Guntur Dry Red Chilli Exporters Wholesale Chilli Suppliers from India
The Future of Chillies: Global Demand, Indian Exports & Price Trends
MAY 23 2025

The Future of Chillies: Global Demand, Indian Exports & Price Trends

India: Market Stabilization and Policy Support

  • Price Deficiency Payment Scheme (PDPS): To help chilli farmers who incur losses as market prices fall below the cost of production, the Indian government has introduced the PDPS under the Market Intervention Scheme (MIS) in Telangana. The scheme is intended to cover 25% of the state's projected chilli production, paying compensation to farmers who sell their produce below the cost of cultivation.
  • Teja Chilli Demand: Telangana and Andhra Pradesh farmers, who produce close to 60% of India's chillies, should enjoy consistent demand for Teja chillies at home and abroad. But weather conditions such as fluctuating climatic patterns, infestations, and costs of inputs still continue to pose as challenges on the yield and quality.
  • Declining Pungency of Bhut Jolokia: India's celebrated Bhut Jolokia, or ghost pepper, is losing its pungency because of over-fertilization and large-scale production methods in Assam. Farmers are now applying more fertiliser due to increased demand, which is changing the quality of the soil and leading to reduced capsaicin content, which gives the chilli its heat.

Global Market: Rising Demand and Flavour Innovations

  • Market Growth: The market for chili peppers expanded from USD 1.23 billion in 2024 to USD 1.31 billion in 2025 and is likely to further expand at a CAGR of 6.41% by 2030, reaching USD 1.79 billion.
  • Flavour Trends: Chili flavours are increasing in worldwide packaged food and beverage introductions, with a 5% CAGR increase over the last half-decade. Asia heads the activity, accounting for 29% of launches during the last year, followed by Western Europe at 27%. Africa has the highest growth rate for chili flavour product introductions.
  • Chili Sauce Market: Global chili sauce market size in 2025 will be USD 22.6 billion, expected to reach USD 35.24 billion by 2033 with a CAGR of 5.71%. More than 78% of customers use chili sauces every week, and 67% use spicy condiments, reflecting high market demand.

Global Dried Chili Price Trends (2022 - 2025)

Year Low Price(USD/kg) High Price (USD/kg)
2022 0.67 6.63
2023 0.69 6.44
2024 0.89 7.49
2025 0.62 10.17

Source: Link- https://dir.tridge.com/prices/dried-chili-pepper

Price Trends & Supply Dynamics

  • Price Fluctuations: As of April 2025, global pepper prices are declining in regions like Indonesia and Malaysia, while remaining stable in Vietnam and Brazil. 
  • Supply Constraints: Adverse weather conditions in major producing countries, including Vietnam, Indonesia, and Brazil, have led to a decrease in global pepper output, maintaining high prices due to sustained demand.

Outlook for Stakeholders

  • For Farmers: Implementation of sustainable farming methods and emphasis on high-demanding varieties such as Teja can assist in fulfilling both local and overseas demand.
  • For Exporters: Maintaining international quality standards and tapping new markets in Africa and Latin America can provide new opportunities.
  • For Food Manufacturers: Developing chili-infused foods and responding to the increasing demand for spicy tastes can grab a bigger market share.

Red Chilli Exports

  • Total Value: $1.5 billion (₹12,492 crore), marking a 15% increase from the previous year. 
  • Total Volume: 6.01 lakh tonnes, up 15% from 5.24 lakh tonnes in FY22–23. 
  • Share in Total Spice Exports: Approximately 34% of India's total spices exports, valued at $4.46 billion. 

Back

Get information
about us

Contact Us

D.No 25-16-180, 181, Mirichi Yard Road, Guntur, Andhra Pradesh, 522005