What is Chili Pepper? Why Buy It?
Chili Pepper (Capsicum spp.) is a widely cultivated spice crop known for its pungent flavor and high nutritional value. Originating from the Americas, Chili Pepper has become a global culinary staple, contributing to diverse cuisines and food industries. It is available in various forms, including fresh, dried, powdered, and as an ingredient in sauces and seasonings.
Chili Pepper is highly valued for its capsaicin content, which gives it its characteristic heat. Capsaicin is not only responsible for the spiciness but also offers multiple health benefits, including pain relief, metabolism boosting, and anti-inflammatory properties. Chili Pepper is rich in vitamins A, C, and E, as well as essential minerals like potassium and magnesium.
From an economic standpoint, Chili Pepper is a profitable crop due to its high demand in the food, pharmaceutical, and cosmetics industries. It is used in countless culinary applications, from adding heat to dishes to being the key ingredient in hot sauces and seasonings. The increasing popularity of spicy foods worldwide has further driven the demand for high-quality Chili Pepper in both fresh and processed forms.
Applications/Uses of Chili Pepper
Chili Pepper is a versatile crop with widespread applications across multiple industries. Its uses include:
Food Industry
Spices and Seasonings:
Chili Pepper is a key ingredient in spice blends, rubs, and seasonings, enhancing the flavor and heat of dishes worldwide.
Hot Sauces and Condiments:
Processed into hot sauces, pastes, and salsas, Chili Pepper is essential in many global cuisines.
Dried and Powdered Form:
Used as chili flakes or chili powder, it is a staple in cooking and food preservation.
Snack Industry:
Added to chips, nuts, and other snacks for a spicy kick.
Pharmaceutical Industry
Pain Relievers:
Capsaicin, extracted from Chili Pepper, is used in pain relief creams and patches for arthritis, muscle pain, and nerve-related conditions.
Weight Loss Supplements:
Known to boost metabolism and aid fat burning, capsaicin is incorporated into dietary supplements.
Antioxidant and Anti-inflammatory Products:
Used in the production of health supplements targeting cardiovascular and immune system support.
Cosmetics and Personal Care Industry
Skincare Products:
Capsaicin is used in lotions and creams for its warming and circulation-boosting properties.
Hair Care:
Some hair growth treatments include Chili Pepper extracts to stimulate hair follicles.
Agricultural and Industrial Uses
Natural Pesticides:
Chili Pepper extracts are used as organic pesticides to deter pests in farming.
Food Preservation:
Due to its antimicrobial properties, Chili Pepper is used in food processing to enhance shelf life.
Biofuel Potential:
Studies suggest that Chili Pepper extracts can be used in biofuel production due to their chemical composition.
Top Producing/Exporting Countries of Chili Pepper
The production of Chili Pepper is concentrated in warm climates with suitable growing conditions. The leading Chili Pepper-producing and exporting countries include:
China:
The world’s largest producer, China dominates global Chili Pepper production, supplying fresh, dried, and processed products to international markets.
India:
A major producer and exporter, India grows various chili varieties such as Guntur and Byadgi, which are highly sought after for their quality and pungency.
Mexico:
Home to famous chili varieties like Jalapeño, Habanero, and Serrano, Mexico exports fresh and dried chilies to North America and Europe.
Thailand:
A significant producer of bird’s eye chili and other spicy varieties, Thailand exports large quantities to Asian and global markets.
United States:
Primarily producing chili varieties like Cayenne, Anaheim, and Habanero, the U.S. exports Chili Pepper-based products, including hot sauces and powders.
Peru:
Known for its Aji varieties, Peru exports both fresh and processed chili products to international markets.
Vietnam:
A rising player in Chili Pepper production, Vietnam is expanding its export market to Europe and North America.
Spain:
Renowned for its paprika production, Spain exports dried and ground Chili Pepper to various countries.
Top Importing Countries of Chili Pepper
Several countries rely on imported Chili Pepper to meet their domestic and industrial needs. The leading importers include:
United States:
The largest importer of Chili Pepper, the U.S. sources fresh, dried, and processed chilies from Mexico, India, and China for its food and spice industries.
European Union (EU):
Countries like Germany, the UK, and Spain import significant amounts of Chili Pepper, primarily for use in food processing and seasoning production.
Japan:
Japan imports high-quality Chili Pepper for culinary applications and spice manufacturing.
South Korea:
A major consumer of spicy foods, South Korea imports Chili Pepper for making kimchi and other traditional dishes.
Indonesia:
A large importer of dried and processed chilies for its spice-heavy cuisine.
Malaysia:
Relies on imported Chili Pepper for food processing, particularly in sauces and seasonings.
Russia:
Imports Chili Pepper for use in spice blends and processed food products.
United Arab Emirates:
A key importer due to the high demand for spices in Middle Eastern cuisine.
Canada:
Imports fresh and dried Chili Pepper primarily from the U.S. and Mexico for its growing spice and food industry.
International Price of Chili Pepper Per Metric Ton
The unit price ($ per kg) of Chili Pepper in the international market depends on a host of different factors including:
- The grade of the produce (usually the more the processing, the higher the price)
- The price of the raw material
- Age of the seeds (this can affect the price)
- Production levels in producing countries
- Economic conditions and the exchange rates between the currencies of the producing and importing countries.
- The quantity ordered (the greater the quantity, the cheaper you can get it per ton)
- Harvest season (it is more costly when it is out of harvest season).
- Weather conditions (some commodities are sensitive to weather conditions).
- Freight & haulage cost
- Percentage of markup
- Import duties, trade tariffs and trade agreements between countries
- Distance from the country of origin
- Technology/Infrastructure available in country of origin
- Relationship between the buyer and seller
That said, as at March 2025, Chili Pepper costs between $800 and $1,500 per metric ton (1,000 kilograms) in the international market (i.e. $0.8/kg to $1.5/kg).
How To Safely Source for Your Chili Pepper Produce
If you find the right export company, buying directly from them can make the purchase process easy and stress-free, when compared with doing the sourcing on your own. That said, there are few things to note when dealing with an export company in Nigeria or Africa. The specific requirements for Nigeria are listed below, but they mostly apply to other African countries:
- The exporting company must be registered with the Corporate Affairs Commission (CAC) to make sure the company is registered and permitted to carry out business
- The export company must also be registered with the Nigerian Export Promotion Council (NEPC).
- The company must possess a domiciliary account to accept international
The company should get all necessary export-related documentation done before the shipment leaves the port of origin. Some of the documents are:
- Certificate of origin
- Bill of lading
- Inspection Certificate (SGS, Cotecna, Bureau Veritas, Intertek, etc)
- Phytosanitary certificate
- Fumigation certificate
Where To Find Reliable Exporters
An important question that still needs to be answered is how to find Chili Pepper exporters in Nigeria. You can use any of the methods listed below:
- Attend trade fairs
- Use search engines like Google, Yahoo,
- Search for agents on Linkedln
- Sign up on trade platforms (e.g. Alibaba, Tradeford, Go4WorldBusiness)
- Neogric – Neogric is one of the reliable Chili Pepper exporters in Neogric is rated among the best in the exporting business in Nigeria. The company is not limited to the exportation of Chili Pepper alone but can export other agricultural produce ranging from perishables to dry seeds.
How To Pay For Your Chili Pepper Produce
You can pay for Chili Pepper using different methods, but three of the popular ways of paying for your agric produce are:
- Bank (T/T) Payment
- Advance Payment
- Letter of Credit (LC)
Bank Payment (T/T)
Bank payment is also known as T/T, “Telegraphic Transfer” or “Telex Transfer” In other words, it is an international wire of funds from the buyer’s bank to the seller’s bank.
A T/T is technically not the same as a wire transfer, which is often done through the SWIFT network. However, when a seller or supplier asks for a T/T payment, a wire transfer is what they are really asking for.
The wire transfer based on the SWIFT system is the most common payment method in international trade. Typically, it takes 1-5 working days to clear, and generally costs between 25 and 50 USD, depending on your agreement with the commercial department in your bank.
Advance Payment
There are sellers that will demand anywhere from 30% to 50% advance payment, and for good reason. If both parties have done deals in the past, sellers can ask for a percentage of the sales (about 30%) before they ship the produce and they can request for the remaining amount after a scanned copy of the Bill of Lading has been sent to the buyer.
It is the safest option for exporters and it also guarantees that they will have some funds to help with sourcing. It is popular among manufacturers on B2B marketplaces like Alibaba and also with commodity traders.
However, advance payment carries considerable risk for the importer (buyer) because the exporter (seller) might not be under as much pressure to ensure quality checks compared with a stricter form of payment. Some might even disappear entirely.
Having said that, advance payment is very useful and is widely used. For instance, the seller might need to secure the commodity in the face of increased competition. It can also be used when the exporter needs some money for sourcing the produce or for processing raw materials.
The most important thing is for both importer and exporter to build mutual trust by having a track record of successful deals with each other or other known companies.
Letter of Credit
Letter of Credit is an agreement generated by the bank of the buyer, guaranteeing payment once certain conditions are met. It is one of the safest types of payment available to both buyer and seller.
Some of the types of Letter of credit are:
- Commercial Letter of Credit,
- Sight Letter of Credit
- Transferrable or Non-Transferable Letter of Credit
- Standby Letter of Credit (SBLC)
- Usance or Deferred Payment Letter of Credit
- Revocable or Irrevocable Letter of Credit
- Confirmed or Unconfirmed Letter of Credit
- Revolving Letter of Credit
- Green Clause Letter of Credit
- Red Clause Letter of Credit
L/Cs are not totally safe (for either buyer or seller) too. For instance, sellers can ship substandard products or those that are different from the ones agreed upon. In this case, the seller gets paid and the buyer receives goods he cannot use.
And speaking of the dangers of L/Cs for the exporter, the conditions in the Letter of credit might be practically impossible to fulfil; if an exporter agrees to such, he might be unable to receive payment. A report stated that of the letters of credit received in the UK, 50% are unworkable while 70% are rejected by the banks for payment.
Shipping & Delivery Terms
When shipping your products, it is important to take note of a few factors:
Order Quantity
For smaller shipments, airfreight is often the preferred option but as the order volume increases, sea freight could become significantly cheaper. Usually when the order is close to a full container load (20 ft), sea freight is used. Although the Covid-19 pandemic caused an increase in cost of delivery of products, prices have stabilised.
Cost of Delivery
When the order is of a large volume, sea freight often turns out cheaper than air freight. In fact, air freight could be up to 6 times more costly than sea freight if the volume is large enough.
Time of Delivery
Sometimes, time will be more important to the buyer than the cost of delivering the product. In this case, air freight will be the logical option (as stated above, the cost will be more). But if you have more time as a buyer, you should strongly consider using sea freight.
Incoterms
Incoterms refer to generally accepted shipping and payments terms. For example, buyers that have representatives in the source country or that can negotiate with the freight company can use the Free of Board (FOB) terms, since it gives them more control and can save them some money.
However, if the shipment is small or the buyer doesn’t have an extensive network to effectively handle payment for freight, insurance and port charges, he will be better off choosing the Cost-Insurance-Freight (CIF) payment option.
Neogric: Top Exporters and Suppliers of Chili Pepper
We invite you to place your order for high-quality Chili Pepper with us at Neogric. We are a trusted global commodity sourcing and trade solution provider with deep expertise in the Chili Pepper industry. Whether you’re a small business or a large corporation, our wide range of products and technology powered, end-to-end supply chain make the export of quality Chili Pepper easy, quick and safe. Whichever region of the world you are, be it Europe, Asia, USA, Canada, Other North/Central American countries, Africa, South America or Oceania, you can reliably order your agricultural produce and we will ensure it is successfully delivered to you, on time.
Why Buy Chili Pepper From Neogric?
Choosing Neogric as your Chili Pepper supplier offers several advantages:
- Quality Assurance: We maintain strict quality control standards, ensuring our Chili Pepper and other products are of the highest quality.
- Wide Product Range: We offer a diverse selection of products, catering to various
- Reliable Supply Chain: Our efficient technology-powered end-to-end supply chain ensures timely delivery of your orders.
- Expertise and Support: Our team of experts provides valuable insights and support, making your purchasing process smooth and hassle-free.
Our Chili Pepper Trade Specifications
- Origin: Nigeria
- Product Name: Chili Pepper
- Physical Specification: Based On Buyer’s Specification
- Quantity: Based On Buyer’s Specification
- MOQ: 10 Metric Tonnes
- Trade Process: Ex Works/FOB/CIF
- Admixture/Impurities: Based On Buyer’s Specification
- Inspection: SGS/Cotecna/Intertek/Bureau Veritas
- Packaging: Based On Buyer’s Specification
- Payment Method: TT (Bank Transfer) or L/C
- Shipping Time: 15 to 25 Days After Confirmation of TT or L/C
- Loading Port: Lagos (Nigeria), Abidjan (Cote D’ivoire) or Tema (Ghana)
Expected Shipping Documents
- Bill of Lading
- Certificate of Origin
- SGS Inspection Certificate
- Phytosanitary Certificate
- Fumigation Certificate
- Commercial Invoice
- Packing List
Place Your Chili Pepper Order With Neogric
Contact us today to place your order for high-quality Chili Pepper. Our team is ready to assist you with all your procurement needs.
- Tel: +2348147860157
- Email: neo@neogric.com
- WhatsApp: Chat With Us
