Chilli peppers are fruits of Capsicum pepper plants, which are members of the nightshade family and are also related to tomatoes. Five domesticated chilli pepper species have different cultivars, including the cayenne and jalapeño. Chilli peppers are notable for their hot flavour and are primarily used as a spice. Capsaicin is their main bioactive plant compound, responsible for their unique taste and health benefits. 

Chilli peppers are traded fresh to be used as a spice in cooking but are also sold dried and powdered. Red powdered chilli peppers are paprika, a spice commonly sold in European supermarkets.

In Europe, the primary produced species is the Capsicum Annuum, which includes the common red Cayenne pepper cultivar and local varieties such as Padron and Ñora (Spain), Piment d’Espelette (France), Pepperoncino (Italy), and the Hungarian wax pepper. On the other hand, more exotic peppers and other species are usually imported.

The Global Chilli Peppers Market in Numbers

According to IMARC Group, the total global value of the chilli peppers market was US$1.42 billion in 2023. They predict that by 2032, the market will reach US$2.34 billion at a projected CAGR of 5.70%. The growing demand for spicy cuisines, chilli peppers rich in antioxidants, vitamins, and capsaicin content, and the food processing industries’ reliance on them for hot sauces, snacks, and ready-to-eat meals are critical factors in this growth. 

The largest exporters of chilli peppers in 2022 were Mexico ($1.59B), Spain ($1.44B), the Netherlands ($974M), Canada ($494M), and Morocco ($207M). These five countries supplied just under three-quarters (74.14%) of chilli peppers exported globally. In the same year, the top importers were the United States ($2.05B), Germany ($955M), the United Kingdom ($478M), Canada ($315M), and France ($307M).

Europe’s key importing countries are France, Romania, Spain, the United Kingdom, Germany, and Bulgaria. In 2020, the European Union imported 46,000 tonnes of chilli peppers from outside the union, and the United Kingdom has a stable import of 6,000 to 6,500 tonnes annually.

Principle Exporters of Chilli Peppers to Europe

Fresh chilli peppers are available in Europe from suppliers in Spain, the Netherlands, and Italy between June and September. In the off-season, they are mostly imported from non-European countries and grown on a smaller scale in greenhouses. December to February are the best months for countries boasting warmer climates to meet this off-season demand.

Africa

Morocco is the lead supplier of chilli peppers to Europe, exporting almost 22,000 tonnes to the EU in 2020. France and Spain are the main destinations, with several French companies, such as FausDura and Marquillanes, focusing on sourcing Moroccan chill peppers. Morocco’s proximity to the European market, warm climate, and sold agricultural policies make it a key competitor. 

Uganda supplies several exotic chilli peppers known for their heat, including the Habanero, African Brid’s Eye peppers, and Scotch Bonnet. Uganda’s hot climate allows it to produce especially hot and spicy peppers. The supply to Europe has been increasing. However, stricter EU phytosanitary requirements have made it more difficult for Ugandan suppliers to export chilli peppers free of pesticide residue and pests. In 2020, Europe imported 900 tonnes from Uganda, while the United Kingdom imported 800. Most of this demand is in the off-season from October to July. 

Kenya has a climate similar to Uganda but struggles with some of the same problems with pests. It supplied the EU and the UK with 1,150 tonnes in 2020, making it one of Britain’s key exporters. However, Kenyan exporters have found it challenging to compete with Senegalese companies in recent years. Despite this, Kenya retains its strong position due to its supply of other horticultural products like sugar snaps, aubergines, and herbs. 

Asia

Turkey is one of the world’s largest chilli pepper-producing countries and an increasingly large EU supplier. Turkish exports primarily focus on Eastern Europe and Germany, countries with significant Turkish populations. Romania, Germany, Bulgaria, and Austria imported 12,000 tonnes of chilli peppers in 2020. Increasing greenhouse production and different growing regions allow Turkey to supply the European market with nearby affordable chilli peppers year-round. 

India is the world’s largest producer of dried chilli peppers. It’s also the UK’s largest exporter of fresh chilli peppers, exporting 1340 tonnes in 2020, a volume that has remained relatively stable over recent years. The UK’s close ties to India and large Indian population make it an important market. India also supplies Europe in the off-season starting in October. However, it struggles with pests and rising airfreight rates, but the Indian Institute of Horticultural Research is developing new pest-resistant chilli varieties.

European Distribution Hubs for Chilli Peppers

In 2020, the largest European importers of chilli peppers from non-EU sources were France (€13.3 million), Romania (€11.3 million), Spain (€9 million), the United Kingdom (€6.1 million), Germany (€3.1 million), and Bulgaria (€2.4 million).

Companies like the Netherlands’ Westland Peppers are increasing the availability of varieties across the continent, and wholesalers like Punjab Exotic Food are supplying hospitality and food services.

The Market for Chilli Peppers in Europe

In Northwest Europe, the consumption of chilli peppers is influenced by foreign cuisines, with France, the United Kingdom, and Germany as key importers. Spain is a consumer and producer of chilli peppers, and imports from Morocco are growing. Chilli peppers are part of the local cuisine in Eastern Europe, Bulgaria, Romania, and Turkey, which mostly supplies the countries. 

As the North African and Asian populations of Europe grow, the demand for chilli peppers and the mainstreaming of cuisines featuring them will increase.

Advice for Getting into the Chilli Peppers Sector 

If you’re interested in working in the cultivation, export, import, or wholesale/retail of chilli peppers, consider this: 

Choosing the right markets:

Prioritize markets that are known for importing from your country. If you are a Turkish supplier, your easiest market entry will be Eastern Europe, while North African suppliers will find Spain and France have the most potential.

Raise awareness:

Promoting your chilli peppers’ unique characteristics and culinary uses at trade fairs can help you find partners to sell to. Working with dedicated importers and retailers can increase consumer awareness and appreciation for exotic varieties. 

Organic market:

Certifying your production as organic will broaden your market opportunities, but implementing organic production to become certified can be expensive and time-consuming. You must be able to comply with the entire organic process.

Sources:

https://www.cbi.eu/market-information/fresh-fruit-vegetables/chilli-peppers-0/market-potential 

https://www.cbi.eu/market-information/fresh-fruit-vegetables/chilli-peppers-0/market-entry 

https://www.healthline.com/nutrition/foods/chili-peppers

https://www.imarcgroup.com/chili-peppers-pricing-report

https://oec.world/en/profile/hs/peppers-capsicum-pimenta-freshchilled