HCM CITY — Concerted efforts are needed for the pepper industry to tackle challenges such as climate change, rising consumer demand and lower global production, speakers said.

Speaking at the Vietnam International Pepper and Spice Outlook 2025 (VIPO 2025) on Monday, Hoàng Thị Liên, chairwoman of the Việt Nam Pepper and Spice Association (VPSA), said: "This is a crucial moment for the industry."

Rising consumer demand and lower global production have pushed prices up, creating both opportunities and challenges, she added.

The impacts of climate change have particularly affected cassia growers, especially in the wake of Typhoon Yagi. 

In addition, inadequate infrastructure, such as outdated drying methods, complicates the situation. Speculation has also returned, adding new hurdles alongside ongoing regulatory and food safety concerns.

Liên said collaboration among industry stakeholders, government bodies, and international organisations is needed to effectively address these challenges. 

The conference served as a platform for stakeholders to discuss strategies for risk management and to bolster the industry’s resilience, and issues related to cassia and other Vietnamese spices.

Việt Nam’s black pepper industry achieved a remarkable milestone in 2024, becoming a part of the billion-dollar export club.

Mike Liu, chairman of BCFoods Inc. and the China Spice Association (CSA), brought a delegation of 20 businesses from China to the conference.

“Việt Nam is truly the heart of pepper and spices in the world,” Liu said.  

“Our goal is to work hand-in-hand with Việt Nam, from grassroots initiatives to business collaborations, sharing the richness of Vietnamese spices with the world,” he added.

Later, there was a signing ceremony of an MOU between the China Spice Association and Việt Nam Pepper and Spice Association.

In the US, the retail spice market has seen substantial growth, expanding from US$5 billion pre-COVID to $7 billion, driven by a rising interest in Asian and Mexican cuisines. 

Globally, pepper is cultivated across 70 countries on more than 670,000 hectares, with a total production of 558,000 tonnes, primarily from Việt Nam, Brazil, and India.

Ambitious plan

Nguyễn Quý Dương, deputy director of the Plant Protection Department at the Ministry of Agriculture and Rural Development, announced an ambitious plan aimed at developing key industrial crops, including pepper, by 2030. 

The plan targets cultivating 80,000-100,000 hectares, with expected yields of 24-25 quintals per hectare and total production reaching 200,000-300,000 tonnes. 

By 2030, Việt Nam aims for 40 per cent of its pepper cultivation to meet Good Agricultural Practices (GAP) standards, with 40-50 per cent carrying traceability codes. 

There will also be a push for organic and certified cultivation in key regions such as Đắk Nông and Bình Phước provinces.

As of the end of 2024, Việt Nam’s pepper area was grown to 110,500 hectares, yielding an average of 26 quintals per hectare and producing around 200,000 tonnes. 

Currently, Việt Nam holds about 35 per cent of the global pepper market and nearly 55 per cent of exports. Pepper and spice exports in 2024 is estimated to reach $1.7 billion, with pepper alone contributing $1.32 billion, making Việt Nam the world’s largest pepper exporter. 

Despite having a smaller cultivation area compared to crops such as coffee and rubber, the economic value of pepper is significant.

This year’s conference focused on comprehensive risk assessment, addressing volatility, credit, quality, and regulatory concerns.

Organised by the Việt Nam Pepper and Spice Association (VPSA), the conference runs until March 5 and has attracted over 300 industry businesses from around the world. 

Participants mainly discussed sustainable pepper cultivation, climate change impacts, diversification into other spices such as ginger and turmeric, deep processing for value addition, US and EU market regulations, and the importance of sustainable development in risk management, among others. — VNS