Pepper market in Latin America and the Caribbean

Earlier Report Observations

From 2018 to 2022, pepper production in Latin America and the Caribbean increased from 119.8 thousand tonnes to 148.3 thousand tonnes, while the market size expanded from 43.9 thousand tonnes to 74.2 thousand tonnes. This growth was primarily driven by Brazil solidifying its position as the world's second-largest producer and exporter. The expansion of cultivated areas in Pará and Espírito Santo states, along with targeted export promotion by ApexBrasil and local associations—especially to Arab markets—boosted both output and international sales.

The market continued to grow through 2020 despite the COVID-19 pandemic, as Brazil filled supply gaps left by weather-related production declines in Vietnam. Adoption of cutting propagation techniques shortened production cycles, while rising demand for high-value-added pepper products supported market diversification. By 2023, the market size reached 80.1 thousand tonnes, with sustained export momentum and increasing consumer preference for natural flavoring agents driving segment development.

Production pepper in Latin America and the Caribbean

In kind, 2017-2020, K t

Top producers of pepper, 2017-2020

World map of production of pepper, 2017-2020

Pepper production in Latin America and the Caribbean has increased for the third year in a row. In 2020, the region produced 133.9 thousand tonnes of pepper, marking a modest 5.1% rise compared to the previous year. Looking at the period from 2017 to 2020, production grew by 39.9%, with an average annual growth rate of 11.8%.

Annual dynamics of production in Latin America and the Caribbean in kind, 2017-2020, K t

Exports pepper from Latin America and the Caribbean

Exports in kind, K t

Pepper exports from Latin America and the Caribbean have risen for the third consecutive year. In 2020, shipments abroad reached 99.0 thousand tonnes, showing a significant 11.5% increase from 2019. Between 2017 and 2020, exports expanded by 46.3%, translating to an average annual growth rate of 13.5%.

Annual dynamics of product's exports from Latin America and the Caribbean in kind, 2017-2020, K t

From 2017 to 2020, the structure of pepper exports in volume terms reveals a diversified set of trading partners. Germany accounted for 16.2% of exports, the United States for 15.7%, and Vietnam for 11.7%. Together, these three countries made up only 43.6% of total flows, while the remaining 56.4% was spread across numerous smaller markets.

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

World map of product's exports from Latin America and the Caribbean in kind, 2017-2020

Exports in value, M $ US

After two years of decline, the value of pepper exports from Latin America and the Caribbean increased in 2020. Exports totaled 218.8 million US dollars, reflecting a controlled uptick of 5.1% compared to the previous year. However, between 2017 and 2020, exports decreased by 29.3%, which equates to an average annual decline of 10.9%. The lowest value was recorded in 2019 at 208.2 million US dollars, with the largest drop occurring in 2018 at 24.4%.

Annual dynamics of product's exports from Latin America and the Caribbean in value, 2017-2020, M $ US

Over the 2017–2020 period, pepper exports in value terms from Latin America and the Caribbean were not heavily concentrated. Germany contributed 17.7% of export value, the United States 16.8%, and Vietnam 9.8%. Combined, these three countries captured only 44.3% of total flows.

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

World map of product's exports from Latin America and the Caribbean in value, 2017-2020

Imports pepper to Latin America and the Caribbean

Imports in kind, K t

In 2020, Latin America and the Caribbean imported 6.9 thousand tonnes of pepper, representing a robust reduction of 17.9% compared to 2019. Over the period from 2017 to 2020, imports decreased by 9.7%, with an average annual decline of 3.3%. The lowest volume was recorded in 2018 at 5.8 thousand tonnes, while the highest was in 2019 at 8.4 thousand tonnes. The largest decline occurred in 2018 at 24.3%, and the largest increase was in 2019 at 45.3%.

Annual dynamics of product's imports to Latin America and the Caribbean in kind, 2017-2020, K t

Between 2017 and 2020, there was no single dominant market for pepper imports in volume terms. The United States accounted for 14.6% of imports, Vietnam for 14.1%, and Spain for 5.1%. Together, these three suppliers took only 33.8% of total imports, with many smaller partners each holding modest individual shares.

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

World map of product's imports to Latin America and the Caribbean in kind, 2017-2020

Imports in value, M $ US

The value of pepper imports into Latin America and the Caribbean declined for the third consecutive year. In 2020, imports amounted to 44.8 million US dollars, showing a moderate 5.9% decrease from the previous year. From 2017 to 2020, imports fell by 38.3%, corresponding to an average annual decline of 14.9%.

Annual dynamics of product's imports to Latin America and the Caribbean in value, 2017-2020, M $ US

From 2017 to 2020, the United States, Vietnam, and Spain were the largest but not dominant suppliers of pepper to Latin America and the Caribbean in value terms. The United States accounted for 19.4% of import value, Vietnam for 15.3%, and Spain for 6.3%. Together, they made up 41.0% of total imports, against a backdrop of numerous smaller partners.

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

World map of product's imports to Latin America and the Caribbean in value, 2017-2020