(VAN) Strong growth in pepper exports, coupled with rising demand for various other spices, has propelled Vietnam’s spice industry beyond the 2 billion USD mark for the first time.
According to Le Viet Anh, Secretary General of the Vietnam Pepper and Spice Association (VPSA), total exports for the sector reached 2.124 billion USD in 2025, representing a 20.1% increase over 2024. This achievement marks 2025 as a historic year for the industry.
Pepper remains the dominant force within the sector, with export turnover hitting a record 1.66 billion USD in 2025. This figure reflects a 26% year-on-year increase and accounts for over 78% of the industry’s total export value, marking the highest revenue ever recorded for Vietnamese pepper.
Vietnam firmly maintained its position as the world’s leading producer and exporter of pepper throughout 2025. National production reached approximately 195,000 tons, an increase of 15,000 tons from 2024, supplying 36.3% of the global market. This output significantly outpaced other major producers, including India at 117,000 tons, Brazil at 98,000 tons, and Indonesia at 65,000 tons.
In terms of trade volume, Vietnam exported 247,000 tons of pepper in 2025, including both domestic harvests and re-exported goods. This volume represented 57.5% of global pepper exports, far exceeding competitors such as Brazil (83,000 tons), Indonesia (35,000 tons), and India (22.5,000 tons). By sustaining this level of production, Vietnam continued to serve as the backbone of the global supply chain while establishing a new, higher price floor for the industry.
Pepper exports reached a record 1.66 billion USD in 2025. Photo: Son Trang.
While pepper prices remained elevated over the past year, the market shifted toward a period of adjustment and stabilization. Domestic prices peaked early in the first quarter before easing mid-year and leveling off toward the year’s end. Prices fluctuated between 145,000 and 150,000 VND per kilogram for black pepper, while white pepper traded between 230,000 and 243,000 VND per kilogram.
On the international market, Free on Board (FOB) prices primarily ranged from 6,300 to 6,800 USD per ton for black pepper and 8,400 to 9,100 USD per ton for white pepper. Unlike the rapid price spikes seen in 2024, the market entered a more balanced phase in 2025 while maintaining a high overall valuation. The average FOB price for black pepper in 2025 was 6,670 USD per ton, up 16.9% from the 2024 average, while white pepper averaged 9,379 USD per ton, a 14.3% increase.
The United States remained Vietnam’s largest pepper market, despite a significant decline in export volume driven by shifting trade policies. Hoang Thi Lien, Chairwoman of VPSA, noted that exports to the U.S. faced headwinds between April and June 2025. During this period, American importers prioritized clearing existing inventories and reduced new orders to mitigate risks associated with reciprocal tariffs. Consequently, exports to the U.S. totaled 55,000 tons in 2025, a nearly 24% decrease compared to 2024. Following the U.S. in market share were the UAE (22,000 tons), China (20,000 tons), India (12,000 tons), and Germany (12,000 tons).
Beyond pepper, several other spices contributed significantly to the 2025 export figures. Cinnamon exports reached 300 million USD, followed by ginger and turmeric at 61 million USD, star anise at 58.7 million USD, cardamom and nutmeg at 33 million USD, and chili peppers at 10 million USD.
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