Global Pepper Market 2024: Vietnam Leads Exports Amid Climate Challenges and Price Volatility

The global pepper market in 2024 is witnessing notable shifts, primarily driven by weather-related challenges and fluctuating demand across key producers like Vietnam, Brazil, and Indonesia. Here's a detailed analysis of the latest updates on production, exports, harvest quality, and price trends, focusing on Vietnam's role in the market and insights for traders in the UAE and the Middle East.

Production Overview & Harvest Timings

1. Vietnam

   • Harvest Season: Vietnam, the largest exporter of black pepper, experienced significant price drops in early September due to an increase in supply. However, experts predict a supply shortage by the end of the season. The harvest season spans from February to May, with export volumes peaking mid-year.
      
   • Production: Vietnam exported 190,208 tons of pepper as of mid-September 2024, earning $923.3 million USD, despite a 2.5% decline in volume from last year.
      
   • Quality: Vietnam's pepper quality remains competitive, with ongoing investments in deep processing to enhance value.

1. Brazil
    
   • Harvest Season: Brazil's pepper season occurs mainly from August to November. In 2024, the harvest has been severely impacted by El Niño-induced drought, leading to a forecasted 20-25% decrease in production compared to 2023.
      
   • Quality: The drought has resulted in reduced fruit set and overall lower yields, further exacerbating supply constraints.
      
2. Indonesia
    
   • Harvest Season: Indonesia’s 2024 harvest occurred in August, though output levels are not expected to be optimal. Still, exports to key markets like Vietnam and China have surged, with a 55.6% increase in volume compared to last year.
      
   • Quality: Indonesian pepper prices have seen a modest 2.5% increase in 2024, reflecting strong international demand.