India Dried Red Chillies Market

Dried red chillies production in India reached 2.78 million tonnes and gross production value (GPV) market size stood at US$ 5.69 billion in 2022-23. India holds the title of the world's largest producer, consumer, and exporter of red chillies. India accounted for nearly 45% of global production and exported 516.18 thousand tonnes of red chillies in 2022-23, valued at US$ 1.30 billion. Other global producers of red chillies include Bangladesh, Thailand, Ethiopia, China, Myanmar, and Pakistan.

Market Overview

India is the world's leading producer and exporter of dried red chillies, a vital spice in global cuisine. The Indian dried red chillies market is characterized by a vast variety of chillies, including popular types such as Guntur, Byadgi, and Teja. The market has experienced significant growth due to rising demand in both domestic and international markets. Increased consumption of spicy foods, coupled with the medicinal properties of chillies, has further fueled this demand. The market is highly fragmented, with small and medium-sized enterprises playing a crucial role in production and export. Forecasts indicate sustained growth, driven by expanding markets in Asia, Europe, and the Middle East, as well as advancements in agricultural practices and technology.

Importance of India in the Global Supply of Dried Red Chillies

India holds a significant position in the global dried red chillies market, both as a major producer, consumer, and exporter. The country's diverse agro-climatic conditions make it conducive for the cultivation of various chili varieties, contributing to its dominant presence in the market. Its robust production capabilities and established supply chain networks play a pivotal role in meeting the global demand for dried red chillies. The country's expertise in chili cultivation and processing further solidifies its position in the global supply chain..

India Dried Red Chillies Production & Demand Trend

India's dried red chillies production has shown a consistent upward trend, driven by favorable climatic conditions and government initiatives supporting agriculture. The domestic demand for dried red chillies is strong, fueled by the spice's integral role in Indian cuisine. On the export front, demand from countries such as the USA, China, and Malaysia remains robust, further boosting production. Demand for dried red chillies remains steady, driven by their widespread use in culinary applications, pharmaceuticals, and cosmetics.

Market Growth Factors

The growth of the Indian dried red chillies market is primarily driven by increasing global demand for spicy foods and the rising popularity of Indian cuisine worldwide. Additionally, the recognized health benefits of chillies, such as their high vitamin C content and capsaicin's role in boosting metabolism, have contributed to their growing consumption. Technological advancements in farming, such as the use of improved seed varieties and modern irrigation techniques, have also enhanced production efficiency, leading to higher yields and better-quality chillies. Furthermore, the government's support through favorable policies and subsidies for chilli farmers has provided a significant boost to the market.
        ■ Increasing global demand for spicy and flavorful food products
        ■ Growing awareness regarding the health benefits associated with consuming dried red chillies
        ■ Expansion of the food processing industry, which utilizes dried red chillies as a key ingredient
        ■ Technological advancements in farming practices leading to improved yields

Market Restraints & Challenges

Despite its dominance, the Indian dried red chillies market faces several challenges. Climate change poses a significant risk, with erratic weather patterns leading to inconsistent yields and quality issues. Additionally, the market is vulnerable to price fluctuations due to variable production levels and international competition. Pest infestations and diseases also pose a persistent threat to chilli crops. Moreover, small-scale farmers often struggle with inadequate access to modern farming techniques and financial resources, limiting their ability to scale up production and compete in the global market.
        ■ Fluctuations in weather patterns affecting crop yields
        ■ Pests and diseases posing challenges to chili cultivation
        ■ Price volatility due to changes in demand-supply dynamics
        ■ Regulatory issues related to quality standards and export regulations

India Dried Red Chillies Supply/Value Chain Bottlenecks/Challenges

The supply and value chain of dried red chillies in India encounters several bottlenecks that impede its efficiency and effectiveness. Inefficient logistics and transportation infrastructure contribute to delays and quality deterioration during transit, particularly in rural areas where chili cultivation is prevalent. Additionally, the limited availability of modern processing facilities hampers productivity and quality consistency, hindering value addition to dried red chillies.
The fragmented nature of the supply chain, characterized by numerous intermediaries, leads to increased costs, inefficiencies, and a lack of transparency. Quality control remains a challenge due to inconsistent grading practices and packaging standards, impacting consumer confidence and market acceptance. Small-scale farmers face financial constraints in accessing credit and resources for technology adoption and infrastructure improvements, further exacerbating the challenges. Moreover, the sector is highly susceptible to seasonal fluctuations and weather variations, posing risks to crop yields and supply stability.
Regulatory compliance adds another layer of complexity, requiring adherence to standards and regulations for market access and trade. Addressing these bottlenecks necessitates concerted efforts from various stakeholders, including government intervention, infrastructure investments, and industry collaboration, to enhance competitiveness and sustainability throughout the supply chain.

Dried Red Chillies Price Setting Power of India

India's significant share in the global dried red chillies market affords it some degree of price-setting power, especially for specific chili varieties with high demand. However, price fluctuations are also influenced by factors such as crop yield, quality, and global market dynamics.
After undergoing initial processing, the clean and dried chilies with stems serve as the raw material for producing various processed products. These include whole chilies with stems, stemless chilies, crushed dried red chili flakes, dried red chili powder, chili paste, chili chutney, chili seeds, and chili oil (oleoresin).

Dried Red Chillies End-use Industries

The demand for dried red chillies is expected to witness sustained growth, driven by their usage in various industries such as:
        ■ Food processing and culinary sectors
        ■ Pharmaceuticals for their medicinal properties
        ■ Cosmetics and personal care products
        ■ Animal feed industry
        ■ Chemical and dye manufacturing

The trend of dried red chillies demand is characterized by several factors driving its usage across various end-use industries. In the culinary sector, there's a growing preference for spicy and flavorful dishes globally, fueled by changing consumer preferences and culinary trends. Dried red chillies are essential ingredients in a wide range of cuisines, including Indian, Mexican, Thai, and Middle Eastern, contributing to their sustained demand. Moreover, the rising awareness of the health benefits associated with consuming dried red chillies, such as their antioxidant and anti-inflammatory properties, has spurred their inclusion in functional foods and health-focused products.
In the pharmaceutical industry, dried red chillies are valued for their medicinal properties, used in the production of pain-relief creams, topical ointments, and dietary supplements. Similarly, in the cosmetics and personal care sector, chili extracts are utilized in skincare products for their anti-aging and skin-healing properties.
Additionally, dried red chillies find applications in the animal feed industry as natural additives to enhance palatability and stimulate digestion in livestock. Furthermore, in the chemical and dye manufacturing sector, chili extracts are used as natural colorants and additives in the production of various products.
Overall, the trend of dried red chillies demand is driven by their versatility and widespread usage across multiple end-use industries, reflecting their importance in diverse sectors beyond culinary applications.

Dried Red Chillies Trade (Export & Import) Analysis

India is a net exporter of dried red chillies, catering to the demand in markets across Asia, Europe, North America, and the Middle East. The country's export performance is influenced by factors such as quality standards, pricing competitiveness, and trade policies of importing countries. India exported 516.18 thousand tonnes of dried red chillies in 2022-23.
India primarily exports red chilies in the form of dried chilies, constituting nearly 70% of its chili exports. The remaining 30% of chili exports comprise processed products. Red chili powder ranks as the top processed product, followed by other items with significant commercial promise such as green chili powder, green chili paste, red chili paste, chili sauce (both red and green varieties), chili pickles (both red and green, in small and large sizes), crushed chili flakes, chili oleoresin (containing the pungent principle capsaicin, as well as colorants capsanthin and capsorubin), chili seeds, and more. India caters to almost 50% of the global chili trade.
Trade policies, including export incentives and subsidies, have further bolstered India's position in the global market. The future outlook suggests continued export growth, particularly in emerging markets in Africa and Southeast Asia.

India Dried Red Chillies Market Competitive Analysis

The competitive landscape of the dried red chillies market in India is characterized by several key players vying for market share and dominance. These companies compete on various factors such as product quality, pricing, distribution network, and brand reputation. Everest Spices, a prominent player in the market, has established itself as a leading supplier of dried red chillies, leveraging its strong brand presence and extensive distribution network. Similarly, MDH Spices, with its wide range of chili products and strong consumer trust, poses stiff competition in the market. Aachi Masala, Eastern Condiments, and MTR Foods are other notable players known for their quality offerings and diverse product portfolios. Catch Foods, Ramdev Food Products, and Mother's Recipe are also significant contenders, capitalizing on their innovative product offerings and marketing strategies to capture market share. Overall, the competitive analysis of the India dried red chillies market highlights intense competition among established players and the emergence of new contenders striving to carve a niche for themselves in this lucrative segment.

Key Companies in India Dried Red Chillies Market include (Producers/ Processors/ Exporters)

        ■ Everest Spices
        ■ MDH Spices
        ■ Ramdev Food Products Pvt. Ltd.
        ■ Catch Foods
        ■ Eastern Condiments Private Limited
        ■ Pravin/ Suhana Masale
        ■ Bedekar Foods
        ■ Tata Consumer Products
        ■ Synthite Industries Ltd.
        ■ Royal Spices
        ■ Mane Kancor Ingredients
        ■ Jabs International Pvt Ltd.
        ■ Plant Lipids (P) Ltd.
        ■ Olam Exports (India) Limited
        ■ Swastik International
        ■ J.Lal Foods International
        ■ Aachi Spices & Foods Pvt Ltd.
        ■ Nedspice Group
        ■ SMJ Exports Pvt Ltd.

Future Outlook

The future of the Indian dried red chillies market looks promising, with expected growth driven by increasing global demand and expanding markets. Innovations in farming practices and processing technologies are likely to enhance production efficiency and product quality, further strengthening India's position in the global market. However, addressing challenges such as climate variability, infrastructure limitations, and market fragmentation will be crucial for sustaining long-term growth. The market is expected to see greater integration with international trade, leveraging India's existing strengths and exploring new opportunities in emerging markets.

Report Coverage

India dried red chillies market report covers historical market data from 2010-2023 and projections to 2030. The report also includes supply & demand and trade (import-export) market analysis. The decision matrix analysis helped in identifying the barriers and their implications on the value chain and different factors of relative significance to the India dried red chillies market are diligently tracked and their impact closely monitored for short, medium, and long-term market cycles. The report's contents cover an analysis of the aspects involved in the dried red chillies market such as the parent market, the evolution of the industry, innovative technologies in the manufacturing process, supply chain, and listing of key exporters.

Scope of the Report

Report Attributes	Details
Historical Years	2010–2022
Base Year	2023
Forecast Period	2024–2030
Units	Value (US$ Million) and Volume (Tonnes)
Report Coverage	Production, Consumption, Export, and Import
Segments Covered	▪ By Type (Whole and Processed)   ▪ By Sales (Domestic Consumption and Exports)
Geographies Covered	India
Companies Profiled	The market players include Everest Spices, MDH Spices, Ramdev Food Products Pvt. Ltd., Catch Foods, Eastern Condiments Private Limited, Bedekar Foods, Pravin/ Suhana Masale, Tata Consumer Products, Synthite Industries Ltd., Royal Spices, Mane Kancor Ingredients, Jabs International Pvt Ltd., Plant, ipids (P) Ltd., Olam Exports (india) Limited, Swastik International, J.Lal Foods International, Aachi Spices & Foods Pvt Ltd., Nedspice Group, SMJ Exports Pvt Ltd., and Others.

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Related Reports

        ■ Bangladesh Dried Red Chillies Market – Trend Analysis & Forecast to 2030
        ■ Thailand Dried Red Chillies Market – Trend Analysis & Forecast to 2030
        ■ Ethiopia Dried Red Chillies Market – Trend Analysis & Forecast to 2030
        ■ China Dried Red Chillies Market – Trend Analysis & Forecast to 2030

FAQs:

1. What is the production size of the Dried Red Chillies in India?
India produced 2.78 million tonnes of dried red chillies in 2022-23.

2. What is the production value of dried red chillies from India?
Gross production value (GPV) market size of dried red chillies stood at US$ 5.69 billion in 2022-23 (based on farm gate prices).

3. What are the dried red chillies & products exports from India?
In the fiscal year 2022-23, India shipped out 516.18 thousand tonnes of dried red chillies, valued at US$ 1.30 billion.

4. Who are the major importers dried red chillies from India?
China, USA, Thailand, Sri Lanka, and Indonesia are the largest importers of dried chillies from India.

5. Who are the major producers of dried red chillies?
India takes the lead in both producing and consuming dried red chillies worldwide. Additionally, countries such as Bangladesh, Thailand, Ethiopia, China, Myanmar, and Pakistan. are among the global producers of this spice.

Table of Contents: India Dried Red Chillies Market – Trend Analysis & Forecast to 2030

1. Executive Summary
2. Introduction
    2.1. Objectives & Scope of the Study
    2.2. Definitions & Economic Importance
    2.3. Research Methodology
    2.4. Factors and Decision Matrix Analysis
    2.5. Limitations & Challenges
3. Commodity/ Product/ Market Overview
    3.1. Evolution/ Origin & Geographic Suitability
    3.2. Red Chillies Crop Images
    3.3. Red Chillies Crop Seasonality
    3.4. Processing & Grading
    3.5. Regulatory Analysis
4. India Country Profile
5. India Dried Red Chillies Market Growth Factors Analysis
    5.1. Drivers and Restraints Analysis
    5.2. Challenges and Opportunities Analysis
    5.3. India Dried Red Chillies Industry SWOT Analysis
    5.4. India Dried Red Chillies Market PESTEL Analysis
    5.5. India Dried Red Chillies Market Porter's Five Forces analysis
6. India Dried Red Chillies Market: Supply Analysis
    6.1. India Red Chillies Crop Analysis (Area and Production)
    6.2. India Dried Red Chillies Production Trend
7. India Dried Red Chillies Market: Demand Analysis
    7.1. Domestic Consumption
    7.2. Processing
    7.3. Export Demand
    7.4. Dried Red Chillies Supply Chain Analysis
8. India Dried Red Chillies Market: Trade (Export & Import) Analysis
    8.1. India Dried Red Chillies Export Trend Analysis
    8.2. Top 10 Export Destinations of India Dried Red Chillies
9. India Dried Red Chillies Market: Price Trend Analysis
    9.1. Domestic Price Trend
    9.2. Export Price Trend
    9.3. Price Seasonality & Price Pattern Analysis
    9.4. Price Events Analysis
10. Competitive Analysis
    10.1. India Dried Red Chillies Market Mapping
            10.1.1. List of Key Countries Importing Dried Red Chillies from India
            10.1.2. List of Key Companies Exporting & Importing Dried Red Chillies from India
    10.2. Company Profiles
            10.2.1. Everest Spices
            10.2.2. MDH Spices
            10.2.3. Ramdev Food Products Pvt. Ltd.
            10.2.4. Catch Foods
            10.2.5. Eastern Condiments Private Limited
            10.2.6. Pravin/ Suhana Masale
            10.2.7. Tata Consumer Products
            10.2.8. Synthite Industries Ltd.
            10.2.9. Royal Spices
            10.2.10. Mane Kancor Ingredients
            10.2.11. Jabs International Pvt Ltd.
            10.2.12. Plant Lipids (P) Ltd.
            10.2.13. Olam Exports (india) Limited
            10.2.14. Swastik International
            10.2.15. J.Lal Foods International
            10.2.16. Aachi Spices & Foods Pvt Ltd.
            10.2.17. Nedspice Group
            10.2.18. SMJ Exports Pvt. Ltd.
11. Conclusion
12. Appendix

Table 1: India Dried Red Chillies Production Volume (Tonnes) (2010-2030)
Table 2: India Dried Red Chillies Production, Value (Tonnes) (2010-2030)
Table 2: India Red Chillies Harvested Area, (2010-2030)
Table 3: India Dried Red Chillies Market, Demand Volume Details (Volume)
Table 4: India Dried Red Chillies Production Analysis, by State (2010-2022)
Table 5: India Dried Red Chillies Market, By End-use (Volume) (2015-2025)
Table 6: India Dried Red Chillies Export Trend, by Value (2010-2030)
Table 7: India Dried Red Chillies Export Trend, by Volume (2010-2030)
Table 8: India Dried Red Chillies Export Destinations by Volume (in %share) (2015-2023)
Table 9: India Dried Red Chillies Export Destinations by Value (in %share) (2015-2023)
Table 10: Top 10 Countries Importing Dried Red Chillies from India, by Value
Table 11: Top 10 Countries Importing Dried Red Chillies from India, by Volume
Table 12: India Dried Red Chillies Export Trend, By Type (2010-2030)
Table 13: India Domestic Dried Red Chillies Market Price Trend (2010-2030)
Table 14: India Dried Red Chillies Export Market Price Trend, FoB (2010-2023)
Table 15: China Dried Red Chillies Export Trend (2010-2023)
Table 16: Bangladesh Dried Red Chillies Export Trend (2010-2023)
Table 17: UAE Dried Red Chillies Export Trend (2010-2023)
Table 18: USA Dried Red Chillies Export Trend (2010-2023)
Table 19: India Dried Red Chillies Import Trend, by Value (2010-2030)
Table 20: India Dried Red Chillies Import Trend, by Volume (2010-2030)
Table 21: India Dried Red Chillies Import Destinations by Volume (in %share) (2015-2023)
Table 22: India Dried Red Chillies Import Destinations by Value (in %share) (2015-2023)
Table 23: Top 10 Exporters of Dried Red Chillies & Products from India, by Value & Volume
Table 24: Top 10 Importers of Dried Red Chillies & Products from India, by Value & Volume
Table 25: List of Dried Red Chillies & Products Exporters & Importers
Table 26: India Dried Red Chillies Import Destinations by Value (in %share) (2015-2023)
Table 27: Industry Recent Developments
Table 28: Key Companies involved in Global Dried Red Chillies Trade, Processing, and Supply

Figure 1: Red Chillies Crop Seasonality Trend
Figure 2: India Population Dynamics, 2023
Figure 3: India Spices Production Trend Analysis
Figure 4: India: GDP Annual Growth & Exchange Rate Trend
Figure 5: Global Dried Red Chillies Market – An Overview
Figure 6: Global and India Dried Red Chillies Production Trend Comparison
Figure 7: India Dried Red Chillies Production Trend, 2010-2030 (Volume)
Figure 8: India Red Chillies Crop Area Trend, 2010-2030 (Volume)
Figure 9: India Red Chillies Production Trend, by State, 2010-2030
Figure 10: India Domestic Consumption of Dried Red Chillies, 2015-2030 (Volume)
Figure 11: India Domestic Processing of Dried Red Chillies, 2015-2030 (Volume)
Figure 12: India Red Chillies Supply Channel Framework
Figure 13: Red Chillies Product Variants Available in the Market
Figure 14: Global Dried Red Chillies Production, Volume, 2015-2023
Figure 15: Global Imports of Dried Red Chillies, Value (USD Million), 2015-2023
Figure 16: India Dried Red Chillies Export, Value, 2010-2030
Figure 17: India Dried Red Chillies Export, Volume, 2010-2030
Figure 18: India Dried Red Chillies Export Destinations Share (by Volume), 2023
Figure 19: India Dried Red Chillies Export Trend, by Value & Volume, 2010-2030
Figure 20: Top 10 Countries Importing Dried Red Chillies from India, %share by Value
Figure 21: Top 10 Countries Importing Dried Red Chillies from India, %share by Volume
Figure 22: China Imports of Dried Red Chillies, by Value & Volume (2015-2023)
Figure 23: UAE Imports of Dried Red Chillies, by Value & Volume (2015-2023)
Figure 24: Bangladesh Imports of Dried Red Chillies, by Value & Volume (2015-2023)
Figure 25: USA Imports of Dried Red Chillies, by Value & Volume (2015-2023)
Figure 26: India Dried Red Chillies Price Trend, Annual Average Prices, 2015-2030
Figure 27: India Price Trend, Monthly Average Prices, 2015-2023