Pepper Export Market Is Known As The King Of The Spices World

Pepper is exported in different forms, including whole dried peppercorns, ground pepper, and pepper oil. The export market for pepper is highly competitive, with many countries vying for a share of the global market. More and more entrepreneurs are choosing the pepper export market to find new success opportunities for the company. This is an attractive and “fatal” market, they fluctuate constantly with the development of the economy.

1. An overview about pepper export

Along with the economic recovery, the pepper export market is also returning with the recently rapid growth in demand.

1.1. Demand for export pepper

According to the International Pepper Association (IPC), in 2021, global pepper export will enter a price increase cycle. The scarcity of goods in many major pepper producing countries in the world along with the increase in freight rates has pushed up pepper prices sharply. The main reason is the sharp increase in the demand for pepper in the world.

After the Covid – 19 pandemic, all countries create conditions for businesses to reopen for production and economic recovery. Pepper is applied in many fields, so the recovery of production lines of each industry is the driving force that promotes the use of pepper also increases.

Countries that consume a lot of pepper can include the US, India, China, France… with the following data:

The US spent $ 360.4 million to import a large volume of 94,174 tons of pepper in 2021, up 8.8% in volume and 44.4% in value compared to 2020, and Vietnam is the market in which the US imports the most pepper.

During the Covid19 epidemic, China applied the Zero Covid policy to limit imports, however, the output in 2021 will be lower than in 2020, but recently it has tended to increase again because it has been overcome the epidemic in recent times.

For the French market, in the first 11 months of 2021, France imported 3,633 tons of pepper from within the bloc. For the foreign market, France increased its pepper imports from Vietnam and Indonesia but decreased imports from Brazil.

In general, the major markets in particular as well as the world market in general have increased demand for pepper. Therefore, pepper export has a great opportunity to consume and sell to the world to make a lot of profit.

1.2. Status of production for pepper export in the world

The world’s leading pepper producing countries such as Vietnam, Brazil, Indonesia… continue to promote production and expand pepper export growing areas to increase production and meet the demand for pepper all over world.

 

1.3. Top 4 largest pepper exporting countries in the world

Let’s find out some outstanding features of the world’s largest pepper exporting countries:

• Pepper export in Vietnam: As be top pepper exporting country, Vietnam offers a number of benefits to partners who choose to purchase pepper in bulk there.
  • Large-scale pepper production: In a tropical climate with steep mountains in the Central Highlands and Southeast, Vietnam is the perfect location for pepper to grow vigorously. Vietnam’s area dedicated to growing pepper is gradually growing larger. In recent years, the total area of the region under pepper cultivation has grown to 130,000 hectares. With a large region, pepper’s annual production will guarantee enough for both internal consumption and export to foreign markets. 
  • Cheap price of pepper export: The low cost of peppers in Vietnam is due to two factors. Firstly, because Vietnam has a huge pepper production capacity, prices are low due to the plentiful supply. Secondly, labor is inexpensive in Vietnam. One of the nations with the lowest labor costs in the world is Vietnam. In particular, pepper manufacturing is the primary industry in this industrial nation, therefore labor costs will be lower than in other nations.
  • Vietnamese pepper export is a great option if you’re seeking a supplier of pepper in large quantities at a consistent and affordable price.
• Pepper export in Brazil: Brazil’s pepper industry is generally growing in both quantity and quality following the Covid-19 outbreak. Brazil’s pepper is popularly used in a few European nations, like Italy and Germany, to manufacture sausages and fresh meals because of its alluring aroma.

Brazil’s geographical advantage of low-lying land, suitable rainfall throughout the year, and humid winters contributes to the country’s significant exports of pepper to Southeast Asian nations and the Americas.

• Pepper export in Malaysia: As domestic and worldwide demand for pepper grows, Malaysia is speeding up efforts to enhance production, including expanding the area under cultivation for this agricultural crop.

Many pepper producers are currently tending to store a lot of pepper in the intention of earning more money when the price rises. As a result, Malaysia only produces a fixed amount of pepper.

• Pepper export in Indonesia: As Indonesia enters the pepper harvesting season, a lot of products are being sold on the market. Even though Brazil and Vietnam export a lot of black pepper, Indonesia still has an advantage when it comes to exporting white pepper, which makes up around 47% of all pepper shipped globally.

In general, Indonesian pepper is hotter and smells stronger than pepper from other nations. Additionally, dealers in India acquire pepper from Indonesia before exporting it to a third nation.

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2. Types of pepper export

Popular types of pepper in the world include black pepper, white pepper, green pepper and pink pepper. However, when exporting pepper, people are classified according to the following two criteria

2.1. The pepper export with the material growing area

Pepper exporters who have both production facilities and material growing locations include pepper suppliers. They grow pepper themselves, process it, and sell it to domestic and foreign businesses.

• The supply of pepper goods is stable, with no interruption when delivering big numbers since they are autonomous in planting and production, which buyers can refer to when working with suppliers with material growth areas. They are not reliant on goods from outside sources.
• Because they grow, produce, and sell directly to customers, pepper vendors with raw ingredients are less expensive than buying through a trade broker. The buyer is given the raw materials as the main focus, and the price is established without the use of middlemen in accordance with the general laws of the pepper association or the legislation, which makes it very reasonable and allows the buyer to make more money.
• You can interact directly with the main pepper supplier and watch how the crop is planted, harvested, and processed. As a result, customers can select the ideal pepper for their needs.
• Because it takes less time and money to transport pepper to be processed when the providers have a factory close by and a material growing location, you can save more money. Additionally, the pepper provider lowers the risks associated with flooding, storms, packaging, and shipping so that the output is not lost. The cost of pepper will be fair if supply and demand are balanced.

2.2. The pepper supplier without material growing area

Without access to sufficient growing areas, businesses that sell pepper buy it from farmer households or cooperatives, bring it back for first processing, and then sell it to customers.

• You should be aware of the variations between pepper providers with and without material growth because they exhibit opposite traits.
• Due to the fact that they do not have a garden, they frequently get pepper from a variety of sources, which means that the standards are high.
• The price will increase because pepper must pass through numerous middlemen.
• Because they purchase the pepper in quantity, the warehouse may be able to store it for a considerable amount of time.

3. Factors affecting pepper export prices

The world’s supply of pepper is currently less than the demand, which has caused pepper export prices to rise in comparison to earlier years. The economic crisis also has an impact on prices. Let’s find out more about the elements that influence the cost.

3.1. Quantity of supply and demand of pepper export

Only when supply can keep up with demand on a global scale price stable. The price will rise if there is insufficient supply to meet the demand for the product on the market.

• Supply pepper export amount: The majority of pepper production is shipped during the harvest season, but the exact timing will vary depending on the country’s meteorological circumstances. For instance, it is between February and March in Vietnam, October and November in Malaysia, and December and January in Brazil. As a result, pepper prices tend to drop when shipped from these nations during the proper harvest season. You will save money and make more money if you import pepper right now.
• Demand volume: As economies recovered following the epidemic, pepper export was extensively employed in the manufacture of food, cosmetics, and pharmaceuticals. When there is a shortage of products due to rising demand for pepper but no change in supply, prices will rise. Global pepper consumption is predicted to exceed 50,000 tons in a single year. This is regarded as a huge number, and given the countries’ current pepper production rates, it might not be possible to provide this number. You can take into account the goods we are offering if you want to buy pepper efficiently.

3.2. Government policies about pepper export

In nations like Vietnam, Brazil, Indonesia, and others, the government establishes favorable conditions that greatly aid farmers. The government offers financial assistance for the purchase of fertilizer, pepper seedlings, and land… As a result, these nations will have lower pricing for pepper export than other nations.

Free trade agreements (FTAs) that have been signed can even make pepper imports and exports tax-free. For instance, Vietnam’s pepper export price while exporting to these nations was free from the 99% tax rate when Vietnam signed the EVFTA with the EU.

You can benefit from the preferential treatment for tariffs that the FTA delivers by choosing nations that have signed agreements with yours. The government will make it possible for businesses to buy products at prices that will maximize their profits. Administrative tasks like filing customs declarations or determining the country of origin of items will also be easier and less expensive. In this way, the buyer can negotiate a lower price.

3.3. Shipping cost of  pepper export

The Covid-19 outbreak, which lasted for more than 2 years, caused a steady rise in freight costs, particularly for sea traffic. This has had a negative impact on the price of pepper globally and decreased both buyers’ and sellers’ earnings.

Due to the conflict between the nations that supply the majority of the world’s gasoline, gas prices also increased to the highest level in decades. Importers and exporters must now pay a lot of money in order to purchase large quantities of pepper due to the rise in the price of raw materials.

Lack of containers frequently prevents purchasers from finding or renting empty containers to load products. The old, filthy container’s condition may not ensure the preservation of dry, clean items, even though they must tolerate paying a higher rental charge. 

As a result, in order to cut expenses, buyers and sellers must actively organize their 

3.4. Political situation of pepper exporting countries

Countries with stable and peaceful political situations will create favorable conditions for farmers to focus on planting and taking care of pepper export, providing large output to the market.

This is also a condition for an uninterrupted and stable supply of pepper every year to be able to meet the world’s demand for pepper.

4. The process of ordering for pepper export

Nowadays, most pepper export enterprises follow the process of placing export pepper orders like this:

• Marketing for customers to find: Pepper exporters often create their own websites and sales accounts on social networks or register for export organizations in forums. Buyers can search for pepper suppliers on those forums or social networks, and contact them via mail or hotlines.
• Exchange, get to know each other and negotiate prices and terms: this is an agreement step so that the two sides can reach a common price when buying export pepper. This is also the time to decide whether the buyer chooses to order from the business or not.
• Sign the contract, deposit money and produce the goods: After reaching an agreement on the price and quantity, the buyer and the seller will sign the contract and execute it. The buyer makes a deposit and pays for the goods. The seller proceeds to produce pepper export according to the quantity in the order.
• Packing, loading goods at the port and paying the rest: Buyers need to pay for the order before the goods are shipped. The shipment will be in charge of the pepper exporter.
• Check orders after sales and repeat sales: If there are any problems, the seller and the buyer need to track and handle them promptly.

5. Prestigious pepper exporters in the world

To make it easier for buyers to find pepper export suppliers, we will suggest a few reputable exporters in the market today.

5.1. Hoan Nghia Viet Agriculture Export Company from Vietnam

Established in 1995, Hoan Nghia Viet Agriculture Export Company is famous as the leading agricultural exporter in Vietnam, including pepper export to the world market. Up to now, Hoan Nghia Viet Agriculture Export Company’s products have been present in many countries and regions.

Rice, coffee, and spices like star anise, cinnamon, cashews, and pepper are just a few of the agricultural goods that Hoan Nghia Viet Agriculture Export Company specializes in exporting. In which the pepper export goods are being marketed for export to satisfy the rising demand on the world market.

The output standards required by the FAQ standard are met by the pepper products produced by Hoan Nghia Viet Agriculture Export Company, whose quality is rigorously checked throughout the production process. Hoan Nghia Viet Agriculture Export Company is a supplier of pepper exports in Vietnam where pepper cultivation is advantageous; as a result, the company’s export volume of pepper is substantial and stable, allowing it to satisfy all orders throughout the world.

5.2. Braspep Agro Comercial Exportadora Ltda from Brazil

Braspep Agro Comercial Exportadora Ltda, a Brazilian company founded in 1986, exports pepper in a variety of forms to over 30 different nations.

With respect to all importers and exporters of all items, suppliers and consignees, quantities, weights, and total FOB & CIF pricing, import taxes, freight, as well as suppliers of any product from across the world, Braspep Agro Comercial Exportadora Ltda has 100% customs operations.

The company’s website has additional information on its products.

5.3. PT. Agri spice from Indonesia

An international trade firm with Indonesian incorporation is called PT Spice Agro International. They buy, process, sell, trade, and provide spices, herbs, and other agriculturally based items.

Before shipments, their purchases from across Indonesia are gathered, examined, graded, and packed in our 1250 sq mtr warehouse at Surabaya Port. Due to their proximity to the source, they have excellent control and traceability over every product that enters their facilities.

By forming, growing, and fostering open collaborations, PT Spice Agro International has steadily increased its global presence. They have solid, values-based relationships with both their clientele and business partners. They strive to offer their customers high-quality products at reasonable prices thanks to their dedication and in-depth knowledge of their products.