PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1558344
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1558344
According to Stratistics MRC, the Global Chilli Powder Market is growing at a CAGR of 8.6% during the forecast period. Chili powder, also spelled "chilli powder," is a spice made from the dried, pulverized fruit of various chili pepper varieties. It is commonly used to add heat and flavor to dishes across many cuisines, including American, Mexican, Indian, and Asian. Chili powder may consist solely of ground chili peppers or be blended with other spices such as cumin, garlic powder, and onion powder, which enhances its flavor profile. The spice is essential in recipes like chili con carne and is available in different heat levels depending on the type of chili used, such as cayenne, ancho, or jalapeno peppers
Growing popularity of spices, rising health awareness, and urbanization coupled with lifestyle changes
The popularity of spices and seasonings in cooking is increasing, especially in diverse culinary regions. Health awareness of capsaicin, a health-boosting and antioxidant agent, is driving increased consumption of chili powder in various cuisines. Urbanization and lifestyle changes are also driving this trend, with more people opting for convenience foods and packaged goods containing chili powder. This shift towards fast-paced lifestyles has further boosted the market for chili powder.
Seasonal variability in production
Unpredictable weather conditions can cause inconsistent crop yields in chili, leading to supply shortages and price volatility. Seasonal changes can increase costs for sourcing chili, requiring manufacturers to rely on imports or alternative suppliers, impacting operational expenses and profit margins. Seasonal factors can also affect the quality of chili produced, with poor harvests resulting in lower-quality chilies in processing, leading to subpar chili powder and harming brand reputation.
Diverse culinary uses
The popularity of ethnic foods like Thai, Mexican, and Indian has led to a surge in the use of chili powder in traditional and fusion recipes, particularly among younger consumers. This trend expands the market. Chili powder's versatility in culinary applications, including food seasoning, sauces, snacks, and ready-to-eat meals, and its role as a flavor enhancer and natural preservative further boost its demand in food processing.
Inadequate storage facilities
Poor storage conditions can significantly degrade the quality of chili powder, affecting its flavor, color, and nutritional value. High moisture levels can lead to spoilage, while inadequate temperature control can cause non-enzymatic browning and loss of capsaicinoids. Additionally, improper storage can shorten the shelf life of chili powder, causing increased waste and financial losses for producers and retailers.
Covid-19 Impact
The COVID-19 pandemic had a significant impact on the chili powder market, causing both supply and demand-side challenges. Lockdowns and border closures in major producing countries like India disrupted exports, leading to supply shortages and price volatility. Simultaneously, consumer demand surged as people stockpiled shelf-stable foods, including spices thought to boost immunity like turmeric and ginger. However, the closure of restaurants and food service establishments reduced overall consumption.
The kashmiri chilli powder segment is expected to be the largest during the forecast period
The kashmiri chilli powder is expected to be the largest during the forecast period owing to due to its unique flavor profile. This has led to increased demand for authentic and regional cuisines, driving sales and expanding its market share. Countries like India, known for producing high-quality Kashmiri chili powder benefit from export opportunities, enhancing its economic significance and contributing to the overall growth of the chili powder market. The rising global interest in authentic and regional cuisines has further fuelled this growth.
The organic segment is expected to have the highest CAGR during the forecast period
The organic segment is expected to have the highest CAGR during the forecast period due to its perceived health benefits and sustainability. The growing demand for organic food products is expected to drive the growth of the organic chili powder segment. Producers can enhance consumer trust and satisfaction by maintaining high quality standards and implementing traceability systems. Consumers are becoming more aware of food sources and seeking transparency in product labeling. This trend is driving factories to explore sustainable farming and production practices.
North America is projected to hold the largest market share during the forecast period owing to the rise in cross-cultural food trends has significantly influenced the market, with consumers increasingly experimenting with diverse flavors and spices. This trend is particularly evident among younger demographics, which are more inclined to explore spicy and ethnic foods, thereby boosting the demand for chili powder.
Asia Pacific is projected to witness the highest CAGR over the forecast period due to the high production levels in countries like India, China, Pakistan, and Bangladesh, which together contribute to approximately 55% of global chili production. This geographical concentration supports both local consumption and export opportunities. Moreover the diverse culinary traditions in the region, including Indian, Chinese, Thai, and other Asian cuisines, heavily incorporate chili powder as a key ingredient. This cultural affinity for spicy foods is driving increased demand for chili powder across various applications, from home cooking to food processing.
Key players in the market
Some of the key players in Chilli Powder market include AVADOR Business Group Inc, Badia Spices, Everest Food Products Pvt Ltd, Ivar Agro, Jain Farm Fresh Foods Ltd., Kiya Foods Pvt Ltd, Lenis Foods, McCormick & Company, Naturevibe Botanicals, Olam International Limited, Pro Nature Organic Foods (P) Ltd., Synthite Industries Ltd., Tata Consumer Products Limited, V. K. Spices IND Private Limited and Morton and Bassett LLC
In September 2024, Tata Consumer Products Limited (TCPL) has received approval from the NCLT (National Company Law Tribunal) for the merger of its wholly owned subsidiaries- Tata Consumer Soulfull Pvt Ltd., NourishCo Beverages Ltd. and Tata SmartFoodz Ltd. with TCPL.
In May 2024, Tata Consumer Products Limited announced the launch of Tata Sampann's Easy Cook Ragi Atta, marking a significant entry into the Rs.30,000 crore millet-flour category. This move underscores the company's strong commitment to innovation and meeting the evolving consumer demand for nourishing & convenient food options.