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The Spices Market size is projected to increase by USD 3.05 billion, at a CAGR of 7.22% between 2023 and 2028. The market is influenced by increasing awareness of the medicinal properties of spices, a rising preference for ethnic cuisines, and a growing demand for convenient, ready-to-use spice mixes. Awareness of the health benefits associated with spices drives their incorporation into diets for both flavor and wellness. Simultaneously, the popularity of ethnic cuisines introduces diverse spices and seasonings into mainstream culinary practices. Additionally, the convenience offered by ready-to-use spice mixes caters to busy lifestyles, simplifying meal preparation without compromising flavor. These trends highlight a dynamic market where culinary preferences, health consciousness, and convenience converge to shape consumer choices and market opportunities for organic spices. The market forecast report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
The Market shows an Accelerated CAGR during the forecast period.
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The market is vibrant and diverse, catering to a wide range of industries including food processors, restaurants, hotels, cafés, and QSRs (Quick Service Restaurants) across both the foodservice and retail channels. Key players like Nestlé India drive innovation in products such as Magic Masala with flavors like garlic, ginger, vanilla, and cumin seeds, enhancing culinary experiences globally. Companies like Kalsec play a crucial role in spice processing, ensuring quality and consistency in spices and seasonings. The market's appeal lies in the rich aroma, vibrant color, and effective preservation of spices, including whole seasoning varieties such as mint, rosemary, clove, and parsley. As consumer preferences shift towards healthier and more adventurous cuisines, the spices market continues to expand, leveraging consumer demand for authentic flavors and versatile ingredients across various culinary applications.
Growing demand for ready-to-use spice mixes is the key factor driving market growth. Ready-to-use spice mixes are becoming increasingly popular among customers as they save time and effort and deliver consistency in taste every time food is prepared. The hectic lifestyles of consumers, increasing demand for convenience in food preparation, and rising disposable incomes have led to an increase in the demand for ready-to-use spice mixes.
Furthermore, new varieties of aromatic tablets in herbal medicine and blended spices developed for specific and exotic cuisines are being made available to consumers. Therefore, increased varieties of ready-to-use spice mixes will drive the growth of the market during the forecast period.
Growing strategic acquisitions among major players is the primary trend shaping market growth. Some of the major market players are looking to expand into new geographies and segments for enhanced adaptability in terms of innovative technologies and to expand their customer bases. For instance, McCormick and Co. Inc. announced the acquisition of 100% of FONA International, LLC, and certain associates in December 2020.
Also, in May 2021, Olam Group Ltd. successfully acquired Olde Thompson, a well-known US private-label spice and seasoning maker, for an estimated USD 950 million in estimated value. Therefore, such strategies adopted by the market players will drive the growth of the global spice market during the forecast period.
Product recalls is a major challenge that affects market growth. The presence of various contaminations in spices causes health hazards among individuals. Consequently, the presence of contaminants due to manufacturing or packaging defects often leads to product recalls. Such product recalls can hinder the brand name and cause heavy losses to the market players, impeding market growth.
For instance, in July 2022, three well-known seasoning blends, McCormick Perfect Pinch Italian Seasoning, McCormick Culinary Italian Seasoning, and Frank RedHot Buffalo Ranch Seasoning, were voluntarily recalled by McCormick and Co. Inc. for possible salmonella contamination. Thus, such factors may impede the revenue and growth of the global market during the forecast period.
The household segment is a rapidly growing segment in the global market. Global demand for these in households is growing due to changing consumer habits, increasing urbanization, rising disposable incomes, and new food experiences. Furthermore, a growing number of consumers in North America and Europe have been incorporating different spices such as cardamom and cloves into their regional cuisines, creating new market prospects for manufacturers. In addition, the growing number of cooking shows in developed and developing countries are also influencing consumers to shop for new products from the retail sector. Thus, such factors will increase the growth of the household segment due to the continual increase in demand from households, which in turn will propel the growth of the market during the forecast period.
The market share growth by the powder segment will be significant during the forecast period. The powder form of these is finely grounded spices, such as chili powder, turmeric powder, and garam masala. This can be either a mix of spices together to form a complex spice powder such as garam masala or separate powders of coriander, cumin, cloves, cinnamon, and nutmeg.
The powder segment was valued at USD 3.01 billion in 2018.
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The powdered spices are commonly used in South Asian countries such as India, Nepal, and China. Garam masala is a popular Indian spice blend used to flavor soup recipes, stews, and curries. It is a commonly used spice in Indian cuisine, which is amazingly warm and fragrant. Garam masala is more of a warming mix, with flavors such as cardamom, cinnamon, cloves, and peppercorns (and many others) blended. Therefore, such factors will drive the growth of the segment during the forecast period.
APAC is estimated to contribute 39% to the growth of the global market during the forecast period
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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in APAC is expected to grow at a significant rate due to major countries like India, China, Japan, South Korea, Australia, Thailand, and Singapore. Factors such as increased health consciousness, rising awareness among people about different types of spices, increased spending by the millennial, Generation X, and Baby Boomer population, the introduction of global spice brands, and growing adoption of traditional recipes will drive the growth of the market in APAC during the forecast period. Similarly, the North America seasoning and spices market is poised for growth driven by factors such as heightened culinary experimentation, increasing demand for organic and gourmet ingredients, and a growing preference for diverse flavor profiles among consumers.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is undergoing a transformation driven by evolving consumer preferences and technological advancements. With a rising focus on healthy food ingredients, the market sees increasing demand for spice blends that cater to vegan masses and meat substitutes. Consumers are embracing vegetarianism and veganism, leading to a surge in plant-based diets and healthful indulgence options. Sustainable sourcing practices, including partnerships with Fairtrade-certified companies, are becoming pivotal in ensuring ethical procurement of exotic herbs and spices while addressing concerns over spice adulteration.
Further, the foodservice channel and retail channel are pivotal in distributing these products, supported by online activities and digital tools that enhance consumer engagement and supply chain efficiency. Technologies such as sensors, smartphones, drones, and satellites aid in monitoring spice origins and ensuring quality throughout the spice trade. Despite challenges like supply constraints, the spices market continues to thrive, driven by the enduring popularity of spices like those in the pepper segment and the growing trend of home cooking among health-conscious consumers.
Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.22% |
Market Growth 2024-2028 |
USD 3.05 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.12 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, India, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ajinomoto Co. Inc., BARIA SPICES CO. LTD., British Pepper and Spice Co. Ltd., Dohler GmbH, DS Group, Elite Spice Inc., EVEREST Food Products Pvt. Ltd., Kerry Group Plc, Kikkoman Corp., Mahashian Di Hatti Pvt. Ltd., Master of Spices, McCormick and Co. Inc., Olam Group Ltd., Paulig Ltd., ROYAL SPICES, SOLINA, The Bart Ingredients Co., The Speculaas Spice Co. Ltd., Touton SA, and UK Blending Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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