According to Fact.MR- a market research & competitive intelligence provider- the ubiquitous seasoning and spices market is expected to be valued at US$ 27.4 Bn in 2021, slated to expand 1.9x until 2031. By the end of the forecast period, the industry is anticipated to reach US$ 51.4 Bn. Sales of organic spices are anticipated to be the highest, clocking a CAGR of 5%.
Key Points Addressed in Seasonings and Spices Industry Analysis
- Market Estimates and Forecasts (2016-2031)
- Key Drivers and Restraints Shaping Market Growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Brand Share and Market Share Analysis
- Key Product Innovations and Regulatory Climate
- COVID-19 Impact on Seasonings and Spices Market and How to Navigate
- Recommendation on Key Winning Strategies
Seasonings & Spices Consumption Analysis 2016-2020 Vs Outlook 2021-2031
Historical analysis of the market for seasonings & spices reveals that the industry flourished at a CAGR of 4.7%, from 2016-2020. With inclining consumer preferences for exotic and indigenously flavored foods, food manufacturers are incorporating various permutations and combinations of key spices, impelling growth prospects.
Additionally, documented health benefits, specifically with respect to blood sugar levels, bad cholesterol reduction and mitigation of cardiac arrests, have boded well for demand for seasonings & spices. Amid the COVID-19 pandemic, prospects remained optimistic, as restrictions on outdoor dining prompted consumers to experiment with different flavored foods across their homes, leading to increased purchases of spices.
Future growth prospects are significantly reliant on the ever expanding scope across the health and wellness sector. Several nutraceutical supplements and dietary supplements are expected to incorporate spices such as ginger and turmeric to enhance their benefits on the human body. Based on this trend, the market is slated to expand at a CAGR of 6.5% from 2021 to 2031.
Booming Restaurant Business to Catapult Seasonings & Spices Sales?
In recent years, emergence of numerous hotels and restaurants is boding well for the hospitality industry. Various hoteliers are concentrating on capitalizing on the rising desire for lavish and unique culinary experiences in order to acquire a competitive edge.
According to the National Restaurants Association, total revenues accrued from restaurants amounted to US$ 659 billion in the U.S, down US$ 240 billion from expected levels, due to the COVID-19 pandemic induced lockdowns. Similarly, the restaurant business in India is surging at an annual rate of 7%.
As more people frequent outdoor dining settings, restaurants are diversifying their food offerings, including indigenous and exotic foods. As a result, demand for various categories of spices & seasonings is accelerating impressively.
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Why is Increasing Demand for Health & Wellness Products Boding Well for Seasonings & Spices?
Certain spices are fast replacing sugars and salts, as well as artificial food additives. This is majorly attributed to rising health consciousness amongst consumers. A major shift towards naturally-sourced and organic foods is being witnessed since the past decade.
For instance, cinnamon-infused consumer products have proven extremely beneficial for individuals having high blood sugar. The spice is known to greatly reduce blood sugar levels among people with type-2 diabetes. It also provides heart-healthy benefits, including bad cholesterol levels reduction.
Similarly, turmeric is being incorporated in a wide array of food products as it is a potent anti-inflammatory agent. Research also suggests turmeric may reduce inflammation of the brain, which is commonly linked to Alzheimer’s disease and depression. Likewise, garlic imbued foodstuffs help prevent the onset of atherosclerosis. Such documented benefits are greatly impelling growth prospects for seasonings and spices.
Country Wise Analysis
How is Demand for Organic Spices Spurring Market Growth in the U.S?
As per the U.S Department of Agriculture, the U.S is the world’s largest spice importer and consumer, both on volume and value basis. Spices such as vanilla beans, black pepper & white pepper, capsicums, sesame seed, cinnamon, oregano and mustard, comprise more than 75% of the total annual value of spice imports.
Demand for organic spices is expected to be especially high across the forecast period. According to the Organic Trade Association, U.S organic products sales accelerated by over 12% in 2020, surpassing US$ 60 billion in revenue, with organic food sales climbing at over 5%.
This heightening spice consumption is majorly attributed in part to rising incidences of chronic disorders, including heart disease. The Centers for Disease Control & Prevention estimates that about 659,000 people succumb to heart disease every year. Certain spices, especially herbal ones, have proven beneficial to cardiac patients, hence elevating growth prospects. As per Fact.MR, the market in the U.S will likely surge at a 5% CAGR.
How is Strong Domestic Output Impelling Prospects for India?
According to Fact.MR, India remains the dominant market for seasonings and spices, likely to sure at a CAGR worth 7% across the 2021-2031 forecast period. India is the world’s largest producer, consumer and exporter of spices, 75 of the 109 varieties listed by the International Organization for Standardization (ISO).
According to India Brand Equity Foundation, India exported US$ 3.62 billion worth of spices in FY20. The domestic market reaches worth US$ 9.9 billion annually. Chilly is the major spice crop, accounting for 34% of total spices production in the country, followed by garlic (19%), seed spices (17%) and pepper (2%).
Consequently, various manufacturers are finding lucrative expansion opportunities in the Indian market. Recently, in July 2020, ITC acquired Sunrise Spices for 2,150 crores (US$ 285 million), acquiring a 100% stake. This acquisition would provide further boost to the Indian spices industry, with yet another player entering the business.
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Category Wise Insights
Will Conventional Spices Hold the Largest Share in the Market?
The conventional category of seasonings and spices is anticipated to account for the highest sales, acquiring a value of nearly US$ 7 Bn over the next half-a-decade. Conventionally sources spices impart better taste, aroma and flavor to various foodstuffs, thus retaining their popularity.
Moreover, conventional spices are inexpensive. However, sales of organic spices will likely overtake its counterpart, as concerns over presence of synthetic chemicals and pesticides mount. The organic segment is expected to grow at a CAGR of 5% until 2031.
Why are Spices & Seasonings the Top-Selling Product Category?
By product category, the spices section is anticipated to have the largest revenue share, accounting for over 1/4th of the global revenue until 2031. A CAGR of over 4% is projected for this segment.
Increasing demand for exotic foods and flavors as well documented health benefits associated with certain spices categories, including ginger, garlic and turmeric, are key contributors to market growth in forthcoming years.
The worldwide spices & seasonings industry is highly fragmented and competitive, with several companies present. Companies are becoming more competitive by upgrading their distribution networks, entering into partnerships, acquisitions, expanding into new markets, and so on.
- In May 2021, Ajinomoto Co. Inc., invested in SAKA NO TOCHU Co. Ltd., a prominent player in the agricultural products sector. With this initiative, the company intends to establish a new business model, especially e-commerce, to expand outreach of its seasonings and spices business
- In November 2020, McCormick & Co. announced that it intends to acquire Cholula Hot Sauce®. This acquisition will mark McCormick’s expansion of growth opportunities within its condiments business and broadening its prospects in the hot sauces category
Interested to Procure The Data
|Market Size Value in 2021||USD 27.4 Billion|
|Market Value Forecast in 2031||USD 51.4 Billion|
|Growth Rate||CAGR of 6.5% from 2021 to 2031|
|Historical Data Available for||2016-2020|
|Market Analysis||US$ Mn for Value & ‘000 Units for Volume|
|Key Regions Covered||
|Key Countries Covered||
|Key Segments Covered||
|Key Companies Profiled||
|Pricing||Available upon Request|
Key Segments Covered
- Conventional Seasonings & Spices
- Organic Seasonings & Spices
- Seasonings & Spices
- Salt Substitutes
- Seasoning & Spice Blends
- Seasonings & Spices Sales via Modern Trade Channels
- Seasonings & Spices Sales via Neighborhood Stores
- Seasonings & Spices Sales via Specialty Stores
- Seasonings & Spices Sales via Other Brick and Mortar Retail Store
- Seasonings & Spices Sales via Online Stores
- FAQs -
The seasonings and spices market is anticipated to reach US$ 27.4 Bn by 2021
From 2021 to 2031, seasonings and spices demand will surge at a CAGR of 6.5%
By 2031, sales of seasonings and spices will likely be valued at US$ 51.4 Bn
According to Fact.MR, from 2016 to 2020, the market for seasonings and spices surged at around 4.7% CAGR
Increased preference for exotic and indigenous foods is impelling demand for seasonings and spices around the globe
Increasing demand for health & wellness products is likely to open up new expansion frontiers for the market
According to Fact.MR, the market for seasonings & spices in the U.S will likely surge at a CAGR of 5%
From 2021 to 2031, sales of seasonings and spices in India will surge at a CAGR of 7%
Organic seasonings and spices will be the fastest growing, growing at a CAGR of 5%
India is the largest exporter of seasonings and spices.
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