Vietnamese Star Anise Generates Millions of USD in Export Revenue

In the first seven months of this year, Vietnam exported nearly 8,700 tons of star anise, earning 42 million USD. Let’s dive into these impressive figures and explore the potential of this valuable spice with VietGlobal Export.

The Export Potential of Vietnamese Star Anise

According to the Vietnam Pepper and Spice Association, star anise is considered one of Vietnam’s most valuable agricultural products, highly sought after both domestically and internationally. With its distinctive aroma and versatile applications in the food, pharmaceutical, and cosmetic industries, Vietnamese Star Anise has firmly established itself on the global market.

Vietnamese star anise is particularly popular in South Asia, including India and Bangladesh, as well as in the Middle East, Japan, China, South Korea, the U.S., and EU countries. India and China are the two largest importers of Vietnamese star anise, accounting for 50% and 25% of total exports, respectively.

Vietnam is well-positioned as a key supplier in the global spice and flavor market, which was valued at 21.3 billion USD in 2021 and is projected to grow to 27.4 billion USD by 2026.

Vietnamese star anise is popular both domestically and internationally.

Expanding Organic Star Anise Cultivation

According to the World Spice Association, star anise is a rare and precious spice, primarily grown in Vietnam and China, with only two harvests each year. In Vietnam, the spice is mainly cultivated in northern provinces such as Lạng Sơn and Cao Bằng, providing high economic value to local farmers.

Lạng Sơn is known as the “capital” of star anise in Vietnam, with over 43,000 hectares dedicated to its cultivation, representing 70% of the country’s total star anise farmland. The province is now focusing on expanding organic star anise cultivation to further enhance the value of this prized spice.

For example, Lý Thị Hiên’s 4-hectare star anise farm in Gia Lộc, Lạng Sơn, has been growing the spice for over 20 years. However, traditional farming methods resulted in weakened trees and lower yields. Four years ago, Hiên’s family began adopting organic farming techniques, which significantly improved both the quality and value of their star anise. In 2019, fresh star anise fetched 20,000 VND/kg, and today, that price has risen to around 30,000 VND/kg.

Organic farming makes use of the region’s natural resources, where older, less productive trees are replaced with younger, healthier ones. The space between trees is optimized to ensure adequate light and growth, further increasing yields.

Organic farming boosts star anise yields by 20-30%, improving fruit quality.

Currently, with over 28,000 hectares under stable harvest, the star anise industry generates an estimated 1.7 trillion VND per year. Organic cultivation has boosted yields by 20-30%, with the resulting fruits showcasing superior quality and appearance, increasing both their market value and economic contribution.

Diversifying Star Anise Products

In recent years, Vietnam’s star anise export industry has seen remarkable growth. Exporters have placed greater emphasis on enhancing product quality, implementing modern production methods, and adhering to international food safety standards.

Furthermore, the development of various processed star anise products has added significant value to exports. Products such as star anise essential oil, extracts, and cosmetics are gaining popularity and seeing high demand in international markets.

Organic cultivation improves product value and ensures consumer safety, meeting the strict requirements for processing and export. Fresh star anise is dried or distilled into essential oils, creating high-value products widely used in pharmaceuticals, fragrances, food, and handicrafts.

Even by-products such as leaves and branches are being utilized to produce fragrant sachets, pillows, incense, and herbal therapy items, demonstrating the versatility and value of star anise.

Many companies have established organic farming regions and signed contracts with farmers to purchase their products to secure a consistent supply of high-quality star anise for processing. These companies have also invested in machinery for drying star anise and extracting its essential oils.

Exporters are enhancing product quality, using modern processes, and meeting international food safety standards.

Vietnamese Star Anise on the Global Stage

Today, star anise from Lạng Sơn can be found in countries such as China, India, Malaysia, Indonesia, the UK, the U.S., France, Japan, and Germany. In addition to direct exports, Lạng Sơn’s star anise products are promoted and sold on international e-commerce platforms like Alibaba and Amazon.

As global demand for raw materials in the food, cosmetic, and pharmaceutical industries continues to rise, coupled with numerous free trade agreements, Vietnamese star anise is set to thrive in international markets.

Ready to Discover the Potential of Vietnamese Spices?

Looking to source high-quality Vietnamese star anise or other premium spices? Connect with VietGlobal Export today to learn more about how we can meet your business needs. Follow us on social media for updates and insights on Vietnam’s thriving spice industry!

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