Global Saffron Market - 2023-2030

Global Saffron Market - 2023-2030

Global Saffron Market reached US$ 624.12 million in 2022 and is expected to reach US$ 1025.95 million by 2030, growing with a CAGR of 6.41% during the forecast period 2023-2030.

Saffron is an important agricultural product in Iran, it produces 90% of the world’s saffron and is known for its high quality. According to the Trade Promotion Council in India in 2020, Iran produced around 88% of the world’s saffron with a maximum area of 43.408 thousand hectares and exported 42.4% of the market share to Hong Kong, China. Globally, some of the top-producing countries of saffron are Iran, India, Greece, Spain, Morocco, Italy, and Turkey among others.

An increase in the consumer demand for saffron in the food and beverage industry helps to boost the market growth of the saffron market over the forecast period. According to the document published by the Kashmir government in 2022, Kashmiri saffron is of superior quality due to its crocin concentration the pigment giving saffron its color and medicinal quality, is 8.72%, versus Iran’s 6.82%.

Major key players offering more organic and natural saffron create new market opportunities for market growth of saffron. For instance, on March 31, 2022, Clensta International, a new startup launched an innovative range of red aloe vera skincare products in the market. The newly launched product line includes six products for women and 3 for men. The newly launched products include SPF lotion, hair serum, face serum, and under-eye cream for women, and intimate brightening scrub, face brightening, and scrub for men.

Dynamics

Growing Consumer Demand in the Food and Beverages Industry

Saffron is popular for its aroma and flavor which helps to boost taste of a food dishes. Chefs and food manufacturers use saffron to enhance the sensory experience of their products, making it a sought-after spice in the culinary world. It has applications in the various traditional and modern gourmet dishes that help to enhance the demand of saffron in restaurants and hotels.

Saffron is also increasingly used in the beverage industry to provide a golden yellow color to various beverages such as cocktails, saffron-infused teas, and specialty drinks. To fulfill consumers' demand for saffron major key players in the market launched new products. For instance, on September 16, 2023, Tatva Health and Wellness launched 3 new products in the market such as Kesari saffron, Kesari golden sugar, and spice liquid in India. Kesari saffron is 100% pure and adulteration free.

Increasing Consumer Awareness about the Health Benefits of Saffron

Saffron contains various bioactive compounds such as crocetin, crocin, kaempferol, and safranal that have antioxidant properties. Kaempferol has anticancer properties that help to reduce inflammation. Safranal helps to improve memory, mood, and learning ability. It also has aphrodisiac properties that help to cure depresion.

Antioxidants in the saffron help to protect body cells from oxidative stress which is a major cause for various chronic diseases. It also has some anti-inflammatory properties which helps to attract consumers. Saffron also has calming properties that help to reduce anxiety and stress. Saffron is traditionally used to support digestive health. It has skin-brightening properties due to this increase in the adoption of saffron in the cosmetic industry.

High Cost of the Saffron Hampers Market Growth

Saffron is the most expensive spice in the world due to its limited production. The high price of saffron makes it less accessible to a large portion of consumers. This limits the market's growth potential as it caters mainly to a niche or high-end customer base. Saffron prices are highly volatile due to factors like geopolitical events, climate conditions, and market demand. This makes it difficult for businesses to plan and invest in saffron production.

The saffron flowers are handpicked once a year and it takes 150,000 to 160,000 flowers to produce 1 kilogram of the spice. Handpicking saffron requires more labor that has to be done in a short period of time during the few weeks of flowering. On September 15, 23, Kashmiri saffron selling at a price of USD 3908.70 per kg.

Segment Analysis

The global saffron market is segmented based on form, nature, grade, distribution channel, application and region.

Increasing Consumer's Demand for Tread Form of Saffron

The thread form segment held 42.15 % of the global saffron market share. Thread saffron is perceived as more authentic and pure compared to saffron powder, which can be easily adulterated. Consumers often prefer whole threads to ensure they are getting genuine saffron. Saffron threads are visually appealing with their bright red color and distinct shape. They add an attractive and exotic touch to dishes, making them popular for garnishing and presentation.

Saffron threads are used in a variety of culinary applications, from savory dishes like rice and stews to sweet treats like desserts and beverages. Their versatility contributes to their popularity in different cuisines. They are considered a premium and gourmet ingredient. Chefs and home cooks often choose them for special occasions and high-end dishes.

Geographical Penetration

Growing Production of the Saffron in the Asia Pacific

Asia Pacific accounted largest market share of 41.25 % in 2022 in the saffron market due to the increase in consumer demand from the food and beverage industry in India and China. Saffron is a prized and aromatic spice used in various Asian cuisines, such as Indian, Persian, and Arabic cuisines. As these cuisines become more popular worldwide, the demand for saffron as a key ingredient has grown, particularly in the Asia Pacific region. Economic growth in many countries within the Asia Pacific region has led to an increase in disposable income. As a result, consumers have more purchasing power to buy high-value, premium ingredients like saffron.

India is one of the leading producers of the saffron. Jammu and Kashmir is one of the largest producers of saffron in India. According to the data given by Agro Spectrum India, in 2022 Saffron production in Jammu and Kashmir has increased by 30 % due to adequate rain before flowering of saffron. Kashmir has 3700 hectares of land under saffron cultivation. Pampore in Pulwama is the main hub for saffron cultivation.

Competitive Landscape

The major global players in the market include Esfedan Trading Company, EYJAN saffron company, Tarvand Saffron Co., Saffron Business Company, Orasense, Saffron Group, Mehr Saffron, Flora Saffron, Novin Saffron Company and Zaran Saffron.

COVID-19 Impact Analysis

The saffron market experienced disruptions in the supply chain, particularly in saffron-producing regions like Iran, Spain, and India. Lockdowns, labor shortages, and transportation restrictions affected saffron harvesting, processing, and distribution. Saffron prices saw fluctuations during the pandemic. The initial lockdowns led to increased demand for saffron, particularly in regions where people cooked more at home. However, supply disruptions and market closures contributed to pricing fluctuations.

The closure of restaurants, hotels, and the hospitality industry negatively impacted the demand for saffron. Saffron is often used in fine dining and high-end cuisine, which was significantly affected. Some saffron-producing countries imposed export restrictions to ensure domestic supply during the pandemic. These export restrictions affected the global availability and pricing of saffron.

Russia-Ukraine War Impact Analysis

The conflict between the countries disrupts supply chains, including the transportation routes that saffron travels through during trade. The chain disruptions affect the timely distribution and availability of saffron in certain regions. Geopolitical tensions and conflicts lead to economic uncertainty, which impacts currency exchange rates and trade relations. Fluctuations in exchange rates influence the cost of importing and exporting saffron.

Global consumers are affected by news of geopolitical conflicts, leading to shifts in their purchasing behavior. Saffron, as a premium and high-value spice, experiences changes in demand as consumer confidence and economic conditions fluctuate. Saffron is a high-value spice, making it susceptible to adulteration or fraudulent labeling practices. Geopolitical tensions raise concerns about the authenticity and quality of saffron in the market, as supply chains disrupted.

By Form
• Thread
• Powder
• Liquid

By Nature
• Organic
• Conventional

By Grade
• Grade I
• Grade II
• Grade III
• Grade IV

By Distribution Channel
• Supermarket and Hypermarket
• Convenience Stores
• Specialty Stores
• E-Commerce
• Others

By Application
• Food
• Cosmetics
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• On August 03, 2023, Tata Consumer Products, the consumer product company announced a launch of Kashmiri saffron category under its provenance brand - Himalayan. The newly launched saffron is of grade 1, 100% pure Kashmiri saffron.
• On November 07, 2020, New Generation Agro started production of the world's most expensive spice saffron. The company has aggregated land of 30 acres at pampore in Jammu and Kashmir. 25-30% of the saffron directly distributed from farmers to consumers.
• On October 11, 2022, USMS saffron company supplied saffron in the domestic and overseas markets. The company launched health-oriented food and beverage drinks such as kesar flavored whey protein.

Why Purchase the Report?
• To visualize the global saffron market segmentation based on form, nature, grade, distribution channel, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of saffron market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global saffron market report would provide approximately 77 tables, 79 figures and 190 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies