Published: November 2015
Report Code: CP10353
Category : Ingredients & Extracts
Seasonings and Spices Market Overview
The global seasonings and spices market was valued at $12,178.9 million in the year 2014. The market is expected to grow at a CAGR of 4.9% during 2015-2020, to reach $16,134 million by 2020. No cuisine is complete without the use of seasonings and spices as they offer a unique fragrance and unconventional taste to every food. Seasonings and spices market is one of those business sectors that stay recession proof over the long haul. Growing popularity for exotic food and rising interest for impeccable spices and seasonings will keep on driving the seasonings and spices market in the coming years.
GLOBAL SEASONINGS AND SPICES MARKET SIZE, BY PRODUCT, $M (2011-2020)
The seasonings and spices market saw an expansion by 11.9% and 14.1% in 2014 over 2011, in value and volume terms respectively. The market for this is expected to see an increase by 27.3% and 28.6% in terms of both value and volume respectively, in 2020 over 2015. The European region led the market in 2014 with a big chunk of the market share in terms of value, while Asia-Pacific have the largest market in terms of volume. Both areas are expected to continue their supremacy in the market during the forecast period. In North America, salt substitute was the fastest growing product in the seasoning and spices market during 2011-2014. Based on product, salt was the largest revenue generator for the North American seasonings and spices market.
Seasonings and Spices Market Dynamics
The seasonings and spices market can be portioned into salt, pepper, dried herbs, mixed spices, salt substitutes, and others. Salt dominated the market, both in terms of value and volume in 2014. Though there might be a slight shift in the paradigm with the pepper segment expected to account for 26.5% of the market in value, and the salt segment is expected to account for 27.6% in volume by 2020. By value, Asia-Pacific was the biggest market for salt substitutes in the industry. Europe and North America were on the second and third place respectively.
With the increase in wage levels, the food habits for individuals are also evolving. Consumers are consistently attempting new and costly food items, with a specific end goal to try out new tastes and flavours. The Chinese, mainland and Mexican cuisines are picking up popularity, as individuals jump at the chance to explore different avenues regarding new tastes. The utilization of spices and seasonings at home is likewise expanding, as consumers approach ingredients and recipes of different dishes from the web or from the cookery based television shows. In this way, the changing nourishment propensities for consumers, alongside inclination for new and costly food items is trending in the seasonings and spices market.
Globalization is a major factor driving the seasonings and spices market. With the world shrinking day by day and more and more people travelling across the globe, it is obvious that the market for various spices and seasonings required to prepare different cuisines will expand too. For instance, the U.K. generally accounts for around 30% of the total annual turmeric imports in the European Union. Also, the western influence on Indian cuisines can be seen with the increase in demand of pepper products in India. Again, with more and more countries adopting the usage of various spices for treatment, the worldwide seasonings and spices market is expanding. Spices such as turmeric helps in healing cuts and wounds while the curcumin found in turmeric helps to fight the Alzheimer’s disease.
The increase in the demand for organic seasonings and spices have created a huge opportunity in the organic seasonings and spices segment as large number of corporations have entered this segment. Also with the advent of the internet, online marketing has become a common practise among many organizations. With a specific end goal to pick up popularity, many firms are adopting diverse courses, for example, making their own particular applications for item recipes, organizing contests and posting on social media. This aides in setting up connectivity with consumers, which helps in building up the brand identity in the consumers' brain.
For the betterment of users, diverse nations have drafted distinctive approaches. These arrangements may contrarily affect the trade prospect of an industry. To build domestic consumption, the government strategies enforce reduction in trade excess. As the measures for quality are distinctive in various countries, there occurs rejection of transfers in different nations, which makes it troublesome for dealers and makers to keep up all the required benchmarks.
Seasonings and spices like other farming items are hugely reliant on climatic conditions. Seasonings and spices that are delivered in Asia-Pacific experience the ill effects of inconsistent climatic conditions and necessary logistics, which is making significant obstruction for the business.
Seasonings and Spices Market - Competitive Landscape
The overall intensity of rivalry in this market is medium. Everest Spices., MDH Spices, DS Group, Baria Pepper, Bart Ingredients, McCormick and Company, Nestle, Unilever, Ajinomoto Co. Inc., and The Kraft Heinz Company are few major companies dealing in this market.