World: Pepper - Market Report. Analysis And Forecast To 2025

Global pepper market revenue amounted to 1,847 million USD in 2015, rising by +8.3% against the previous year level. Overall, global pepper market continues to undergo a significant growth: the market value increased at an average annual rate of +6.8% from 2007 to 2015. This trend pattern, however, indicated some noticable fluctuations throughout the analyzed period. The growth pace was the most rapid in 2010, when the market revenue increased by +97% from the previous year level. In that year, the global pepper market revenue attained its maximum of 1,951 million USD. From 2011 to the end of the period under review, the total pepper market revenue failed to regain its former peak level.

Over the analyzed period, an increase in global pepper production was primarily driven by population growth and growth of Asian and Latin population. Furthermore, these key drivers are expected to continue promoting the pepper output in the immediate term. This general positive trend was largely conditioned by a noticeable curtailment of the harvested area and solid gains of the yield figures.

The country with the largest volume of the pepper output in absolute volumes was Viet Nam (328 thousand tonnes), accounting for 67% of global production. Moreover, pepper output in Viet Nam exceeded the figures recorded by the world's second largest producer, Indonesia (88 thousand tonnes), fourfold. The third position in this ranking was occupied by India with a share of 12%. From 2007 to 2015, an average annual growth rate of Viet Nam's pepper producton stood at +8.8%. The remaining producing countries recorded the following average annual growth rates: Indonesia (+1.2% per year) and India (-2.1% per year).

The world pepper harvested area amounted to 430 thousand ha in 2015, which was -11.0% less than the previous year figure. The pepper harvested area indicated a pronounced contraction over the period under review, declining by an average annual rate of -4.5% from 2007 to 2015. This trend pattern, however, indicated some mild fluctuations over the recent years. Over the period under review, the total pepper harvested area peaked in 2007, declining in the following year. From 2008 to 2015, the total pepper harvested area fluctuated at lower levels.

The global average pepper yield amounted to 11 thousand hg/ha in 2015, rising by 17.8% from the previous year figure. The yield figures recorded an upward trend over the period under review, with a compound annual growth rate standing at +5.4% from 2007 to 2015. However, the yield levels displayed some little fluctuations over the recent years. The highest pepper yields were recorded in 2015. Albeit an intensification of modern agricultural technics use, the future yield figures subject to a substantional risk of adverse weather conditions.