Spice can be dried seeds, fruits, roots, barks, or vegetative substances primarily used for flavoring, coloring or preserving food. Spices are distinguished from herbs, which are parts of leafy green plants also used for flavoring or as garnish. Many spices have antimicrobial properties. A spice may have an extra use, usually medicinal, religious ritual, cosmetics or perfume production, or as a vegetable. For example Turmeric roots, are consumed as a vegetable and garlic as an antibiotic.
Spice exports contribute to nation’s gross income considerably, in countries like China, India, Africa and the Middle East. Spices are generally sold at premium prices and also are in greater demand which can further enhance export revenues in major spice producing countries. Spices farming mechanism starts at grass root level conserving the generative and renewing capacity of the soil, plant nutrition, and soil management, yields nutritious food rich in vitality which has resistance to diseases. Increasing demand of natural flavoring and coloring agents in food, medicinal properties and health benefits are driving the spices market.
Based on spice function, flavor formed an essential function base for spices enabling it to gain maximum share in the year 2016 followed by color. Spices have been majorly used for flavoring or as a garnish since ancient times. The flavor of a spice is derived in part from compounds (volatile oils) from various parts of plants roots, seeds, bark and other plant parts. Based on spice form, whole form and powdered form held a major share in the spices market in the year 2016. Increase in demand for convenience products there is strong potential for powder form growth in the spices market. Crushed/ chopped/ flakes are emerging as new segment especially for bakery and pizza preparations.
The Global Spices Market appears to be highly competitive and diversified with the presence of many well established players having regional and global presence. Product differentiation, portfolio, and pricing are some of the factors these players compete based on.
The leading market players in the global spices market primarily are McCormick & Co., Inc. (U.S.), Olam International (Singapore), Everest Spices (India), B&G Foods Holdings Corp. (U.S.), Cerebos Gregg’s Limited (New Zealand), MTR Foods Private Limited (India), Mahashian Di Hatti Limited (MDH)(India) and ITC Spices (India)
Market - Segment
The Spice Market can be segmented in to 4 key dynamics for the convenience of the report and enhanced understanding;
Segmentation by Type: Comprises turmeric, chili & pepper, cinnamon, nutmeg, ginger and others.
Segmentation by Function: Comprises flavor, color, preservative and others.
Segmentation by Application: Comprises culinary, sauces and dips, bakery foods, RTE foods, beverages, and others.
Segmentation by Regions: Comprises Geographical regions - North America, Europe, APAC and Rest of the World.
Regional Analysis
Spices are the pearls of developing countries. Spices are demand in the industrialized world, the export of these basic agricultural commodities by India can be relied upon to earn valuable foreign exchange. India, blessed with agro-climatic zones, exports spices to 120 countries. India being a major producer of spices boosts stronger potential for spices supply. There is high demand for spices from regions like Asia Pacific, Middle East and Europe.
In terms of geography, the Americas accounted for the majority market share during 2016 and will continue to dominate the market for the next four years. Some of the major factors responsible for the market’s growth in the region is the growing demand for fair trade labelled products, high import rate, and the availability of high quality products of organic spices.
