Spice and Herb Extracts Market Growth, Trends and Forecast (2020 - 2025)

The global spice and herb extracts market is projected to grow at a CAGR of 7.1% during the forecast period.
The seasonings and spices industry continues to adapt to consumer choices for variety, convenience, wellness attributes, food safety and value, increasing demands from retail and foodservice division customers, and the pressures of global competition.

Increasing scarcity for spices and herb extracts is leading to high prices and an increased scope for adulterants in the market. The price imbalance and low availability may attract several new suppliers with cheaper and unscrupulous alternatives.

Key Market Trends

Changing Foodservice Industry

The eating out practice is part of the modern lifestyle and the foodservice industry is developing rapidly all over Europe. It accounts for ~20% of the global foodservice market. The most demanded cuisines include Thai, Vietnamese, Chinese, and Indian cuisines, which use a wide variety of spices and seasonings in their preparation, including pepper, cardamom, ginger, nutmeg, anise, fennel, etc. Europe is the second consumption area in the world after North America, the European market is showing great potential for further development. The European demand for spices and herbs continues to grow. This is due to trends such as healthy living, interest in new tastes, convenience and sustainability. Consumers' preferences are more multifaceted than ever and the foodservice concepts are more and more diversified to respond to customers' expectations for more functionality, convenience, naturalness, freshness, healthy food, ethnic food, local sourcing, sustainability, and, more globally, the 'eating out experience’.

Europe has the Largest Market Share

Europe is the largest market for spice and herbs extracts globally. Despite low production, Europe is much inclined towards the import of spice, herbs and their extracts from developing region such as Asia-Pacific and the Middle East and Africa. About 97% of the total imported spice & herbs come from developing countries. On a global scale, Europe is a mature market for spice and herb extracts and the growth rate is comparatively slower than other regions. The European demand for spices is growing mostly due to interest in new tastes and healthy living.

Competitive Landscape

The major companies in seasonings and spices, position their product line through multiple retail channels, convenience stores, and e-commerce channels in the global market as a strategy to directly penetrate the consumer market. This is a fragmented market which consists of the following players like McCormick & Company, Inc, All-Season Herbs, Kerry Group plc, Döhler Gmbh and Firmenich SA . McCormick increased the level of spice and seasoning new products in 2017. In the Asia Pacific Zone (APZ), the company launched a ‘Gourmet Garden®’ re-sealable pouch of lightly dried herbs and seasonings in Australia and spice mixes in India.

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