Vietnamese pepper holds a distinguished place in the global spice market, known for its exceptional quality, distinct flavor, and rich history. As one of the largest producers and exporters of pepper, Vietnam has established itself as a key player in the spice industry, delighting taste buds around the world.
The pepper industry experienced difficult times in the past.
In 2019, was once considered as a challenging year for the pepper business due to a dramatic decline in local assessment and exports as a result of a supply and demand imbalance.
The cause was determined in addition to factors that cause climate change, anomalous unseasonal rain and sunshine affecting pepper productivity, but also human factors. Prices of agricultural products and hiring personnel to collect and care for them climbed while pepper prices dropped substantially. This results in farmers not taking the necessary care, which is one of the reasons why pepper garden yields are declining.
According to the Ministry of Agriculture and Rural Development, in the first two months of 2023, Vietnam exported 40,814 tons of pepper with a turnover of 128.6 million USD, up 33% (10,138 tons) in volume but down 9% in price - equivalent to 12.7 million USD in turnover over the same period last year.
China's expanding middle class and changing dietary preferences have led to an increased demand for spices and culinary ingredients, including pepper. Vietnamese pepper distinct flavor and quality have resonated with Chinese consumers, making it a popular choice in their kitchens. This rising consumer demand has propelled China to the forefront of Vietnam's pepper export market.
The consistent demand from China has helped stabilize prices and create favorable market conditions for Vietnamese pepper farmers and exporters. This, in turn, contributes to the growth and development of Vietnam's agricultural sector and the overall economy.
China has surpassed the US to become Vietnam's largest pepper export market.
In 2022 is considered the year with the lowest export level for 5 consecutive years, due to the impact of the policy of the COVID-19 epidemic. By the first quarter of 2023, China has surpassed the US to become the largest pepper export market in Vietnam with 10,209 tons, up 8.6 times over the same period last year.
Vietnam and China enjoy a strategic trade relationship that facilitates the smooth flow of goods, including agricultural commodities like pepper. The close proximity between the two countries, coupled with well-established trade routes and logistics networks, allows for efficient and cost-effective transportation of Vietnamese pepper to Chinese markets.
Market Expansion and Opportunities:
The vast size of the Chinese market presents immense opportunities for Vietnamese pepper exporters. With a population of over a billion people, China's demand for spices and culinary ingredients continues to grow. Vietnamese pepper exporters can explore new avenues within China, including supplying to restaurants, hotels, food manufacturers, and retail markets, to further expand their market presence.
China's status as the largest export market for Vietnamese pepper underscores the strong trade relationship between the two countries. The growing consumer demand for Vietnamese pepper in China, favorable trade relations, and economic benefits for Vietnam have all contributed to the success of this partnership. With continued focus on quality, market expansion, and cooperation, the Vietnam-China pepper trade is poised to flourish in the coming years.