Despite early dip, Peru’s capsicum sector expects 10% growth in 2025

Peru’s chilli and paprika sector is bracing for a challenging year, but industry leaders remain confident about a recovery in the months ahead. While export volumes dipped early in 2025, producers expect a rebound driven by global supply gaps and Peru’s strong product quality.

In 2024, the country exported nearly $249 million worth of capsicum products, up 2% from the previous year. For 2025, forecasts suggest potential growth of 5% to 10%, according to Walter Seras, president of ADEX’s Capsicum Committee. He noted that producers are adjusting to shifts in global demand, especially as competitors like Mexico and China face setbacks due to weather and oversupply.

Peru produces around 40,000 tonnes of capsicum annually and is home to more than 11,000 growers — most of them small-scale farmers. The country cultivates roughly 14,000 hectares and is recognised as a centre of origin for chilli peppers, with over 350 native varieties.

However, the sector faces mounting pressure to improve food safety. Excessive pesticide use has led to warnings from the EU and rejections by the U.S. FDA, raising concerns about Peru’s international image. Underused trade agreements with countries such as Colombia, Brazil, and Uruguay also limit growth potential, despite having market access and protocols in place.

In response, ADEX and SENASA have strengthened collaboration through a national working group and farmer training programmes. These aim to improve agricultural practices, reduce contamination risks, and ensure that Peruvian exports meet international standards.

Peru’s competitive edge lies in its native varieties like ají amarillo, ají panca, and arnaucho, which offer unique flavour, texture, and colour profiles. Its paprika also stands out for its durability and shelf life, giving it an advantage in high-demand markets such as the U.S. With better quality control, the country could significantly increase its industrial output in the coming years.

source: agraria.pe

photo: kew.org