Europe Spice and Herb Extracts Market - Growth, Trends, and Forecasts (2023-2028)

The European spice and herb extracts market is projected to register a CAGR of 6.7% during the forecast period.

The demand for spices and herbs in Europe has been growing immensely over the years. This high growth rate can be attributed to trends such as healthy living, an interest in new tastes, and convenience. The growing popularity of organic spices among European customers due to their chemical- and pesticide-free properties, as well as European spice and herb extract, are expected to drive growth during the forecast period.However, the majority of European food processors utilize organic herbs and spices for the sole objective of product differentiation, which in turn boosts the European spice and herb extract market.

Europe relies primarily on imports from spice-extracting countries such as Kuwait, China, Indonesia, and India. Traditionally, the Netherlands has played a significant role in international trade as a leading importer of spices from developing countries. The Netherlands Ministry of Foreign Affairs reports that Dutch spice and herb imports accounted for 14% of total European imports in 2021, growing at an annual rate of 7.3% since 2017. Moreover, consumers and domestic business operators are concentrating more on benefiting the industry by raising local products and increasing the growth of the European spice and herb extract market.

Europe Spice & Herb Extracts Market Trends

Shifting Consumer Attraction Towards Organic Products

With rising health consciousness, the food and beverage industry's retail manufacturers are attempting to shift toward natural flavoring agents such as spices and herbs.However, with the high availability and acceptance of Asian cuisines among European consumers, most consumers have shifted their choice towards natural or organic flavors or spices in their food, which is the key driver accelerating the spice growth and herb extract markets. According to the ITC Trademap, in 2021, France will have the largest food and beverage industry in Europe, accounting for around 19% of the total turnover; Germany will have 17%, Italy will have 13%, Spain will have 11%, the Netherlands will have 7%, Poland will have 5%, and Belgium will have 5%.

Furthermore, in Europe, demand for processed food products and out-of-home consumption has increased significantly in recent years, providing a great opportunity for ingredient producers to meet consumer demand by launching novel and innovative organic spice blends propelling from processing industries without compromising ingredient quality. As a result, people prefer organic spices or food products made with organic ingredients, because using organic spice blends and herbal extracts enhances the unique or natural flavor of food.

Germany Holds a Prominent Share in The Market

Europe is the world's largest market for spice and herb extracts. Despite low production, Europe is inclined toward importing spices, herbs, and extracts from developing regions such as Asia-Pacific, the Middle East, and Africa. Changing consumer taste preferences, healthy living habits, and convenience are the primary factors driving Germany's spice and herb extract market. Another growing trend in the country is the inclination toward Asian cuisines such as Chinese, Continental, Japanese, etc. The spices consumed in Germany are peppers and allspice, while the primary herbs consumed are thyme and oregano.

Germany is famous for being a worldwide trading center for herbal extracts and spices, with regard to imports from countries that manufacture and trade with its members and other nations. However, the demand is successfully fulfilled through imports from emerging countries such as Vietnam, China, and India. Furthermore, along with all these, inter-European trading is rising in the region, which plays a significant part in boosting market growth. Additionally, German consumers are willing to buy natural flavoring agents such as seasoning herbs and organic spices, which are naturally extracted from plants and not harmful to health. According to the ITC Trademap, Germany is by far Europe's largest importer of spices and herbs, with an import of 154 thousand metric tons in 2021, which amounts to 21% of total European Union imports. Germany's main imported product categories are pepper and capsicum (33%), ginger, saffron, curcuma, and others (32%), and vanilla (14%). Thus, European consumers' consumption of organic herbs and spices drives the market's growth.

Europe Spice & Herb Extracts Market Competitor Analysis

The European spice and herb extract market is fragmented, with various international and local players. The European spice and herb extract market is dominated by major players like Kalsec Inc., Kerry Group PLC, DHler Group Se, Olam International, and Sensient Technologies Corporation. These players use a variety of strategies to gain market share. The major strategies adopted are acquisitions, expansions, and new product launches. Manufacturers benefit from advanced distribution networks and manufacturing expertise when expanding their product line. Companies are increasing their investments in research and development (R&D) and marketing and are expanding their distribution channels to maintain their position in the market. Furthermore, they are adopting competitive strategies by investing more in developing new-generation technologies to produce spices and herb extracts.

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