to maximize the value of every part of the crop rather than relying solely on exports of raw materials. Increasingly, production follows around a circular economy model, in which virtually nothing goes to waste.
After harvesting, premium-grade star anise with uniform, well-shaped pods is carefully dried for direct export. The remaining output, which accounts for a substantial share of production, is processed into essential oil and other high-value extracts through industrial distillation. These products generate the highest profit margins. Star anise essential oil is a critical ingredient used by international pharmaceutical companies in the production of antiviral medicines. It also serves as a valuable input for the premium cosmetics industry.
Vietnamese star anise trees
The industry’s zero-waste approach extends even further. Broken branches and fallen leaves are repurposed into aromatic sachets, herbal pillows, eco-friendly incense, and therapeutic foot-soak products. This integrated production model creates additional income for growers. It also enables processors to improve resource efficiency and reduce production costs across each hectare of cultivation.
This transformation is also reshaping the industry’s marketing channels. Vietnam’s star anise producers are becoming less dependent on intermediaries and informal cross-border trade. As a result, they are gaining greater control over pricing and market access.
Leveraging the opportunities created by free trade agreements (FTAs), Vietnam’s star anise products are increasingly reaching international buyers through cross-border e-commerce platforms such as Alibaba and Amazon. Today, a transaction initiated from an office in Hanoi can connect directly with industrial buyers across Europe and North America.
As global demand continues to shift toward natural and sustainable ingredients, Vietnam’s star anise exports have a clear opportunity to strengthen its position in the international marketplace. This can be achieved through value-added processing, organic production, and a circular economy approach.
Vietnamese source: https://doanhnghiephoinhap.vn/xuat-khau-hoa-hoi-ap-luc-sut-giam-va-bai-toan-but-pha-bang-che-bien-sau-137668.html
If you are interested in Vietnamese star anise, please contact us:
Company: Agrideco Vietnam Co., Ltd.
Address: No 02, Alley 325 Kim Nguu, Vinh Tuy Ward, Hanoi, Vietnam
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