Latin America and the Caribbean: Chili And Pepper Market 2025

Chili And Pepper Market Size in Latin America and the Caribbean

The Latin American chili and pepper market was estimated at $X in 2022, growing by 8.8% against the previous year. In general, consumption recorded a notable increase. The level of consumption peaked at $X in 2018; however, from 2019 to 2022, consumption stood at a somewhat lower figure.

Chili And Pepper Production in Latin America and the Caribbean

In value terms, chili and pepper production reached $X in 2022 estimated in export price. Over the period under review, production posted buoyant growth. The pace of growth appeared the most rapid in 2016 when the production volume increased by 55% against the previous year. Over the period under review, production hit record highs at $X in 2018; however, from 2019 to 2022, production stood at a somewhat lower figure.

Mexico (X tons) constituted the country with the largest volume of chili and pepper production, comprising approx. 73% of total volume. Moreover, chili and pepper production in Mexico exceeded the figures recorded by the second-largest producer, Peru (X tons), more than tenfold. The third position in this ranking was taken by Argentina (X tons), with a 4.1% share.

In Mexico, chili and pepper production expanded at an average annual rate of +1.3% over the period from 2012-2022. The remaining producing countries recorded the following average annual rates of production growth: Peru (+3.6% per year) and Argentina (+0.6% per year).

The average chili and pepper yield amounted to X tons per ha in 2022, almost unchanged from the year before. Over the period under review, the yield saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 with an increase of 21%. The level of yield peaked at X tons per ha in 2018; however, from 2019 to 2022, the yield remained at a lower figure. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2022, the total area harvested in terms of chilies and peppers (green) production in Latin America and the Caribbean reached X ha, flattening at 2021 figures. The harvested area increased at an average annual rate of +1.3% over the period from 2012 to 2022; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being observed throughout the analyzed period. The growth pace was the most rapid in 2016 with an increase of 11%. As a result, the harvested area reached the peak level of X ha. From 2017 to 2022, the growth of the chili and pepper harvested area failed to regain momentum.

Chili And Pepper Exports

Exports in Latin America and the Caribbean

In 2022, shipments abroad of chilies and peppers (green) decreased by -8.7% to X tons for the first time since 2017, thus ending a four-year rising trend. Total exports indicated moderate growth from 2012 to 2022: its volume increased at an average annual rate of +3.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +81.3% against 2017 indices. The most prominent rate of growth was recorded in 2021 when exports increased by 51% against the previous year. As a result, the exports attained the peak of X tons, and then dropped in the following year.

In value terms, chili and pepper exports fell to $X in 2022. Total exports indicated strong growth from 2012 to 2022: its value increased at an average annual rate of +5.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth was the most pronounced in 2016 when exports increased by 20% against the previous year. The level of export peaked at $X in 2021, and then shrank in the following year.

Exports by Country

Mexico dominates exports structure, reaching X tons, which was near 95% of total exports in 2022. The following exporters - Honduras (X tons) and Guatemala (X tons) - each resulted at a 3.5% share of total exports.

Exports from Mexico increased at an average annual rate of +3.8% from 2012 to 2022. At the same time, Honduras (+5.4%) and Guatemala (+3.5%) displayed positive paces of growth. Moreover, Honduras emerged as the fastest-growing exporter exported in Latin America and the Caribbean, with a CAGR of +5.4% from 2012-2022. The shares of the largest exporters remained relatively stable throughout the analyzed period.

In value terms, Mexico ($X) remains the largest chili and pepper supplier in Latin America and the Caribbean, comprising 94% of total exports. The second position in the ranking was taken by Honduras ($X), with a 3% share of total exports.

From 2012 to 2022, the average annual growth rate of value in Mexico amounted to +6.0%. The remaining exporting countries recorded the following average annual rates of exports growth: Honduras (+8.9% per year) and Guatemala (+3.7% per year).

Export Prices by Country

In 2022, the export price in Latin America and the Caribbean amounted to $X per ton, standing approx. at the previous year. Export price indicated a notable expansion from 2012 to 2022: its price increased at an average annual rate of +2.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, chili and pepper export price decreased by -31.3% against 2020 indices. The most prominent rate of growth was recorded in 2016 when the export price increased by 56%. Over the period under review, the export prices hit record highs at $X per ton in 2020; however, from 2021 to 2022, the export prices remained at a lower figure.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Honduras ($X per ton), while Guatemala ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Honduras (+3.3%), while the other leaders experienced more modest paces of growth.

Chili And Pepper Imports

Imports in Latin America and the Caribbean

In 2022, the amount of chilies and peppers (green) imported in Latin America and the Caribbean rose markedly to X tons, growing by 6.5% against 2021. Total imports indicated a modest expansion from 2012 to 2022: its volume increased at an average annual rate of +1.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +78.3% against 2015 indices. The most prominent rate of growth was recorded in 2016 when imports increased by 30%. Over the period under review, imports hit record highs in 2022 and are likely to see steady growth in the immediate term.

In value terms, chili and pepper imports soared to $X in 2022. Total imports indicated a buoyant expansion from 2012 to 2022: its value increased at an average annual rate of +5.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +96.4% against 2015 indices. The pace of growth was the most pronounced in 2017 with an increase of 22%. Over the period under review, imports attained the maximum in 2022 and are expected to retain growth in the immediate term.

Imports by Country

El Salvador was the major importer of chilies and peppers (green) in Latin America and the Caribbean, with the volume of imports reaching X tons, which was near 48% of total imports in 2022. Paraguay (X tons) held the second position in the ranking, followed by Mexico (X tons) and Bahamas (X tons). All these countries together held approx. 36% share of total imports. The following importers - Aruba (X tons), Haiti (X tons) and Cayman Islands (X tons) - each amounted to a 5.4% share of total imports.

El Salvador experienced a relatively flat trend pattern with regard to volume of imports of chilies and peppers (green). At the same time, Cayman Islands (+45.9%), Paraguay (+19.3%), Bahamas (+15.0%) and Aruba (+5.0%) displayed positive paces of growth. Moreover, Cayman Islands emerged as the fastest-growing importer imported in Latin America and the Caribbean, with a CAGR of +45.9% from 2012-2022. By contrast, Haiti (-3.3%) and Mexico (-7.3%) illustrated a downward trend over the same period. While the share of Paraguay (+15 p.p.), Bahamas (+3.9 p.p.) and Cayman Islands (+1.6 p.p.) increased significantly in terms of the total imports from 2012-2022, the share of El Salvador (-4.4 p.p.) and Mexico (-17.7 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, El Salvador ($X), Mexico ($X) and Bahamas ($X) constituted the countries with the highest levels of imports in 2022, with a combined 51% share of total imports. Aruba, Paraguay, Cayman Islands and Haiti lagged somewhat behind, together comprising a further 22%.

Among the main importing countries, Cayman Islands, with a CAGR of +45.0%, recorded the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2022, the import price in Latin America and the Caribbean amounted to $X per ton, surging by 8.2% against the previous year. Over the last decade, it increased at an average annual rate of +4.6%. The pace of growth was the most pronounced in 2013 when the import price increased by 18% against the previous year. Over the period under review, import prices hit record highs in 2022 and is expected to retain growth in the near future.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Aruba ($X per ton), while Paraguay ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Mexico (+10.6%), while the other leaders experienced more modest paces of growth.

Source: IndexBox Platform

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