Influenced by dietary habits, pepper has become the world's largest trading spice, and therefore its price fluctuations have attracted market attention. As of June 4th, the latest price in Vietnam, which is the main pepper producing region, has increased by 112% compared to the same period last year.

Pepper

Pepper is a climbing vine plant of the pepper genus in the pepper family. Pepper is originally from Southeast Asia and is now widely planted in tropical regions. Vietnam, India, Brazil, and Hainan Province in China are the main production areas of pepper. According to different processing methods, pepper can be made into black pepper and white pepper.

Pepper Market Dynamics

At present, Vietnam's pepper production accounts for 40% of the world's total, and the output value can reach 60%. According to data from the Vietnam Pepper and Spice Association, the global pepper market size is approximately 5.4 billion US dollars, and it is expected that the average growth rate will reach around 20% between 2024 and 2032.

Since 2024, the price of pepper has continued to rise. The main reasons for its price fluctuations are:

1. Supply and demand relationship: On the one hand, major pepper producing countries such as Vietnam, India, and Brazil have experienced reduced production; On the other hand, global demand for pepper continues to grow, including markets in the United States, Pakistan, Germany, South Korea, and India.

2. Pepper growth cycle: Pepper is a plant with a long growth cycle, and its price fluctuations are different from general short-term crops. A long growth cycle means that the adjustment speed of market supply is relatively slow. Once the supply-demand relationship changes at a turning point, price fluctuations are often more severe.

3.Weather factors: The yield of pepper is greatly affected by temperature. In May of this year, the sustained high temperature and drought in Cambodia became the driving force behind the rise in pepper prices.

Pepper application field

1. Cooking seasoning: Pepper is one of the most commonly used seasonings and is widely used in various dishes. Additionally, it can be used to make specialty drinks.

2. Food preservation: Pepper has certain antibacterial properties and can be used as a food preservative to extend the shelf life of food.

3. Healthcare: Traditional Chinese medicine believes that pepper has a hot and spicy nature, which can promote digestion and absorption, and improve gastrointestinal health.