Organic Spices Market - Forecast(2023 - 2028)

Organic Spices Market Overview

The Organic Spices Market size is estimated to reach $3.8 billion by 2026, growing at a CAGR of 5.3% during the forecast period 2021-2026. Spices are primarily used for the flavoring or coloring of food products even though they are also extensively used in traditional medicine, perfumes, cosmetics, and religious events. Some of the commonly used spices include mustard seeds, pink peppercorn, black pepper, nutmeg, Ceylon cinnamon powder, turmeric, and saffron. Apart from improving food color and taste, spices are also highly beneficial for health. For instance, flax seeds are crushed to make flaxseed powder and that can be used to prevent constipation, diabetes, heart disease, and cholesterol. Organic spices are produced without the use of chemical fertilizers, insecticides, and pesticides so that the consumption of these spices would not cause any adverse effects on health. Rising global awareness regarding the benefits of organic spices is anticipated to drive the market during the forecast period. However, the complex trade regulations present in the importing countries are anticipated to be a major challenge for the organic spices industry.

Report Coverage

The report: “Organic Spices Market Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the following segments of the Organic Spices Market.
By Product Type: Organic ginger, Organic turmeric, Organic clove, Organic Pepper, Organic Cinnamon, Organic Nutmeg, Organic mustard seeds, and Others
By Form: Whole, Raw, Powder, and Seeds
By Distribution: Hypermarket and Supermarkets, Convenience stores, Retail Stores, Online Stores, and Others
By Application: Food and Beverage Industry, Pharmaceutical Industry, and Others
By Geography: North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, and Rest of South America) and Rest of World (the Middle East and Africa).

Key Takeaways

• Geographically, the Asia Pacific market accounted for the largest Organic Spices Market share in 2020 and it is poised to dominate the market over the period 2021-2026 owing to the low cost of organic spice products along with the high usage of spices in traditional meals in the region.
• An increase in health awareness and the demand for organic products by consumers is projected to drive the market. However, high production costs and low yield of organic spices when compared to conventional spices are anticipated to hamper growth opportunities.
• Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Organic Spices Market Report.

Organic Spices Market Segment Analysis - By Form 

Based on Form, the Organic Spices market is segmented into Whole, Raw, Powder, and Seeds. The Powder segment accounted for the largest share of the market in 2020 and is anticipated to continue dominating the market during the forecast period 2021-2026. This is attributed to the hectic urban lifestyle of the consumers. The powdered form is highly convenient for use and saves time as the user does not have to crush the spices themselves. Moreover, the rise in disposable income of consumers is projected to further increase the demand for ready-to-use organic spice powders. However, the Whole spice segment is predicted to witness the fastest growth at a CAGR of 5.4% for the period, owing to the increase in awareness regarding their health benefits. Moreover, Whole spices have a longer shelf-life and more intense flavor.

Organic Spices Market Segment Analysis - By Distribution Channel

The Organic Spices Market based on Distribution Channel can be further segmented into Hypermarket and Supermarkets, Convenience stores, Retail Stores, Online Stores, and Others. The Supermarkets and Hypermarkets segment is predicted to be the largest segment during the forecast period owing to their rapid expansion in major developing regions and their high penetration in developed countries. The large size along with the organized layout of Supermarkets and Hypermarkets ensures that all major varieties and forms of organic spices are available for customers in one location. However, the Online Stores are anticipated to register the fastest growth rate during the forecast period at a CAGR of 5.6% owing to their high convenience as products are delivered to the customer’s home. Moreover, the covid-19 pandemic and the subsequent restrictions imposed by various governments is anticipated to further boost the growth of the Online Store segment during the forecast period 2021-2026.

Organic Spices Market Segment Analysis - By Geography

The Organic Spices Market based on Geography can be segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. The Asia Pacific was the largest segment in 2020 with a revenue share of 38%. The warm climate coupled with heavy rainfall experienced in parts of the region provide optimal conditions for the cultivation of spice plants. This ensures that the products are available in the region at low cost and high quantities. Asia Pacific countries such as India, China, Bangladesh, and Pakistan are some of the largest producers of organic spices in the world. The extensive use of spices in the traditional meals in the region is another major factor for the growth. Europe is projected to be the fastest growing region during the forecast period owing to the rise in health consciousness and the resulting growth in the demand and usage of organic food products in the region.

Organic Spices Market Drivers

Increase in Global Demand for Organic Food Products is Projected to Drive Market Growth.

Owing to the increase in global disposable income and health consciousness, the demand for organic food products has seen rapid growth, especially in developed regions. There is an increased awareness among the consumers that the use of chemical pesticides and fertilizers on crops will lead to adverse effects on both the environment and physical health. Non-organic spices also often contain artificial food coloring which can further worsen consumer health. For instance, in 2020, more than 560 people became ill in India owing to the consumption of cooking powder with high lead content. Lead chromate was added to the turmeric to brighten its golden color and lead oxide gave the chili powders a rich red hue. Organic Spices, on the other hand, do not make use of such harmful substances during their cultivation or processing.

Rise in the Use of Organic Spices in Pharmaceutical Applications is Anticipated to Boost Product Demand.

Pharmaceutical companies across the world are investing significantly in medicines containing organic spices owing to their antimicrobial properties and the presence of antioxidants. The oils and extracts of organic spices like black pepper, cloves, cinnamon, and nutmeg contain active compounds such as piperine, eugenol, cinnamaldehyde, and lignans. Similarly, condiments like coriander, black cumin, turmeric, garlic, and ginger are recognized for constituents like linalool, thymoquinone, curcumin, allicin, and geranial respectively. These compounds are known to prevent various diseases. Moreover, Traditional Chinese Medicine and Ayurveda make extensive use of spices and herbs for the treatment of various illnesses. The high popularity of such medical practices in Asia and their increased awareness in Europe and North America is a major factor driving the growth of the Organic Spice Market.

Organic Spices Market Challenges

Stringent Government Regulations and Standards is Anticipated to Hamper Market Growth.

The Stringent regulations and standards imposed by certain regions regarding the import of spices are anticipated to restrict supply and thereby, increasing the prices of the product in these regions. For instance, the European Union (EU) imposes a tariff of 9.6% on the import of dried sweet pepper from China. The EU also conducts strict analytical tests on the imported products and provides health certificates. If the spices do not meet the high standards, it may lead to stricter import conditions or even suspension of imports from that country.

Increase in the Bacteria Contamination in Organic Spices is Projected to Limit Growth Opportunities

Unlike regular spices, Organic Spice products are not subjected to gamma radiation in order to eliminate any microorganisms present in the product. This increases the chance of contamination and thereby, causing major health issues. For instance, the European Union alone had rejected 110 shipments of spices in 2019 owing to the presence of Salmonella and Clostridium Botulinum. Salmonella is known to cause fever, diarrhea, and abdominal pain while Clostridium botulinum infection can lead to paralysis and even death. Therefore, the risk of contamination of organic spices is anticipated to decrease global demand.

Organic Spices Market Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Organic Spices Market. Top 10 companies in of the industry are-

1. PDS Organic Spices
2. Olam International Ltd.
3. Kalsec Inc.
4. ITC Limited
5. The Watkins Co.
6. S&B Foods Inc.
7. The C.F. Sauer Company
8. Husarich GmbH
9. Rapid Organic Pvt. Ltd.
10. McCormick & Company

Partnerships/Product Launches:

• In July 2020, ITC Limited acquired Sunrise Foods Pvt Ltd. in order to help ITC augment its portfolio in the spices segment where it is present with its brand Aashirvaad.
• In April 2021, Olam International Acquired the US spice company, Olde Thompson, for $950 million. This acquisition will reinforce Olam’s growth strategy of being a key player in providing sustainable, natural, value-added Food and Beverage ingredients.

Relevant Links:

Organic Food & Beverages Market – Forecast (2021 - 2026)
Report Code: FBR 0036

Spices Market – Forecast (2021 - 2026)
Report Code: FBR 0069

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