agricultural · input

Chili Peppers (Hot Sauce)

Red jalapeño/serrano and other chilies for hot sauce. Drought-sensitive and geographically concentrated (Mexico, US Southwest); the input behind the Sriracha shortages.

6

Source countries

4

Companies

1

Goods affected

0

Claims on record

What depends on it

Goods that need this input

1 essential American goods rely on chili peppers (hot sauce) somewhere upstream in their supply chain.

Where it comes from

Source countries

Share of global supply, by country.

CountryShare of supply
CNChina48%
MXMexico9%
TRTurkey8%
IDIndonesia7%
INIndia6%
ESSpain4%

Who makes it

Supplier companies

4 companies produce chili peppers (hot sauce).

Huy Fong Foods

HQ US

Maker of the rooster-bottle Sriracha; historically reliant on a single red-jalapeño supplier.

McCormick & Company(MKC)

HQ US

World's largest spice and seasoning company; $6.6B revenue in 2024; market leader globally. Dual strategy: retail brands (McCormick, French's, Frank's RedHot, Lawry's, Old Bay, Zatarain's) and industrial/foodservice (supplying spice systems to Tyson, Smithfield, JBS, McDonald's). McCormick's industrial segment supplies flavor systems directly to US and global processed meat processors. Also the leading supplier of spice blends to QSR chains. McCormick + Olam + Ajinomoto together control ~38% of global spice/seasoning market. McCormick's global sourcing includes direct relationships with pepper farmers in Vietnam, paprika processors in Spain/Hungary, and garlic processors in China.

McIlhenny Company (Tabasco)

HQ US

Maker of Tabasco sauce; peppers mashed and oak-barrel-aged ~3 years.

Underwood Ranches

HQ US

Chili grower; Huy Fong's sole jalapeño supplier for ~30 years until a 2017 split + lawsuit.