Pepper market in South America

Earlier Report Observations

The pepper market volume in South America remained stable at around 30.6 thousand tons from 2018 to 2020, despite rising production. This period saw Brazilian exports expand, particularly to Arab countries, driven by greater promotion of the product at international food sector events and a global supply shock caused by the COVID-19 pandemic, which increased demand for Brazilian pepper.

Market volume began a sustained rise from 2021, reaching 58.2 thousand tons in 2023. This growth was fueled by increased production, supported by government programs for family farmers, such as Proater, and investments in cost-reducing technologies including mechanization and the adoption of live tutoring (gliricidia). Concurrently, the consolidation of key export destinations like the UAE and Egypt helped stabilize external sales, allowing a larger share of output to supply the domestic market.

Production pepper in South America

In kind, 2017-2020, K t

Top producers of pepper, 2017-2020

World map of production of pepper, 2017-2020

South America's pepper production has increased for the third consecutive year. In 2020, the region produced 119.8 thousand tonnes of pepper, representing a 4.6% growth compared to the previous year. Looking at the period from 2017 to 2020, production rose by 42.6%, which translates to an annualized growth rate of 12.6%.

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

Exports pepper from South America

Exports in kind, t

South America's pepper exports have also grown for the third year in a row. In 2020, exports reached 91 729 tonnes, marking a 5.4% increase year-over-year. Between 2017 and 2020, export volumes expanded by 43.9%, with an annualized growth rate of 12.9%.

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

An analysis of pepper exports in volume terms from 2017 to 2020 reveals a wide distribution across multiple markets. Germany accounted for 16.7% of exports, the United States for 15.7%, and Vietnam for 12.5%. Together, these three countries made up only 44.8% of total export flows, while the remaining 55.2% was spread among various other partners.

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

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

Exports in value, M $ US

After a two-year decline, the value of pepper exports from South America increased in 2020, totaling 192.0 million US dollars. This represented only a slight fluctuation compared to the previous year. Over the 2017-2020 period, export values decreased by 33.6%, with a compound annual growth rate of -12.8%. The lowest value was recorded in 2019 at 191.5 million US dollars, and the largest decline occurred in 2018, with a drop of 27.8%.

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

The structure of pepper exports in value terms from 2017 to 2020 indicates a diversified set of trading partners. Germany contributed 18.4% of export value, the United States 16.9%, and Vietnam 10.6%. Combined, these three countries accounted for just 46.0% of total export flows, with the remaining 54.0% distributed among numerous smaller markets.

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

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

Imports pepper to South America

Imports in kind, t

The pepper import market in South America showed volatility during the observed period. Import volumes varied significantly, with a two-fold difference between the high in 2017 and the low in 2018. In 2020, imports amounted to 2 507 tonnes, reflecting a 21.6% decrease compared to the previous year. The lowest volume was recorded in 2018 at 1 755 tonnes, with the largest decline of 50.5% also occurring that year. In contrast, the largest increase was seen in 2019, with a rise of 82.3%.

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

From 2017 to 2020, Mexico was the largest supplier of pepper to South America in volume terms, accounting for 11.4% of imports, followed by Vietnam at 8.3% and China at 6.4%. However, even combined, these three countries represented only 26.1% of total import volumes, highlighting a broadly diversified partner base.

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

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

Imports in value, M $ US

After two years of decline, the value of pepper imports into South America increased in 2020, reaching 16.6 million US dollars, which is 10.0% higher than in 2019. Over the 2017-2020 period, import values decreased by 34%, with a compound annual growth rate of -12.9%. The lowest value was recorded in 2019 at 15.1 million US dollars, and the largest decline occurred in 2018, with a drop of 31.6%.

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

From 2017 to 2020, South America imported pepper from many countries. Even the largest suppliers—Vietnam, Mexico, and the United States—together accounted for only 27.4% of total import value, underscoring the diversity of trading partners.

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

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