Capsicum Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Capsicum Market is Segmented By Form (Powder, Oleoresin, Whole), By End-User (Food, Pharmaceuticals, Cosmetics), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Capsicum Market Size

The Global Capsicum Market reached US$ 4.8 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 6.8 billion by 2030. The market is growing at a CAGR of 4.5% during the forecast period 2023-2030. The global capsicum market is poised for substantial growth in the forecasting period. Increasing consumer awareness regarding the health benefits of capsicum is leading to rising demand for this vegetable globally.

Capsicum is known for its high nutritional value, being a rich source of vitamins A and C, as well as antioxidants. This growing awareness about the nutritional benefits of capsicum is expected to drive capsicum market growth.  The expanding food and beverage industry is a major driver for the capsicum market. Capsicum is extensively used in various food preparations, including salads, sauces, salsas, and ready-to-eat meals. With the increasing consumer preference for convenient and healthy food options, the demand for capsicum as an ingredient is expected to rise, fueling the capsicum market growth.

Capsicum Market Summary

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Capsicum Market Dynamics

Increasing Consumer Awareness and Preference for Healthy and Nutritious Food Products Drives Market Growth

Capsicum, also known as bell pepper or sweet pepper, is a versatile vegetable known for its high nutritional value and health benefits. Consumers are becoming more conscious of their dietary choices and are actively seeking foods that promote health and well-being. Consumers are incorporating capsicum into their meals, salads, sauces, and snacks to enhance the nutritional content and flavor profile of their food. This increasing demand drives the growth of the global capsicum market.

The expanding food industry is also playing a significant role in driving the capsicum market. Food manufacturers and processors are incorporating capsicum into their products to meet the growing consumer demand for healthy and flavorful options. Capsicum-based sauces, seasonings, and condiments are gaining popularity, providing consumers with convenient and nutritious choices, which further drive capsicum market growth.

The Growing Demand for Natural Food Colors and Flavors Presents Opportunities for the Capsicum Market 

The growing demand for natural food colors and flavors presents significant opportunities for the global capsicum market. Capsicum, with its vibrant colors and distinct flavor profiles, is offering a natural and versatile option for food manufacturers seeking to meet consumer preferences for clean-label and natural ingredients. As consumers become more conscious of the potential health risks associated with synthetic food additives, there is a rising demand for natural alternatives. 

Capsicum extracts and pigments derived from capsicum using as natural food colors, replacing artificial colorants. This presents a lucrative market opportunity for capsicum as food manufacturers are seeking to create visually appealing products without compromising on quality or safety. For instance, in April 2022, Frestia, a Dutch company, announced its plans to expand its snack bell pepper production to Portugal, highlighting its commitment to maintaining high-quality standards for snack peppers in the region.

Weather Conditions and Climate Variability Impacts the Growth and Production of the Capsicum Market 

Weather conditions and climate variability are restraining factors for the global capsicum market. The growth and production of capsicum are highly dependent on suitable weather conditions, including temperature, humidity, and rainfall patterns. Adverse weather events or extreme climate variations are negatively affecting the cultivation and yield of capsicum crops, leading to reduced supply and potential price volatility in the market.

Excessive heatwaves or prolonged droughts are causing water stress and hindering the growth of capsicum plants, resulting in lower crop yields. Insufficient rainfall or irregular precipitation patterns are also impacting the overall quality and quantity of capsicum produced. These weather-related challenges are leading to supply fluctuations, a scarcity of capsicum in the market, and increased production costs for farmers.

Capsicum Market Segmentation Analysis

The global capsicum market is segmented based on form, end user, and region.

Increasing Use of Convenience and Versatility of Powders in the Food Industry 

The powder segment has emerged as a dominant force in the global capsicum market, capturing the highest share among other forms of capsicum products. The powder form of capsicum is offering convenience and versatility to consumers and food manufacturers alike. Capsicum powder is easily incorporated into various food products. Its fine texture is allowing for even distribution and seamless integration into recipes, providing consistent flavor and heat. This convenience factor is driving the demand for the powder segment in the capsicum market.

Manufacturers are also widely developing new products to meet the damnd. For instance, on July 18, 2021, Simply Good Food launched Cayenne Pepper Powder. Cayenne pepper powder, also referred to as ground red pepper, is a medium-hot spice that blends well with the majority of others. It can be used to make marinades, pickles, ketchup, chutneys, cheese straws, biscuits, and smoked foods. It can be found as a component in Worcestershire sauce and is frequently used in curries.

Capsicum Market Geographical Share

The Growing Preference for Healthy Cooking Practices Among Consumers in North America

North America is projected to witness a high compound annual growth rate CAGR for capsicum during the forecast period. The region's demand is driven by the substantial consumption of capsicum among American and Mexican population. The growing preference for healthy cooking practices among consumers is a significant contributor to market expansion. Additionally, increased utilization of capsicum in various industries such as food, pharmaceuticals, and cosmetics further propels the market's growth. 

According to the USDA's November 28, 2022, production statistics for peppers in the United States show that due to the significant consumption of bell peppers and other varieties in 2021, over 31,000 acres of bell peppers and 10,000 acres of Chile peppers were harvested, resulting in a production value surpassing $536 million. These figures, reported by the National Agricultural Statistics Service of the USDA, underscore the economic significance and widespread cultivation of peppers in the country.

Capsicum Market Companies 

The major global players in the market include Levarht, Lipman Family Farms, J&J Family of Farms Corporate, Pero Family Farms Inc., Oakes Farms, Southern Paprika Limited (SPL), Fruit Farm Group., GK Fresh Greens, Titan Farms Inc., and Lewis Taylor Farms.

COVID-19 Impact on Capsicum Market

The capsicum market experienced disruptions in the supply chain due to transportation restrictions, trade barriers, and lockdown measures imposed by governments to curb the spread of the virus. This led to challenges in the procurement of raw materials, production slowdowns, and disruptions in distribution channels, affecting the overall market operations.

However, the pandemic altered consumer behavior and preferences, which in turn affected the demand for capsicum products. With lockdowns and restrictions on dining out, there was a surge in home cooking and a greater emphasis on healthy and immune-boosting foods. This shift in consumer preferences presented opportunities for capsicum as a versatile ingredient in home-cooked meals, leading to increased demand in certain market segments.

Artificial Intelligence Impact Analysis

Artificial intelligence (AI) is increasingly making an impact on various industries, including the global capsicum market. AI-powered technologies, such as machine learning algorithms and data analytics, enable market players to optimize various aspects of the capsicum market. AI algorithms can analyze market trends, consumer preferences, and supply chain data to provide valuable insights for decision-making. This helps in demand forecasting, inventory management, pricing strategies, and identifying market opportunities, leading to more efficient market operations.

By Form

• Powder
• Oleoresin
• Whole

By End User

• Food
• Pharmaceuticals
• Cosmetics

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On 3 October 2022, Sher-e-Kashmir varsity researchers introduced a variety of colored capsicums with strong medicinal potential and antioxidant qualities.
• On 16 November 2021, Sensient Natural Ingredients LLC announced the acquisition of New Mexico Chili Products Inc., a dehydrated chili production plant in Deming that dehydrates capsicums and a range of specialty chilies for sale to CPG food manufacturers, spice blenders, and food service clients. The corporation will be able to boost its global sales volume with the help of this acquisition.
• On 26 April 2020, Ungerer & Company, a well-known company in the United States that specializes in flavor, fragrance, and specialty ingredients, was acquired by Givaudan. This acquisition will help the oleoresin market grow because it will allow for the production of a lot of fragrances and essential oil in response to consumer demand.

Why Purchase the Report?

• To visualize the global capsicum- market segmentation based on form, end user, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of capsicum market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global capsicum market report would provide approximately 53 tables, 47 figures, and 100 Pages

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies