Vietnam Spice Market Update – April 2025

Vietnam’s spice market is experiencing significant shifts this April, with harvest seasons underway for key products like black pepper, cinnamon, and star anise. While demand remains strong, unpredictable weather conditions have impacted yields, leading to supply fluctuations and price changes. This update provides insights into the latest trends, challenges, and opportunities shaping Vietnam’s spice exports.

Black Pepper: Harvest Challenges & Market Trends

At this time, farmers in Vietnam’s pepper-growing regions are busy harvesting the 2024-2025 crop. Although pepper prices remain high, unfavorable weather conditions during the flowering stage have significantly impacted yields, resulting in a 20-30% decrease compared to the previous season. In early April, domestic prices slightly declined, with transactions ranging from 157,000 – 158,000 VND/kg. However, as many farmers have the ability to store their harvest, the supply to the market remains limited, helping to keep prices stable.

Earlier, in February 2025, domestic pepper prices surged by 10,000 VND/kg, primarily because this year’s harvest started later, delaying the supply flow. Additionally, many farmers held back sales, expecting better prices in the future.

Experts suggest that the global pepper market is currently influenced by multiple factors, particularly the declining production in major producing countries such as Vietnam, Indonesia, and Brazil due to extreme weather conditions. At the same time, demand for black pepper is rising, with major markets like the U.S. and Europe increasing imports to meet the needs of the food and spice industries.

Cinnamon: Peak Harvest Season in Vietnam

April marks the peak cinnamon harvest season in Yen Bai and Lao Cai. Farmers are busy with various stages of the process, from peeling the bark and sorting to drying the cinnamon. Peeling cinnamon bark requires great skill to ensure the final product remains intact, without cracks, tears, or breakage.

The current dry weather is favorable for the drying process, especially for premium products like cinnamon sticks and split cinnamon, which are prized for their natural color and appearance in export markets. Buyers and traders are actively sourcing high-quality cinnamon to supply key markets such as India, the Middle East, the EU, and the U.S.

Star Anise: Rising Prices Amid Supply Shortages

As mentioned in previous reports, Vietnam’s star anise is facing a challenging season, with a significant drop in production due to prolonged dry conditions. Even though it is still mid-harvest season, prices for star anise have surged due to limited supply.

India, the largest importer of Vietnam’s star anise, accounting for nearly 73% of total export volume, is actively seeking supplies. Many Indian traders have traveled directly to key sourcing regions in Lang Son and Cao Bang to secure high-quality products, driving prices even higher.

Market Outlook & Recommendations

With the ongoing supply fluctuations and rising global demand, spice exporters need a flexible strategy for sourcing and distributing their products. Key factors affecting the market in the coming months include:

• Changes in production levels in major spice-producing countries.
• Farmers and traders’ stockpiling strategies, which influence market supply.
• Economic recovery and consumption trends in key import markets such as the U.S., the EU, the Middle East, and India.

VietGlobal Export will continue to provide the latest updates on prices and market trends. For pricing inquiries or supply consultations, feel free to contact us today!