Wholesale Pepper In The World Basic Knowledge You Need To Know

The pepper market is volatile because pepper is used a lot in many industries. Therefore, the increased demand for pepper has developed a business field. This article will provide you with interesting information about the wholesale pepper market in the world.

1. The potential of wholesale pepper in the future

The wholesale pepper industry has been significantly impacted by rising demand from European nations, who have started using more pepper in cooking, manufacturing of cosmetics and drugs. When the economy is gradually stabilizing, it is difficult for the supply of pepper to keep up with the rising global demand for it in a number of industries, including cosmetics, baking and confectionery goods, essential oils, etc. Exports are now more profitable because the existing supply cannot keep up with the demand on the world market. On the other hand, this has encouraged some nations to concentrate on exporting pepper by expanding the area, production, and yield.

The peppers wholesale is growing rapidly because major pepper producing countries such as Vietnam, Brazil … cannot supply enough quantity for global consumption demand. Recently, due to the impact of the Covid-19 epidemic, the pepper industry was affected. In the first 6 months of 2022, the export output of the pepper industry is increasing again, but still less than the same period in previous years. And it is expected to gradually recover in the late 2022 to 2025 period.

Wholesale pepper has brought a lot of benefits. Buying at wholesale prices will help buyers save a profit compared to buying retail. Pepper is used more and more, if you can own a lot of pepper wholesale, you will be able to make a huge profit because it is never in stock. In the US, the selling price of pepper is about 46.200 USD/ton while the average import price is only about 6920 USD/ton, so by buying wholesale pepper, buyers can get about 39.280 USD/ton. Profit is 6 times higher than total cost. The cheaper the import, the more profitable the buyer will be.

Similarly in China, the domestic black pepper price is about 39.000 USD/ton while the import price from other countries is only about 5050 USD/ton. So, the buyer will enjoy a profit of 33.952 USD/ton. Profit is 6-7 times higher than total cost.

This profit is minus insurance premiums, expenses and taxes. If you can get a cheap wholesale price, the price of finished products from pepper when sold to the end user will also be cheaper. So, buying wholesale brings benefits to both the end user and the importer.

2. Type of pepper on the wholesale pepper market

In the current pepper wholesale market, there are two types of popular wholesale pepper that bring high profits for businesses. Each type of pepper will be used favorably in different areas and also grown in areas with different climates and natural conditions.

2.1. Raw pepper on the wholesale pepper market

Pepper is usually native to Southeast or East Asian countries, especially tropical regions. Vietnam is currently the world’s largest pepper grower and exporter with 35% of the world’s total pepper production. Next, there are countries like India, Brazil, Sri Lanka… Most wholesale pepper is in the form of raw pepper because:

• Benefits of raw wholesale pepper: Buyer will pay less when buying raw material because the cost of raw pepper is usually cheaper because it does not need to go through the final processing stages, only picked from the tree and selected according to the standards of size, moisture and export packaging. If the price is cheap, the total value of the order will be cheap, the buyer will pay less tax because the tax is calculated on the total value of the order. Depending on the buyer’s purpose, buying pepper for sale or buying for use, importing raw pepper will give buyers flexibility in producing their final products and save more costs when operating by yourself. so raw pepper is easy to consume.
• Challenges with raw pepper wholesale: Buyers need to deal with the fact that raw pepper can be moldy and more humid because it hasn’t been processed yet. In addition, raw pepper will also have more impurities than processed pepper, so when importing raw pepper, if you do not choose a reputable exporter or check the goods carefully, the buyer may suffer damage to the amount of pepper received.

2.2. Processed pepper on the wholesale pepper market

Processed pepper is also an excellent choice for importers because of its convenience in ending use and distribution.

• Benefits of processed pepper wholesale: Importers will save time when buying processed pepper because it is roasted and ground by the wholesaler. In addition, processed pepper can be preserved for a long time because of mechanical intervention and physical impact. This is convenient for transporting over long distances or reducing mold during transportation.
• Challenges with processed wholesale pepper: Buyers have to pay a lot of money to buy processed pepper because the factory or supplier has done this process. There is a big risk if the processed pepper is not checked carefully, there can be a lot of impurities in the bag of ground pepper. Worse, it is possible to stick peppers that are not quality in terms of moisture and size but are still ground and packed together in bags. Buyers of processed pepper have to pay a higher tax rate because the total order value of this pepper is higher than that of raw pepper.

In summary, both types of pepper have advantages and disadvantages when being imported. One of the most important notes is that buyers must choose reputable suppliers to ensure the quality of pepper in accordance with world standards. In addition, depending on the purpose of the buyer, choose the suitable wholesale pepper according to our analysis above.

3. The world’s largest wholesale pepper exporting countries

One of the oldest goods exchanged between the Orient and Europe was pepper. Pepper was regularly exchanged as rent, dowry, and tax during the Middle Ages. When the demand for pepper increased, it developed into an industry and was exported in large quantities between countries.

Pepper is suitable for growing in areas with tropical or subtropical climates, high humidity and high rainfall. Besides, pepper growing countries are often colonial countries, planted into large industrial zones. Therefore, the wholesale pepper suppliers in the world are concentrated in countries such as Vietnam, Brazil, Malaysia, Indonesia… These are countries that have characteristics suitable for the development of pepper plants.

Market	2020 (Ton)	2021 (Ton)	2021 Compared with 2020 (%)
Vietnam	285.292	260.989	-8,5
Brazil	89.758	92.065	2,6
Indonesia	58.378	37.738	-35,4
Malaysia	17.489	21.977	25,7

Pepper exports of some countries in 2020 – 2021 (Source: IPC)

It can be seen that Vietnam and Brazil are the two largest pepper exporting countries in the world. With different natural conditions, countries also have different prices and characteristics. The above countries are all countries with raw material areas, they produce and export their own pepper. Therefore, the supply from these countries is abundant and stable without interruption. Besides, there are exporting countries but there is no raw material area. They have to import pepper from another country and export it to a third country. In these countries the supply of pepper will become more erratic as it depends on supplies from other countries.

3.1. Vietnam wholesale pepper

Vietnam is one of the largest pepper exporting countries in the world so partners who choose to buy wholesale pepper in Vietnam receive a lot of advantages

• Produce large quantities of pepper: Vietnam is located in a tropical climate with high mountains in the Central Highlands and Southeast, suitable and ideal places for pepper to grow strongly. Pepper growing area in Vietnam is expanding and increasing gradually. In recent years, the area growing pepper cultivation has increased to 130,000 hectares in the whole territory. With a large area, the annual output of pepper will ensure enough for domestic consumption and export to international markets.
• Cheap wholesale peppers price: There are two reasons why pepper prices in Vietnam are cheap. First, because Vietnam can produce a large amount of pepper, the abundant supply leads to low prices. Second, labor costs in Vietnam are cheap. Vietnam is one of the countries with the cheapest labor costs in the world. In particular, as an industrial country, pepper cultivation is also the main production industry, so the paid labor cost will be lower than in other countries.

3.2. Brazil wholesale pepper

After the Covid-19 pandemic, Brazil’s wholesale pepper industry is tending to increase in both quantity and quality. Especially a few European countries like Italy, Germany like to use Brazil’s pepper to make sausages or fresh foods because of its attractive aroma.

Brazil’s pepper is also exported a lot to Southeast Asian countries and the Americas because Brazil’s geographical advantage is low-lying land, suitable rainfall all year round and humid winters.

3.3. Indonesia wholesale pepper

Indonesia is entering the pepper harvest season, so the output supplied to the market is large. If Vietnam and Brazil export a lot of black pepper, Indonesia still has an advantage in exporting white pepper, accounting for about 47% of the amount of pepper exported to the world.

Indonesian wholesale pepper is usually spicier and has a stronger smell than other countries. Indonesian pepper is also often imported by traders in India and then exported to a third country.

3.4. Malaysia wholesale pepper

Malaysia is stepping up efforts to increase pepper production, including expanding the area cultivation for this agricultural product in increasing demand for pepper both domestically and internationally.

Currently, many pepper farmers are tending to hoard a large amount of wholesale pepper in the hope of higher income when the price increases. Therefore, Malaysia’s pepper production is only stable but not large.

4. Price of wholesale pepper

We can refer to the price of wholesale peppers of the countries with the largest export volume in the world in the table below, focusing mainly on the prices of black pepper and white pepper.

Country	Price of black pepper (USD/MT)	Price of white pepper (USD/MT)
Vietnam (550g/l)	3050.00	4550.00
Brazil (ASTA)	2575.00	3650.00
Indonesia (Muntok)	3653.00	5912.00
Malaysia (Lampung)	5100.00	7300.00

Pepper Price In Some Countries (Source: IPC)

The price of black pepper is usually cheaper than the price of white pepper in all countries. The reason for this is that the output of white pepper produced to the market is smaller than that of black pepper.

Besides, we also see that the difference in wholesale pepper prices between countries is quite large. Brazil is currently the country with the lowest pepper price, after Brazil, despite the fact that Brazil’s pepper export output is the second largest in the world. The price of pepper in Malaysia is the highest although the export volume in this country is the lowest of the four countries.

The cause of the difference in pepper prices between countries may be due to the different labor costs of each country, and the quantity of products between different countries. We will analyze these factors in more detail in the following section.

At this time, the International Pepper Community (IPC) has kept the list of export prices of Vietnam, Malaysia and India, slightly decreased for export pepper of Indonesia. According to IPC, the total global supply in 2022 is estimated at 535 thousand tons, down nearly 3% compared to 2021 and the decrease mainly comes from Vietnam and India.

Also in the second quarter of 2022, Brazil’s pepper price was the lowest traded in the market with the average FOB price of black pepper in the second quarter of 2022 at $3,760/ton, down 5% compared to the first quarter. Meanwhile, The average FOB price of Malaysian black pepper traded at $6,836/ton, almost double the average FOB price of Brazil’s black pepper, and the highest in the world.

With the advantage of cheap prices and freight rates in the Americas, Brazilian pepper is competing fiercely with other countries, including Vietnam. This year’s harvest in Brazil is assessed with a relatively positive yield. The possibility of Brazil occupying important markets of Vietnam is entirely possible.

5. The main factors affecting the price of wholesale pepper

Currently, the world supply of pepper is less than the demand, leading to an increase in wholesale pepper prices compared to previous years. Besides, prices are also affected by the economic crisis. Let’s learn more about the factors that affect the price.

5.1. Quantity of supply and demand of pepper

Prices of wholesale pepper are stable only when the supply can meet global demand. If the supply is less, not enough to supply the output to the market, it will cause the price to increase.

• Supply volume: Pepper production is exported the most in the harvest season, but it will depend on the climatic conditions of each country that the harvest time is different. For example, in Vietnam around February and March; In Malaysia it is October and November, in Brazil it is December and January. Therefore, pepper prices when exported at the right harvest season in these countries tend to decrease. When you import pepper at this time, it will reduce costs and earn higher profits.
• Demand volume: After the epidemic, the economies recovered, so pepper was used a lot to produce food, cosmetics and medicine. The demand for pepper increases, but the supply remains unchanged, so there is a shortage of products, causing the price to rise. It is estimated that in 1 year, pepper consumption can reach 50,000 tons globally. This is considered a huge number, with the current pepper production rate in the countries, it may not be enough to provide this number.

5.2. Government policies about wholesale pepper

In countries such as Vietnam, Brazil, Indonesia, … the government creates favorable conditions to support farmers a lot with wholesale pepper product, wholesale star anise product, wholesale rice product…. The government supports capital to buy pepper seeds, supports money to buy fertilizers, reduces land tax… Therefore, pepper prices in these countries will be cheaper than in other countries.

Signed free trade agreements (FTAs) help reduce tariff costs when exporting/importing pepper, even tax-free. For example, when Vietnam signed the EVFTA with the EU, Vietnam’s pepper price when exporting to these countries was exempted from the 99% tax rate.

Choosing countries that have signed FTAs with your country will help you enjoy the tariff preferences that the agreement brings. The government will create conditions for traders to buy goods at the most reasonable prices, bringing the highest profit rates. Administrative procedures such as making customs declarations or checking the origin of goods will also be simpler and more cost-effective. Thus, the buyer can reduce the amount to be paid.

Up to now, Vietnam has signed 15 FTAs with countries and territories, so when Vietnam’s pepper exports to other countries, almost all of them enjoy preferential tariffs. So, traders can consider importing pepper from Vietnamese businesses.

5.3. Shipping cost of wholesale pepper

The Covid-19 epidemic lasted for more than 2 years, causing the freight rates to continuously increase, especially for sea transportation. This has adversely affected the world price of wholesale pepper and reduced the profits of both buyers and sellers.

Gasoline prices also rose to the highest level in decades due to the conflict between countries which supply the most gasoline in the world. The increase in raw material prices also makes importers and exporters have to spend a lot of money to be able to own lots of pepper.

In many cases, buyers are unable to rent or find empty containers for loading goods due to lack of containers. Even, they have to accept paying a higher fee to rent a container but the condition of the old and dirty container may not guarantee the preservation of dry and clean goods.

Therefore, sellers and buyers need to actively plan to buy and sell goods and hire transportation to save costs.

5.4. Insurance cost of wholesale pepper

The cost of insurance is also a factor affecting the price of wholesale pepper and the buyer must bear this cost to ensure that the goods are protected and compensated in the event of a bad event such as a shipwreck, or a natural disaster….

To save this cost, you need to consider buying insurance carefully, choosing reputable sellers. If you have no experience, you can authorize a forwarder or exporter.

5.5. Material cost of wholesale pepper

The price of raw pepper is usually cheaper than the price of processed pepper, so depending on the purpose of use, importers should choose the right type to reduce costs.

There are 4 types of pepper: black pepper, white pepper, green pepper and red pepper. In which white pepper has the highest price. Green pepper and red pepper are the cheapest but less commonly used.

Each country will have different wholesale prices, so buyers can also choose to buy cheap pepper products in countries with cheap suppliers. For example, Vietnam and Brazil are the two countries with the cheapest prices when wholesale pepper to the world. Importing pepper from these two countries will help save more raw material costs.

6. Tips to choose the suitable wholesale pepper

There are many bad people who take advantage of your trust to sell poor quality products or raise prices. Be very careful when choosing to buy pepper from exporters around the world.

6.1. Select the wholesale pepper exporting country

You can improve your profits if you have a reputable and affordable exporting country choice

• Choosing agricultural countries for a long time: Enterprises should choose countries that have been exporting pepper for a long time or are agricultural countries that produce a large amount of pepper.

  If it is a country specializing in pepper production, the quality of pepper will be very good: large, shiny seeds, less impurities and meeting international standards when exporting.

  If it is a country that produces a large amount of pepper, it will meet the large demand for wholesale pepper, the supply is stable, there is rarely a shortage of goods, and the price will rarely change excessively.

A few countries that have the advantage of exporting pepper you can consider choosing are Vietnam, Brazil, India…

• Buying pepper wholesale from countries with close distances: This will help businesses reduce shipping costs, and shipping time will also be faster. This will help reduce the risk that the pepper may become moldy due to being transported for too long.
• Buying pepper wholesale in countries that have signed FTAs: If you buy pepper from wholesalers in countries that have signed FTAs, the price of pepper will be cheap because the tax has been reduced when exporting. Vietnam is also a country that has applied tax reduction for pepper according to signed agreements, so you can refer to the prices of wholesalers in Vietnam.

6.2. Select the suitable wholesale pepper supplier

Currently, there are many pepper wholesalers in the market, so to own high quality products and not be scammed, we suggest you a few selection criteria as follows:

• Choosing a reputable pepper wholesaler: You can check the company’s reputation through the certificates issued by the national and international organizations; check the company name in the country’s list of exporters. You can also make a video call to make sure the company actually exists
• Choosing quality wholesale pepper products: To be sure of the quality of pepper you receive, you should ask the seller for samples. There are many pepper wholesalers willing to send you free samples, you just need to pay for the shipping. By this way, you can directly experience the products without going to the physical store and know the exact quality of them.
• Choose a pepper wholesaler that offers a wide range of products: In the market, pepper is divided into many types such as black pepper, white pepper, green pepper, finely ground pepper… It is complicated if each type of pepper you have to buy from a supplier. Choose a seller who has the most varieties of pepper to meet your buying needs. Minimizing the number of deliveries also saves time and costs for businesses.
• Reading feedback from other buyers: Reading feedback from other buyers is also essential and important. Almost all wholesalers have websites and e-commerce products. You can read the feedback there and give yourself advice on where to buy. You can also compare prices between wholesalers on e-commerce platforms.

7. Some famous wholesale pepper companies for you

The reputation of the company is extremely important in reaching the customers. In case you do not know how to choose a pepper wholesaler with high quality products with reasonable prices, here are a few companies that are recommended for you.

7.1. Hoan Nghia Viet Agri Export co. ltd – Việt Nam

Hoan Nghia Viet Agri Export co. ltd (Viet Agri Wholesale Company) is one of the largest agricultural export companies in Vietnam, one of which is wholesale pepper. Up to now, Hoan Nghia Viet Agri Export has exported pepper to many major markets in the world and affirmed its position globally.

Viet Agri Wholesale Company specializes in exporting agricultural products such as rice, coffee, spices such as pepper, cashew, cinnamon, star anise. In which, the wholesale spice products are being promoted for export to meet the demand. to be consumed by increased global demand.

The quality of Hoan Nghia Viet Agri Export’s pepper products is strictly tested in the processes, meeting the output standards according to the FAQ standard. Hoan Nghia Viet Agri Export is a pepper wholesaler in a country with an advantage in pepper cultivation, so the company’s export volume of pepper is large and stable, able to meet all orders around the world.

Contact us:

• Website: www.vietagriwholesale.com
• Email: vietagriwholesale@gmail.com
• Location: Hong Minh Village, Chien Thang Hamlet, Bac Son District, Lang Son Province, Vietnam

7.2. Braspep Agro Comercial Exportadora Ltda – Brazil

Established in 1986 in Brazil, Braspep Agro Comercial Exportadora Ltda has been exporting wholesale pepper to more than 30 countries worldwide with a wide variety of varieties.

Braspep Agro Comercial Exportadora Ltda has 100% customs operations with all the importers and exporters of all products, suppliers and consignees, brands, quantity, weight, unit and total FOB & CIF prices, import taxes, freight, and also the supplier of any product from the World.

You can find more product information from the company’s website.

7.3. Agrim Pte Ltd – Indonesia

Agrim Pte Ltd is a pepper wholesaler from Indonesia that took its first steps in 2004. Agrim Pte Ltd has acquired in-depth knowledge & expertise of regional products over a period of time, which has helped develop an international customer base for the company. AGRIM has business bases in Singapore, Indonesia & India.

Agrim Pte Ltd has become a tough competitor in the market because of the assistance of our adroit professionals because of the rich experience in exporting wholesale pepper and a large number of loyal customers. You can learn more about Agrim Pte Ltd on social media platforms.

Conclusion about wholesale pepper:

Pepper is playing an important role in many fields with its useful effects. Buying and trading pepper can bring huge profits for you. This article provides you with the most basic information about pepper wholesale worldwide and helpful suggestions in choosing wholesale pepper. Good luck in your business.