Chili And Pepper Market

The global market for green chilies and peppers is projected to show positive growth trends in both production and consumption over the next eight years. China leads the market in terms of both production and consumption, with the United States being the top importer. The market value is expected to reach $63.1 billion by 2030, with an anticipated CAGR of +3.5%. Overall, the market is expected to see steady growth in the near future, driven by increasing demand worldwide.

Market Forecast

Driven by increasing demand for chilies and peppers (green) worldwide, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +1.5% for the period from 2022 to 2030, which is projected to bring the market volume to 42M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +3.5% for the period from 2022 to 2030, which is projected to bring the market value to $63.1B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Chilies And Peppers (Green)

In 2022, global consumption of chilies and peppers (green) stood at 37M tons, growing by 2.1% on 2021. The total consumption volume increased at an average annual rate of +1.6% over the period from 2012 to 2022; the trend pattern remained relatively stable, with only minor fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2017 when the consumption volume increased by 4.6% against the previous year. Over the period under review, global consumption hit record highs in 2022 and is expected to retain growth in the near future.

The global chili and pepper market size totaled $47.8B in 2022, stabilizing at the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). The market value increased at an average annual rate of +2.6% over the period from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. As a result, consumption attained the peak level of $50.7B. From 2017 to 2022, the growth of the global market failed to regain momentum.

Consumption By Country

China (17M tons) constituted the country with the largest volume of chili and pepper consumption, accounting for 45% of total volume. Moreover, chili and pepper consumption in China exceeded the figures recorded by the second-largest consumer, Indonesia (3M tons), sixfold. The third position in this ranking was held by Turkey (2.9M tons), with a 7.8% share.

In China, chili and pepper consumption remained relatively stable over the period from 2012-2022. In the other countries, the average annual rates were as follows: Indonesia (+5.6% per year) and Turkey (+3.8% per year).

In value terms, China ($14B) led the market, alone. The second position in the ranking was taken by Indonesia ($5B). It was followed by Turkey.

In China, the chili and pepper market expanded at an average annual rate of +3.6% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Indonesia (+7.2% per year) and Turkey (+3.0% per year).

The countries with the highest levels of chili and pepper per capita consumption in 2022 were Turkey (33 kg per person), Spain (17 kg per person) and Mexico (15 kg per person).

From 2012 to 2022, the biggest increases were recorded for Spain (with a CAGR of +5.1%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Chilies And Peppers (Green)

In 2022, global chili and pepper production amounted to 37M tons, increasing by 2.9% against the previous year. The total output volume increased at an average annual rate of +1.7% over the period from 2012 to 2022; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2017 when the production volume increased by 4.5% against the previous year. Global production peaked in 2022 and is likely to see steady growth in years to come. The general positive trend in terms output was largely conditioned by a mild increase of the harvested area and a modest expansion in yield figures.

In value terms, chili and pepper production reached $46.6B in 2022 estimated in export price. The total output value increased at an average annual rate of +3.1% over the period from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2016 with an increase of 44%. As a result, production reached the peak level of $58.9B. From 2017 to 2022, global production growth remained at a lower figure.

Production By Country

China (17M tons) remains the largest chili and pepper producing country worldwide, accounting for 45% of total volume. Moreover, chili and pepper production in China exceeded the figures recorded by the second-largest producer, Mexico (3.1M tons), fivefold. The third position in this ranking was held by Indonesia (3M tons), with an 8.1% share.

From 2012 to 2022, the average annual rate of growth in terms of volume in China was relatively modest. In the other countries, the average annual rates were as follows: Mexico (+2.7% per year) and Indonesia (+5.7% per year).

Yield

The global average chili and pepper yield stood at 18 tons per ha in 2022, growing by 8.8% compared with the previous year. The yield figure increased at an average annual rate of +1.8% from 2012 to 2022; the trend pattern remained consistent, with only minor fluctuations in certain years. As a result, the yield reached the peak level and is likely to continue growth in the immediate term.

Harvested Area

In 2022, approx. 2M ha of chilies and peppers (green) were harvested worldwide; declining by -5.5% against 2021. In general, the harvested area showed a relatively flat trend pattern. The pace of growth appeared the most rapid in 2017 when the harvested area increased by 1.9% against the previous year. Over the period under review, the harvested area dedicated to chili and pepper production attained the maximum at 2.1M ha in 2021, and then declined in the following year.

Imports

World Imports of Chilies And Peppers (Green)

In 2022, overseas purchases of chilies and peppers (green) decreased by -11.9% to 3.5M tons for the first time since 2015, thus ending a six-year rising trend. The total import volume increased at an average annual rate of +2.2% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2018 with an increase of 8.3%. Over the period under review, global imports reached the maximum at 4M tons in 2021, and then reduced in the following year.

In value terms, chili and pepper imports shrank to $5.7B in 2022. The total import value increased at an average annual rate of +2.3% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2013 when imports increased by 12% against the previous year. Global imports peaked at $6.6B in 2021, and then shrank in the following year.

Imports By Country

The United States represented the main importer of chilies and peppers (green) in the world, with the volume of imports reaching 1M tons, which was near 29% of total imports in 2022. Germany (410K tons) held the second position in the ranking, followed by the UK (241K tons) and France (182K tons). All these countries together took near 24% share of total imports. Canada (145K tons), the Netherlands (107K tons), Russia (92K tons), Spain (89K tons), Thailand (88K tons), Italy (87K tons), Malaysia (84K tons), Poland (71K tons) and Austria (63K tons) held a relatively small share of total imports.

Imports into the United States increased at an average annual rate of +1.3% from 2012 to 2022. At the same time, Thailand (+41.9%), Spain (+13.5%), Austria (+7.1%), Malaysia (+6.9%), Poland (+4.7%), the UK (+4.1%), France (+2.1%), Canada (+2.0%), Italy (+1.8%) and Germany (+1.2%) displayed positive paces of growth. Moreover, Thailand emerged as the fastest-growing importer imported in the world, with a CAGR of +41.9% from 2012-2022. By contrast, the Netherlands (-3.3%) and Russia (-3.5%) illustrated a downward trend over the same period. While the share of Thailand (+2.4 p.p.) and Spain (+1.6 p.p.) increased significantly in terms of the global imports from 2012-2022, the share of Russia (-2 p.p.), the Netherlands (-2.3 p.p.) and the United States (-2.8 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the United States ($1.3B), Germany ($911M) and the UK ($518M) were the countries with the highest levels of imports in 2022, together comprising 48% of global imports. France, Canada, the Netherlands, Austria, Poland, Italy, Russia, Spain, Thailand and Malaysia lagged somewhat behind, together comprising a further 28%.

Thailand, with a CAGR of +56.3%, saw the highest growth rate of the value of imports, among the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

The average chili and pepper import price stood at $1,621 per ton in 2022, leveling off at the previous year. Overall, the import price, however, showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2013 when the average import price increased by 8.8%. As a result, import price attained the peak level of $1,756 per ton. From 2014 to 2022, the average import prices failed to regain momentum.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Germany ($2,222 per ton), while Malaysia ($537 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Thailand (+10.1%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Chilies And Peppers (Green)

In 2022, after six years of growth, there was significant decline in shipments abroad of chilies and peppers (green), when their volume decreased by -5.2% to 3.9M tons. The total export volume increased at an average annual rate of +3.2% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2021 with an increase of 13%. As a result, the exports attained the peak of 4.1M tons, and then declined in the following year.

In value terms, chili and pepper exports fell to $6.4B in 2022. The total export value increased at an average annual rate of +3.9% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2013 when exports increased by 12%. The global exports peaked at $6.6B in 2021, and then reduced in the following year.

Exports By Country

Mexico (1,110K tons) and Spain (830K tons) represented the key exporters of chilies and peppers (green) in 2022, finishing at near 29% and 21% of total exports, respectively. The Netherlands (429K tons) held the next position in the ranking, followed by Canada (181K tons). All these countries together held approx. 16% share of total exports. The following exporters - Morocco (167K tons), Turkey (158K tons), the United States (123K tons), China (114K tons) and Iran (73K tons) - together made up 16% of total exports.

From 2012 to 2022, the biggest increases were recorded for Iran (with a CAGR of +30.0%), while shipments for the other global leaders experienced more modest paces of growth.

In value terms, Spain ($1.5B), Mexico ($1.5B) and the Netherlands ($1B) constituted the countries with the highest levels of exports in 2022, with a combined 63% share of global exports. Canada, the United States, Turkey, Morocco, China and Iran lagged somewhat behind, together comprising a further 21%.

Iran, with a CAGR of +28.9%, recorded the highest growth rate of the value of exports, among the main exporting countries over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

The average chili and pepper export price stood at $1,639 per ton in 2022, almost unchanged from the previous year. Overall, the export price saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2015 when the average export price increased by 9.1%. The global export price peaked at $1,720 per ton in 2020; however, from 2021 to 2022, the export prices remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Canada ($2,815 per ton), while Iran ($480 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by China (+9.1%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform