The US spent more than USD 100 million importing pepper from Vietnam in the first half of the year
According to preliminary statistics from the General Department of Customs, Vietnam exported 21,235 tons of pepper in June 2023, reaching USD 76.74 million, a decrease of 26.6% in volume and a decrease of 14.6% in value compared to the previous month.
Accumulated over the first six months of the year, Vietnam's pepper exports reached 152,678 tons, equivalent to USD 483.17 million, an increase of 23.5% in volume but a decrease of 13.8% in value. The average export price of pepper reached USD 3,164/ton, a decrease of 30% in price compared to the same period in 2022.
In the first half of 2022, the US is Vietnam's largest pepper consumption market. Specifically, pepper exports to the US market reached 25,858 tons, equivalent to a turnover of USD 103.15 million, accounting for 17% of the total volume and 21.4% of the total exports of pepper in the country. Despite being the largest customer, exports to this country are recording a decrease of 16.6% in volume and a decrease of 32.3% in turnover compared to the same period in 2022.
In 2022, pepper exports to the US earned more than USD 282 million, an increase of 23.23% in value compared to 2021 and accounting for nearly 30% of the share in Vietnam's total pepper exports. For many years, the US has continuously been the largest customer of Vietnam pepper.
Although India is the home of pepper, Vietnam is the world's largest pepper producer and exporter. Currently, Vietnam has 6 key pepper producing provinces including Binh Phuoc, Dak Nong, Dak Lak, Ba Ria - Vung Tau, Dong Nai and Gia Lai. Regarding the market, Vietnam pepper is currently present in more than 100 countries and territories.
Vietnam has an advantage over some other pepper producing countries such as Indonesia, Malaysia, India, Sri Lanka, Cambodia... thanks to the advantage from EVFTA. Specifically, the import tax on ground or crushed pepper exported to the EU decreased from 4% to 0%. In addition, Vietnam's pepper industry is also highly appreciated for its processing capacity with the rate of processed goods currently accounting for about 30% of total exports.
In the second half of 2023, the Vietnam Pepper Association forecasts that the purchasing power of pepper and spices in the EU and US markets will record a sluggish situation in the near future while the economic downturn is still ongoing. On the other hand, buyers tend to wait for the new crop from Indonesia in July, with the hope of lower prices, therefore transactions from the EU and US markets are not yet active and buyers and sellers are playing tug of war with one another.
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