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Shipments amounted to 168,429 tonnes during the period, a 16.1% year-on-year gain, according to the Vietnam Pepper and Spice Association.

Asia remained the top buyer, soaking up 76,845 tonnes, up 12.3% year-on-year and accounting for 45.6% of the total. Shipments to America rose 34% to 45,470 tonnes while those bound for Europe increased by 7.5% to 36,140 tonnes. Africa imported 9,964 tonnes, up 10%.

The U.S. was the biggest market, buying 40,712 tonnes, a 31.8% year-on-year gain. China followed with 17,110 tonnes, up 55.8%. The Netherlands imported 6,136 tonnes, up 48.8%, while Thailand bought 6,913 tonnes, an 88.7% surge.

Exports to Germany and India, however, tumbled 18.1% and 26.4%, respectively.

On the import front, Vietnamese companies brought in 48,812 tonnes of pepper worth $279.3 million in the first seven months, up 55.1% in volume and 43% in value from a year earlier.

Imports from Cambodia, the top supplier, jumped 256.9% to 25,413 tonnes, accounting for 52.1% of all inbound pepper.

While pepper roared ahead, spices like cinnamon and star anise showed signs of cooling. Cinnamon exports reached 73,085 tonnes worth $186.5 million over January-July, down 1% in volume and 0.6% in value year-on-year.

Star anise shipments totaled 8,434 tonnes valued at $33.4 million during the same period, a 9.1% drop in volume and 6.2% decline in value.

Le Viet Anh, the association’s chairman, said pepper prices should hold steady in the near term barring any major geopolitical shocks. US-bound pepper exports are expected to remain stable over the medium and long haul.

A bright spot emerged on the regulatory front as EU warnings tied to Vietnamese pepper and spices fell from 34 cases in the first half of 2025 to 22 in the same period of this year. For pepper alone, alerts dropped from five to three.

That progress underscores real improvements in quality control, pesticide residue management, and compliance awareness among farmers and exporters.

Anh stressed that the industry’s core challenge has shifted. After more than two decades as the world’s top pepper exporter, Vietnam has almost no room left to expand planted acreage.

Land is increasingly scarce and other crops compete for space while new rules, especially the European Union Deforestation Regulation, are piling on tougher requirements.

The pepper sector can no longer bet on higher output or low pricing. Instead, it must pivot to a growth engine fueled by quality, branding and deeper value addition. The same pivot applies to cinnamon, star anise and other spices.

The association urged companies to ramp up investment in certified raw material zones, tighten partnerships with farmers, enforce stricter pesticide residue controls, build out traceability systems and meet every technical standard demanded by importing markets.

At the same time, the industry should get ahead of the green consumption wave by embracing regenerative agriculture, circular economy models, lower carbon emissions and smarter water use.