Pepper market in Central America

Earlier Report Observations

From 2018 to 2020, the Central American pepper market volume remained stable at around 11 700 t before contracting to 9 306 t in 2020. This decline was driven by an outbreak of root rot caused by Phytophthora, which damaged crops and reduced yields, coupled with persistent commercialization problems that disrupted local market dynamics.

Following the 2020 low, the market entered a phase of rapid expansion, growing to 13 623 t in 2021 and reaching 16 749 t by 2023. A key driver from 2022 onward was a shift in consumer preferences towards fresh, healthy foods, particularly in Costa Rica, where emphasis on wellness and support for local markets increased demand for pepper.

The market's structure continued to emphasize local production and sustainability throughout the period, with a focus on smallholder growers forming a stable foundation for the supply chain.

Production pepper in Central America

In kind, 2017-2020, t

Top producers of pepper, 2017-2020

World map of production of pepper, 2017-2020

Central America's pepper production has increased for the third consecutive year. In 2020, the region produced 13 548 tonnes of pepper, marking a measured increase of 9.6% compared to the previous year. Between 2017 and 2020, production grew by 23%, which translates to an annualized growth rate of 7.2%.

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

Exports pepper from Central America

Exports in kind, t

Central America's pepper export volume has risen for the third consecutive year. In 2020, exports reached 9 019 tonnes, representing a significant year-on-year increase of 46.2%. From 2017 to 2020, exports surged by 94.9%, equating to an annualized growth rate of 24.9%.

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

Between 2017 and 2020, pepper exports from Central America were not heavily concentrated. The United States accounted for 15.4% of exports in kind, the Netherlands for 12.1%, and Germany for 11.3%. Together, these three countries captured only 38.9% of total export flows.

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

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

Exports in value, K $ US

In 2020, Central America exported pepper worth 25 862 thousand US dollars, showing a substantial advance of 60.3% from the previous year. Between 2017 and 2020, exports increased by 32.9%, which corresponds to an annualized growth rate of 9.9%. The lowest value was recorded in 2019 at 16 131 thousand US dollars, with the largest decline of 33.4% occurring in that same year.

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

During the period from 2017 to 2020, pepper exports from Central America in value terms were spread relatively evenly. The United States held a 14.8% share of exports in value terms, Germany accounted for 10.4%, and the Netherlands for 9.7%. Collectively, these three countries represented only 35.0% of total export flows.

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

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

Imports pepper to Central America

Imports in kind, t

In 2020, foreign pepper supplies to Central America stood at 4 778 tonnes, reflecting a 13.5% decline compared to 2019. The maximum volume was recorded in 2019 at 5 524 tonnes, with the largest increase of 24.1% occurring that year. The minimum volume was observed in 2018 at 4 451 tonnes.

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

From 2017 to 2020, Brazil, Vietnam, and the United States remained the key partners for pepper imports in kind to Central America. Brazil accounted for 42.6% of imports in kind, Vietnam for 20.3%, and the United States for 18.9%. Together, these three countries comprised 81.9% of total import flows.

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

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

Imports in value, K $ US

Cross-border shipments of pepper to Central America declined for the third consecutive year. In 2020, the region imported approximately 19 963 thousand US dollars worth of pepper, down by 17.6% compared to the previous year. Between 2017 and 2020, imports decreased by 45.8%, which translates to an annualized decline rate of 18.5%.

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

Between 2017 and 2020, Brazil, the United States, and Vietnam accounted for the largest share of pepper imports in value terms to Central America. Brazil held a 39.4% share of imports in value terms, the United States 23.2%, and Vietnam 18.0%. Together, these three countries comprised 80.6% of total import flows.

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

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