Mordor Intelligence has published a new report on the capsicum market, offering a comprehensive analysis of trends, growth drivers, and future projections.
-- Capsicum Market Size and Growth Outlook
According to Mordor Intelligence, the global capsicum market size was valued at USD 21.8 billion in 2024 and is projected to reach USD 30.4 billion by 2030, reflecting steady expansion during the forecast period. The capsicum market growth trajectory is supported by consistent demand for fresh and processed capsicum varieties across retail, foodservice, and nutraceutical applications.
Capsicum, commonly known as bell pepper or chili, plays a central role in global cuisines and the functional foods sector due to its rich nutritional profile and capsaicin content. Increasing use in spice blends, ready-to-eat products, supplements, and analgesic formulations is strengthening the capsicum market share across both developed and emerging economies.
Investments in controlled-environment agriculture, greenhouse automation, and digital trading platforms are improving supply chain stability and price realization for growers. Asia-Pacific, North America, and Europe are adopting innovative cultivation technologies, while Africa and the Middle East are expanding production capacity through cluster-based farming models.
Key Trends Driving Capsicum Market Growth
Protected Cultivation and Automation
Greenhouse automation and high-wire capsicum production systems are transforming the Capsicum Industry. Countries such as Canada, the United States, and the Netherlands utilize climate-controlled systems that regulate heating, lighting, irrigation, and CO₂ levels. These technologies ensure a consistent year-round supply, reduce labor dependency, and enhance yield uniformity, strengthening the overall capsicum market forecast.
Rising Nutraceutical and Capsaicin Demand
High-value capsaicin extracts are generating new revenue streams within the capsicum market. Functional food manufacturers, oleoresin processors, and pharmaceutical companies are paying premium prices for pungent chili varieties. Capsaicin’s application in pain-relief formulations, dietary supplements, and functional beverages continues to drive downstream demand and elevate farm-gate pricing structures.
Controlled-Environment Farming Clusters
Agricultural clusters in Southeast Asia and the Middle East are enabling smallholder integration through shared infrastructure and digital irrigation systems. IoT-based nutrient management and precision irrigation reduce water consumption and pesticide use while improving output quality. These clusters help producers meet international residue compliance standards, expanding export opportunities and strengthening capsicum market growth potential.
Capsicum Market Segmentation Overview
By Geography
- Asia-Pacific: Leading producer and consumer, driven by China and India
- Europe: Focus on high-wire greenhouse technology and premium exports
- North America: Rapid adoption of automation and climate-controlled systems
- Africa: Growing production corridors in Nigeria, Kenya, and Ghana
- Middle East: Expansion of agricultural parks supporting smallholders
- South America: Strong domestic consumption and export activity, especially from Brazil
Other Market Considerations
- Protected cultivation vs. open-field farming
- Organic and residue-compliant capsicum varieties
- Controlled-environment and cluster-based production systems
This segmentation framework supports strategic planning and helps stakeholders identify high-margin opportunities aligned with evolving global demand.
Competitive Landscape of the Capsicum Industry
The capsicum market industry comprises multinational agribusiness corporations, regional greenhouse operators, and emerging agri-tech startups focused on productivity and quality enhancement.
Leading exporters and processors invest in:
- Greenhouse automation and climate control technologies
- Sustainable energy solutions
- Varietal development and seed innovation
- Digital trading platforms and supply-chain traceability
Certification programs such as GlobalGAP and organic labeling are increasingly important for securing export contracts and premium positioning. Smaller producers in Africa, Southeast Asia, and Latin America are scaling operations through cluster-based farming and compliance-focused strategies, strengthening their share in the global capsicum market.
Regional Outlook and Market Forecast
The capsicum market forecast indicates sustained expansion through 2030, supported by automation, nutraceutical demand, and controlled-environment farming adoption.
- Asia-Pacific remains the largest contributor, led by China and India.
- Africa demonstrates the fastest growth potential due to infrastructure investment and government-backed agricultural initiatives.
- North America and Europe continue to drive innovation through energy-efficient greenhouse systems and premium export-oriented production.
Technological adoption, sustainability initiatives, and increasing demand for natural food ingredients are expected to shape the long-term capsicum market growth trajectory.
Industry Related Reports:
White Pepper Market - The white pepper market size is set to grow from USD 1.37B in 2026 to USD 1.72B by 2031 at a 4.66% CAGR, driven by traceable supply and food-safety demand.
Black Pepper Market - The black pepper market size was USD 3.65B in 2025 and is set to reach USD 4.61B by 2030 at a 4.8% CAGR, driven by clean-label and nutraceutical demand.
About Mordor Intelligence:
Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.
With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.
About the company: About Mordor Intelligence: Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals. With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics. For any inquiries or to access the full report, please contact: media@mordorintelligence.com https://www.mordorintelligence.com/
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