Hungarian premium paprika is popular abroad, but the sector is facing challenges from climate change and rising production costs. However, the sector can overcome these challenges by adopting more effective technological solutions, improving organization, and enhancing marketing efforts. Despite competition from Spain and France, Hungarian paprika has a place in the international market, especially for products made from Hungarian raw materials. The cultivation of paprika in Hungary has decreased significantly in recent years, leading to market reorganization, but there is still potential for growth in products like smoked ground paprika and hot pepper creams.