Vietnam’s Cinnamon and Star Anise Market Report 2024
I/ Cinnamon: Growth and Market Dynamics
In 2024, Vietnam recorded a total cinnamon export volume of 99,874 tons, generating export revenue of USD 274.5 million, marking an 11.7% increase in volume and a 5.2% increase in value compared to 2023. Despite a 9.4% decline in volume and an 11% decline in value during the first four months of the year, the sector experienced a significant recovery toward the end of 2024.
Export Market Highlights
India remained the largest export market for Vietnamese cinnamon in 2024, with 35,885 tons exported, accounting for 35.9% of total exports. However, this marked a 5.7% decrease compared to the previous year.
The United States was the second-largest market, with 11,078 tons exported, representing 11.1% of total exports and an impressive 9.0% growth compared to 2023.
Bangladesh ranked third, with 7,928 tons exported, accounting for 7.9% of total exports and achieving a remarkable 42.5% increase year-over-year.
Leading Exporters in 2024
Prosi Thăng Long continued to dominate the cinnamon export sector as the largest exporter in Vietnam, contributing 14.9% of total exports with 14,891 tons, a 7.6% increase compared to 2023.
The following companies also made significant contributions:
- Gia Vị Sơn Hà: Exported 6,163 tons, an impressive 31.8% growth, accounting for 6.2% of the market.
- Tuấn Minh: Exported 4,618 tons, a remarkable 48.3% growth, accounting for 4.6% of the market.
- Senspices Việt Nam: Exported 4,299 tons, a 16.2% decline, accounting for 4.3% of the market.
- Olam Việt Nam: Exported 4,128 tons, a 19.8% growth, accounting for 4.1% of the market.
Prosi Thăng Long’s Leadership
Prosi Thăng Long reaffirmed its position as the industry leader in 2024, maintaining the largest market share in Vietnam’s cinnamon export sector. This achievement reflects the company’s consistent commitment to quality, market expansion, and innovation in the spice industry.
II/ Overview of Star Anise in Vietnam
In 2024, Vietnam exported 14,004 tons of star anise, generating a total export revenue of USD 63.7 million. This represented a 5.7% decline in export volume and a 16.2% drop in value compared to 2023. Despite these challenges, Prosi Thăng Long achieved significant growth, reinforcing its leadership in the star anise export sector.
Export Market Highlights
India remained the largest market for Vietnamese star anise, accounting for 66.8% of total exports, with 9,352 tons exported—an impressive 19.0% growth compared to the previous year.
Other notable export markets included:
- United States: 563 tons
- China: 420 tons
- Taiwan: 361 tons
- Thailand: 269 tons
Leading Exporters in 2024
Prosi Thăng Long solidified its position as the top exporter of star anise in Vietnam, exporting 2,865 tons and accounting for 20.5% of the total market share, a 19.6% increase compared to 2023.
Other key contributors included:
- Tuấn Minh: 769 tons
- Senspices: 579 tons
- Hồng Sơn Việt Nam: 446 tons
- Huy Chúc M & M: 398 tons
Prosi Thăng Long’s Expansion
To meet growing market demand, Prosi Thăng Long expanded its production capacity by opening a new factory in Lạng Sơn in 2024. This strategic move underscores the company’s commitment to innovation and its mission to deliver premium-quality star anise to global markets.
III/ Challenges in Vietnam’s Cinnamon and Star Anise Export Sector
Despite achieving positive results, Vietnam’s cinnamon and star anise industries face numerous challenges that demand strategic solutions to sustain growth and competitiveness in the global market.
1. Intensifying Competition
The global spice market is becoming increasingly competitive, with major exporting countries such as Indonesia, Sri Lanka, and India vying for market share. Vietnamese exporters must differentiate themselves by offering superior quality and value-added products to remain ahead of competitors.
2. Stringent Quality Standards
Importing markets, especially in the EU and the United States, are implementing stricter quality and safety requirements. These include higher standards for pesticide residues, microbiological safety, and organic certifications. Meeting these demands requires significant investments in processing technology, quality control systems, and compliance documentation.
3. Price Volatility
The international market for cinnamon and star anise is highly sensitive to price fluctuations caused by supply-demand imbalances, currency exchange rates, and geopolitical factors. Such volatility poses risks to exporters, particularly when negotiating long-term contracts.
Prosi Thăng Long’s Approach
As the industry leader, Prosi Thăng Long is proactively addressing these challenges by:
- Strengthening Market Relationships: Building strong partnerships with key buyers to navigate market uncertainties effectively
- Investing in Modern Facilities: Expanding production capabilities, such as the new factory in Lạng Sơn, to ensure consistent quality and supply.
- Enhancing Quality Control: Implementing advanced processing technologies to meet stringent international standards.
IV/The Rising Trend of Organic Cinnamon and Star Anise Development
Vietnam has been the world’s largest exporter of cinnamon since 2021, a remarkable achievement that highlights the country’s pivotal role in the global spice industry. To sustain and enhance this position, the cinnamon and star anise sector must embrace innovation, with the development of organic production emerging as a key strategy for the future.
Why Organic Matters
- Global Demand for Organic Products
Consumers worldwide are increasingly prioritizing health, sustainability, and environmentally friendly practices. The demand for organic spices, including cinnamon and star anise, is rising, especially in high-value markets such as the EU, the United States, and Japan. - Enhanced Market Access
Organic certifications open doors to premium markets and allow Vietnamese exporters to secure higher profit margins. Products labeled organic carry a reputation for quality and sustainability, aligning with global trends. - Sustainability and Environmental Benefits
Organic farming practices reduce the use of harmful pesticides and synthetic fertilizers, promoting healthier ecosystems and long-term soil fertility. This ensures sustainable growth for the industry while addressing environmental concerns.
Prosi Thăng Long’s Vision for Organic Spices
As a leader in Vietnam’s spice export industry, Prosi Thăng Long is committed to advancing organic cinnamon and star anise production. Key initiatives include:
- Supporting Farmers: Collaborating with local growers to transition to organic farming practices, providing technical training, and ensuring compliance with international organic standards.
- Investing in Certification: Achieving globally recognized organic certifications to boost the marketability of Vietnamese spices.
- Promoting Sustainability: Implementing eco-friendly practices across the supply chain to reinforce Vietnam’s reputation as a responsible and sustainable supplier.
The Road Ahead
The development of organic cinnamon and star anise represents a critical step in securing Vietnam’s position as a global leader in the spice market. By embracing this trend, the industry can not only meet evolving consumer preferences but also contribute to a more sustainable and resilient future for Vietnamese agriculture.
#ProsiThangLong#Prosi#GlobalTrade#VietnamSpices#VietnamNuts#Pepper#Cashew#Cinnamon#Coconut#StarAnise#VietnamExporter
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𝐏𝐫𝐨𝐬𝐢 𝐓𝐡𝐚𝐧𝐠 𝐋𝐨𝐧𝐠 – 𝐒𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐍𝐮𝐭𝐬 𝐕𝐢𝐞𝐭𝐧𝐚𝐦 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐫 𝐚𝐧𝐝 𝐄𝐱𝐩𝐨𝐫𝐭𝐞𝐫
𝐀𝐝𝐝𝐫𝐞𝐬𝐬: 4th Floor, Kim Anh Building, No 78 Duy Tan, Cau Giay, Ha Noi
𝐄𝐦𝐚𝐢𝐥: Sales@prosi.com.vn
𝐎𝐟𝐟𝐢𝐜𝐞 𝐇𝐨𝐭𝐥𝐢𝐧𝐞: (+84) 9858 17797
𝐘𝐨𝐮𝐫 𝐭𝐫𝐮𝐬𝐭𝐞𝐝 𝐩𝐚𝐫𝐭𝐧𝐞𝐫 𝐢𝐧 𝐩𝐫𝐞𝐦𝐢𝐮𝐦 𝐬𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐧𝐮𝐭𝐬
Overview of the Vietnamese Cashew Industry
The year 2024 has been a landmark period for Vietnam’s cashew industry, showcasing impressive growth, international collaboration, and strategic advancements in global markets. With continued efforts to enhance quality and diversify export destinations, Vietnam has reinforced its position as the largest exporter of cashews in the world, accounting for over 80% of global market share.
Key Highlights of 2024
1. Exceptional Export Growth
Vietnam achieved remarkable export results, with total export turnover estimated at $3.6 billion, a 7% increase compared to 2023. From January to November, the country exported 711,500 tons of cashews, marking a 22.2% rise in volume and 30.7% growth in value year-over-year.
- USA: Remains the largest market with 147,000 tons exported, generating $866 million (20.6% of total export value).
- China: Secured the second position with imports valued at $616 million (15.06% of total exports).
- European Union and Others: Accounted for 64.33%, equivalent to 457,000 tons, valued at $2.75 billion.
2. Rising Cashew Kernel Prices
Early 2024
The domestic raw cashew price ranged from 28,000 to 32,000 VND/kg, showing a slight increase of 5% compared to the same period in 2023.
Reason: Limited supply caused by a decline in raw cashew production from major producers like India and Côte d’Ivoire.
Mid-2024
The international price of W320 cashew kernels reached $6,900 to $8,100/ton, a strong increase of 10% compared to early 2024.
In Vietnam, W320 cashew kernels were priced at around 130,000 to 135,000 VND/kg, marking the most significant growth in the past three years.
Late 2024
The price of raw cashews slightly decreased to 26,000 to 28,000 VND/kg, as raw cashew imports from Africa resumed.
W320 cashew kernel prices remained stable at high levels, around $7,000 to $7,200/ton, driven by strong demand from the U.S. and EU markets.
Reasons Behind Price Fluctuations
Limited Supply
- Vietnam’s raw cashew production in 2024 is estimated at 420,000 tons, a slight 2% increase from 2023, but insufficient to meet processing demands.
- Major raw cashew exporters like Côte d’Ivoire and Ghana reported lower production due to adverse weather conditions.
Increased International Demand
- Vietnam’s cashew exports to major markets, including the U.S., EU, and the Middle East, saw robust growth.
- Demand for high-quality kernels like W320 and W240 increased by more than 15% compared to the previous year.
Fluctuating Logistics Costs
- While international shipping costs decreased slightly compared to 2023, domestic logistics costs remained high, adding to product prices.
Focus on Value-Added Production
- Value-added products such as cashew milk, cashew butter, and roasted cashews gained significant attention in the international market, contributing to the increased kernel prices.
3. Domestic Cashew Production
Vietnam’s raw cashew production reached 420,000 tons, a modest 2% increase compared to 2023, supported by favorable weather and high-yield cashew varieties.
4. International Collaboration
Vietnam signed several cooperation agreements with key raw cashew suppliers such as Ivory Coast and Ghana, ensuring a stable supply chain and strengthening global value chains.
5. Sustainable Production Practices
In 2024, many Vietnamese cashew enterprises adopted international sustainability standards such as Rainforest Alliance and Fair Trade. These efforts focus on improving product quality, protecting the environment, and supporting local farming communities.
6. Logistics and Supply Chain Optimization
While volatile international shipping costs posed challenges, Vietnam made significant progress by expanding direct shipping routes to key markets such as the USA and the EU, reducing logistics pressure for exporters.
7. Expanding New Markets
Vietnam successfully penetrated emerging markets like Russia, South Korea, and the Middle East. Notably, exports to Russia rose by 15%, showcasing resilience despite geopolitical challenges.
8. Global Promotion Campaign
The Vietnam Cashew Association (VINACAS) launched a global branding campaign under the slogan: “Vietnam Cashew – Your Trusted Choice,” emphasizing the superior quality and leadership of Vietnamese cashew products in the global market.
Challenges in 2024
Despite its achievements, the Vietnamese cashew industry faced several challenges:
- Reliance on Raw Cashew Imports: Domestic production remains insufficient to meet processing demands, leading to dependency on imports from Cambodia and African countries.
- Fluctuating Logistics Costs: High shipping costs continued to impact profit margins.
- Competitive Markets: Intense competition from other cashew-exporting countries requires Vietnam to innovate and sustain its global edge.
Prosi Thăng Long’s Role in 2024
Prosi Thăng Long contributed significantly to this success, exporting 8,238 tons of cashews, representing 1.08% of the national market share. By delivering high-quality products and adhering to sustainable practices, Prosi Thăng Long has reinforced Vietnam’s standing as the premier source for cashews globally.
Conclusion and Outlook
2024 has been a transformative year for Vietnam’s cashew industry, with growth driven by strategic market expansion, sustainable practices, and international collaboration. Looking ahead, the focus on enhancing production efficiency, diversifying markets, and promoting sustainability will ensure Vietnam maintains its leadership in the global cashew market.
Prosi Thăng Long remains committed to supporting this vision, delivering premium products, and driving the industry’s continued success.
For more information about our products and services, please contact our sales team or visit our product catalog section.
#ProsiThangLong #Prosi #GlobalTrade #VietnamSpices #VietnamNuts #Pepper #Cashew #Cinnamon #Coconut #StarAnise #VietnamExporter
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𝐏𝐫𝐨𝐬𝐢 𝐓𝐡𝐚𝐧𝐠 𝐋𝐨𝐧𝐠 – 𝐒𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐍𝐮𝐭𝐬 𝐕𝐢𝐞𝐭𝐧𝐚𝐦 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐫 𝐚𝐧𝐝 𝐄𝐱𝐩𝐨𝐫𝐭𝐞𝐫
𝐀𝐝𝐝𝐫𝐞𝐬𝐬: 4th Floor, Kim Anh Building, No 78 Duy Tan, Cau Giay, Ha Noi
𝐄𝐦𝐚𝐢𝐥: Sales@prosi.com.vn
𝐎𝐟𝐟𝐢𝐜𝐞 𝐇𝐨𝐭𝐥𝐢𝐧𝐞: (+84) 9858 17797
𝐘𝐨𝐮𝐫 𝐭𝐫𝐮𝐬𝐭𝐞𝐝 𝐩𝐚𝐫𝐭𝐧𝐞𝐫 𝐢𝐧 𝐩𝐫𝐞𝐦𝐢𝐮𝐦 𝐬𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐧𝐮𝐭𝐬
Vietnam Pepper Market Overview 2024: A Year of Growth and Transformation
Record-Breaking Performance Despite Challenges
The Vietnamese pepper industry demonstrated remarkable resilience in 2024, achieving substantial revenue growth despite volume challenges. With total exports reaching 250,600 tons and generating $1.318 billion USD, the sector showcased its ability to adapt to changing market dynamics and capitalize on favorable price conditions.
Strong Export Performance
Vietnam’s pepper exports in 2024 tell a compelling story of value over volume. While export volume saw a modest 5.1% decrease, revenue surged by an impressive 45.4% year-over-year. This success was driven by significant price increases across both black and white pepper varieties:
- Black pepper exports totaled 220,269 tons, valued at $1.117 billion USD, with average prices reaching $5,154/ton—a 49.7% increase from 2023
- White pepper exports reached 30,331 tons, generating $200.6 million USD, with prices averaging $6,884/ton—up 38.9% from the previous year
Market Leadership and Innovation
In the competitive landscape of pepper exports, several companies demonstrated exceptional performance. Olam Vietnam maintained its position as the market leader, handling 27,800 tons and capturing 11.1% market share with remarkable growth of 36.9% year-over-year.
Notable achievements were also recorded by other major players:
- Phúc Sinh processed 22,293 tons, achieving 41.1% growth
- Nedspice Vietnam handled 20,420 tons, showing steady growth of 6.4%
- Haprosimex JSC managed 17,899 tons, displaying impressive growth of 63.8%
Global Market Dynamics
The United States reinforced its position as Vietnam’s premier pepper market, importing a record-breaking 72,311 tons—representing 28.9% of total exports and marking a 33.2% increase from 2023. This achievement surpassed the previous record set in 2021 of 59,778 tons.
Other significant markets showed strong growth:
- UAE imports increased by 35.1% to 16,391 tons
- German market grew by 58.2% to 14,580 tons
- Netherlands showed robust growth of 35.2% to 10,745 tons
Price Trends and Market Conditions
The domestic market experienced significant price movements throughout 2024:
- Early 2024 saw prices climb to 92,500–95,000 VND/kg
- A peak was reached in September at 153,000–154,000 VND/kg
- The market stabilized by November at 140,000–141,000 VND/kg
Commitment to Sustainability
The industry has shown increasing commitment to sustainable practices, responding to global market demands for environmentally responsible production. This shift encompasses:
- Implementation of advanced food safety standards
- Adoption of eco-friendly farming methods
- Focus on product quality enhancement
Looking Forward
As we move forward, the Vietnamese pepper industry continues to demonstrate its ability to adapt and thrive in a changing global marketplace. The sector’s focus on quality, sustainability, and market responsiveness positions it well for continued success.
About Prosi Thăng Long
As a key player in the Vietnamese pepper industry, Prosi Thăng Long continues to maintain its position as a reliable supplier of high-quality pepper products. In 2024, the company exported 5,726 tons of pepper, demonstrating its commitment to meeting international market demands while maintaining stringent quality standards.
For more information about our products and services, please contact our sales team or visit our product catalog section.
#ProsiThangLong#Prosi#GlobalTrade#VietnamSpices#VietnamNuts#Pepper#Cashew#Cinnamon#Coconut#StarAnise#VietnamExporter
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𝐏𝐫𝐨𝐬𝐢 𝐓𝐡𝐚𝐧𝐠 𝐋𝐨𝐧𝐠 – 𝐒𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐍𝐮𝐭𝐬 𝐕𝐢𝐞𝐭𝐧𝐚𝐦 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐫 𝐚𝐧𝐝 𝐄𝐱𝐩𝐨𝐫𝐭𝐞𝐫
𝐀𝐝𝐝𝐫𝐞𝐬𝐬: 4th Floor, Kim Anh Building, No 78 Duy Tan, Cau Giay, Ha Noi
𝐄𝐦𝐚𝐢𝐥: Sales@prosi.com.vn
𝐎𝐟𝐟𝐢𝐜𝐞 𝐇𝐨𝐭𝐥𝐢𝐧𝐞: (+84) 9858 17797
𝐘𝐨𝐮𝐫 𝐭𝐫𝐮𝐬𝐭𝐞𝐝 𝐩𝐚𝐫𝐭𝐧𝐞𝐫 𝐢𝐧 𝐩𝐫𝐞𝐦𝐢𝐮𝐦 𝐬𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐧𝐮𝐭𝐬
Vietnam’s Cashew Industry: A Remarkable Growth Story in 2024
The Vietnamese cashew industry has demonstrated remarkable resilience and growth throughout 2024, strengthening its position as a global leader through strategic international partnerships and dynamic export performance. Here’s a comprehensive overview of the industry’s achievements and key developments.
Major Cashew Suppliers to Vietnam
Vietnam’s total cashew nut imports reached an impressive 2,385,252.67 tons, valued at $2.96 billion. Cambodia emerged as the leading supplier, contributing 782,000 tons of raw cashews worth approximately $1.1 billion. The Ivory Coast secured the second position with over 597,000 tons, valued at more than $720 million. Other markets collectively supplied more than 1,000,000 tons, reaching a value of $1.2 billion.
Outstanding Export Growth
By November 2024, Vietnam’s cashew exports had reached 711,500 tons, marking a significant year-over-year increase of 22.2% in volume and 30.7% in export value compared to 2023. The total export value reached an impressive $4.24 billion, highlighting Vietnam’s competitive advantage in the global market.
Major Export Markets
Vietnam’s cashew exports have found strong demand across several key markets:
- United States: Leading the export destinations with 147,000 tons valued at $866 million, representing 20.6% of total exports
- China: Following closely with 107,000 tons worth $616 million, accounting for 15.06% of exports
- EU and Other Markets: Dominating with a 64.33% share, totaling 457,000 tons and generating $2.75 billion in value
Industry Leaders
Vietnam’s cashew export sector is led by several prominent companies, including Olam, Long Son, Hoang Son, Thao Nguyen, Intersnack Cashew Vietnam, and Loc Viet Cuong. Notably, Prosi maintains its strong position among Vietnam’s top 10 cashew exporters.
Industry Dynamics
Despite its global leadership, Vietnam’s domestic cashew production cannot fully meet its processing demands. The country heavily relies on imports from Cambodia, Ivory Coast, Ghana, and other African nations to sustain its cashew processing industry.
Key Takeaways
The Vietnamese cashew industry continues to demonstrate robust growth despite domestic production challenges. Strategic import operations and strong export performance have reinforced Vietnam’s global leadership in the cashew market. The impressive growth in both volume and value underscores Vietnam’s significant contribution to the global supply chain.
Published by Prosi Thang Long – Your Trusted Partner in Global Cashew Trade
Vietnam Star Anise Export Report (January – August 2024)
In the first eight months of 2024, Vietnam’s star anise exports faced several challenges, with both export volume and revenue experiencing declines. By the end of August, Vietnam had exported 9,831 tons of star anise, generating a total export value of 47.3 million USD. This represents a 1.7% decrease in export volume and a 17.8% drop in revenue compared to the same period in 2023. The disparity between volume and revenue suggests that the average price of star anise has declined, possibly due to global economic conditions or shifts in demand.
Market Performance Breakdown
Despite the overall decline in exports, certain markets showed significant growth, underscoring the ongoing demand for Vietnamese star anise:
- India: Vietnam’s largest market for star anise, India imported 6,083 tons, which is 61.9% of Vietnam’s total star anise exports. This volume represents a 6.3% increase compared to the same period last year, reflecting India’s growing demand for this spice in both culinary and medicinal applications.
- United States: The U.S. imported 694 tons of star anise from Vietnam, a 8.4% increase year-on-year. Although the volume remains relatively small, the U.S. market continues to show steady growth, driven by the increasing use of star anise in food, beverages, and essential oils.
- Taiwan: One of the most notable developments in 2024 has been the 168.8% surge in exports to Taiwan, reaching 301 tons. This sharp increase indicates Taiwan’s rising demand for star anise, possibly driven by changes in food consumption trends or increased use in traditional remedies.
Prosi Thăng Long – The Market Leader
Prosi Thăng Long has solidified its position as Vietnam’s largest star anise exporter, holding nearly 20% of the market share. The company exported 1,805 tons, an impressive 12.1% increase compared to the same period in 2023. This growth is significant in light of the overall market downturn, showcasing Prosi Thăng Long’s ability to maintain strong customer relationships, ensure product quality, and adapt to market fluctuations.
As the leader in Vietnam’s star anise exports, Prosi Thăng Long’s consistent growth has been attributed to several factors:
- Strong operational capacity: The company has a well-established supply chain and state-of-the-art processing facilities that enable it to meet growing demand efficiently.
- Focus on premium quality: By emphasizing high-quality products that meet international standards, Prosi Thăng Long has gained the trust of its global customers.
- Diverse export markets: Prosi Thăng Long exports to a wide range of markets, which helps mitigate risks associated with economic downturns in specific regions.
Competitive Landscape
Several other Vietnamese exporters contributed to the country’s overall star anise exports. However, many of them experienced fluctuations in their export performance:
- Nedspice Vietnam: The second-largest exporter, Nedspice, exported 622 tons, but saw a 35.9% decrease from the previous year. This decline suggests that Nedspice may be facing challenges such as supply chain disruptions or reduced demand from key markets.
- Tuấn Minh: With an export volume of 526 tons, Tuấn Minh achieved a 25.8% growth, reflecting its successful market expansion and stronger foothold in niche markets.
- Senspices Vietnam: This exporter saw solid growth with 378 tons exported, marking a 23.5% increase. Senspices has likely capitalized on growing demand in regions where star anise is increasingly used in both food and pharmaceutical industries.
- Hồng Sơn Vietnam: With 334 tons exported, Hồng Sơn saw a 1.5% increase. While modest, this growth demonstrates stability in its export operations, even in a challenging market.
Industry Outlook
The star anise export market is expected to face continued fluctuations in the coming months due to several factors, including:
- Global economic conditions: As inflation rates and economic instability impact consumer spending in major markets, demand for star anise could be affected.
- Supply chain challenges: Disruptions caused by logistical bottlenecks and fluctuating transportation costs may continue to influence export volumes and revenues.
- Emerging markets: While established markets such as India and the U.S. remain strong, emerging markets like Taiwan are showing significant potential for growth, which could provide new opportunities for Vietnamese exporters.
Conclusion
Despite the overall decline in Vietnam’s star anise exports, Prosi Thăng Long has not only maintained but strengthened its leadership position in the market. The company’s growth, even in a challenging economic environment, reflects its operational resilience and ability to meet global demand with high-quality products. Moving forward, Prosi Thăng Long is well-positioned to capitalize on new market opportunities and continue driving the success of Vietnam’s star anise industry.
#ProsiThangLong#Prosi#GlobalTrade#VietnamSpices#VietnamNuts#Pepper#Cashew#Cinnamon#Coconut#StarAnise#VietnamExporter
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𝐏𝐫𝐨𝐬𝐢 𝐓𝐡𝐚𝐧𝐠 𝐋𝐨𝐧𝐠 – 𝐒𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐍𝐮𝐭𝐬 𝐕𝐢𝐞𝐭𝐧𝐚𝐦 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐫 𝐚𝐧𝐝 𝐄𝐱𝐩𝐨𝐫𝐭𝐞𝐫
𝐀𝐝𝐝𝐫𝐞𝐬𝐬: 4th Floor, Kim Anh Building, No 78 Duy Tan, Cau Giay, Ha Noi
𝐄𝐦𝐚𝐢𝐥: Sales@prosi.com.vn
𝐎𝐟𝐟𝐢𝐜𝐞 𝐇𝐨𝐭𝐥𝐢𝐧𝐞: (+84) 9858 17797
𝐘𝐨𝐮𝐫 𝐭𝐫𝐮𝐬𝐭𝐞𝐝 𝐩𝐚𝐫𝐭𝐧𝐞𝐫 𝐢𝐧 𝐩𝐫𝐞𝐦𝐢𝐮𝐦 𝐬𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐧𝐮𝐭𝐬
August Pepper Market Report
Vietnam’s pepper industry has experienced a significant surge in export earnings, increasing by 40.8% year-on-year to reach 764.2 million USD in the first seven months of this year, according to the Vietnam Pepper and Spice Association (VPSA). This remarkable growth has occurred despite a slight 2.2% decline in export volume. The rise in global pepper prices has been a key driver of this increase, with the US leading as Vietnam’s top pepper importer, purchasing 43,349 tonnes, which marks a 48.4% increase from the previous year and accounts for 26.4% of the market share.
In July alone, Vietnam exported 21,771 tonnes of pepper, earning 129.9 million USD, a 43.7% increase in volume and a 128.9% increase in value compared to the same period last year. This includes 19,371 tonnes of black pepper and 2,400 tonnes of white pepper. The total export volume from January to July reached 164,357 tonnes, comprising 145,330 tonnes of black pepper and 19,027 tonnes of white pepper.
To sustain this positive momentum, VPSA Chairwoman Hoang Thi Lien emphasized the need to stabilize pepper cultivation areas while enhancing product quality and diversifying high-value processed products. She also recommended that farmers adopt international standards concerning chemical residues, cultivation practices, pest control, and preservation methods suited to regional climatic conditions. Developing new pepper varieties with higher yields, better quality, and disease resistance is crucial.
On the global stage, the International Pepper Community (IPC) reported mixed market reactions. For instance, while Indian and Sri Lankan pepper prices remained stable, Indonesia saw an increase in its domestic and international pepper prices, driven by a 1% appreciation of the Indonesian Rupiah against the US dollar. Meanwhile, Malaysia experienced a 3% increase in the Ringgit’s value, contributing to higher pepper prices as the country entered its harvest season. In contrast, Vietnam’s domestic and export pepper prices saw a decline, and Brazil’s black pepper prices also fell, while pepper prices in Cambodia and China remained stable.
As of August 17th, the domestic pepper price in Vietnam ranged from 139,000 to 140,000 VND/kg, showing an increase of 2,000 to 2,500 VND/kg from the previous day. The latest trade data also indicated that Vietnam’s black pepper prices were at 5,800 USD/ton for 500 g/l type and 6,200 USD/ton for 550 g/l type, while white pepper was priced at 8,500 USD/ton.
Looking ahead, the global pepper market is expected to reach 1 billion USD this year, with Vietnamese exporter Phuc Sinh maintaining an 8% share of the global market. The company’s export volume has grown by 40%, with average export prices doubling compared to the same period last year. In Vietnam, domestic pepper prices have risen to 140,000 VND/kg, a 1.75-fold increase from earlier this year, reaching up to 158,000 VND/kg at their peak, driven by the scarcity of supply.
As the market evolves, leveraging digital technology for production management, traceability, and market access will be essential. Additionally, promoting cooperatives and production groups will help strengthen the supply chain and benefit exporters, ensuring that Vietnam remains a key player in the global pepper industry.
#ProsiThangLong#Prosi#GlobalTrade#VietnamSpices#VietnamNuts#Pepper#Cashew#Cinnamon#Coconut#StarAnise#VietnamExporter
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𝐏𝐫𝐨𝐬𝐢 𝐓𝐡𝐚𝐧𝐠 𝐋𝐨𝐧𝐠 – 𝐒𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐍𝐮𝐭𝐬 𝐕𝐢𝐞𝐭𝐧𝐚𝐦 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐫 𝐚𝐧𝐝 𝐄𝐱𝐩𝐨𝐫𝐭𝐞𝐫
𝐀𝐝𝐝𝐫𝐞𝐬𝐬: 4th Floor, Kim Anh Building, No 78 Duy Tan, Cau Giay, Ha Noi
𝐄𝐦𝐚𝐢𝐥: Sales@prosi.com.vn
𝐎𝐟𝐟𝐢𝐜𝐞 𝐇𝐨𝐭𝐥𝐢𝐧𝐞: (+84) 9858 17797
𝐘𝐨𝐮𝐫 𝐭𝐫𝐮𝐬𝐭𝐞𝐝 𝐩𝐚𝐫𝐭𝐧𝐞𝐫 𝐢𝐧 𝐩𝐫𝐞𝐦𝐢𝐮𝐦 𝐬𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐧𝐮𝐭𝐬
Cinnamon in Vietnam: Opportunities and Challenges
Vietnam is among the world’s biggest cinnamon exporters, though this is mostly raw product with little value added. This presents a substantial opportunity for foreign food processing firms to enter the market in various ways. In this article, we discuss what those ways are.
According to Vietnam’s Ministry of Agriculture and Rural Development, as of November 15, 2023, Vietnam was the world’s leading exporter and the third-largest producer of cinnamon.
With a cinnamon growing area of 180 thousand hectares, Vietnam’s cinnamon export turnover reached US$292.2 million last year, accounting for 17 percent of the global cinnamon market. The country also has cinnamon bark reserves estimated to be between 900,000 and 1.2 million tons and each year harvests between 70,000 to 80,000 tons more.
This year, by the end of October, Vietnam had exported 74,744 tons of cinnamon, worth US$220.3 million. The largest importers of this cinnamon were India, the United States, and Bangladesh, which combined accounted for 67.1 percent of total exports.
This positive result, along with a world organic spice market CAGR of 4.5 percent, suggests there may be opportunities for foreign firms to profit from this burgeoning sector. In this light, Prosi Thăng Long runs through what these opportunities might be.
Markets for Cinnamon Products
Food Cinnamon, a medicinal herb, provides nourishment and flavor in all culinary products. It can be found in baked goods, meat marinades, and tea bags. With its warming qualities, mild spicy taste, and pleasant aroma, cinnamon aids in the reduction of fishy smells in meat and fish, while also improving the seasoning of components and encouraging digestion.
Further, cinnamon can be utilized as a preservative in food products due to its antioxidant characteristics, according to data from the National Center for Biotechnology Information.
Medicine Antioxidants and active antibacterial components found in cinnamon help shield against bacteria, viruses, and inflammation. As a result, cinnamon is now a necessary component in medications that boost immunity against cancer. Research also indicates that cinnamon has properties that can be used to make medications to treat Parkinson’s and Alzheimer’s disease.
Pesticides and Fertilisers Cinnamon has compounds that can effectively prevent the growth of mold and germs, according to the Scholarly Community Encyclopedia. Specifically, because of its cytotoxicity, cinnamon is utilized as an active component in organic herbicides.
In addition, the poultry sector is steadily using cinnamon more and more. The growth performance and intestinal health of poultry have reportedly been improved by the inclusion of cinnamon in animal feed.
Opportunities in Cinnamon Production in Vietnam
Despite having the world’s biggest cinnamon market share, Vietnam’s cinnamon production is much lower than that of other nations, particularly China. This contrast indicates a plethora of opportunities and strong earning potential for foreign investors.
Training Around 85 percent of Vietnam’s cinnamon is exported to India, driven in part by the ASEAN-India Free Trade Agreement, which offers advantageous tariff rates. However, the majority of these exports are in raw form, as Vietnam currently lacks the necessary processing skills to add value before exporting, as noted by Thuong Trung Bui, Commercial Counselor at the Vietnam Trade Office in India.
That is because India has extensive experience processing cinnamon, spanning hundreds of years, unlike Vietnam where cinnamon production itself is comparatively recent. Moreover, the Asian Productivity Organization’s 2020 study revealed that between 2011 and 2020, Vietnam’s labor productivity grew at an average rate of 5.1 percent annually, whereas India’s labor productivity showed a higher average of 6 percent per year—suggesting the potential for enhanced value in cinnamon processing in India. This opens up numerous opportunities for foreign firms in the upskilling and training sector. Foreign agricultural education companies could identify a market for training courses designed to enhance the skills of Vietnamese farmers and workers.
Equipment Upskilling the local workforce is just one avenue for foreign firms seeking investment opportunities. Another critical factor impacting Vietnamese cinnamon output is the limited use of machinery and technology.
Vietnamese farmers often forego investing in equipment such as sterilization machines, opting instead for manual cleaning of cinnamon. This manual process frequently leads to the production of low-quality goods that are prone to damage during storage. Nevertheless, this challenge presents a significant opportunity for foreign suppliers of machinery and equipment.
According to Associate Professor On Van Tran, Senior Lecturer and former Head of the Food Department at Hanoi University of Pharmacy, upgrading technology for cinnamon processing in Vietnam could potentially elevate the industry to an annual worth of up to VND 22 trillion (over US$900 million).
As the local sector expresses a strong interest in improving output quality, foreign manufacturers of machinery may discover a substantial market for their products.
Cinnamon Production in Vietnam: Challenges
Vietnam’s 2013 Land Law prohibits foreign investors from acquiring land in Vietnam to establish a farm. Instead, 100 percent foreign-owned enterprises can lease land. They may, however, be able to get around this by entering into a joint venture with a local firm.
That said, climate change may also be a problem. Vietnam is extremely sensitive to rising global temperatures and adapting to the changes that they bring may prove costly.
EU Pesticides Regulations The European Union has very severe pesticide use regulations in agriculture. In terms of maximum residue levels (MRLs) laws, products with pesticide residues that exceed permissible levels are removed from the European market.
US FDA Regulations The majority of cinnamon firms in Vietnam still do not fulfill the standards for FDA certification. As such, they are unable to extend their cinnamon market share in the US. Firms looking to invest in cinnamon production in Vietnam should be mindful that this criterion will need to be satisfied should they wish to export to the US.
Looking Forward
The cinnamon market in Vietnam holds many unexplored opportunities for foreign investment and development. With a significant global market share, and multifaceted usage of higher value cinnamon products, foreign investors with the right knowledge, training skills, and equipment may be able to generate lucrative returns in Vietnam’s cinnamon sector.
Why Partner with Prosi Thăng Long?
As a leading company in the agricultural sector, Prosi Thăng Long stands out with its extensive experience and dedication to promoting high-quality cinnamon production. By collaborating with us, foreign firms can benefit from our deep understanding of the local market, established networks, and commitment to innovation. Prosi Thăng Long offers tailored business advisory services to help navigate the complexities of the Vietnamese market and unlock the full potential of investment opportunities in the cinnamon industry.
Firms looking to learn more about these opportunities should contact the business advisory experts at Prosi Thăng Long. Together, we can drive forward the growth and success of Vietnam’s cinnamon sector, creating a prosperous future for all stakeholders involved.
#ProsiThangLong#Prosi#GlobalTrade#VietnamSpices#VietnamNuts#Pepper#Cashew#Cinnamon#Coconut#StarAnise#VietnamExporter
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𝐏𝐫𝐨𝐬𝐢 𝐓𝐡𝐚𝐧𝐠 𝐋𝐨𝐧𝐠 – 𝐒𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐍𝐮𝐭𝐬 𝐕𝐢𝐞𝐭𝐧𝐚𝐦 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐫 𝐚𝐧𝐝 𝐄𝐱𝐩𝐨𝐫𝐭𝐞𝐫
𝐀𝐝𝐝𝐫𝐞𝐬𝐬: 4th Floor, Kim Anh Building, No 78 Duy Tan, Cau Giay, Ha Noi
𝐄𝐦𝐚𝐢𝐥: Sales@prosi.com.vn
𝐎𝐟𝐟𝐢𝐜𝐞 𝐇𝐨𝐭𝐥𝐢𝐧𝐞: (+84) 9858 17797
𝐘𝐨𝐮𝐫 𝐭𝐫𝐮𝐬𝐭𝐞𝐝 𝐩𝐚𝐫𝐭𝐧𝐞𝐫 𝐢𝐧 𝐩𝐫𝐞𝐦𝐢𝐮𝐦 𝐬𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐧𝐮𝐭𝐬
Vietnam Pepper Exports: Strong Performance Amidst Challenges in H1 2024
The Vietnamese pepper industry demonstrated resilience in the first half of 2024, with export earnings surging despite a slight dip in export volume.
Key Highlights:
- Export Volume: Vietnam exported 142,586 tons of pepper, marking a 6.8% decrease compared to the same period in 2023. This decrease was primarily attributed to a shortage in supply.
- Export Value: Despite lower volumes, export turnover soared to $634.2 million USD, a substantial 30.5% increase year-on-year. This growth was fueled by higher pepper prices, driven by strong global demand and limited supply.
- Average Export Prices:
- Black pepper: $4,365 USD/ton (922 USD increase compared to H1 2023)
- White pepper: $5,983 USD/ton (1,028 USD increase compared to H1 2023)
- Top Exporters: Olam Vietnam led the pack, followed by Phuc Sinh, Nedspice Vietnam, Haprosimex JSC, and Pearl.
- Leading Markets: The United States remained the largest importer, with exports increasing by 44.6% to 37,435 tons. Germany, UAE, India, and the Netherlands also saw significant growth in imports.
Challenges and Opportunities:
While the industry thrived in terms of export value, it faced challenges due to supply constraints and rising shipping costs. The latter posed a significant hurdle for exporters, particularly smaller businesses.
Prosi Thăng Long’s Position:
Prosi Thăng Long continued to maintain its position as one of Vietnam’s top 10 pepper exporters, contributing to the nation’s strong performance in the global market. Despite the industry-wide challenges, Prosi Thăng Long exported nearly 4 tons of pepper, demonstrating its ability to adapt and thrive in a dynamic environment.
Looking Ahead:
The Vietnamese pepper industry is expected to continue its upward trajectory, with strong demand from international markets driving growth. However, supply constraints and rising shipping costs remain key concerns. It is crucial for exporters to focus on diversifying their markets and adopting innovative solutions to overcome these challenges.
#ProsiThangLong#Prosi#GlobalTrade#VietnamSpices#VietnamNuts#Pepper#Cashew#Cinnamon#Coconut#StarAnise#VietnamExporter
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𝐏𝐫𝐨𝐬𝐢 𝐓𝐡𝐚𝐧𝐠 𝐋𝐨𝐧𝐠 – 𝐒𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐍𝐮𝐭𝐬 𝐕𝐢𝐞𝐭𝐧𝐚𝐦 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐫 𝐚𝐧𝐝 𝐄𝐱𝐩𝐨𝐫𝐭𝐞𝐫
𝐀𝐝𝐝𝐫𝐞𝐬𝐬: 4th Floor, Kim Anh Building, No 78 Duy Tan, Cau Giay, Ha Noi
𝐄𝐦𝐚𝐢𝐥: Sales@prosi.com.vn
𝐎𝐟𝐟𝐢𝐜𝐞 𝐇𝐨𝐭𝐥𝐢𝐧𝐞: (+84) 9858 17797
𝐘𝐨𝐮𝐫 𝐭𝐫𝐮𝐬𝐭𝐞𝐝 𝐩𝐚𝐫𝐭𝐧𝐞𝐫 𝐢𝐧 𝐩𝐫𝐞𝐦𝐢𝐮𝐦 𝐬𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐧𝐮𝐭𝐬
The Journey of Vietnamese Cinnamon: From Golden Forests to the Global Market
Introduction to Vietnamese Cinnamon (Cinnamomum cassia)
In the majestic mountains of Northwest Vietnam, the cinnamon tree (Cinnamomum cassia) thrives in its ideal environment. With mineral-rich soil and a characteristic tropical monsoon climate, Vietnamese cinnamon trees flourish, creating precious “golden forests” that provide abundant raw materials for the spice and fragrance industry.
Vietnamese cinnamon is not only famous for its warm, spicy aroma, but it is also highly regarded by experts for its high content of cinnamaldehyde essential oil. Cinnamaldehyde is a natural compound with antibacterial and antioxidant properties, offering numerous health benefits. As a result, Vietnamese cinnamon is always the top choice for the most demanding markets worldwide.
Diverse Products from the Cinnamon Tree
From a mature cinnamon tree, we can obtain a myriad of valuable products, each with its own unique flavor and uses:
- Cinnamon Bark:
- Whole tube cassia: Thick cinnamon bark, naturally rolled, often used for extracting essential oils or as a raw material for producing other products such as cinnamon powder and cinnamon tea.
- Cigaret cassia: Cinnamon bark cut into small sticks, convenient for daily use in cooking and beverages.
- Split cassia, Press cassia: Thin cinnamon bark split or pressed into pieces, often used as a spice or for food decoration.
- Round/Square Cut: Cinnamon bark cut into shapes as per customer request, often used in decoration or crafts.
- Cinnamon Leaf: Dried cinnamon leaves have a mild aroma, often used to make cinnamon tea or as a spice in cooking, adding a unique flavor to dishes.
- Cinnamon Branch:
- Small cinnamon branches: Often pressed for essential oil or ground into cinnamon powder, with antibacterial and antioxidant effects, used in traditional medicine and cosmetics production.
- Large cinnamon branches: Can be peeled for broken cassia or for essential oil extraction.
- Cinnamon twigs: Cinnamon branches cut into small pieces, often used for decoration or as a spice, adding a touch to living spaces.
- Wood core: The sturdy wood core is used to make handicrafts, fences, or cut into veneer for interior decoration, bringing a luxurious and warm beauty.
The Meticulous Processing Process
To obtain high-quality cinnamon products, Vietnamese farmers have diligently researched and perfected a meticulous processing process:
- Harvesting: Cinnamon trees can only be harvested after 10-15 years of growth. There are two main cinnamon peeling seasons: spring (February-March) and autumn (late July – early August).
- Peeling: Before harvesting, the bark is girdled (a portion of the bark around the base is removed) to prevent the transportation of water and nutrients, making it easier to peel the cinnamon bark from the trunk and ensuring the best quality.
- Sorting and processing: Cinnamon after peeling is classified into 3 types (A, B, C) based on thickness, quality, and essential oil content. Each type of cinnamon is processed using a specific method:
- Type A cinnamon: Dried and packaged or peeled as per request.
- Type B cinnamon: Cleaned, then processed into long cinnamon sticks, square cinnamon pieces, cinnamon tubes, or broken cassia.
- Type C cinnamon: Processed into cinnamon tubes or split cinnamon.
Prosi Thang Long – Vietnam’s Leading Cinnamon Exporter
With modern factories located in key raw material areas such as Yen Bai and Lao Cai, Prosi Thang Long is proud to be Vietnam’s leading cinnamon exporter. We offer a wide range of high-quality cinnamon products to meet the diverse needs of customers worldwide.
Prosi Thang Long is committed to strictly controlling the production, harvesting, and processing of cinnamon according to international standards such as ISO, HACCP, BRC, Kosher, Halal,… We constantly strive to bring customers the best quality cinnamon products, contributing to enhancing the value of Vietnamese agricultural products in the international market.
Contact Us
If you are looking for a reliable cinnamon supplier, Prosi Thang Long is the perfect choice. Please contact us for detailed advice and quotes.
#ProsiThangLong#Prosi#GlobalTrade#VietnamSpices#VietnamNuts#Pepper#Cashew#Cinnamon#Coconut#StarAnise#VietnamExporter
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𝐏𝐫𝐨𝐬𝐢 𝐓𝐡𝐚𝐧𝐠 𝐋𝐨𝐧𝐠 – 𝐒𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐍𝐮𝐭𝐬 𝐕𝐢𝐞𝐭𝐧𝐚𝐦 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐫 𝐚𝐧𝐝 𝐄𝐱𝐩𝐨𝐫𝐭𝐞𝐫
𝐀𝐝𝐝𝐫𝐞𝐬𝐬: 4th Floor, Kim Anh Building, No 78 Duy Tan, Cau Giay, Ha Noi
𝐄𝐦𝐚𝐢𝐥: Sales@prosi.com.vn
𝐎𝐟𝐟𝐢𝐜𝐞 𝐇𝐨𝐭𝐥𝐢𝐧𝐞: (+84) 9858 17797
𝐘𝐨𝐮𝐫 𝐭𝐫𝐮𝐬𝐭𝐞𝐝 𝐩𝐚𝐫𝐭𝐧𝐞𝐫 𝐢𝐧 𝐩𝐫𝐞𝐦𝐢𝐮𝐦 𝐬𝐩𝐢𝐜𝐞𝐬 𝐚𝐧𝐝 𝐧𝐮𝐭𝐬
Pepper Prices Soar, Creating Challenges for Businesses & Opportunities for Farmers
The global pepper market is on fire! 🔥 Prices have skyrocketed, exceeding 160,000 VND/kg in Vietnam and even surpassing Vietnam’s prices in Brazil. This surge is due to a shortage in supply, impacting markets worldwide.
