Capsicum and pimenta fruits market in South America

Earlier Report Observations

Between 2018 and 2020, the South American market for fresh or chilled capsicum and pimenta fruits contracted, with volume falling from 731 thousand tons to 684 thousand tons. This decline was primarily driven by persistent adverse climatic conditions and fungal diseases like Phytophthora capsici, which reduced yields, coupled with rising input costs for labor and materials that squeezed profitability. The COVID-19 pandemic in 2020 further disrupted supply chains and production adjustments, exacerbating the downturn.

Production rebounded sharply in 2021, surging 21% to 827 thousand tons. This recovery was supported by the continued expansion of protected agriculture, which improved efficiency and year-round availability, while post-pandemic demand for fresh, healthy ingredients strengthened. Additionally, a greater focus on alternative export markets beyond the United States, such as the United Kingdom post-Brexit, helped lift output.

Market volume retreated by 11% in 2022 to 737 thousand tons, pressured by soaring agricultural input and energy costs that made cultivation less profitable, alongside ongoing climatic and phytosanitary challenges in key producer Brazil. The introduction of frozen pepper products and snack formats aimed at convenience-oriented consumers emerged as new segments. By 2023, the market stabilized at 737 thousand tons, as higher consumption of derived products like pepper sauces in Brazil—which grew 8.3% in volume—offset production constraints, while the development of disease-resistant hybrids began to enhance productivity.

Production capsicum and pimenta fruits in South America

In kind, 2017-2020, K t

Top producers of capsicum and pimenta fruits, 2017-2020

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

South America's production of capsicum and pimenta fruits declined for the second year in a row. In 2020, the region produced 684.6 thousand tons, marking a modest 4.2% decrease from 2019. Looking at the broader period from 2017 to 2020, production actually increased by 3.4%, with an average annual growth rate of 1.1%. The peak was reached in 2018 at 732.1 thousand tons, which represented the largest increase of 10.6% during this timeframe.

Annual dynamics of production in South America in kind, 2017-2020, K t

In value, 2017-2020, M $ US

The value of capsicum and pimenta fruits production in South America fell for the third consecutive year. In 2020, output was valued at 1 258 million US dollars, down 8.7% from the previous year. From 2017 to 2020, production value decreased by 18.7%, translating to an annualized decline of 6.7%.

Annual dynamics of production in South America in value, 2017-2020, M $ US

Exports capsicum and pimenta fruits from South America

Exports in kind, t

Export volumes showed noticeable fluctuations over the period. The lowest point was in 2017, while exports peaked in 2018, with a 3.5-fold difference between these years. In 2020, South America exported 1 355 tons of capsicum and pimenta fruits, representing a sharp decline of 23.5% compared to 2019. The maximum volume was recorded in 2018 at 1 797 tons, which saw the largest increase of 252.0%.

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

From 2017 to 2020, the leading destinations for South America's capsicum and pimenta fruit exports in volume terms were the United States, with 40.0% of exports, Italy at 7.4%, and Spain with 4.2%. Together, these three countries accounted for 51.6% of total export flows.

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

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

Exports in value, K $ US

Export values exhibited volatility during the observed period. The low point was in 2017, while the high was in 2018, with values fluctuating by a factor of three between these years. In 2020, exports from South America amounted to 2 490 thousand US dollars, which is 27.0% lower than in 2019. The peak value was recorded in 2018 at 3 551 thousand US dollars, marking the largest increase of 197.6%.

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

Throughout 2017 to 2020, the United States remained the top market for South America's capsicum and pimenta fruit exports in value terms, accounting for 49.4% of exports. Italy followed with 14.3%, and Spain with 7.2%. Collectively, these three markets represented 71.0% of total export value.

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

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

Imports capsicum and pimenta fruits to South America

Imports in kind, t

Imports of capsicum and pimenta fruits into South America increased for the second year in a row. In 2020, the region imported approximately 604 tons, showing a strong rise of 11.4% compared to the previous year. However, over the full period from 2017 to 2020, imports decreased by 24.3%, with an average annual decline of 8.9%. The lowest volume was recorded in 2018 at 511 tons, which saw the largest decline of 35.9%.

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

From 2017 to 2020, the United States was the key partner for capsicum and pimenta fruit imports into South America in volume terms, holding a 1.5% share of total import flows.

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

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

Imports in value, K $ US

Import values for capsicum and pimenta fruits into South America rose for the second consecutive year. In 2020, imports were valued at approximately 1 079 thousand US dollars, up 13.6% from 2019. Between 2017 and 2020, however, import values decreased by 13.4%, equating to an annualized rate of decline of 4.7%. The minimum value was recorded in 2018 at 932 thousand US dollars, which experienced the largest decline of 25.3%.

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

Over the period 2017 to 2020, the United States consistently held the largest share of capsicum and pimenta fruit imports into South America in value terms, accounting for 10.4% of total import flows.

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

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