Industry: Food and Beverages
Published Date: February-2022
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 475
Report ID: PMRREP32805
Consumption of spices across the world amounts to a valuation of US$ 164.1 Bn in 2024. Forecasted to increase at a CAGR of 5.1%, the global spices market will reach US$ 244.8 Bn by 2032.
| Attribute | Key Insights |
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Market Size (2024E) |
US$ 164.1 Bn |
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Projected Sales of Spices (2032F) |
US$ 244.8 Bn |
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Value CAGR (2024-2032) |
5.1% |
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Value Share of Top 5 Countries (2020A) |
68.5% |
As per forecasts by Persistence Market Research, Europe and North America are the fastest-expanding markets for spices. Together, both regional markets hold a market volume share of more than 30% in 2023.
From 2017 to 2021, the worldwide spices market grew at the rate of 4.2% year-on-year.
Spices are increasingly being used as the main ingredients in a variety of food products. Spices are used to enhance flavor in salads, soups, processed foods, and baked goods. Pepper is used in meat and seafood to bring out the natural flavor, while also acting as a natural preservative. Herbs and spices added to dairy dishes provide nutritional and therapeutic benefits. The food industry is expanding rapidly on a global scale, presenting numerous opportunities for spice suppliers.
Whole spices are widely used due to their various applications and account for roughly 60% of the overall market share, followed by powder spices and oil forms. Global value of the spices industry is anticipated to increase at a CAGR of 5.1% through 2032.
“Increasing Popularity of Spices to Enhance Taste & Flavor”
Consumers are getting conscious about what they eat, and want to know about the ingredients and their nutritious value without compromising on the taste and flavor of the food product. Spices play a key role in giving the desired taste and flavor to food.
Spice manufacturers are introducing new and innovative products into the market that give an authentic taste to food as well as are healthy for consumption. With their research & development teams, market players are coming up with spices that benefit consumer health as well as enhance taste at the same time.
“Changing Consumer Taste Preferences to Benefit Spice Product Manufacturers”
Consumers' disposable income is expected to increase, resulting in a trend toward premium products such as flavored drinks and beverages as well as food products.
Spices such as basil cocktails, spiced white rum, cinnamon-flavored beverages, and others have a favorable impact on customers due to their excellent taste and nutritional benefits. Consumer preferences are changing rapidly in foodservice industries such as restaurants, bakeries, and others, as they embrace food products that are authentic in taste and flavor, thereby driving spice usage.
“Increasing Immigrant Populations Driving Demand for Spices”
Increasing populations in various regions such as Asia, North America, and others have tended to raise the consumption of spices. For instance, people in India consume more spicy food than others and use spices in various food products as key ingredients.
Increasing number of immigrants from Asia to North America is influencing local food platters, and this is expected to drive spice sales in the North American region. Growing number of Indian and Chinese restaurants in North America are offering ethnic cuisines with various ingredients, which is increasing the use of spices in various cuisines.
“Rising Use of Spices as Dietary Supplements”
Continuous studies and research are being published by scientists and high-profile journals on the benefits of vitamins and minerals and various nutrition for maintaining health.
It has been observed that, with the change in people's lifestyles, they are not consuming as many vitamins and minerals according to the recommended level. As such, many companies are introducing supplement products to compensate for the same. These products contain spices as an important ingredient, thereby complementing spices market growth.
“Seasonal Fluctuations & High Price Points - Important Considerations”
Spices witness a high level of seasonal fluctuations, so there is a scarcity of them, resulting in a price disparity. Furthermore, spice farming is labor-intensive and involves processing, making spices more expensive than other organic products.
Many companies suffer from a lack of supply and a price disparity, resulting in the availability of cheap spice substitutes in the market that are filled with impurities such as chemicals, fillers, fake colors, and low-cost synthetics. These lose their unique flavor and may be harmful to health. This type of adulteration is on the rise, posing a threat to spices market growth.
Why is Demand for Spices Increasing in the U.S.?
“High Immigration Rate in U.S. Driving Need for Spices & Seasonings”
In North America, the U.S. spices market is growing rapidly at a CAGR of 5.8%, and it accounts for 84.5% of the region's market share. This is owing to a surge of South Asian immigrants into the region.
Spice demand is projected to rise as a result of their influence on local food platters. As a result, an increasing number of Indian and Chinese restaurants are offering ethnic cuisines with a variety of ingredients. It also encourages residents to utilize certain spices in their dishes.
Which Country Holds the Largest Market Share in South Asia?
“India Leading the South Asia Spices Market”
India accounts for around 79% of the South Asia spices share. This is due to the fact that spices are used in every household in the country.
Spices are used in India not just in food & beverages but also as home remedies for medicinal purposes. By 2032, the market for spices in India is estimated to be valued at US$ 71.1 Bn, up from US$ 45.45 Bn in 2022.
Which Industry is Highly Profitable for Spice Manufacturers?
“Food Processing Industry Accounts for Highest Demand for Spices & Seasonings”
The pickling spices is expanding due to an increase in demand for a wide range of cuisines and a desire among people to sample unique flavors from around the world.
The food processing industry accounts for around 46.7% of the overall market, and is anticipated to increase at a CAGR of 5.2% through 2032. By 2032, pickling spice sales to the food processing sector are estimated to be worth US$ 115.8 Bn.
Is Demand for Organic Spices Expected to Increase Rapidly?
“Natural Food Trend Bodes Well for Organic Spices & Herbs”
Organic spices currently account for 4.1% market share in 2022, with a value of US$ 6.1 Bn. Consumers today value their health above everything, and they are willing to spend extra on organic food because of its health benefits.
Organic spices and herbs are becoming more popular as customers become increasingly aware of the toxic chemicals used in agricultural practices. The health benefits of organic products is the most significant reason driving the organic products market, which, in turn, is driving demand for organic spices and herbs.
Increasing government measures to promote natural foods since organic farming helps maintain environmental health by lowering pollution levels, has an impact on the growth of organic spices.
Key spice manufacturers are relying on technological innovation to produce a wide range of spices. Spices Market players are also working on assuring safety, quality, and customer satisfaction through the use of technology in order to attract a larger consumer base.
| Attribute | Details |
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Forecast period |
2022-2032 |
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Historical data available for |
2017-2021 |
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Market analysis |
USD Million for Value |
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Key countries covered |
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Key market segments covered |
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Key companies profiled |
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Report coverage |
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Customization & pricing |
Available upon request |
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The global spices market is currently worth US$ 148.6 Bn.
The market is set to offer US$ 96.2 Bn of incremental opportunity to its players.
India is the largest manufacturers of spices in the world, besides being the largest consumer and exporter as well.
Spices are majorly used in food processing, which holds a market value share of 46.7%.
The spices market in Europe and North America is expected to expand at 6.1% and 6% CAGRs, respectively.
Market share of the top 5 spice manufacturers is around 5%-15%.
The India spices market is valued at US$ 4.43 Bn in 2022, while Canada is expected to reach US$ 8.68 Bn by 2032.
