Pepper market in India

Earlier Report Observations

The value of India's pepper market showed considerable volatility between 2018 and 2023. It expanded sharply in 2019 following a renewed increase in imports and a concerted focus on improving crop quality and yield. The market then contracted in 2020 due to severe supply chain disruptions caused by the COVID-19 pandemic. A strong recovery occurred in 2021, largely driven by a 44% surge in average import prices and the widespread adoption of digital technologies for marketing and distribution.

Underlying this volatility were several enduring trends. Government policies actively promoted spice cultivation and market access, while consumer preferences steadily shifted towards organic and premium pepper products. Sustainable agriculture programs, such as those initiated by McCormick and GIZ, were launched to enhance productivity and farmer livelihoods, contributing to the market's foundation.

By 2023, the market value climbed to new heights as Indian spice exports set records, bolstered by growing global demand and rising health consciousness among consumers. However, production began facing headwinds from unseasonal rainfall linked to climate change. Entering 2024, the market contended with ongoing climatic challenges affecting supply, even as digital sales channels and investments from major companies like DS Group continued to evolve the landscape.

Production pepper in India

In kind, 2017-2020, K t

From 2017 to 2020, India ranked third globally in pepper production volume.

Top producers of pepper, 2017-2020

World map of production of pepper, 2017-2020

The market showed an unstable trend during this period. Production volumes fluctuated significantly, with a 2.1-fold difference between the low in 2018 and the high in 2019. In 2020, India produced 104.0 K t of pepper, down 24.1% from 2019. The minimum production was recorded in 2018 at 66.0 K t, while the maximum was in 2019 at 137.0 K t. The largest year-on-year increase occurred in 2019, with production rising by 107.6%.

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

In value, 2017-2020, M $ US

In 2020, India's pepper output was valued at 396.4 M $ US, a decrease of 28.9% from 2019. Over the 2017-2020 period, production value declined by 25.5%, with a compound annual growth rate (CAGR) of -9.4%. The minimum value was recorded in 2018 at 353.3 M $ US, and the maximum in 2019 at 557.7 M $ US. The largest year-on-year decline occurred in 2018, falling by 33.6%, while the largest increase was in 2019, rising by 57.9%.

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

Exports pepper from India

Exports in kind, t

In 2020, India's cross-border shipments of pepper totaled 17 489 t, marking a notable decrease of 11.0% compared to the previous year. Over the 2017-2020 period, exports decreased by 4.3%, with a CAGR of -1.4%. The minimum export volume was recorded in 2018 at 16 726 t, and the maximum in 2019 at 19 641 t. The largest year-on-year increase occurred in 2019, with exports rising by 17.4%.

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

From 2017 to 2020, the United States (35.9% of exports in kind), the United Kingdom (8.6% of exports in kind), and Canada (5.7% of exports in kind) were the top contributors to India's pepper exports in volume terms. Together, these three countries accounted for 50.2% of total export flows.

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

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

Exports in value, M $ US

Pepper exports from India declined for the third consecutive year. In 2020, export value reached 66.7 M $ US, which is 16.6% lower than the previous year. Over the 2017-2020 period, exports decreased by 50.7%, with a CAGR of -21.0%.

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

From 2017 to 2020, the leading destinations for India's pepper exports in value terms were the United States (36.0% of exports in value terms), the United Kingdom (8.9% of exports in value terms), and Germany (6.8% of exports in value terms). Collectively, these three markets represented 51.8% of total export flows.

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

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

Imports pepper to India

Imports in kind, t

In 2020, India's cross-border shipments of pepper imports registered 27 441 t, equivalent to a decline of 6.5% relative to the prior year. Over the 2017-2020 period, imports decreased by 9.8%, with a CAGR of -3.4%. The minimum import volume was recorded in 2018 at 26 009 t. The largest year-on-year decline occurred in 2018, falling by 14.5%, while the largest increase was in 2019, rising by 12.9%.

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

Throughout 2017-2020, Vietnam (37.7% of imports in kind), Sri Lanka (29.4% of imports in kind), and Indonesia (18.1% of imports in kind) formed the core group of markets for India's pepper imports in volume terms. Together, these three countries accounted for 85.2% of total import flows.

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

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

Imports in value, M $ US

India's pepper imports declined for the third consecutive year. In 2020, imports totaled 85.9 M $ US, representing a gradual decline of 8.3% from the year earlier. Over the 2017-2020 period, imports decreased by 48.1%, with a CAGR of -19.6%.

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

From 2017 to 2020, Sri Lanka (44.6% of imports in value terms), Vietnam (30.4% of imports in value terms), and Indonesia (13.8% of imports in value terms) were the main markets for India's pepper imports in value terms. Together, these three countries accounted for 88.8% of total import flows.

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

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