Vietnam could ship more than 1 billion USD worth of pepper abroad for the whole 2024 on the back of high global demand and limited supply, according to the Vietnam Pepper and Spice Association (VPSA).

The Vietnam Pepper and Spice Association (VPSA) forecasts that pepper exports this year will reach over US$1 billion, returning pepper to the group of billion-dollar commodities.

In the first five months of 2024, the United States imported over 28,000 tons of pepper from Vietnam, valued at more than 128 million USD.

The world’s pepper market has become feverish with dealers increasing purchases by 2-3 times, creating the second ‘pepper rush’ in history.

So far this year, Vietnam has shipped abroad 114,424 tonnes of pepper worth 493.1 million USD, down 13.2 in volume but up 20.6% in value over the same period last year.

The Vietnam Pepper and Spice Association has expected pepper prices to continue rising every week.

A combination of supply shortages and increased demand from the major markets helped black pepper prices soar last week.

Vietnam has been No 1 globally in pepper exports for 20 years, but its export prices are the lowest in the world.

Ending April, pepper exports reached 83,783 tonnes, worth $353 million, marking a decrease of 18.3 per cent in volume but an increase of 11.5 per cent in value year-on-year.

Experts say that pepper prices have bottomed out and begun to increase, starting a new golden age which may last a decade.

Asia is the largest market for Vietnamese peppercorns, accounting for 52.7% of the nation’s total export volume of the product, heard the Vietnam Pepper and Spice Association (VPSA)’s annual conference held in Hanoi on January 25.

The United States is Vietnam’s largest consumer of pepper, making up more than one fifth of the supplier’s total exports, according to the General Department of Customs.

Vietnam exported 267,000 tonnes of pepper worth US$912 million last year, representing an increase of 16.6% in volume, but a decrease of 6.0% in value compared to figures from 2022, according to details given by the Ministry of Industry and Trade.

The United States imported 33,728 tonnes of Vietnamese pepper worth US$135.23 million in the first eight months of the year, becoming the largest consumer of the Vietnamese product in the world, according to the General Department of Vietnam Customs.

Vietnam’s pepper output is high this crop, at 200,000 tons, but exports in the first five months of the year fell sharply as speculators reserved money to buy Robusta coffee.

Vietnam has exported 2,657 tonnes of pepper to the Chinese market as of mid-June. Exports to US and EU markets have dropped.

Vietnam's pepper exports are not challenged by Cambodia being issued a licence to export its pepper to China directly, according to experts.