Global demand for black pepper is expected to witness annual growth rates of over 5% in the next decade. According to International Pepper Community, black pepper output in 2015 was pegged at over 400,000 tonnes in 2015. During the next decade (2016-2026), the global black pepper market is expected to increase at over 3% CAGR in terms of volume.
Market Size of Black Pepper to Grow
India is one of the most lucrative markets for black pepper, and it is a staple in many households. Other countries where demand for black pepper is substantial are Vietnam, Malaysia, and Indonesia. Outside of Asia Pacific, Brazil is one of the lucrative markets for black pepper.
In terms of production, Vietnam and India are the key markets and the status quo is expected to remain so in the future as well. Middle East and the US are among the countries that account for a sizeable chunk of global imports of black pepper.
Black Pepper Market Forecast
The food sector accounts for bulk of the demand for black pepper globally. Black pepper is one of the widely consumed spices in India. The growing food processing industry in India is expected to drive growth of the black pepper market in the next decade.
While the demand for black pepper has always remain encouraging, it’s the supply side challenges that have led to volatility in prices in the past. Vietnam and India – two of the largest producers and exporters of black pepper – are highly dependent on monsoons for their agricultural output. In years, where there has been lack of adequate rainfall, black pepper prices have skyrocketed, causing massive disruptions in the value chain.
Although Sri Lanka black pepper market is still at a nascent stage, it has helped calm the price rise in the past. For example, last year, when India faced shortage of black pepper, dealers imported black pepper from Sri Lanka at competitive prices.
In addition the food industry, black pepper is quickly gaining traction in the cosmetics industry. Consumers all over the world are showing a marked preference for cosmetics based on organic and natural ingredients, and this has augured well for black pepper manufacturers. Although use of black pepper in skin care products is still at a nascent stage, it’s expected that the broader health and wellness trend will prompt the cosmetics industry to look for more natural alternatives to artificial ingredients. This is expected to offer a fillip to the black pepper market.
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Black pepper is also finding increased usage in the healthcare sector; however, it will take extensive research and clinic studies before black pepper gains widespread adoption in the pharma industry.
Market Share of Companies in Black Pepper Market
The leading players in the global black pepper market are DM AGRO, Visimex, Silk Road Spices, Baria Pepper Brazil Trade Business, McCormick, Everest Spices, British Pepper and Spice, Akar Indo, Catch, MDH, Agri food Pacific, Gupta Trading, Pacific Production, PT AF, The Spice House, Vietnam Spice Company, and Webb James, Olam International Limited.