It is estimated that Vietnam has over 1,000 different types of spices, including very unique types that are rarely found in other countries. This is a unique advantage that if businesses focus on building raw material areas and branding, they can create a spice economy, bringing billions of dollars to the country.
Great potential from the 19 billion USD spice export market
Just a quick look at each family’s small kitchen can reveal dozens of familiar spices, including indispensable ones in daily meals such as onions, garlic, pepper, chili, ginger, etc. lemongrass, leafy spices, fish sauce, seasoning powder, monosodium glutamate… Vietnamese spice products are increasingly expanding their list with hundreds of types including raw spices as well as complete ready-mixed sauces and spices. correction.
Experts estimate that the global spice market is up to 19 billion USD/year, with a growth rate of 15-20%. In Vietnam, although there are no statistics, the spice processing industry also brings millions of dollars to businesses when products are not only consumed domestically but also exported around the world.
In 2022, the total export value of Vietnamese pepper and spices will reach more than 1.4 billion USD. The spice industry is setting an export target of 2 billion USD by 2025. Photo: viethuong
Mr. Phan Minh Thong, General Director of Phuc Sinh Company, said that the world demand for spices is very large and Vietnam’s raw materials for producing these products are very rich. As for pepper, Vietnam currently ranks first in the world in terms of supply, of which 267,000 tons will be exported in 2023. On average each year, Phuc Sinh exports 6,000 containers of pepper and pepper spices (sterilized pepper, pepper sauce…) to foreign markets.
“Currently 50% of pepper sauce products used in the world are from Phuc Sinh and 70% of the pepper market share in Israel is also supplied by the company,” Mr. Phan Minh Thong said. In 2023, Phuc Sinh Joint Stock Company continues to lead in spice export sales of the country with a growth rate of about 18% compared to 2022. Phuc Sinh’s spice export company alone increased its market share from 8 .4% in 2022 to 15.1% in the European market.
Businesses in the spice and flavoring industry have gone through difficult times and are investing in sustainable development in the direction of gradually reducing raw products and increasing deeply processed products with higher added value. “In 2023, our company has completely built a processing factory with equipment imported from France, mainly serving deep processing. Accordingly, we not only grind pepper but also all other spices,” Mr. Thong said.
Pepper products of Phuc Sinh Joint Stock Company.
Not only pepper, for many years now, Vietnam has also exported a lot of raw spices such as cinnamon, anise, cloves, chili, ginger, garlic… According to the Pepper and Spice Association (VPSA), Vietnam is a Cinnamon producer and exporter ranks third in the world in terms of output, reaching 46,000 tons, after Indonesia and China. In 2023, Vietnam exported 89,383 tons of cinnamon, total export turnover reached 260.9 million USD, an increase of 14.6% in volume and a decrease of 10.7% in value compared to 2022.
With anise, Vietnam is ranked second in the world in exports, after China, with an estimated annual output of about 20,000 tons on a growing area of about 55,000 hectares.
Besides, with the support of technology, complete seasoning products for many dishes have become increasingly popular in consumer habits, such as spices for cooking pho, beef noodle soup, vermicelli vermicelli, vermicelli fish sauce, etc. sauces to marinate dishes, chili sauce…
Dubbed the “spice tycoon” of Vietnam when the product is spread throughout the domestic supermarket system, Mr. Nguyen Trung Dung, Chairman of the Board of Directors and General Director of DhFoods Joint Stock Company, said that people’s needs Consumers today are changing, they want to use more regional specialty spices but it must be convenient and ensure food safety. Mr. Dung hopes that Vietnam’s processed spice industry can follow Thailand’s path to appear on supermarket shelves around the world.
Talking to Dan Viet, Mr. Dung revealed that in 2023 Dh Foods will achieve revenue of 180 billion VND, an increase of 14% compared to 2022. Dh Foods currently has more than 170 product codes with a full range of natural spices, dipping sauces, and spices. , cooked, marinated… from popular types to specialties of many localities.
Items and products from cinnamon, anise and medicinal plants are increasingly receiving attention and expanding export markets due to changes in consumer awareness, opinions and tastes towards green lifestyles, clean, good for health and helps increase immunity.
Mr. Dung added: “After participating in the SIAL PARIS exhibition in October 2022, there are many potential customers and partners from France and European countries such as the Netherlands, England, Germany, Czech Republic, Slovakia, and Poland. Lan… is interested in Dh Foods products. Exporting goods to France has become a great motivation for us to be determined to conquer difficult markets like Europe.”
According to Mr. Le Viet Anh – Chief of Office of the Vietnam Pepper and Spice Association (VPSA), the demand for spices in world markets is still high not only in the food industry but also continues to be researched. and developed to meet the needs of the pharmaceutical, cosmetics and functional food industries. Along with that are advantages such as: The Government, ministries and branches play an important role in updating policies to support the development of the pepper industry as one of Vietnam’s key export industries; Vietnam participates in many free trade agreements, especially the EVFTA Agreement, CPTTP… Those are great advantages that spice industry businesses need to take full advantage of.
Mr. Nguyen Nhu Tiep – Director of the Department of Quality, Processing and Market Development (Ministry of Agriculture and Rural Development) said that Vietnam has great potential for producing spices such as cinnamon, anise, and various herbs. typical for Asian cuisine. In addition to key markets, markets with many Asian communities are also a new direction for potential customers in consuming tropical specialties and spice products.
However, Vietnam’s spice industry still faces many challenges. Except for pepper, other spices such as cinnamon, star anise, chili… do not have a national sustainable development strategy; Enterprises still lack technology and capital to invest in deep processing to increase product value; Rising costs have a big impact on supply…
To promote exports to key markets, Mr. Viet Anh said that it is necessary to improve quality and reduce production costs to create valuable products of high quality and be more competitive. Maintain a stable area of spice crops according to the planning of the Ministry of Agriculture and Rural Development. In particular, there needs to be a master plan for growing and production areas so that investors can feel secure and have a long-term investment strategy…
President of the Vietnam Pepper Association Hoang Thi Lien commented that the pepper and spice industry needs to focus on building production areas, expanding chain production models, improving quality, building brands… “Bringing Vietnam became a sustainable spice exporter, multi-spice, not just pepper and cinnamon, thereby positioning the spice country in the world market, with exports reaching over 2 billion USD in 3 years. “This is the goal of the entire industry,” Ms. Lien affirmed.
According to Danviet.vn
