The spices and herbs market is expected to grow from US$ 17 billion in 2022 to US$ 25 billion by 2028, with an estimated CAGR of 4.5% from 2022 to 2028.
Turmeric, pepper, paprika, chilies, cinnamon, cumin, cloves, and ginger are different types of spices. Herbs include basil, mint, oregano, parsley, and rosemary. Spices and herbs have been popular for culinary and medicinal purposes. They enhance the flavor, aroma, and color of food and beverages and protect individuals from acute and chronic diseases. With bioactive constituents such as flavonoids and polyphenols, sulfur-containing compounds, alkaloids, tannins, phenolic diterpenes, and vitamins, spices and herbs possess antioxidant, anticarcinogenic, glucose & cholesterol-lowering, and anti-inflammatory properties which offer a range of health benefits. Additionally, spices and herbs boost an individual's metabolism and help keep blood vessels healthy. Hence, there is a rise in demand for spices and herbs due to increasing health concerns of consumers. This factor is driving the spices and herbs market growth.
MARKET DYNAMICS
In recent years, health awareness among people has increased significantly. Due to people's busy lifestyles and hectic work schedules, people cannot concentrate on their health, fitness, and regular diet. This has increased the prevalence of obesity, diabetes, high blood pressure, skin problems, digestive issues, and other diseases. Therefore, people increasingly focus on preventive healthcare products and prefer nutritious ingredients in their food and beverages that provide enhanced nutritional benefits. Moreover, Asia Pacific is a major producer of spices and herbs, and most of the spices and herbs are processed in tropical regions of Asia Pacific. For instance, according to a report published by the Centre for the Promotion of Imports from developing countries (CBI) on January 24, 2022, in 2020, Asia Pacific recorded a market share of 47% in the export of spices and herbs and became a leading exporter of spices and herbs, followed by Europe 26%, North America 17%, Africa 4.5%, Latin America, the Caribbean 3%, and Australia & Oceania 2.5%. Spices and herbs are consumed and imported in larger quantities worldwide, as they offer many health benefits. Consuming spices and herbs improves immune health and provides an anti-microbial effect that helps prevent the risk of various diseases and infections. Thus, the rising health awareness among consumers and the increasing importance of regularly consuming spices and herbs are driving the spices and herbs market.
MARKET SCOPE
The "Global Spices & Herbs Market Analysis to 2028" is a specialized and in-depth study of the spices and herbs market with a special focus on the global market trend analysis. The report aims to provide an overview of the spices and herbs market with detailed market segmentation. It provides key statistics on the status of leading market players and offers major trends and opportunities in the market.
Strategic Insights
MARKET SEGMENTATION
The global spices and herbs market is segmented into type, category, and end use. Based on type, the market is segmented into herbs (basil, mint, oregano, parsley, rosemary, and others) and spices (turmeric, pepper, paprika, chilies, cinnamon, cumin, cloves, ginger, and others). In terms of category, the market is bifurcated into organic and conventional. Based on end use, the market is segmented into food processing, foodservice, and food retail.
REGIONAL FRAMEWORK
The global spices and herbs market is segmented into five major regions North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. The report covers analysis and forecast of 18 countries globally, along with current trends and opportunities prevailing in these regions.
Asia Pacific dominated the spices and herbs market in 2021. Most spices and herbs are grown in India, Bangladesh, China, and Indonesia. According to the Tradologioe report published on August 27, 2021, India produced 2,176,908.62 metric tons of spices in 2020. India contributes to 79% of global spice production. In 2020–2021, the production of Indian spices was valued at around US$ 19 billion, which is considerably higher than in FY 2019–2020. Therefore, the market growth is majorly attributed to the rising production of spices and herbs in Asian countries such as India, Bangladesh, China, Thailand, and Vietnam. Further, globalization and migration resulted in adopting various food experiences that further propelled the market's growth. Also, rising health awareness among consumers and the increasing importance of consuming spices and herbs drive the demand for spices and herbs. Since ancient times, herbs have been used as medicines in Asian countries such as India and China. Ayurveda and traditional Chinese medicines are the most ancient traditions in the world. Moreover, consumers are becoming increasingly concerned regarding their health and wellness due to the growing prevalence of various diseases and infections. All these factors are driving the spices and herbs market across the region. Also, rising healthcare expenditures, changing dietary habits, and increasing per capita incomes are key factors supporting the growth of the spices and herbs market across the region.
Source: The Insight Partners Analysis
The report analyzes the factors, such as drivers, restraints, opportunities, and future trends, that impact the spices and herbs market. It also provides an exhaustive Porter's five forces analysis, highlighting the factors influencing the market in these regions.
IMPACT OF COVID-19 PANDEMIC
The COVID-19 pandemic has had a mixed impact on the overall spices and herbs market. The imposition of the lockdown temporarily discontinued various manufacturing activities, resulting in a decrease in supply, which substantially impacted the spices and herbs market. In addition, the transportation of raw materials experienced many difficulties due to travel restrictions, which adversely impacted the global economy.
In 2021, the COVID-19 pandemic in India and China affected international trade dynamics. As almost all countries closed borders completely, the export business was stuck due to the lockdown scenarios and disrupted supply chain. According to the report published on April 15, 2020, by the Centre for the Promotion of Imports from developing countries (CBI), China, a major buyer of Indian spices, went through an intense decline in demand owing to the COVID-19 pandemic. This crisis caused the prices of several spices to drop. For instance, within a week, the price of Indian cardamom dropped by 50%. However, the increased awareness of spices and herbs boosted the demand from North America and European countries, while there were supply disruptions. Hence, the demand and supply gap during the pandemic hampered the spices and herbs market.
MARKET PLAYERS
The reports cover key developments in organic and inorganic growth strategies in the spices and herbs market. Various companies are focusing on organic growth strategies such as product launches, product approvals, patents, and events. Inorganic growth strategy activities witnessed in the market were acquisitions, partnerships, and collaborations. These activities have paved the way for business expansion and the customer base of market players. Market players are anticipated to have lucrative growth opportunities in the coming years due to the rising demand for spices and herbs.
The report includes key company profiles operating in the spices and herbs market, along with their SWOT analysis and market strategies. It also focuses on leading industry players with information, including company profiles, components and services offered, financial information of the last three years, and key development in the past five years.
Key Companies Operating in Spices & Herbs Market
- SHS GROUP
- Everest Spices
- Catch
- McCormick & Company, Inc.
- NANI AGRO FOODS
- MTR Foods Pvt. Ltd.
- KERRY Group plc
- Olam International
- Sensient Technologies
- The Ajinomoto Group
The Insight Partner's dedicated research and analysis team consists of experienced professionals with advanced statistical expertise and offers various customization options in the existing study.