Wholesalers of the global herbs and spices market are becoming very selective. They do not want only a price offer, they require secure sourcing, reliability, quality products, and reliable parties who know the rules of compliance and international supply chains. Vietnam has become a strategic sourcing country among others, besides biodiversity and the favorable climate conditions, Vietnam has also increased professionalism in processing and exporting.
This article discusses what the global buyers find desirable in a herbs and spices supplier, why Vietnam is taking the lead and how Vietnamese suppliers can be precise and scale to the expected demands.
What wholesalers really look for in a herbs and spices supplier
The herbs and spices industry is dominated by wholesalers, distributors, manufacturers, and food processors who also happen to be importers; they have the most specific and practical needs, as far as choosing a herbs and spices supplier is concerned. Among the first and the most crucial demands is the possibility to provide the steady all-time supply even in the case, when particular crops are seasonal. Consumers are concerned with the consistency of supply and prices and they fear interference from climate uncertainty or a lack of concentration in smallholder farming.
Consistency in quality is also another crucial issue. Other specifications require the moisture content, volatile oil content, particle size (powders), microbial safety specifications to be constant throughout shipments. One contamination can interfere with whole production lines or with food safety laws in the importing countries. A lot of buyers are also willing to find herbs and spices suppliers, who can provide them with the full paper (Certificate of Origin (CO), phytosanitary certificate, lab test, and some time, organic, halal, or kosher certificate).
Scalability counts as well. The customers must be assured that the herbs and spices supplier is capable of transporting not a couple of hundred kilograms, but full container loads (FCL) regularly. With increasing pressure on global compliance, most buyers are currently shifting to partners who can provide transparency in sourcing, traceability of supply to the farm, and third-party testing. Respectively, more than 60 percent of customers of spices in the EU are traceable and compliant in the choice of herbs and spices suppliers.
Why Vietnam is a competitive source of herbs and spices
The Vietnamese country has emerged as one of the best sources of herbs and spices due to recent agricultural conditions and trade-based economy. The nation is amongst the leading five exporters of key spices in the world including; the cassia cinnamon, star anise, black pepper, ginger, and turmeric. The high-quality products are produced in various geographic territories of Vietnam (e.g., Quang Ninh, Lang Son, Quang Nam, and Central Highlands) and they make use of the high microclimates.
Cost efficiency is one of the significant competences of Vietnam. The prices in Vietnam are competitive compared to that in India or Indonesia as Vietnam has access to cheaper labor, localized supply chain and the government favors agricultural products as export (which is an added advantage). Hai Phong and Ho Chi Minh major cities are well provided with deep-water ports that guarantee timely and non-prohibitively expensive international shipments.
The position of Vietnam in international trade is also enhanced by the fact that it is part of some of the leading trade agreements, which include the EU-Vietnam Free Trade Agreement (EVFTA), the UK-Vietnam Free Trade Agreement (UKVFTA), the Regional Comprehensive Economic Partnership (RCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The agreements remove or diminish tariffs on Vietnamese agricultural goods making spice exporters competitive in competitive markets such as the EU, Japan, Korea and Australia.
It is estimated that in 2023, Vietnam produced more than $1 billion worth of spices and the United States, India, Germany, and UAE as the leading recipients.
Vietnam’s most exported herbs and spices
Vietnam has numerous products of herbs and spices to export and each product has specifications which conform to world standards. You may take an example of dried ginger which is supplied as sliced or powder form. The ginger slices are sun-dried and have essential oils (>1.5 per cent) and moisture range limited to less than 10 per cent. The powdered ginger is usually pulverized to 80-100 mesh and applied extensively in candy, tea and medicine. According to the Vietnamese Ministry of Agriculture, the ginger output was about 300,000 tons in 2022, and rising exports to Japan and Korea.
Another major export is turmeric. The Vietnamese turmeric powder with calorific percentages 3 and above is fit to be used in the nutraceutical and food grade settings as well. The roots are washed, cut into thin strips and then sun dried and crushed into finely powdered form. No preservatives or coloring involving agents applied. Indian Spices Board report indicates that Vietnam turmeric is getting popular because of its bright color and competitive prices.
Lang Son and Bac Kan provinces produce the signature spice of star anise which is exported in whole as well as in broken form. It possesses 1.5-7.0% volatile oil and is used in pharmaceutical preparations including the preparation of oseltamivir (Tamiflu). Vietnam is the world leader in the niche segment of star anise as it provides more than 80 per cent of its market globally, according to FAO.
Cassia cinnamon in Quang Nam and Yen Bai are sold in the form of sticks, split, or powdered. Vietnamese cassia is grown in Vietnam where it contains more than 2 percent oil content, making it have a stronger aroma and flavor than the other cassia. Prepared sticks normally have a length of 8-12 cm and a thick length of 2-4mm, which is sold in various quantities in PP or kraft paper bags ready to be exported. According to the Vietnam Pepper and Spice Association, it has been affirmative that Vietnam became the second-largest exporter of cassia following Indonesia.
Besides the roots of spices and barks, more and more aromatic herb leaves like lemongrass, perilla, basil, and pandan leaves also get exported from Vietnam. These herbs are air-dried: they smell and look green. They are packed in cartons of 1015 kg and they are used in herbal teas and functional drinks, and in blend seasonings, thus being used in markets such as South Korea and Japan where herbal drinks and traditional medicine are gaining popularity.
Ready to partner with a reliable herbs and spices supplier?
We are not just selling herbs and spices at GreatFoods Vietnam, but we are selling trust, flexibility and long term value. You are an importer who wants to have a stable bulk herbs and spices supplier, a manufacturer who wants to customize ingredients, or a brand owner who needs clean-label sources: we are ready to provide them all.
Our products are coming from certified farms throughout Vietnam and processed in accordance with the international food safety requirement and packed to export. We are prepared to grow with you: we have competitive prices, represent complete documentation support and have clear insight of B2B needs.
The best way to know more is to contact us now to get a quotation, technical specifications, and free samples of your product development. Let us make Vietnam your global success based on what it has to offer in terms of natural attractiveness.
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