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Organic Spices Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global organic spices products market was valued at USD 5.9 billion in 2021 and is projected to expand at a CAGR of 10.2% from 2022 to 2030. The demand for organic spices products is increasing due to the rising concerns over the health benefits associated with organic food products. Furthermore, the growing awareness of health benefits associated with organic spices products is driving the demand for the same. Moreover, the rise in the number of health-conscious people and the increasing emphasis on balanced diets are major factors driving the market growth.
Organic spices are increasingly being used in a variety of cuisines and recipes to enhance the flavor. The increasing popularity of organic foods and the rising trend of health and wellness are the major growth factors of the organic spices market. Furthermore, the increasing number of organic product launches is also contributing to the growth of the market. For instance, in December 2021, SpicenEasy, a leading online organic spice seller, launched a range of organic spices and blends for everyday cooking.
The growing demand for organic spices from the food and beverage industry is a major factor driving the market growth. The awareness of the health benefits associated with organic spices is increasing, and this is leading to their increased use in food products. Furthermore, the increased demand for organic spices from the processed food industry is propelling the market growth. According to a report published by the World Health Organization (WHO), in 2020, the global demand for processed food is expected to reach USD 5.2 trillion by 2023.
Furthermore, the growing demand for convenience foods is driving the demand for organic spices products. Consumers are increasingly preferring convenience foods due to the busy lifestyle, which is also driving the demand for organic spices. Furthermore, the increasing availability of organic spices products in retail outlets and e-commerce platforms is expected to boost the market growth. For instance, in April 2021, Organic India, a leading organic spices products manufacturer, launched a range of organic spices products on Amazon.
The growing trend of veganism and the increasing demand for organic spices products for vegan cooking is expected to bolster the market growth. Furthermore, the rising number of health-conscious people is another factor driving the demand for organic spices products. Furthermore, the increasing demand for organic spices products from the food & beverage industry is a significant factor driving the market growth.
Product Insights
The organic spices segment dominated the market and accounted for a share of around 34.7% in 2022. Increasing consumer preference for organic spices due to their natural flavor, health benefits, and higher nutritional value is driving the growth of the segment. According to an article published by the ITC Trade Map, organic spice exports from India grew by 8.6% in 2018 as compared to the previous year. Furthermore, the convenience of buying organic spices from online stores and rising consumer awareness regarding the health benefits of organic spices are some of the factors driving the growth of the segment.
The organic herbs segment is anticipated to expand at the fastest CAGR of 10.0% over the forecast period. Growing consumption of organic herbs in the food and beverage industry due to their natural flavor and aroma, and increasing awareness among consumers regarding the health benefits of organic herbs are some of the key factors driving the growth of the segment. Additionally, rising demand for convenience food products, such as ready-to-eat noodles and frozen foods, is further propelling the demand for organic herbs.
Distribution Channel Insights
The supermarkets and hypermarkets segment captured the majority of the organic spices market share in 2022. Consumers in developed countries, such as the US and France, are increasingly shifting to organic spices due to their health benefits. Supermarkets & hypermarkets provide a wide selection of organic spices, which is influencing the buying decisions of customers. Moreover, the presence of multiple brands in supermarkets & hypermarkets is also helping customers in making the right purchase.
The online segment is expected to witness the highest CAGR of 15.2% over the forecast period. The rise in the usage of social media platforms, such as Instagram and Facebook, has increased the availability of organic spices products. In addition, the presence of various online retail stores, such as Amazon and Walmart, has further increased the availability of organic spices. In addition, companies are also launching their own websites to increase the visibility and accessibility of their products. For instance, in December 2021, Natureland Organics launched its own website to increase the availability of its organic spices products.
Type Insights
The whole spices segment accounted for the largest revenue share of 72.3% in the year 2022. The increasing demand for natural spices due to the rising health consciousness among consumers and the benefits associated with the consumption of organic spices is driving the growth of the segment. Also, the changing lifestyle and growing disposable income of the consumers are leading to the rise in demand for organic spices, which is further propelling the segment.
The ground spices segment is anticipated to expand at the highest CAGR of 10.5% over the forecast period. This growth is attributed to the increasing demand for ground spices from the foodservice industry. Additionally, the growing popularity of organic ground spices is expected to fuel the growth of the segment. For instance, in July 2020, Everest Spices launched organic ground spices such as turmeric, coriander, cumin, and red chilli.
Regional Insights
Asia Pacific dominated the market and accounted for the largest revenue share of over 36.2% in 2022. The increasing health consciousness among consumers and their preference for organic products are the key factors driving the regional growth. In addition, the rise in disposable income and the adoption of western eating habits in the region are expected to further boost the regional market growth. For instance, in August 2021, India’s leading spice company, Eastern Spice Mills, launched a range of organic spices in the market.
Europe is expected to witness significant growth in the coming years. The increasing health consciousness among consumers and their preference for organic products are the key factors driving the regional growth. In addition, the rise in vegan and vegetarian diets have increased the demand for organic spices, further propelling the regional growth. For instance, in April 2021, the European Organic Spice Association (EOSA) launched the European Organic Spice Standard (EOSS) to promote the use of organic and sustainable spices in the region.
Financial Projections
In this part of the organic spices products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your organic spices business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main sources of revenues for an organic spices products business come from sales of products, wholesale distribution and retail sales. Here you will find a list with a description of each of them and other possible sources of profit such as online sales, subscription services, and promotional activities.
Projecting Expenses
In this section, all the regular expenses related to keeping the organic spices products business running will be described. The list of operating expenses includes wages, ingredients, packaging materials, advertising, rent, utilities, insurance policies, and others.
Key companies & market share insights
Some of the key companies operating in the organic spices market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In August 2022, McCormick & Company, Inc. launched a range of organic black pepper, turmeric, and nutmeg products.
– In June 2022, Spicely Organics launched a range of organic spices, including ground black pepper, cumin, coriander, cardamom, and turmeric.
– In October 2022, Frontier Co-op launched a range of organic spices, including cinnamon, cloves, and paprika.
Some of the prominent players in the organic spices market include:
– McCormick & Company, Inc.
– Spicely Organics
– Frontier Co-op
– Badia Spices, Inc.
– Ajinomoto Co., Inc.
– Olam International Ltd.
– MDH Spices
– Everest Spices
– Nestle SA
– Dabur India Ltd.
Global Organic Spices Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global organic spices products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Cumin
– Coriander
– Cardamom
– Turmeric
– Black Pepper
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Specialty Stores
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Organic
– Conventional
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What is the Potential of Product Innovation in the Organic Spices Market?
[A]: Organic spices are currently experiencing an increasing level of innovation, with companies introducing new products with unique flavors, textures, and applications. The growing demand for organic spices has encouraged manufacturers to develop products that meet the specific needs of consumers. These products range from simple spice blends to products with enhanced nutritional profiles, such as those containing probiotics, antioxidants, and other ingredients.
[Q]: Who are the Key Players in the Organic Spices Market?
[A]: Some of the leading players in the global organic spices market include Archer Daniels Midland Company, Agrana Beteiligungs-AG, Associated British Foods plc, B&G Foods, Inc., McCormick & Company, Inc., and Himalayan Trading Company.
[Q]: What are the Factors Driving the Organic Spices Market?
[A]: The growing awareness among consumers of the health benefits associated with organic spices, including improved digestive health and enhanced immunity, is expected to be a key driving factor for the organic spices market. Additionally, the increasing demand for organic spices from the food and beverage industry is also expected to boost market growth.
[Q]: What are the Key Market Trends in the Organic Spices Market?
[A]: Some of the key trends in the organic spices market are the increasing demand for innovative products, the emergence of e-commerce platforms, and the introduction of organic spices with enhanced nutritional profiles. Additionally, the growing popularity of organic spices in ethnic cuisines is expected to provide further impetus to market growth.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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