The global spices and seasonings market is estimated to be valued at USD 21.3 billion in 2021. It is projected to reach USD 27.4 billion by 2026, recording a CAGR of 5.2% during the forecast period. Globally, the spices & seasonings market is driven by the growing demand for convenience food products, clean label trends, and natural preservatives for the meat industry. However, the growing incidences of adulteration and contamination in the spices exported from developing countries such as India and China are prompting regulatory bodies in Europe and America to strengthen the safety regulations on imported spices and seasonings. Growth in food product innovations to incorporate natural ingredients, increase in demand for health and wellness products, and rise in demand for ethnic and authentic food products are emerging opportunities for the spices & seasonings market.
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The rise in urbanization is expected to drive the global spices & seasonings market. According to the World Health Organization, more than 54% of the world population lived in urban areas in 2014, as compared to 34% in 1960. This is projected to grow at an average annual growth rate of 1.84%, to reach approximately 66% by 2050. According to FAO, rapid economic development, income growth, and urbanization are leading to changes in the dietary patterns of people in Asia Pacific. People are increasingly including traditional food items in their daily food intake. Growth in retail channels such as supermarkets and hypermarkets in urban areas is expected to increase the availability of spice, which in turn is projected to boost the demand for spices and seasonings. Urbanization has led to changes in the consumer’s lifestyle. With high employment opportunities, higher disposable income of people, and an increasing number of working women, the time devoted to cooking has reduced. The working hours are long, and the schedules are hectic, which has led people to look for easy ways to eat without spending much time on cooking.
Specific spices and herbs are replacing sugar and salts as well as artificial additives, with consumers becoming increasingly health-conscious. Natural flavoring, organic foods, and safe dietary supplements are the three main factors driving the demand for spices and herbs.
Products that claim to have natural ingredients, such as spices, help manufacturers attract more consumers. The “health and wellness” trend drives the overall natural ingredients market. Increasing lifestyle-based disorders such as cardiovascular diseases, obesity, osteoporosis, and diabetes have prompted consumers to resort to natural alternatives. Moreover, the media’s describing the ill effects of consuming synthetic ingredients has further cautioned consumers. There is a perception among consumers that natural ingredients have a positive impact on general health, while synthetic ingredients have certain detrimental effects. As a result, food manufacturers have promptly responded by completely replacing or partially replacing synthetic ingredients with natural counterparts.
The meat & poultry segment accounted for the largest share in the global spice market in 2020. It accounted for a share of 26.6% in 2020 and is projected to grow at a CAGR of 4.4% during the forecast period. Beverages form the fastest-growing application of spices and seasonings, and this segment is projected to grow at a CAGR of 6.3% between 2021 and 2026. The increasing population, changing lifestyle trends, and rise of disposable income of people, particularly in developing economies such as China, India, and Brazil, has led to increased consumption of snacks & convenience food items.
The usage of spices and seasonings in the industrial sector is less in the Asia Pacific region as compared to that in developed regions, which presents food processing industries with considerable untapped potential. The overall economic growth in the Asia Pacific region has led to an increase in urbanization and rapid industrialization, with a resultant rise in per capita income. These factors play a major role in the changing preference of consumers towards value-added food products. The region’s improved agricultural growth over the past decade, followed by advancements in the food industry, has provided new opportunities for the spices & seasonings industry. This region has a much-diversified flavor preference wherein consumers are constantly looking for new variants, which will drive the spices & seasonings market. India’s spices & seasonings industry has witnessed increasing varieties of value-added spice & seasoning products in the ground, crushed, cracked blended, and dehydrated forms, in bulk and consumer packs.
This report includes a study on the marketing and development strategies, along with a study on the product portfolios of the leading companies operating in the spices and seasonings market. It consists of the profiles of leading companies such as the major spices and seasonings manufacturers include McCormick & Company, Inc. (US), Olam International (Singapore), Ajinomoto Co. Inc. (Japan), Associated British Foods plc (UK), Kerry Group plc (Ireland), Sensient Technologies Corporation (US), Döhler Group (Germany), SHS Group (Ireland), and Worlée Gruppe (Germany). These players have focused on acquisitions to gain a larger market share in the spices & seasonings market.