Vietnam’s spice industry targets $2 billion in exports amid rising global demand

With rising global demand, improving product quality, and coordinated industry efforts, Vietnam’s spice sector is poised to seize new opportunities.

According to Chairwoman of the Vietnam Pepper and Spice Association Hoang Thi Lien, in the first seven months of 2025, the country exported 145,046 tonnes of pepper worth 988 million USD. While export volume dropped 11.7% compared to the same period in 2024, value surged 29.3% thanks to higher average prices. Black pepper fetched 6,713 USD per tonne, up 47%, while white pepper reached 8,756 USD per tonne, up 41.2% year-on-year.

Pepper remains the leading export item, expected to surpass 2024’s revenue of 1.32 billion USD. (Photo: Wonder Black Pepper)

This marks the highest price level in recent years, reflecting the recovery of the global pepper market and Vietnam’s success in improving quality and value added across its production chain.

For cinnamon, Vietnam shipped 73,080 tonnes worth 187.5 million USD during the period, up 34.9% in volume and 21.6% in value year-on-year. Star anise exports also reached 9,276 tonnes, earning 35.7 million USD.

The country’s key spice export markets include the US, India, the United Arab Emirates, and the EU. Pepper remains the leading export item, expected to surpass 2024’s revenue of 1.32 billion USD. The US is currently the largest buyer, importing 30,890 tonnes in the first seven months, accounting for 21.3% of Vietnam’s total exports.

Beyond traditional destinations, the UK has emerged as a promising market. Statistics from the Ministry of Industry and Trade show that in the first four months of 2025, Vietnam was the largest supplier of pepper to the UK, making up nearly 60% of import volume and over 62% of import value. Vietnam’s pepper has an advantage in this market thanks to abundant supply, competitive prices, and favorable trade policies, positioning it well to meet large orders from UK retail chains.

However, the industry still faces stiff competition. In China, Vietnamese pepper must compete on price with Indonesian products, while in India, Sri Lankan and Brazilian supplies are significant rivals.

This requires Vietnamese exporters to adopt flexible pricing strategies and adjust delivery schedules to match shifting demand.

Phan Minh Thong, Chairman of Phuc Sinh Joint Stock Company, noted that global importers are placing increasing emphasis on food safety and quality. Products that are natural, additive-free, organic-certified, and traceable are gaining consumer preference. For years, Phuc Sinh has implemented sustainable pepper cultivation in partnership with farmers, providing annual training on international standards. As a result, its products are exported mainly to the US, one of the most demanding markets.

Looking ahead, the Vietnam Pepper and Spice Association plans to launch national-level trade promotion programmes, including business exchanges in Germany and the Netherlands. It will also coordinate training on sustainable farming practices, pilot pepper replanting projects in key provinces, and develop a digital spice map. At the same time, the association will monitor issues such as value-added tax, origin certification, reciprocal tariff, and food safety requirements to better support enterprises in enhancing production and exports.

Vietnam to host major events marking 80th Anniversary of August Revolution and National Day Vietnam will host a series of major events to celebrate the 80th anniversary of August Revolution (August 19) and National Day (September 2), with strong ...

Vietnam sees surge with 9.2 million international visitors in five months Vietnam hosted more than 9.2 million international tourists in the first five months of the year, according to the Vietnam National Authority of Tourism (VNAT).

Enhancing opportunities for labor cooperation between Vietnam and Japan’s Kyushu region A seminar was held on June 20 to promote labour cooperation between Vietnam and small-and medium-sized enterprises (SMEs) in Japan’s Kyushu region.

Vietnam, Russia strengthen cooperation on trade, energy, and education projects Deputy Prime Minister Tran Hong Ha, head of the Vietnamese sub-committee of the Vietnam – Russia Intergovernmental Committee for economic – trade and scientific – ...

Vietnam targets 30 billion-Dollar state-owned enterprises by 2030 Vietnam aims to see at least 30 State-owned enterprises (SOEs) with net revenue exceeding 1 billion USD each by 2030, according to a finance ministry ...