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Spices Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global spices products market was valued at USD 6.1 billion in 2022 and is projected to expand at a CAGR of 7.2% from 2023 to 2030. The rising demand for spices products is attributed to the growing popularity of international cuisines and the changing lifestyle of consumers in developing countries, such as India and China. Consumers in these countries are switching to ready-to-eat, ready-to-cook, and frozen convenience food products that contain spices. Furthermore, the increasing demand for spices from the foodservice sector is expected to drive the market growth in the coming years.
The rising trend of veganism is also driving the demand for spices products. Consumers are increasingly opting for plant-based diets, which is leading to an increase in the demand for vegan-friendly spices and seasonings. Additionally, the rising demand for ethnic cuisines across the globe is further contributing to the growth of the spices products market. For instance, in December 2021, McCormick & Company Inc., a leading spices and seasonings manufacturer, launched a new line of Spanish-inspired spices and seasonings. The product line includes garlic and herbs, garlic and parsley, paprika, and chili powder.
The introduction of new flavors and innovative packaging solutions is expected to create lucrative opportunities for the market. For instance, in November 2021, McCormick launched a new line of spices and seasonings, which includes a variety of flavors, such as garlic and herbs, garlic and parsley, paprika, and chili powder. Furthermore, the introduction of flavored spice blends is expected to create further opportunities for the market. For instance, in November 2021, a leading US-based spices and seasonings manufacturer, Badia Spices, launched a new line of flavored spice blends, which includes garlic and onion, spicy chili, and sesame and ginger.
In addition, the increasing awareness about the health benefits of spices is expected to propel the market growth. Spice products are increasingly being used as natural remedies for various health conditions. Furthermore, the increasing demand for organic spices and their rising popularity among consumers is projected to drive the market growth in the coming years. For instance, in February 2021, a leading UK-based spices and seasonings manufacturer, The Spice Company, launched a range of organic spices, which includes cumin, coriander, turmeric, and garam masala.
Product Insights
The herbs and spices segment accounted for the largest market share of around 40.6% in 2020. Growing consumer focus on healthy diets, changing lifestyle, and the increasing demand for convenience foods are some of the major factors driving the spices product market. Moreover, the rising popularity of ethnic cuisines such as Thai and Indian cuisine is creating more opportunities for the growth of the spices product market. According to a report published by the United Nations Development Programme, in 2020, the global demand for spices is expected to reach a value of USD 21.1 billion by 2025.
The blended spices product segment is anticipated to expand at the fastest CAGR of 7.3% over the forecast period. Growing demand for convenience food products and rising preference for ready-to-eat meals are some of the key factors driving the demand for blended spices. In addition, the emergence of manufacturers offering innovative packaging solutions to preserve the aroma and flavor of the product is also increasing its demand among consumers. Moreover, the rising influence of western culture on food habits is further creating more opportunities for the growth of the blended spices product market.
Distribution Channel Insights
The supermarkets and hypermarkets segment held the largest market share in 2022, as these stores provide a wide variety of spices at reasonable prices. They also provide a wide range of spices from different brands to choose from. In addition, supermarkets and hypermarkets offer convenience to the customers, who can shop for the spices they need without having to travel to multiple stores. Furthermore, with the emergence of organized retailing, supermarkets and hypermarkets have become the primary destination for shopping for spices.
The other segment is anticipated to expand at the highest CAGR over the forecast period. This segment includes small grocery stores and traditional shops. These stores are commonly seen in rural and semi-urban areas, and they provide a wide variety of spices. Small grocery stores and traditional shops provide convenience to the customers as they are located in close proximity and easily accessible. Furthermore, these stores provide spices at competitive prices due to low operation costs.
Type Insights
The whole segment held the majority of the market share in the year 2022. The growing demand for whole spices in the food industry is driving the growth of the segment. The rise in the consumption of ready-to-eat meals and snacks has increased the demand for whole spices. In addition, the rising trend of consuming natural and organic spices has further strengthened the growth of this segment. The introduction of innovative products such as masalas and blends of spices has added to the demand for whole spices.
The ground segment is anticipated to witness the highest CAGR of 7.6% over the forecast period. The convenience of ground spices in terms of usage and storage has increased the demand for this form of spices. The easy availability of ground spices in the retail and e-commerce sector has made it more accessible to consumers. Furthermore, the growing trend of consuming international cuisines has led to the increased demand for ground spices. Companies such as McCormick and Co. are introducing several flavors and blends of ground spices to attract customers.
Regional Insights
Asia Pacific is expected to hold the largest market share in 2022. Factors such as the increasing demand for convenient food, changing food preferences, and growing disposable income are expected to drive the growth of the market in this region. Moreover, the increasing demand for organic and natural spices is anticipated to further contribute to the regional market growth. For instance, in January 2021, India’s leading spice manufacturer and exporter, Eastern Condiments, launched a range of organic and natural spices, such as turmeric powder, coriander powder, and chilli powder.
North America is expected to be the second-largest market in 2022. The growing popularity of outdoor grilling and barbeques in the region is a key factor contributing to the growth of the market. Additionally, the increasing demand for convenience and the growing influence of global cuisines in the region are also driving the market growth. For instance, in May 2021, McCormick & Company launched a range of spices in the U.S., such as turmeric, garlic powder, and black pepper.
Financial Projections
In this part of the 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 spices business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a spices business comes from retail sales, online sales, wholesale sales, food service sales, and private label sales. Here you will find a list with a description of each of them and other possible sources of profit.
Projecting Expenses
In this section, all the regular expenses related to keeping the spices business running will be described. The list of operating expenses includes raw material costs, inventory costs, packaging costs, labor costs, shipping costs, marketing costs, advertising costs, and other miscellaneous costs.
Key companies & market share insights
Some of the key companies operating in the 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 July 2022, McCormick & Company, Inc. launched a line of blended spices and seasonings.
– In August 2022, Nestle SA launched a line of organic spices.
– In September 2022, ITC Limited launched a line of premium spices and seasonings.
Some of the prominent players in the spices market include:
– McCormick & Company, Inc.
– Nestle SA
– ITC Limited
– Kraft Heinz Company
– Mars, Incorporated
– Unilever PLC
– Ajinomoto Co., Inc.
– Associated British Foods plc
– TATA Global Beverages Limited
– Dabur India Ltd.
Global 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 spices products market based on product type, application, distribution channel, and region:
1. Product Type Outlook (Revenue, USD Million, 2017 – 2030)
– Herbs
– Seasonings
– Spices
2. Application Outlook (Revenue, USD Million, 2017 – 2030)
– Culinary
– Pharmaceutical
– Cosmetics
3. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Key Trends in the Global Spices Products Market?
[A]: The Global Spices Products Market is witnessing an increase in demand for natural and organic spices due to their health benefits. Additionally, the growing preference for convenience and ready-to-eat food products is driving the demand for spices. Furthermore, the rising demand for natural food products and the increasing emphasis on health and nutrition is also driving the market.
[Q]: Who are the Major Players in the Global Spices Products Market?
[A]: The major players in the Global Spices Products Market are McCormick & Company, Inc., Nestle S.A., Unilever, DSM Nutritional Products, ITC Limited, Synergy Flavors, Ajinomoto Co., Inc., and Olam International.
[Q]: What are the Regional Opportunities for the Global Spices Products Market?
[A]: The Asia Pacific region is expected to provide the largest market opportunity for the Global Spices Products Market. This is attributed to the rising health consciousness among consumers, increasing disposable income, and the presence of large populations in the region. Moreover, the increasing demand for convenience food products is also driving the market in the region.
[Q]: What are the Factors Driving the Global Spices Products Market?
[A]: Factors such as the increasing demand for convenience food products, the increasing health consciousness among consumers, and the rising disposable income are expected to drive the Global Spices Products Market. Additionally, the growing awareness about the health benefits of spices is also expected to drive the market.
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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