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Global Capsicum Market Is Valued At 8686.70 Million US$ In 2018
Wednesday, 06 May, 2020
Capsicum, the pepper, is a genus of flowering plants in the nightshade family Solanaceae, Its species are native to the Americas, where they have been cultivated for thousands of years. Following the Columbian Exchange, it has become cultivated worldwide, and it has also become a key element in many cuisines. Additionally, Capsicum species have also been used as medicines and lachrymatory agents.

This report focuses on Capsicum volume and value at global level, regional level and company level. From a global perspective, this report represents overall Capsicum market size by analyzing historical data and future prospect. Regionally, this report focuses on several key regions: North America, Europe, China and Japan.

Capsicum, the pepper, is a genus of flowering plants in the nightshade family Solanaceae. Its species are native to the Americas, where they have been cultivated for thousands of years. Following the Columbian Exchange, it has become cultivated worldwide, and it has also become a key element in many cuisines. Additionally, Capsicum species have also been used as medicines and lachrymatory agents.

Whether red, green, yellow, bell or pointed, peppers are grown worldwide. Depending on the country, the product remains on the domestic market or is mostly exported to neighboring countries. The global Capsicum market is valued at 8686.70 million US$ in 2018 is expected to reach 11652.38 million US$ by the end of 2024, growing at a CAGR of 5.02% during 2018-2024.

Good summer for German peppers

Unlike many other fruits and vegetables, peppers have had a good summer. A German grower says that “of course, it was hot, but since peppers are grown in greenhouses, they were hardly affected. We can block the sunlight, and thanks to irrigation, we don't rely on the rain. ” The number of hours of sunshine and the temperature have been good for this grower and he suffered very few problems with diseases. Some peppers got burn marks, but only an insignificant share of the production was affected by this." At the moment, the prices are low due to the small demand.

Pointed peppers have seen their market share grow compared to bell peppers, and in general, there is a trend favoring smaller vegetables. Snack vegetables are doing especially well. "The local is very important and regional pointed peppers do well against imported peppers from, for example, the Netherlands. Pointed peppers are becoming increasingly popular because most varieties are sweeter."

Snack peppers are an interesting product for growers, but in some parts of Germany the market is saturated. That is why some growers have decided not to plant these varieties.

Italy is facing competition in the Netherlands and Spain

As is the case with tomatoes, peppers are in demand all year round. In addition to domestic production, there are also imports from Spain and the Netherlands. These countries mainly supply bell peppers, which differ from the more traditional Italian elongated varieties.

Mexico: Peppers are a strategic export product

The North American country is in the top three of the world's largest exporters of regular and chilli peppers. Consequently, these products are considered strategic crops for the Ministry's National Agricultural Planning 2017-2030. "International demand has increased in twenty countries in America, Asia and Europe and also in countries where Mexico does not have a free trade agreement. That makes our country one of the biggest international competitors.

Australia focuses on domestic market

Although peppers are grown year-round Down Under, the peak is clearly reached in the summer months. In the 2016-17 campaign, 73,488 tons of peppers were harvested, according to our data. That volume was sold for $ 172.4 million, which entails an increase of 24% compared to the previous year. Almost all peppers remain on the domestic market. Only 346 tons were exported. Thus, exports recorded a 28% drop. Meanwhile, imports are also falling every year.

China grows for the processing industry
Peppers are not very popular among Chinese consumers; however, hot peppers are very popular. Most of the fresh peppers that are produced are intended for export to other countries in Europe and North America. However, the transport costs are high, because the shelf life of these products is not very long, so most Chinese companies first process the peppers before exporting or reselling the product. In order to guarantee a longer shelf life, many peppers are dried or pickled.

Furthermore, many peppers in China are processed into paprika powder after the harvest and then exported to other countries or sold in China. Last August, there was a lot of rainfall in Shandong and that resulted in flooding, which caused a lot of damage to the vegetable greenhouses in the area. The prospect is for this damage to be fully repaired by next year. In Xinjiang, the harvesting of red peppers has just been completed and these are now on the market.