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Pepper export turnover in 2021 reached nearly USD 1 billion

10/01/2022

According to the Import-Export Department (Ministry of Industry and Trade), in December 2021, pepper exports reached 15,000 tons, worth USD 71 million, decreased by 8.5% in volume and 7% in value compared to November.

For the whole year of 2021, Vietnam's pepper export is estimated at 261 thousand tons, worth USD 938 million, a decrease of 8.5% in volume but an increase of 42% in value compared to 2020.

Accordingly, Vietnam's export pepper price in December 2021 reached USD 4,703 per ton, a sharp increase of 70% over the same period in 2020.

For the whole year of 2021, the export price of pepper would reach USD 3,593/ton, an increase of 55% over the same period in 2020. With this positive development, the export price of pepper in 2022 is forecasted to continue to remain high due to scarce supply, many main producing countries may experience crop failure.

The Import and Export Department is of the opinion that pepper exports in 2021 have a strong shift in market structure.

Specifically, the proportion of exports to the US, EU, United Arab Emirates (UAE) and Pakistan markets increased while exports to China and ASEAN markets decreased sharply.

According to the Import and Export Department, in 2022, the pepper industry will continue to take advantage of traditional export markets, especially the US, the largest pepper export market of Vietnam.

Accordingly, the US economic situation is showing signs of recovery, leading to an increase in demand for pepper.

Although the US increased pepper imports from some producing countries such as Indonesia, India, and China, the import volume is still low. Meanwhile, Vietnamese pepper has many competitive advantages, maintaining its market share in this market.

In another aspect, the structure of export pepper categories in 2021 also has a big change. Enterprises reduce exports of raw pepper, instead, increase exports of pre-processed or intensively processed varieties.

In addition, the pepper industry promotes the export of products to serve the cosmetic industry. In the context of the complicated development of the COVID-19 pandemic, people are advised to limit large gatherings, causing demand to consumption of pepper used as a condiment for dishes at restaurants and hotels decreased.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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