Global Chilli Powder Market - 2024-2031

Overview

Global Chilli Powder Market reached US$ 1.12 billion in 2023 and is expected to reach US$ 1.87 billion by 2031, growing with a CAGR of 6.62% during the forecast period 2024-2031.

Consumers are awaring the health benefits of chili powder, such as its anti-inflammatory and antioxidant properties. This drives demand for chili powder as a functional ingredient in health-oriented food products. Retailers are introducing their branded chili powder products, often at competitive prices. This is increasing offering consumers more choices, contributing to market expansion.

The Asia-Pacific region is known for its rich culinary traditions and a strong demand for authentic flavors. The preference for authentic and regional flavors boosts the local production and consumption of chili powder. The market is witnessing innovation in product offerings the introduction of blended and flavored chili powders tailored to specific regional tastes. These innovations cater to the diverse culinary preferences within the Asia-Pacific, driving market differentiation and growth.

For instance, on April 26, 2022, Vasant Masala, a prominent spice brand from Gujarat, launched its latest offering, 'Vasant Kashmiri Rangat' red chili powder. This new addition to their esteemed product lineup promises to delight Indian cuisine enthusiasts with its irresistible flavor profile. Vasant Masala has long been revered as a leading packaged spice brand, renowned across Gujarat, Rajasthan, and Madhya Pradesh for its quality and authenticity.

Dynamics

Increasing Consumer Demand for Spicy Foods

The growing preference for spicy foods among various demographics, including younger consumers and diverse ethnic groups, is expanding the chili powder market. The food service sector, including restaurants and fast-food chains, is responding to the rising demand for spicy foods by incorporating chili-based dishes into their menus. This trend drives the chili powder market as chefs and culinary professionals seek high-quality chili powder to enhance their recipes.

As consumers look for convenient yet flavorful food options, manufacturers are using chili powder to meet this demand, boosting the overall market. Innovative product development in the chili powder market, such as organic and specialty blends, is meeting the diverse preferences of consumers. These innovations attract new customers and retain existing ones, driving market growth by aligning with the increasing demand for unique and spicy food products.

For instance, on April 7, 2022, The Indian Institute of Vegetable Research (IIVR) of the Indian Council of Agriculture Research (ICAR) in Varanasi developed a technology for making powder of green chili which will be launched in the market. The IIVR also got this technique patented in its name and is all set for the product launch. For this purpose, the institute signed a memorandum of understanding (MoU) with a Himachal Pradesh-based firm.

Growing Popularity of Ethnic and Regional Cuisines

As consumers explore a variety of culinary traditions from around the world, the demand for authentic ingredients, including chili powder, rises. This trend broadens the market by introducing chili powder to new and diverse consumer groups. The fusion cuisine trend blends elements from different culinary traditions and often incorporates chili powder to add depth and spice to dishes. This innovation in cooking styles creates new market opportunities for chili powder as a versatile ingredient, appealing to adventurous and diverse palates.

As consumers become more adventurous in their home cooking, there is a growing market for chili powder as an essential spice in creating ethnic and regional dishes, further propelling the chili powder market. Cultural influences from regions where chili powder is a staple, such as Mexican, Indian, Thai, and Chinese cuisines, are spreading globally. As these cuisines gain popularity, the market for chili powder expands to accommodate the growing interest in recreating traditional dishes.

For instance, on November 3, 2023, to offer pesticide-free chili powder to consumers, the Pathanamthitta district unit of the Kudumbashree Mission launched an innovative initiative known as Chilli Village. This groundbreaking project involves the establishment of Joint Liability Groups (JLGs) dedicated to cultivating chili in specially designated 25-cent plots referred to as 'agroecological plots'. The first phase of the project is underway across 20 panchayats in the district.

Stringent Food Safety Regulations

Adhering to stringent food safety regulations imposes substantial compliance costs on manufacturers. These costs include investments in advanced testing equipment, quality control processes, and certification procedures. The added financial burden can be particularly challenging for small and medium-sized enterprises (SMEs) in the chili powder market, limiting their market participation and growth.

The global chili powder market is affected by varying food safety regulations across different countries. Exporters must comply with the regulations of importing countries, which can differ significantly from domestic standards. Navigating these regulatory discrepancies adds complexity and costs to international trade, potentially limiting chilli powder market growth and global reach.

For instance, The Food Safety and Standards Authority of India (FSSAI) has established regulations and guidelines about spices, specifically chillies and capsicum, both whole and in powder form. These regulations ensure the quality and safety of these products for consumers. According to the standards set by FSSAI, chillies, and capsicum must adhere to specific criteria regarding extraneous matter, unripe and marked fruits, broken fruits and seeds, moisture content, total ash, hydrochloric acid insoluble ash, insect-damaged matter, crude fiber, and non-volatile ether extract. For instance, whole chillies and capsicum should contain no more than 1% by weight of extraneous matter, while powdered varieties must meet criteria such as a maximum moisture content of 11% by weight and a non-volatile ether extract of not less than 12% by weight.

Segment Analysis

The global chilli powder market is segmented based on nature, packaging, distribution channel, application, and region.

Rising Demand in Culinary and Processed Foods and Continuous Innovations

The food and beverage segment is the primary driver of the chili powder market, as chili powder is a fundamental ingredient in numerous culinary applications. The rising consumption of processed and convenience foods contributes significantly to the dominance of the food and beverage segment. Chili powder is a key ingredient in processed food products such as sauces, snacks, ready-to-eat meals, and packaged seasonings, driving substantial market demand.

Spicy flavors continue to be popular among consumers globally, fueling the demand for chili powder in the food and beverage segment. As consumer palates evolve and preferences for bold and exotic flavors grow, chili powder remains a staple ingredient in many spicy food products. Companies are introducing new chili powder blends, flavors, and formulations to cater to changing consumer preferences and culinary trends, expanding the market's product portfolio.

For instance, on August 9, 2023, Tulua, renowned for its assortment of ready-to-eat pastes, introduced its newest innovation: a collection of aromatic and unadulterated spices. This latest range from Tulua exemplifies the brand's dedication to delivering premium-quality, clean-label products while shedding light on regional recipes and ingredients. With a mission to celebrate culinary diversity, Tulua's initiative reflects its vision to honor the rich heritage of regional cuisines.

Geographical Penetration

Highly Adaptive to Changing Consumer Trends and Innovations in Asia-Pacific

Asia-Pacific countries, particularly India and China, are among the largest producers of chili peppers globally. The favorable climatic conditions and extensive agricultural practices in these regions contribute to high yields and consistent production, positioning the Asia-Pacific as a market leader in chili powder supply. As consumers increasingly opt for ready-to-eat meals, snacks, and condiments that are chili powder, the market is witnessing substantial growth in this segment.

The Asia-Pacific market is highly adaptive to changing consumer trends. The growing preference for convenience foods, organic products, and international cuisines is met with innovative chili powder products tailored to these demands, ensuring sustained market growth. Companies in the Asia-Pacific region are leading in product innovation and diversification such as new chili powder blends, organic options, and premium products that cater to varying consumer preferences, attracting a broader customer base.

For instance, on January 28, 2023, Sunpure, renowned as South India's premier edible oil brand, embarked on a significant expansion journey with the launch of turmeric powder, coriander powder, and red chilli powder, marking its entry into the thriving Rs 25,000 crore branded spices market. This strategic move reflects the company's commitment to diversify its product portfolio and cater to the evolving needs of consumers.

In addition to the newly introduced spices, Sunpure has ambitious plans to introduce blended spice mixes and explore new product categories such as pulses, grains, and dry fruits. These initiatives underscore It is available starting this month at retail outlets in Mysore, Sunpure's newly launched spices will gradually roll out to additional key markets in the coming months, ensuring widespread availability and accessibility for consumers across South India.

COVID-19 Impact Analysis

The pandemic caused significant disruptions in the global supply chain, affecting the chili powder market, and leading to delays in raw material procurement, processing, and distribution. The pandemic induced volatility in the prices of raw materials due to supply chain interruptions and changing demand patterns. The chili powder market experienced price fluctuations, influenced by inconsistent supply levels and increased operational costs for producers adhering to health and safety protocols

As restaurants and eateries faced restrictions, consumers turned to home-prepared meals, boosting the demand for spices and seasonings, including chili powder. This shift drove short-term market growth as households stocked up on essential cooking ingredients. E-commerce platforms became crucial for consumers to access chili powder, leading to increased market penetration through digital channels. This trend accelerated the adoption of online retail for spices and seasonings.

Russia-Ukraine War Impact Analysis

The conflict has caused widespread disruptions in global supply chains, impacting the availability of agricultural products, including those used in chili powder production. Trade routes through the Black Sea region, crucial for many commodities, have been affected, leading to delays and increased transportation costs. The war has exacerbated market volatility, driving up prices of commodities and inputs necessary for chili powder production.

The conflict has led to shifts in global trade patterns, with countries seeking alternative sources for agricultural imports previously obtained from Russia and Ukraine. This reorientation impacts the chili powder market, as producers and exporters adjust to new trade routes and partners, potentially causing temporary supply imbalances. Higher food prices, including spices like chili powder, may reduce consumer demand, particularly in price-sensitive markets, impacting overall market growth.

By Nature

• Organic
• Conventional

By Packaging

• Sachet
• Box
• Jar
• Others

By Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Online Retail
• Others

By Application

• Food and Beverage
• Pharmaceuticals
• Cosmetics and Personal Care
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • 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 March 9, 2024, Kitchen Xpress launched its latest innovation, the Red Chilli Powder Plus, introduced a fusion of flavor and nutrition. This unique offering is enriched with essential vitamins B12, D3, and E, designed to promote the well-being of consumers. In a country like India, where vitamin deficiencies, particularly B12, D3, and E, are prevalent, the innovative Chilli Powder aims to address this nutritional gap effectively," stated Yuvraj Patel, director of the company.
• On October 4, 2023, Suhana Masala, an Indian spice brand, launched its latest advertising campaign to promote its newly introduced Chilli Powder offering. With this initiative, the company is enhancing its spice line presence in Gujarat. It has meticulously curated specific spice powders tailored to cater to the distinct flavor preferences of the region.
• On March 24, 2023, ITC Ltd.'s Aashirvaad, renowned for its packaged atta and emerging as one of the fastest-growing spices brands nationwide, announced the launch of its latest range of chili blends tailored specifically for Karnataka. The new range is positioned as the quintessential chili powder "Crafted for Karnataka, Crafted to perfection." It offers two distinct variants, the range caters to the diverse culinary preferences of authentic Karnataka cuisine.

Competitive Landscape

The major global players in the chilli powder market include RR Masala, Anu Foods, Nani Agro Foods (P) Ltd, Xinghua Lianfu Food Co., Ltd, Qingdao Fumanxin Foods Co., Ltd, Maywah Foods Inc., Shan Foods, Patanjali-Canada, Jiva Organic Foods, and Albert Menes.

Why Purchase the Report?

• To visualize the global chilli powder market segmentation based on nature, packaging, distribution channel, application and region, as well as understand critical commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous global chilli powder market-level data points 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 critical products of all the major players.

The global chilli powder market report would provide approximately 78 tables, 73 figures, and 213 Pages.

Target Audience 2023

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