Capsicum Market Size, Share & Trends Analysis Report By Form (Powder, Oleoresin, Whole), By End-use (Food, Pharmaceuticals, Cosmetics), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global capsicum market size was valued at USD 79,456.1 million and is expected to expand at a revenue-based compound annual growth rate (CAGR) of 8.0% from 2023 to 2030. The rising health consciousness is anticipated to drive product demand. Additionally, the doctor-recommended inclusion of capsicum in the diets of patients with liver disease, cardiovascular diseases, and cancer is expected to boost the demand. The pandemic led to disruptions in the supply chain, causing delays in the transportation of goods and the closure of many shops and facilities. With many restrictions during the pandemic, different markets were negatively impacted. Especially, the food and beverage industry was impacted significantly as the demand for raw vegetables was impacted by the disrupted supply chains.

The pandemic also brought about a shift in consumer behavior, with more people working and cooking at home, resulting in an increased demand for vegetables. As a consequence of the pandemic, the food service industry experienced a slowdown, which had an impact on the market for vegetables used in commercial cooking and food preparation. Despite these obstacles, the industry has been able to adapt and keep up with customer demands.

Capsicum has various names depending on the place and type such as paprika, red pepper, green pepper, chili pepper, and bell pepper. There are numerous methods to include capsicum in meals due to the availability of various varieties with varying colors, tastes, and health benefits. Curry, pizza, breakfast hash, stir-fries, and pasta dishes are just a few foods that can benefit from the addition of capsicum salads, grilled as a hummus topping, or in soups. The nutritional composition of capsicum makes it a great food for losing weight. Capsicums are abundant in vitamins and minerals, but they are also high in fiber and water. Moreover, capsicum contains a high amount of antioxidants and nutrients that aid in weight loss.

Modern consumers are more willing to experiment with different foods from various parts of the world. As the trend of cooking and learning new cuisines is driving the demand for vegetables. Moreover, new and different types of spices and herbs are used in various households. A vegetable with an impressive nutritional profile, capsicums are available in a broad range of colors and varieties. They contain vitamins, minerals, antioxidants, and compounds unique to capsicums, such as capsanthin and capsorubin.

The demand for capsicum is anticipated to be driven by the expansion of the hotel and restaurant sector in countries such as Far East Asia and China due to favorable government policies backing the development of city infrastructure. Additionally, it is anticipated that the growing middle-class population in nations like Saudi Arabia and the UAE, which prefers eating out on weekends, will create new possibilities in the food service industry. As a result, it is anticipated that the capsicum market will expand in the upcoming years.

Form Insights

The whole form segment generated a revenue of more than USD 39,148.1 million and a volume of 62,330,193.9 tons in 2022. It is anticipated that the product's growing importance as a significant source of various nutritional components, such as vitamin A and vitamin C, will continue to bode well for the segment’s growth. Additionally, the catering and food industries are the main drivers of demand for whole capsicums.

In restaurants, capsicums are frequently served fresh as snacks in soups or salads, adding freshness and crunchy texture. They can also be filled with other foods and grilled, baked, or sautéed to be used as ingredients in spicy recipes, stir-fries, or main courses. This is anticipated to boost the demand for the whole capsicum form in the coming years.

The powder form segment is expected to exhibit the fastest CAGR of 10.0% and a volume CAGR of 9.3% from 2023 to 2030. An increase in the acceptance of international cuisine has made it easier for consumers to find food items. The marketplaces for herbs and spices are expanding as a result of this rise in availability in developed economies. Capsicum powder is frequently used to treat painful conditions like nerve discomfort. Several other applications such as digestion issues, heart and blood vessel conditions, and a variety of other uses are expected to bode well for the segment growth. 

End-use Insights

The food segment held the largest revenue share of more than 81.1% and a volume share of 85.7% in 2022. The food & beverage industry is the largest consumer of capsicum. Innovative uses of capsicum as an ingredient are expected to drive growth. Moreover, increasing income and changing lifestyles are some other factors driving the demand. Furthermore, customers' purchasing habits are dramatically impacted by growing health concerns. Consumers are becoming more particular about the quality of vegetables used in food items, this trend is anticipated to impact the market positively in the coming years.

The pharmaceuticals segment is expected to register a significant CAGR during the forecast period. Cayenne pepper is taken for indigestion, toothaches, poor circulation, fever, hyperlipidemia, and the prevention of heart disease.  Fibromyalgia, rheumatoid arthritis,  trigeminal neuralgia,  shingles, diabetic neuropathy, osteoarthritis, post-herpetic neuralgia, and back pain can all be treated with capsicum when applied directly. Others have used capsicum as a gargle for laryngitis and to relieve muscular spasms.

Regional Insights

Asia Pacific led the market in 2022 with around USD 52,431.6 million and 39,222,230.3 tons. This can be attributed to urbanization in developing nations like China, Far East Asia, and Australia, increasing disposable income, and population growth. A major growth driver is consumers' growing desire for nutritious products. The market has benefited from a shift to a healthy and innovative strategy brought about by the growing trend of leading a healthy lifestyle.

North America is expected to register a significant CAGR during the forecast period. The predominant consumption among consumers from the U.S. and Mexico is projected to boost the demand for capsicum in the region. One of the main factors driving the industry’s growth is the rising popularity of healthy cooking among consumers. The market growth is also driven by the rising consumption of capsicum in a variety of sectors, including the food, pharmaceutical, and cosmetic businesses.

Key Companies & Market Share Insights

Some of the leading manufacturers are Levarht, Lipman, J&J Family of Farms Corporate, International, and Pero Family Farms Inc. Market leaders are enlarging their geographic reach to capture a disproportionate part of the market. It is anticipated that developing strategies and working with customers to create new goods will continue to be crucial success factors. Companies are also focusing on new product launches, expansion, automation, and technological adoption. Some prominent players in the global capsicum 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.

• Lewis Taylor Farms

Capsicum Market Report Scope

Global Capsicum Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global capsicum market report based on form, end-use, and region:

• Form Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2030)

  • Powder

  • Oleoresin

  • Whole

• End-use Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2030)

  • Food

  • Pharmaceuticals

  • Cosmetics

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Mexico

  • Europe

    • U.K.

    • France

    • Germany

    • Spain

    • Italy

    • Netherlands

    • Belgium

  • Asia Pacific

    • China

    • Far East Asia

    • Southeast Asia

    • Central Asia

    • Rest of the World