Spices and Seasonings Market Forecasts to 2028 – Global Analysis By Nature (Conventional, Organic), Form (Flakes, Paste, Powder), Distribution Channel (Store-Based, Non-Store-Based), Application, and By Geography

Spices and Seasonings Market Forecasts to 2028 – Global Analysis By Nature (Conventional, Organic), Form (Flakes, Paste, Powder), Distribution Channel (Store-Based, Non-Store-Based), Application, and By Geography

According to Stratistics MRC, the Global Spices and Seasonings Market is accounted for $20.47 billion in 2021 and is expected to reach $30.79 billion by 2028 growing at a CAGR of 6.0% during the forecast period. Spices come from roots, stems, bark, fruits, and seeds, which are used for coloring, flavoring, and preserving food. Spices and Seasonings are the ingredients used to give food and beverage products aroma, flavor, preservation, and color. Spices, including cardamom, cinnamon, clove, nutmeg and pepper, are plant-based substances that are commonly used for flavoring, coloring and preserving food. They are also extensively utilized in the production of medicines, cosmetics and perfumes.

Market Dynamics:

Driver:

Rising investment in digitalization of spices

Digitalization is becoming more important in the procurement of spices and herbs. Many farmers worldwide utilize digital technologies such as smartphones, sensors, drones, and satellites. These technologies offer a variety of solutions for spice and herb producers, including remote measurement of soil conditions, improved water management, pest and disease emergence forecasts, and crop monitoring. The project combines advanced satellite technology, information technology, and the internet to assist black pepper producers in Indonesia. It also developed the SpiceUp smartphone application to support different actors in the black and white pepper chain. Therefore, the rising digitalization projects for the production of spices & herbs in various emerging economies are expected to boost the global market growth.

Restraint:

Replicating of spice products

Spices have become more vulnerable to adulteration, whether planned or unintentional, since the international spice trade has grown tremendously. Deliberate adulteration is usually motivated by a desire to maximize profit margins. For instance, Asian chilies are sold under Mexican names such as chipotle or jalapeño. Mexican national symbols, such as the mariachi hat, are frequently featured on the packaging. Food fraud is a serious problem in the spice and herb industry, which is expected to hamper the market growth in the near future.

Opportunity:

Growing inclination for veganism and vegetarianism

Many spices previously used in the meat processing industry are now utilized in vegetarian alternatives. This trend contributes to the growth in spice demand. Plant-based diets are becoming increasingly popular around the world. The companies are focusing on new product launches, specifically for the vegan and vegetarian population, to take advantage of this new trend. With the rise of plant-based alternatives and only a slight decrease in meat consumption, spice and herb producers have an opportunity to create more creative flavor seasoning combinations. Additionally, the rising use of spices by vegan masses as meat substitutes has positively aided the global spices and seasonings market.

Threat:

Disruptions in supply chain

The pandemic outbreak has resulted in the market's slowdown due to various economic, political, and social changes. The crisis significantly impacted the world's spices sector, with its value chain stretching from the main production hubs in developing countries to the global spice trade network. Following the implementation of lockdown measures by national governments to halt the spread of the virus, there have been labor shortages caused by workforce migration. The border closure of China and India caused the fall in the price of some spices.

The pepper segment is expected to be the largest during the forecast period

The pepper segment is estimated to have a lucrative growth due to the rising popularity of the flavor that pepper provides and rising consumer awareness of its health benefits and the increasing emphasis of pepper producing countries on digitalization is expected to further support growth. For instance, Olam International produces black pepper in Vietnam and Brazil using an integrated smart agriculture system. Automatic drip irrigation, weather stations, and real-time monitoring are all part of this system. The benefits of such software solutions will be multi-fold. It will ensure real-time monitoring can ensure the protection of products, which is further predicted to contribute to the growth of the segment.

The snacks & convenience foods segment is expected to have the highest CAGR during the forecast period

The snacks & convenience foods segment is anticipated to witness the fastest CAGR growth during the forecast period. Snacks and convenience foods are the most important commodities in the spice and seasoning trade. The rising popularity of savory flavored snacks is propelling the segment's expansion. Blending companies' services have expanded to include the preparation of spices and other ingredients such as salt, garlic powder, lemon, dehydrated vegetables, and other flavorings. Moreover, the product customization provided by spice manufacturers can assist the segment in maintaining its largest share throughout the forecast period.

Region with highest share:

Europe is projected to hold the largest market share during the forecast period due to the growing inclination of young European consumers towards exotic and bold food flavors. Europe is one of the world's top importers of herbs and spices. It accounts for roughly one-quarter of total herb and spice imports worldwide. The frequently traded herbs and spices such as black pepper, chilies, and ginger are assumed to be relevant to the region's organic segment. In addition, premiumisation in Spices and Seasonings offering, increasing popularity of ethnic food products, and rising consumer interest in innovative condiments laced with exotic and spicy flavors are projected to offer huge growth opportunities for the market.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period. North America has been one of the major markets for Spices and Seasonings as new consuming habits change how consumers think about herbs. Moreover, new industries are sprouting up in the U.S. and Canada to use spices beyond flavoring food, which is expected to drive the market in upcoming years. The growing popularity of convenience and ready-to-eat foods and the increasing demand for ethnic cuisines have contributed to the growth of the spice market in the region. With the rising demand for Spices and Seasonings, the local manufacturers in the region are focused on introducing innovative and premier products to the consumers.

Key players in the market

Some of the key players profiled in the Spices and Seasonings Market include ACH Food Companies, Inc, Ajinomoto Co. Inc, AKO GmbH, Ariake Japan Company, Associated British Foods, Dohler Group, Friedrich Ingredients, Kerry Group, McCormick & Company Inc., Moguntia Food Group AG, Olam International, Pacific Spice Company, Sensient Technologies Corporation, SHS Group, and Zhumadian Wang Shouyi.

Key Developments:

In March 2021, Sensient Natural Ingredients LLC (SNI) announced that it had completed the acquisition of New Mexico Chili Products Inc., a Deming-based, dehydrated chili production facility. The new plant processes specialty chili varieties and capsicums for selling commercially to CPG food manufacturers, spice grinders, and food service customers.

In September 2021, Olam Food Ingredients launched 'Blends of the Americas'- the first collection in its new spice blends range. The 17 ready-to-use dry blends provide food service companies, food manufacturers, and retailers an easy, clean-label solution for creating authentic and consistent flavors inspired by the continent's popular cuisines – those of the Caribbean, Mexico, and the U.S. Southwest.

In October 2020, ACH Food Companies, Inc., a manufacturer of cooking and baking products, acquired Anthony’s Goods, a digital brand. This acquisition helped in increasing consumer demands for high quality natural and organic options.

Natures Covered:
• Conventional
• Organic

Forms Covered:
• Flakes
• Paste
• Powder

Types Covered:
• Capsicum
• Cardamom
• Chili
• Cinnamon
• Cloves
• Coriander
• Cumin
• Ginger
• Nutmeg and Mace
• Pepper
• Turmeric

Distribution Channels Covered:
• Store-Based
• Non-Store-Based

Applications Covered:
• Bakery and Confectionery
• Beverages
• Frozen Foods
• Meat and Poultry
• Snacks & Convenience Foods
• Soups, Sauces, and Dressings

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances