Updated Jan 15, 2023 09:37

Piper Pepper Market in Guatemala

Market Overview
For the fourth consecutive year, the Guatemalan piper pepper market recorded growth in sales value, which increased by % to $ in . Overall, consumption enjoyed a buoyant increase. Over the period under review, the market attained the maximum level in and is expected to retain growth in the near future.

In value terms, piper pepper production totaled $ in estimated in export price. In general, the total production indicated slight growth from 2007 to : its value increased at an average annual rate of +% over the last fifteen years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, production decreased by -% against indices. The most prominent rate of growth was recorded in 2011 with an increase of % against the previous year. Piper pepper production peaked at $ in 2014; however, from 2015 to , production stood at a somewhat lower figure.

The average yield of piper pepper in Guatemala shrank significantly to kg per ha in , with a decrease of -% compared with the previous year's figure. Over the period under review, the yield, however, recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 when the yield increased by % against the previous year. As a result, the yield attained the peak level of tons per ha. From 2018 to , the growth of the average piper pepper yield remained at a lower figure. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In , the total area harvested in terms of piper pepper production in Guatemala totaled ha, remaining relatively unchanged against figures. Overall, the total harvested area indicated a tangible increase from 2007 to : its figure increased at an average annual rate of +% over the last fifteen years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, piper pepper harvested area decreased by -% against indices. The growth pace was the most rapid in 2011 when the harvested area increased by %. Over the period under review, the harvested area dedicated to piper pepper production reached the maximum at ha in 2014; however, from 2015 to , the harvested area stood at a somewhat lower figure.


Consumption
In , consumption of piper pepper in Guatemala skyrocketed to tons, growing by % on . In general, consumption showed resilient growth. Piper pepper consumption peaked in and is likely to continue growth in the near future.

The value of the piper pepper market in Guatemala soared to $ in , growing by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption continues to indicate a resilient expansion. Piper pepper consumption peaked in and is likely to continue growth in the near future.


Market Forecast
The piper pepper market is expected to start a downward consumption trend over the next eight-year period. The performance of the market is forecast to decrease slightly, with an anticipated CAGR of -% for the eight-year period from to , which is projected to depress the market volume to tons by the end of .

In value terms, the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Driven by a growing demand, the share of imports in total supply in Guatemala increased significantly over the last fifteen-year period (from % to %). Piper pepper market in Guatemala consists almost entirely of imported products. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports increased moderately ( percentage point) over the period under review.


Trade Balance
Guatemala remains a net importer of piper pepper; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a trade deficit of tons, which was equal to $. Those figures reflect the fact that neither imports nor exports don’t dominate the trade balance, and the country may export not only the product manufactured domestically, but also re-export some previously imported goods.