Published: February 2018 | Report Code: CP10353 | Available Format: PDF | Pages: 525
The seasonings and spices market generated revenue worth $21.5 billion in 2017, and it is predicted to register a CAGR of 6.0% during the forecast period (2018–2023), reaching $30.4 billion by 2023. Asia-Pacific (APAC) held the largest share in the seasonings and spices market, both in terms of value and volume, in 2017, and it is expected to be the fastest growing region during the forecast period. APAC is the largest producer and consumer of seasonings and spices in the world. Apart from the already heavy consumption of seasonings and spices in South Asian countries, the growing spice consumption in the Far East, along with their increasing production across the region, is a key factor driving the APAC market.
Dynamics Governing the Seasonings and Spices Market
The key trend being observed in the market is the changing consumer preferences and eating habits, due to the increasing income levels. People across the globe are becoming more experimental in terms of trying out new and expensive dishes, to explore new tastes and flavors. Chinese, Continental, and Mexican cuisines are increasingly gaining popularity, as people continue to experiment with new tastes. For instance, during 2009–10 and 2011–12, the percentage of salts and spices in the total consumer expenditure in rural India remained constant at 2.4%, while the share of consumer expenditure on salts and spices in urban India increased from 1.5% to 1.7%. The consumption of spices and seasonings at the household level is also increasing with consumers gaining better access to recipes and knowledge on ingredients from the internet and cooking-based television shows. Hence, the changing food habits and preferences of consumers are a key trend in the global seasonings and spices market.
The growing popularity of convenience foods is a major factor driving the growth of the market. Factors such as long working hours, increase in the number of people living alone, and busy lifestyle have boosted the demand for food service establishments that can deliver quick and competent service to customers. Since convenience foods are easily accessible, they help in saving the time and effort which go into cooking at home. Further, there has been an increase in the spending of consumers on ready-to-fry foods, baked goods, confectionery products, and ready-to-eat foods, particularly in developed economies. Owing to this, industries related to processed foods and confectionary are increasingly purchasing seasonings and spices. Hence, the growing popularity of convenience foods is driving the seasonings and spices market, globally.
The changing demographic composition has presented the players in the food industry a great opportunity to offer a vast assortment of ethnic flavors to the palates demanding variation. Some of the spices and seasonings that are increasingly being adopted by restaurants and food vendors across the world, to enhance the flavors of their ethnic dishes, are ginger, pepper, and anise (Chinese food), chili, curry, and cardamom (Indian food), and cassia, cloves, cinnamon, and nutmeg (Thai food). The changing demographic composition, worldwide, is also offering profitable investment opportunities to spices vendors. With the expanding multicultural inhabitant base across different regions, people are traveling more than ever to exotic destinations, to explore regional cuisines. Hence, the changing demographic composition is a key opportunity for the seasonings and spices market players.
Structural Analysis of Seasonings and Spices Market
The whole product category held the larger share, in the seasonings and spices market, both in terms of value and volume, in 2017. Whole seasonings and spices are increasingly used in both the industrial and the residential end users. Owing to this, the demand for whole seasonings and spices is growing among different end users, such as the food service, industrial, and retail sectors.
The industrial end-use category held the largest share in the market in 2017. The rising usage of spices and seasonings in the food processing industry, for meeting consumers’ demand for hot and spicy food, is driving the market in the industrial category across the globe.
Geographical Analysis of Seasonings and Spices Market
Globally, APAC held the largest share in the seasonings and spices market, both in terms of volume and value, in 2017, and it is expected to be the fastest growing region during the forecast period. This can be attributed to the increase in the production of spices in different countries in the region, favorable environmental conditions for spice plantation, and supportive government policies toward increasing the spice production. For instance, according to the Vietnamese Ministry of Agriculture and Rural Development, annual black pepper production would increase by approximately 30% in Vietnam, as compared to 2016. Moreover, the growth in the population, particularly in India and China, has positively impacted the consumption of seasonings and spices in the region.
Recent Strategic Developments of Major Seasonings and Spices Market Players
The key players operating in the market include Everest Spices, Mahashian Di Hatti Pvt. Ltd., DS Group, Fuchs Group, McCormick & Company Incorporated, Paras Spices Pvt. Ltd., Unilever Group, Ajinomoto Group, Sleaford Quality Foods Ltd., The British Pepper & Spice Company Limited, Brake Bros Ltd., Jamie Oliver Enterprises Limited, TRS Group, Camstar Herbs Ltd., Natco Foods Ltd. In recent years, major players in the global seasonings and spices market have taken several strategic measures, such as product launches and geographical and facility expansions, to improve their position in the industry. For instance, in 2016, Ajinomoto Co. (Thailand) Ltd., a subsidiary of Ajinomoto Co. Inc., invested around $22.1 million to increase the production capacity of rosdee, a flavored seasoning, at its factory in the Saraburi province of Thailand. This investment was part of the business strategy of the company to augment its revenue by fulfilling the increasing demand for the seasoning in Thailand.
In August 2017, Sleaford Quality Foods Ltd. launched eight new herbs and spices under its Chef William pot range. It included yellow mustard seeds, celery seeds, onion powder, and juniper berries. The company is focusing on product launches to increase its penetration in the food industry by expanding its product portfolio.
Market Size Breakdown by Segment
The Seasonings and Spices Market report offers comprehensive market segmentation analysis along with market estimation for the period 2013–2023.
Based on Product
Based on End User
Key Questions Answered in the Report
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