Vietnam: Pepper prices remain largely stable amid supply concerns

• Tighter global supply supports prices, but stable export offers cap gains
• Unfavourable weather impacts crop yields in Vietnam, Indonesia, India

Vietnam’s pepper prices remained largely stable w-o-w on 7 September, as limited supply and subdued buying kept the market steady. The average domestic pepper price was VND 135,700/kg ($5.21/kg), while global pepper prices also showed little movement. However, expectations of lower production in Vietnam, Indonesia, and India in 2026 could provide support to prices in the coming months.

Domestic pepper prices remain stable

Vietnam’s average domestic pepper price was VND 135,700/kg ($5.21/kg) on 7 September, unchanged from last week. Prices were quoted in a narrow range of VND 135,000-137,000/kg ($5.18-5.26/kg).

At the end of the September 6 trading session, Gia Lai, Ho Chi Minh City, and Dong Nai all settled at VND 135,000/kg ($5.18/kg). Dak Lak prices were at VND 136,500/kg ($5.24/kg), while Lam Dong recorded the highest price at VND 137,000/kg ($5.26/kg).

Compared with the same period in August, the average domestic pepper price was VND 3,300/kg ($0.13/kg) lower. However, the current price was VND 500,000/kg ($19.19/kg) higher than at the beginning of July, according to Vietnam Pepper and Spice Association (VPSA). Despite these changes, the market has continued to fluctuate within a narrow range over the past two months, with no clear upward breakthrough trend.

Global pepper prices show limited movement

Pepper prices in major exporting countries remained largely stable, according to the International Pepper Community (IPC).

Indonesia’s black and white pepper prices were quoted in the range of $6,929-9,487/t, equivalent to VND 182,129-249,366/kg. Brazilian black pepper was priced at $5,750/t, or around VND 151,139/kg.

Malaysian black and white pepper prices remained high at $12,200/t and $9,300/ton, respectively.

In Vietnam’s export market, black pepper prices for 500 g/l and 550 g/l grades were quoted at $5,990-6,050/ton. ASTA white pepper was offered at $8,400/t, equivalent to VND 220,794/kg.

Lower 2026 production may support prices

According to the Vietnam Pepper and Spice Association (VPSA), the global pepper supply-demand balance faces a major challenge in the 2026 crop year, as production is expected to decline sharply from initial estimates.

Unfavourable weather conditions and lower crop yields have directly affected output in three key producing countries: Vietnam, Indonesia, and India. The expected decline in production could tighten global supply and provide support to pepper prices.

However, the absence of significant movement in major exporting countries suggests that supply concerns have not yet translated into a strong upward price trend. Stable export prices and limited buying momentum continue to keep the market range-bound.

Outlook

Vietnam’s pepper market is likely to remain largely stable in the near term, with domestic prices supported by supply concerns but capped by subdued demand. Expectations of lower global production in 2026 could provide a stronger foundation for prices, although a sustained upward move will depend on improved buying interest and tighter physical availability.