GLOBAL – The herbs & spices market is being poised to reach a value worth of US$2.4 million by the end of 2020-2030 forecasted period which is attributed to preference for eating tasty foods and consumers increasing spice consumption due to their multifarious health benefits.
Moreover, the preference for organic and clean-label products is providing massive traction to the herbs & spices market. Addition of additives in conventional spices is prompting consumer to shift to natural alternatives.
Despite their high price, consumers are demanding more organic products as health concerns take precedence prompting vendors to manufacture more clean-label products.
Various legislations and certifications across countries concerning food safety have proved an important catalyst for the proliferation of organic herbs & spices.
“Prominent herbs & spices manufacturers are seeking to strengthen regional distribution networks to penetrate lucrative markets, along with launching innovative and customized products to remain afloat,” commented an analyst.
Global herbs & spices market is likely to register a Compound annual growth rate (CAGR) of 3.9% from 2020-2030 while organic spices to witness maximum sales is estimated at 491 Modern Monetary Theory (MMT) by 2030-end.
By application, the food segment is likely to be dominant, reaching US$1 million by the end of the forecast period. Europe is anticipated to emerge as the hegemon, accounting capturing over a quarter of the global market while online retailing to emerge as the new normal for marketing herbs & spices due to rising digital literacy.
Massive downswings in the food & beverage sector were recorded in the initial months of the COVID-19 pandemic which was attributed to the imposition of nationwide lockdowns.
This significantly hampered the growth prospects of the herbs & spices market. Gradually, this downswing has experienced a slight improvement as lockdowns are being relaxed.
In the past few months, consumers have shifted toward consuming more plant-based products, including spices, to strengthen their immunity and counter the pandemic.
Therefore, demand has surged, compelling manufacturers to undertake supply chain risk management. Also, farmers have increased spice production, countering any supply shortages.
The presence of several small and mid-sized players has rendered the market fragmented over a long time. Prominent players are concentrating on product innovations, mergers & acquisitions and expansion of productive capacities.
For instance, in 2017, Dohler GmBh collaborated with Fraunhofer ICT-IMM to examine how microfluidic solutions can assist beverage manufacturers in detecting microorganisms in their formulations. This helps vendors ensure that product quality is maintained and consistently recorded.
To ensure that restaurants remain functional during the pandemic, McCormick and Company Inc. has partnered with the Maryland Restaurant Relief Fund and provide financial aid to multiple eateries. This ensures that the supply of food is not hampered across households.
In 2018, Kerry Group plc announced the acquisition of Fleischmann’s Vinegar Company Inc. and AATCO Food Industries LLC in order to expand the spices product portfolio.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE