Pepper Market in Turmoil: Exports Slow Down as Imports Surge

Vietnam’s pepper industry — long hailed as the country’s “black gold” — is facing a paradoxical shift. While exports show signs of stagnation, imports of pepper are soaring, raising concerns over domestic production and long-term sustainability.

According to preliminary data from the Vietnam Pepper and Spice Association (VPSA), Vietnam exported 145,046 tons of pepper of all varieties between January and July 2025, generating nearly USD 988 million. Of this, black pepper accounted for 124,271 tons (USD 820.3 million), while white pepper reached 20,775 tons (USD 167.7 million).

Although export volume dropped 12% year-on-year, total export value rose nearly 30%, thanks to higher global prices.

On the flip side, Vietnam imported a striking 31,472 tons of pepper worth about USD 195.4 million during the same period. Compared to the 19,857 tons (USD 80.3 million) imported in the first seven months of 2024, imports have skyrocketed by 58.5% in volume and more than 143% in value. Brazil, Cambodia, and Indonesia are the largest suppliers.

Notably, the import volume in just seven months of 2025 is already close to the 36,727 tons recorded for the entire year of 2024. The import value has even surpassed last year’s full-year figure of USD 176.2 million by more than 13%.

Farmers Abandon Pepper for More Profitable Crops

Industry expert Hoàng Phước Bính explained that businesses are rushing to import because domestic supply cannot meet export demand. Most pepper farms in Vietnam were planted before 2017, and by now, the aging trees produce low yields.

Adding to this, farmers have increasingly shifted to more lucrative crops like durian and coffee, which have delivered higher returns in recent years. Many pepper plantations have even been cleared for fruit trees, accelerating the decline in production.

Statistics from the Ministry of Agriculture show that after peaking at 290,000 tons in 2019, Vietnam’s pepper output has fallen steadily. The 2023–2024 crop year produced only 190,000 tons, compared to nearly 250,000 tons of exports in 2024 — a mismatch that forced enterprises to rely on imports.

High Prices Push Businesses to Import

Domestic pepper prices have surged in recent years, ranging between VND 140,000–180,000/kg. Companies have turned to imports not only to secure supply but also to stabilize domestic prices.

Although prices have cooled slightly from the peak of VND 180,000/kg in 2024, they remain high, averaging VND 140,000–142,000/kg. Farmers still earn a profit margin of about VND 60,000/kg, but compared to durian or coffee, pepper cultivation is far less attractive.

According to Mr. Bính, a recovery in domestic pepper production is unlikely in the short term. Only if coffee and durian prices decline significantly in the next 3–4 years might farmers consider replanting pepper. Even then, it would take several more years for productivity to rebound.

Outlook

The imbalance between supply and demand suggests Vietnam will continue to rely heavily on imports in the coming years, despite being the world’s leading pepper exporter. For now, the “black gold” that once made Vietnam a powerhouse in global spice trade is at risk of losing its shine — unless domestic production sees a revival.