Pepper market in MERCOSUR

Earlier Report Observations

From 2018 to 2020, the pepper market volume in MERCOSUR decreased from 30.7 thousand tons to 25.9 thousand tons, while production grew from 101.6 thousand tons to 114.7 thousand tons. This period was marked by a sharp rise in exports, which increased from 72.5 thousand tons to 89.4 thousand tons, fueled by investments in technology such as sterilizing machines to eliminate salmonella contamination in Espírito Santo and active participation in international food industry events. The COVID-19 pandemic in 2020 caused a global supply shock, boosting external demand for Brazilian pepper and further stimulating export volumes.

Starting in 2021, the market volume began a rapid expansion, reaching 50.2 thousand tons by 2023. Production continued to increase, peaking at 129.2 thousand tons in 2022, even as exports started to decline. This growth was supported by product diversification into segments like Capsicum and Piper peppers, alongside significant investments in automation and professionalization by large industrial producers. In 2024, the Coopbac cooperative set an export record, shipping 1.1 million kilograms in the first quarter, reflecting the sector's ongoing competitiveness driven by technological innovation and market access efforts.

Production pepper in MERCOSUR

In kind, 2017-2020, K t

Top producers of pepper, 2017-2020

World map of production of pepper, 2017-2020

Pepper production in MERCOSUR has grown for the third year in a row. In 2020, the region produced 114.7 thousand tonnes of pepper, marking a modest 4.9% increase from the previous year. Looking at the period from 2017 to 2020, production rose by 45.1%, with an average annual growth rate of 13.2%.

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

Exports pepper from MERCOSUR

Exports in kind, t

Pepper exports from MERCOSUR have also increased for the third consecutive year. In 2020, exports reached 89 357 tonnes, up 7.4% year-on-year. Over the 2017-2020 period, exports grew by 49.7%, translating to an average annual growth rate of 14.4%.

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

From 2017 to 2020, pepper exports from MERCOSUR were distributed across a wide range of markets. The top three destinations—Germany (17.5% of exports), the United States (14.1%), and Vietnam (13.1%)—together accounted for just 44.7% of total export volumes, indicating a broad market spread.

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

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

Exports in value, M $ US

After two years of decline, the value of pepper exports from MERCOSUR saw an uptick. In 2020, exports totaled 185.3 million US dollars, reflecting a limited 3.2% increase compared to 2019. However, between 2017 and 2020, export value fell by 32.5%, with an annualized decline of 12.3%. The lowest value was recorded in 2019 at 179.6 million US dollars, and the largest drop occurred in 2018, at 29.0%.

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

During 2017-2020, pepper exports from MERCOSUR in value terms were not highly concentrated. Germany (19.2% of export value), the United States (15.6%), and Vietnam (11.1%) together captured only 46.0% of total flows, highlighting a diversified export structure.

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

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

Imports pepper to MERCOSUR

Imports in kind, t

Import volumes of pepper into MERCOSUR showed irregular changes, pointing to a volatile market. The lowest point was in 2020, with imports at 518 tonnes, a sharp 69.9% drop from the previous year. In contrast, the peak occurred in 2017, creating a 4.7-fold difference between these years. The largest increase was recorded in 2019, at 11.2%.

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

Between 2017 and 2020, pepper imports into MERCOSUR came from many different sources. Even the largest suppliers—Vietnam, Ecuador, and India—together represented only 17.6% of total import volumes, underscoring a highly diversified supply base.

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

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

Imports in value, M $ US

Following a two-year decline, the value of pepper imports into MERCOSUR increased. In 2020, imports amounted to approximately 7.5 million US dollars, up 8.5% from 2019. However, over the 2017-2020 period, import value decreased by 50.8%, with an annualized rate of decline of 21.0%. The minimum value was in 2019 at 6.9 million US dollars, and the largest decline was in 2018, at 47.0%.

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

From 2017 to 2020, the largest suppliers of pepper to MERCOSUR in value terms were Vietnam (14.4% of import value), Indonesia (4.0%), and Ecuador (3.9%). Yet, their combined share was limited to 22.3% of total imports, reflecting a diversified country structure for imports.

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

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