Spices Market to Register 7.7% CAGR between 2018 and 2028
Posted by Alex Werner on June 17th, 2018
is estimated to be valued over 19.5 billion in 2018 and will register a CAGR of 7.1% between 2017 and 2028.
The industry in Western Europe and North America is import dependent with major supply taking place from South East Asia. Demand for these spices is increasing with changing taste preference and higher migration of Asian population to Europe and North America. As a result, the total spice consumption has increased over the time frame and industry players will gain 1.8X higher sales by 2028 as compared to that in 2017.
Some key trends from the Global Seasonings and Spices Market:
Trend#1: Asia Pacific Spices Market to Account for over US$ 11,500 Million Revenue in 2018
Much of the seasonings and spices market sales will be concentrated to Asia Pacific owing to presence of large consumer base along and good distribution network. Though the per capita consumption of spices in South East Asia is 6X higher compared to that in developed regions, there exists immense revenue potential in the region.
South East Asia is highly fragmented with presence of large number of regional players. Sales to consumers are largely through general stores. However, rise in disposable income has led to change in consumer behavior pattern. There has been significant rise in overall sales through retail channels. As such, well planned strategy along with good distribution partnership could help multinational companies to strengthen their business presence and capture a major chunk of addressable market.
Trend#2: Seasonings and Spices Market to be driven by Increasing Demand for Organic Products
Demand for organic spices will increase over 6,400 kilo tons by end of 2025. Various companies has already forayed in the market. For instance, IFSC invested in Olam to expand later spices business in Nigeria, Singapore and India. Olam has also raised fund from International Finance Corp. to strengthen its business ecosystem in organic products. The demand for organic products will be particularly higher in North America and Europe. These two regions will collectively account for higher sales value.
Trend#3: Food Processing Industry to Drive the Sales of Spices and Seasonings Worldwide
Spices are in high demand from ready-to-eat food products. This is a white space opportunity for manufacturers trying to compete in hypercompetitive environment. The food processing industry is growing at a CAGR of 11% in Asia Pacific which will significantly create higher market value for spices industry players.
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About the AuthorAlex Werner
Joined: December 7th, 2017
Articles Posted: 25
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