About the Report
The shift in consumer palates in favor of low sugar food products and rising interest in exotic flavors are driving herbs and spices sales. The consumption of processed food products such as soups, sauces, dressing and condiments has increased, which has been fuelling the demand for herbs and spices. Considering this, the expansion of the food processing industry will bode well for the overall market.
In its new study, ESOMAR-certified market research and consulting firm Future Market Insights (FMI) offers insights about key factors driving demand for herbs and spices. The report tracks the global sales of herbs and spices in 20+ high-growth markets, along with analyzing the impact COVID-19 has had on the food and beverage industry in general, and herbs and spices in particular.
How Does the Historical and Future Outlook for the Herbs and Spices Market Match Up?
The herbs and spices market has remained fragmented, exhibiting the presence of various small and mid-tier manufacturers. However, due to increasing collaboration activities between small & mid-tier manufacturers and top tier companies, the number of small and medium companies have decreased, resulting in a more uniform and less diverse landscape. For instance, in August 2015, Symrise A G. acquired Flavour infusion LLC and expanded its product range of applications in the area of beverages in the flavoured mineral water market.
These factors have been helping the market to expand. According to FMI’s analysis, herbs and spices sales have grown at 2.7% CAGR between 2016 and 2021.
Uniformity in the market of herbs and spices could result in a more ethical and higher-yielding business. Due to the acquisition of small- and medium-sized companies, key market players in the herbs and spices market have strengthened their distribution channels, expanded their product portfolio and increases production capacity.
Fast food restaurants/quick service restaurants (QSRs) have been a significant segment for the food services market. They have witnessed an increasing demand over the years due to their focus on affordable and competitive pricing clubbed with rising demand for improved convenience and craving for international cuisines. QSRs widely use dried herbs in the preparation of their food to intensify the flavor and aroma of the dish. Besides, several QSR offer sachets of dried herbs so that consumers can top their dish with flavors of dried herbs.
Also, herbs often make their way into dairy products, bakery, confectionery, and snacks products as chefs aim at innovating flavor, texture, color, and aroma. Because of the huge demand for herbs and spices, key manufacturers are concentrating on strengthening their network with suppliers to reach a bigger consumer base. FMI expects global herbs and spices market to grow at 3.6% CAGR through 2031.
Why Is The Demand For Natural Herbs And Spices Increasing?
Diseases caused by the excessive use of chemicals and additives are rising rapidly across the world. Consumers are now aware about the harmful impact of synthetic additives and are thus shifting towards food and beverages containing natural herbs and spices.
Due to the growing demand for natural food ingredients, the consumption of plant-based food ingredients is increasing as compared to microbial & fermented and artificial food ingredients. The willingness of consumers to pay a premium price for a more natural product has changed the dynamics of various markets and is anticipated to increase the demand for natural herbs and spices.
For instance, in January 2017, Givaudan S.A acquired Activ International to expand their product offerings by adding organic and natural flavors, seafood, marine extracts and vegetable-based culinary solutions to buyers.
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Will Herbs & Spices Remain Key Ingredient in Pharmaceuticals And Cosmetic Industries?
In the pharmaceutical sector, herbs and spices are used in the formulation of various medical remedies for conditions such as cough, malaria, diarrhoea and others. Moreover, they are often used in various personal care products, for instance, skincare, haircare, face care, oil, and others. Thus, propelling the demand for herbs and spices in the market.
For instance, in 2019, Procter & Gamble launched hydrating shampoo and conditioner using coconut oil, ginger, turmeric, and honey. Awareness about the benefits of ingredients obtained from the nature has risen greatly. With consumers looking for organic ingredients, an increasing number of pharmaceutical and cosmetic producers are leaning towards herbs & spices.
Demand for Ready-to-eat and Ready-to-drink Foods and Beverages Fuelling Herbs and Spices Sales?
Herbs and spices are being increasingly used in convenient food owing to their vibrant flavor and several health benefits. Manufacturers are using herbs and spices to make ready-to-eat food and beverages in order to meet the rising demand among consumers. For instance, apple cinnamon spritzer, and cinnamon spice, cinnamon spiced tea, and cinnamon-spiced coffee are some of the cinnamon-flavoured drinks that are becoming popular amongst consumers. The preference for flavored alcoholic drinks such as Cannella spirits, spiced rum, fireball cinnamon whisky is also increasing as spices add exotic flavour to alcohol, hence raising the demand for herbs and spices in the market.
For instance, in August 2019, Coca-Cola introduced a cinnamon-flavoured coke as a version of coke zero in the U.K.
How big is the Opportunity for Herbs and Spices in US?
FMI has projected the U.S. to remain one of the most lucrative markets throughout the forecast period with a market share of 16.6% in terms of the value of the herbs and spices market. The rising immigrant population from Asia and Mexico to North America and their influence on local food platter is expected to increase the demand of spices and herbs in this region.
An increasing number of Indian, Italian, Mexican, and Chinese restaurants in the U.S. offer authentic cuisines fortified with different ingredients. Cumin, cinnamon, paprika, parsley, pepper are some of the key spices and seasonings which are used in these cuisines. Ready-to-cook spice mixes are also gaining popularity in the U.S. owing to the busy lifestyle of the consumers and working women population who look for convenient food.
The demand is attributable to the rising consumption of salads, dressings in the US and Canada along with increased consumption of meat products. Herbs and spices add flavor to these food products while acting as a natural preservative in meat products. The rising popularity of ethnic food coupled with the easy availability of spices in supermarkets across the region is expected to fuel the growth of herbs and spices in North America.
Why China is considered a Leading Herbs and Spices Market?
FMI has projected China to remain dominant through the forecast period in the East Asia herbs and spices market. Owing to the health benefits of using herbs and spices in functional food, the demand for herbs and spices has increased in the country. Herbs and spices are used as a functional ingredient in food products with the digestion-resistant property.
Herbs and spices often find places in various clinical treatments in the country. Chinese consumers in general display strong inclination for herbal products. Coupled with this, presence of some of the celebrated companies such as Infinitus (China) Co Ltd. has been aiding herbs and spices sales in the country.
How big is the Opportunity for Herbs and Spices in India?
India is the world's largest producer of herbs and spices including cumin, ginger, chilly and turmeric. In India, herbs and spices are used in food and beverages. Along with this, they are also used for the treatment of human ailments using aloe vera, clove, cinnamon, mint, black pepper.
Herbs and spices are associated with several health benefits, For instance, consumption of certain kinds of herbs are known to reduce flatulence, gastrointestinal health and prevents cavities. Herbs and spices are useful as a dietary fibre, it is beneficial to infants, children and adults. Due to the health-benefits, the demand for herbs and spices is rising in India.
Why are Herbs & Spices Gaining Traction in U.K.?
The U.K holds nearly 18% of the Europe market and is expected to grow at a CAGR of 3.0%. Europe is heavily dependent on imports from South and East Asian countries. Herbs and spices such as pepper, dried capsicum/pimento, ginger, curcuma, cloves and cinnamon are more in demand owing to their health benefits.
Also expansion strategies undertaken by some of the leading players are expected to bode well for the market in the U.K.
For instance, in February 2015, Kerry Group Plc. completed the acquisition of the trade and certain assets of Dairygold Co-operative’s French food ingredients business to strengthen its presence across Western Europe.
Why is Herbs and Spices Market Expanding in Germany?
FMI has projected Germany to remain one of the most lucrative markets throughout the forecast period with a market share of 19.3% within Europe in 2021. The demand for clean-label herbs and spices has been increasing considerably among the population in Germany. Owing to the growing awareness regarding the health benefits of consuming natural herbs and spices manufactures are focusing on providing clean label ingredients, such as those produced without any use of artificial ingredients, chemicals, additives, and minimally processed.
Which is the Top-selling Herb & Spices Type?
Spices are gaining traction as they offer various health benefits such as some spices can help lower sugar level, cure inflammation, besides offering other health benefits. Spices such as clove, cinnamon, and cumin are known for their antimicrobial properties due to the chemical compounds and have the capability to be used as natural preservatives in processed meat to replace chemical preservatives.
Which is the Key End User of Herbs and Spices?
The use of herbs and spices in the global market is mostly in the food industry. This is because people prefer herbs and spices in their daily food and beverages. Moreover, an increasing number of Indian, Italian, Mexican, and Chinese restaurants around the world, offering authentic regional cuisines has been resulting in high demand for specific ingredients including native herbs and spices.
Cumin, cinnamon, paprika, cardamom, and pepper are some of the key spices used in these cuisines. The demand is attributable to the rising consumption of salads, dressings resulting into the growing popularity of ethnic food. The easy availability of spices in supermarkets across the region is expected to fuel the growth of herbs and spices.
Which Form Of Herbs And Spices Is Used Primarily?
Powder and Granules form of herbs and spices holds the maximum share in herbs and spices market. The demand is attributable to the rising consumption of salads, dressings resulting into growing popularity of ethnic food. With the ongoing trend manufacturers are providing herbs and spices in bottle packaging to increase its shelf life.
Why are Direct Sales Channels More Preferred?
Direct sales channel segment holds 64.3% of market share in 2021 for herbs and spices and is expected to grow at a CAGR of 4.6% in forecasted year. Manufacturers are using herbs and spices for the production of various endues applications such as snacks, drinks, medicines and others as it beneficial for health and add favours to food.
Why are Organic Herbs and Spices More in Demand?
Growing awareness about the side-effects of additives and preservatives has rendered consumers more health conscious. As a result the demand for organic herbs and spices has considerably increased. Organic herbs and spices is expected to witness a growth of 6.7% in forecasted period. Manufacturers are now expanding their product portfolio with organic herbs and spices to gain customer traction.
For instance: the spice hunter U.S. based company is providing organic herbs in bottled for offering basil, bay leaves, dill, oregano, paprika, rosemary
Innovations in the food and beverage industry are being made to meet the demand for healthy food products for human consumption without negotiating on flavor, taste, texture, and nutritional qualities of the product. Multinational companies producing herbs and spices are focusing on the expansion of their manufacturing facilities and acquiring local players that would complement their product offerings.
In January 2017, Givaudan S.A, acquired Activ International to expand their product offerings by providing organic and natural flavours, seafood, marine extracts.
Ajinomoto Co., Inc. In August 2016, Ajinomoto Co., Inc. invested US$ 21.8 Mn to increase the production capacity of the company by approximately 40% for the flavour seasoning brand name Ros Dee® in Thailand.
In 2016, Kalsec Inc., announced launch plant i.e. organic certification by Oregon Tilth Certified Organic (OTCO), a leader in organic certification that meets the USDA and National Organic Program (NOP) and European Union standards.
Some of the leading companies operating in the Herbs and Spices market are:
- Givaudan S.A
- Kerry Group Plc.
- Ajinomoto Co., Inc.
- Firmenich SA
- Takasago International Corporation
- Olam International
- Archer Daniels Midland Company
- Robertet SA
- Sensient Technologies Corporation
- Kalsec Inc.
- McCormick & Company, Inc.
- Symrise AG
- Frutarom Industries Ltd
- Synthite Industries Ltd
- International Taste Solutions Ltd.
*The list is not exhaustive, and only for representational purposes.
Scope of the Herbs and Spices market Report
Historical Data Available for
Lactose Market Analysis
USD Million for value and '000 MT for Volume
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia, Oceania Middle East & Africa
Key Countries Covered
U.S., Germany, China, India, Northern Africa.
Key Segments Covered
Product Type, End Use, Form, Sales channel, Nature and Region
Key Companies Profiled
Revenue forecast, company share, competitive landscape, growth factors and trends.
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Key Questions Answered in the Herbs and Spices Report
Which Is The Most Lucrative Market For Herbs And Spices?
Europe is leading the market for herbs and spices. The rising demand from Germany, France, and the U.K. will continue supporting expansion in the region.
Which Industry is the Primary End User of Herbs and Spices?
According to a study by FMI, the food industry dominates the herbs and spices market with a share of 45.2 %. Herbs and spices are used in preparation of various food items such as sauces, dressings, and condiments, bakery and confectionery, dairy products, snacks & savory products, processed food, soups, flavored/infused oils etc.
Which Sales Channel is Most Preferred for Herbs & Spices?
Direct sales channel are more preferred by manufacturers of herbs and spices.
Who are Some of the Leading Companies Offering Herbs and Spices?
Some of the leading companies operating in the herbs and spices market are: Givaudan S.A, Kerry Group Plc., Ajinomoto Co., Inc., Firmenich SA, Takasago International Corporation, Olam International, Archer Daniels Midland Company, Robertet SA, Sensient Technologies Corporation, Kalsec Inc., McCormick & Company, Inc., Symrise AG,Frutarom Industries Ltd, Synthite Industries Ltd, International Taste Solutions Ltd.
Why Are Herbs and Spices Required in Bakery and Confectionary?
The bakery and confectionary sector has been exhibiting high demand due to the inclusion of various herbs and spices in the preparation of breads, cakes, biscuits, snacks, and other food items.
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Herbs and Spices Market by Category
- Paprila (Hot Pepper)
- Sauces, Dressings, and Condiments
- Bakery and Confectionery
- Other Baked Goods
- Dairy Products
- Flavored Milk
- Cheese/Cheese Products
- Butter Ice Creams
- Other Dairy Products
- Snacks & Savory Products
- Processed Food
- Flavored/Infused Oils
- Alcoholic Drinks
- Non-Alcoholic Drinks
- RTD Beverages
- Juices, Concentrates, and Puree
- Food Service
- Powder & Granules
- Store-based Retailing
- Convenience Stores
- Traditional Grocery Retailers
- Food & Drink Specialty Stores
- Online Retail
- Store-based Retailing
- North America
- Latin America
- East Asia
- South Asia
- GCC Countries