Capsicum and pimenta fruits market in Laos

Earlier Report Observations

From 2018 to 2020, the market volume for fresh capsicum and pimenta fruits in Laos expanded steadily from 16 700 t to 17 704 t. This growth was underpinned by agricultural development policies, including the accelerated allocation of production areas along the Laos-China railway and expressway corridors, which improved farmers' access to infrastructure and markets. Simultaneously, a 2018 decision regulating food imports by limiting incoming shipments of fresh fruits to 5 kg per type helped bolster domestic production by restricting competition.

Market growth slowed to 17 884 t in 2021, then contracted to 17 151 t in 2022. Despite the decline, the government continued implementing initiatives to raise agricultural output along transport corridors and introduced enhanced agro-meteorological forecasts through the Laos Climate Service for Agriculture, supporting long-term sector resilience. A 2020 requirement for registering and permitting the import, export, and transit of agricultural chemicals also influenced farm input management, potentially affecting production practices.

By 2023, the market recovered to 17 485 t, showing resilience after the downturn. Over the full period from 2018 to 2023, the market volume increased by 4.7%, reflecting an overall positive trend aided by state-led infrastructure development and import regulations designed to strengthen local supply.

Production capsicum and pimenta fruits in Laos

In kind, 2017-2020, t

Top producers of capsicum and pimenta fruits, 2017-2020

World map of production of capsicum and pimenta fruits, 2017-2020

Laos has seen its capsicum and pimenta fruits production rise for the second year in a row. In 2019, production reached its lowest point at 17 402 tonnes. The following year, in 2020, output increased to 17 788 tonnes, marking a 0.7% gain over 2019. Looking at the broader period from 2017 to 2020, production grew by 2.2%, with an average annual growth rate of 0.7%. The most significant increase occurred in 2019, when production jumped by 1.5%.

Annual dynamics of production in Laos in kind, 2017-2020, t

Exports capsicum and pimenta fruits from Laos

Exports in kind, t

The export market for capsicum and pimenta fruits from Laos showed considerable volatility over the period. In 2017, exports hit their lowest point, while they peaked in 2018 at 718.8 tonnes, representing a 5.3-fold difference between these years. By 2020, shipments abroad totaled 546.0 tonnes, which is 17.9% higher than in 2019. The largest decline was recorded in 2019, with a drop of 35.6%, while the most substantial increase occurred in 2018, surging by 427.6%.

Annual dynamics of product's exports from Laos in kind, 2017-2020, t

From 2017 to 2020, Laos's exports of capsicum and pimenta fruits were highly concentrated, with Thailand and Vietnam together accounting for 99.6% of total shipments.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Laos in kind, 2017-2020

Exports in value, K $ US

Export values for capsicum and pimenta fruits from Laos experienced significant fluctuations. In 2017, values were at their lowest, rising to a peak of 1 306 thousand US dollars in 2018, a 5.5-fold increase. By 2020, export value dropped to 257 thousand US dollars, a sharp decline of 26.4% compared to 2019. The largest decrease was in 2019, falling by 73.2%, while the biggest increase was in 2018, up by 446.6%.

Annual dynamics of product's exports from Laos in value, 2017-2020, K $ US

During 2017–2020, Thailand and Vietnam dominated Laos's export value for capsicum and pimenta fruits, together making up 99.8% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Laos in value, 2017-2020

Imports capsicum and pimenta fruits to Laos

Imports in kind, t

Laos's imports of capsicum and pimenta fruits have increased for three consecutive years. From 2017 to 2020, imports surged by 2 883%, with an average annual growth rate of 210.1%. In 2020, imports reached 461.8 tonnes, a dramatic increase of 867.1% compared to the previous year.

Annual dynamics of product's imports to Laos in kind, 2017-2020, t

Between 2017 and 2020, China and Vietnam were the primary suppliers of capsicum and pimenta fruits to Laos, together holding 90.6% of total imports in kind, with the remainder spread across other countries.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Laos in kind, 2017-2020

Imports in value, K $ US

Import values for capsicum and pimenta fruits in Laos displayed high volatility. In 2019, values were at their minimum of 20 thousand US dollars, then jumped to 155 thousand US dollars in 2020, a 7.6-fold increase and a dramatic advance of 658.2% year-over-year. The largest decline occurred in 2019, with a drop of 34.2%.

Annual dynamics of product's imports to Laos in value, 2017-2020, K $ US

From 2017 to 2020, imports in value terms were concentrated among three key markets: China with 45.6%, Vietnam with 33.5%, and Thailand with 20.9%, together representing 100.0% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Laos in value, 2017-2020