Pepper market in Southern Asia

Earlier Report Observations

The pepper market in Southern Asia saw considerable fluctuations in volume between 2018 and 2023, starting at 143 thousand tons in 2018 and reaching a peak of 210 thousand tons in 2019. This initial expansion was supported by favorable regional climatic conditions and government agricultural support policies, including minimum support prices, which encouraged production. However, the market contracted sharply in 2020 to 172 thousand tons, directly impacted by COVID-19 pandemic disruptions that hindered global supply chains and domestic production logistics due to lockdowns and restrictions.

A recovery followed in 2021, with market volume growing to 186 thousand tons, aided by shifts in global demand and adjustments in supply chains after the pandemic. Another decline occurred in 2022, bringing volume down to 156 thousand tons, though no specific major regulatory or industry events were reported that year to explain the drop. By 2023, the market rebounded again to 180 thousand tons, even as the conflict in West Asia and rising global energy prices increased production and transportation costs, adding pressure on the sector.

Production pepper in Southern Asia

In kind, 2017-2020, K t

Top producers of pepper, 2017-2020

World map of production of pepper, 2017-2020

Pepper production in Southern Asia declined after two years of growth. In 2020, the region produced 147.6 K t of pepper, representing a 17.3% decrease compared to the previous year. Looking at the period from 2017 to 2020, production increased by 37.7%, which translates to an annualized growth rate of 11.3%. The peak production was recorded in 2019 at 178.4 K t, with the largest annual increase of 56.2% also occurring in that year.

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

Exports pepper from Southern Asia

Exports in kind, t

Southern Asia's pepper exports declined for the second year in a row. In 2020, the region exported 2 937 t of pepper, down 0.9% year-over-year. From 2017 to 2020, exports grew by 6%, averaging an annualized rate of 1.9%. The highest export volume was in 2018 at 3 610 t, which also saw the largest increase of 30.2%. In contrast, 2019 experienced the most significant decline of 17.8%.

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

Between 2017 and 2020, the export partner landscape for pepper in kind was highly diversified. Germany accounted for 6.2% of exports, the United States for 3.4%, and Russia for 2.7%, together making up just 12.3% of total flows. The remaining 87.7% was distributed among numerous other countries, indicating a broad and varied market.

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

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

Exports in value, M $ US

Southern Asia's pepper exports in value terms showed a solid increase in 2020, reaching 55.0 M $ US, up 14.8% from the previous year. However, over the 2017-2020 period, exports decreased by 35.5%, with a compound annual growth rate (CAGR) of -13.6%. The lowest value was recorded in 2019 at 47.9 M $ US, while the peak was in 2018 at 92.6 M $ US. The most substantial decline occurred in 2019, dropping by 48.3%.

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

The structure of pepper exports in value terms from 2017 to 2020 was diversified, with no single country holding a dominant position. Germany contributed 9.3% of exports, the United States 4.8%, and the United Kingdom 1.2%, collectively accounting for only 15.4% of total flows. This distribution highlights a balanced and varied partner landscape.

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

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

Imports pepper to Southern Asia

Imports in kind, t

After two years of growth, Southern Asia's pepper imports in kind declined. In 2020, imports totaled 27 405 t, a 20.8% decrease from 2019. Over the 2017-2020 period, imports increased by 15%, with a CAGR of 4.8%. The highest import volume was in 2019 at 34 602 t, and the largest annual increase of 35.3% was recorded in 2018.

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

From 2017 to 2020, Vietnam dominated Southern Asia's pepper imports in kind, holding a 73.9% share of total flows. Other markets played a comparatively minor role, with much smaller contributions.

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

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

Imports in value, M $ US

Southern Asia's pepper imports in value terms declined for the second consecutive year. In 2020, imports amounted to 77.2 M $ US, a 30.9% drop from the previous year. Over the 2017-2020 period, imports decreased by 29.6%, with a CAGR of -11.0%. The peak value was in 2018 at 122.9 M $ US, which also saw the largest increase of 12.1%.

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

Throughout 2017-2020, the partner structure for pepper imports in value terms was heavily centered on Vietnam, which accounted for 75.9% of total flows. Other markets formed a less significant part of the import landscape, with minimal shares in comparison.

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

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