Pepper market in Malaysia

Earlier Report Observations

Between 2018 and 2020, the pepper market volume in Malaysia experienced fluctuations, rising to 27 343 tons in 2019. This growth was supported by the Lembaga Lada Malaysia (MPB) through enhanced productivity from biotechnology and agronomy research, the enforcement of Akta 656 for market regulation, and the promotion of Good Agricultural Practices (GAP). However, the market contracted to 24 994 tons in 2020 amid a decline in production.

From 2021, the market recovered, reaching 28 471 tons, aided by MPB's upstream industry development program and the distribution of processing equipment to smallholders in remote areas to improve pepper quality. A sharp expansion followed in 2022, with the market volume peaking at 35 919 tons, driven by continued MPB initiatives such as the Premium Pepper Development Project (PPLP) focusing on value-added products and quality enhancement for global markets. By 2023, the market receded to 30 199 tons.

Throughout the period, MPB played a central role in market development, including the rebranding of Saraspice for international relevance and the expansion of export markets to Japan, Vietnam, and other Asian countries, which helped shape the industry's structure and output.

Production pepper in Malaysia

In kind, 2018-2021, t

Malaysia was among the world's top pepper producers from 2018 to 2021, ranking 10th globally by production volume.

Top producers of pepper, 2018-2021

World map of production of pepper, 2018-2021

In 2021, Malaysia produced 31 636 tonnes of pepper, marking a 2.7% increase from 2020. Production reached its lowest point in 2020 at 30 804 tonnes, while the peak was in 2019 with 33 940 tonnes. The most significant decline occurred in 2020, dropping by 9.2%, whereas the largest increase was in 2019, rising by 5.1%.

Annual dynamics of production in Malaysia in kind, 2018-2021, t

Exports pepper from Malaysia

Exports in kind, t

Malaysia's pepper export volume declined for the third consecutive year. In 2021, exports stood at 7 451 tonnes, down 12.5% from the previous year. Over the 2018-2021 period, exports decreased by 36.7%, with a compound annual growth rate of -14.1%.

Annual dynamics of product's exports from Malaysia in kind, 2018-2021, t

From 2018 to 2021, Japan, China, and Asia (not elsewhere specified) consistently led as the top destinations for Malaysia's pepper exports in volume terms. Japan accounted for 35.3% of exports, China for 18.3%, and Asia for 10.7%, together making up 64.3% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Malaysia in kind, 2018-2021

Exports in value, K $ US

After a two-year decline, Malaysia's pepper exports in value terms rebounded in 2021. Exports reached 37 292 thousand US dollars, a 28.9% increase from 2020. However, over the 2018-2021 period, exports decreased by 25.6%, equating to an annualized decline of 9.4%. The lowest value was recorded in 2020 at 28 935 thousand US dollars, with the largest drop occurring in 2019 at 29.6%.

Annual dynamics of product's exports from Malaysia in value, 2018-2021, K $ US

In the 2018-2021 period, the leading destinations for Malaysia's pepper exports in value terms were Japan, China, and Vietnam. Japan accounted for 40.6% of export value, China for 16.1%, and Vietnam for 8.1%, collectively representing 64.8% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Malaysia in value, 2018-2021

Imports pepper to Malaysia

Imports in kind, t

In 2021, Malaysia's pepper imports surged to 4 287 tonnes, a dramatic 58.3% increase from 2020. Over the 2018-2021 period, imports grew by 49.4%, with a compound annual growth rate of 14.3%. The lowest import volume was in 2020 at 2 708 tonnes, which also saw the largest decline of 17.0%.

Annual dynamics of product's imports to Malaysia in kind, 2018-2021, t

Throughout 2018-2021, Vietnam, Indonesia, and China formed the core group of suppliers for Malaysia's pepper imports in volume terms. Vietnam accounted for 44.2% of imports, Indonesia for 21.4%, and China for 12.2%, together comprising 77.8% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Malaysia in kind, 2018-2021

Imports in value, K $ US

After a two-year drop, Malaysia's pepper imports in value terms increased in 2021. Imports amounted to 15 883 thousand US dollars, a 59.7% rise from the previous year. Over the 2018-2021 period, imports grew by 30%, with a compound annual growth rate of 9.1%. The minimum value was recorded in 2020 at 9 944 thousand US dollars, which also experienced the largest decline of 15.4%.

Annual dynamics of product's imports to Malaysia in value, 2018-2021, K $ US

From 2018 to 2021, Vietnam, Indonesia, and India were the main suppliers of pepper to Malaysia in value terms. Vietnam accounted for 41.2% of import value, Indonesia for 26.7%, and India for 13.9%, together making up 81.7% of total imports.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Malaysia in value, 2018-2021