The study found that Memot pepper production has been sharply expanded over the last 3 years. Most of small pepper producers (99%) owning pepper farms less than 1ha have been planting pepper in Memot area. Pepper plantation became the most suitable crop for smallholders because they owned farmland and had other income sources to secure their livelihood. Many new pepper producers including medium and large scale producers have invested in pepper plantation in Memot. Though some positive moves of Memot pepper production and market benefited pepper producers and other value chain actors, main constraints/challenges were also identified by the study. To solve the challenges, the following 3 main areas of intervention were recommended: 1- increase production capacity; 2- improve pepper quality; and 3- promote export market.