Vietnam Pepper Standard Report Q2.2019

Vietnam Pepper Standard Report Q2.2019

  • August 2019 •
  • 73 pages •
  • Report ID: 5494572 •
  • Format: PDF
VIETNAMESE PEPPER INDUSTRY

Pepper is the most popular spice in the world today, is a high-grade spice, taking a leading role (about 34%) in the total value of spice production traded in the world. The demand for pepper in the world is increasing, making commercial activities in the pepper market vibrant. The world pepper prices fluctuate based on the price fluctuations in large pepper exporting countries such as Vietnam, Brazil, Indonesia, India.
The pepper industry is one of the agricultural sectors that makes an important contribution to Vietnam’s agricultural sector. The area of pepper in Vietnam has continuously increased strongly from 2012 to 2018 with the annual CAGR of 20.24% due to the strong increase in pepper price in the period of 2012 - 2015, making farmers in pepper growing regions continuously expand new plant area.
Vietnam’s pepper output grew continuously with an estimated CAGR of 12.1% in the period of 2012-2018, accounting for 40% of total global pepper production, of which black pepper accounted for a major proportion with 89% of total production.
In Q1/2019, the export production of pepper of all kinds was estimated to increase 19.3% over the same period in 2018. The total export turnover decreased by 17.7% compared to the first quarter of 2018. Although the pepper export volume of Vietnam has continuously increased in the past years and become the largest pepper exporter in the world, Vietnam’s pepper export in 2019 is forecast to be difficult when the supply exceeds the demand.
The average export price of pepper in Vietnam increased sharply in the period of 2012 to 2015, then has fell sharply from the end of 2015 until now. Generally in the first 3 months of 2019, the export pepper price decreased by 28% compared to the same period last year, which led to the decreasing revenue of many enterprises in the industry in 2018.