Spices and Seasonings Market Gaining Traction Due to Their Growing Interest in Varied Tastes

The rise in disposable income and changing the lifestyle of the contemporary generation has led to a propitious disruption in the food & beverages (F&B) industry, and this is substantially reflecting in the spices and seasonings market which is at the tipping point of profitability due to the increasing demand from the consumers. The most significant factor contributing to the increase in the spices and seasonings market size is the vagaries of public taste in food items and how the companies in the domain are improvising their product offerings to gain maximum traction from the consumers. Furthermore, the preference of consumers is not confined to a region in the current regime, and it’s quite evident in the rising market of ethnic foods. The need for variety in offerings of spices and seasonings is also driving product strategies of the companies. For instance, in January 2017, McCormick & Co. Inc. came up with 17 new products in spices that hail from different origins. Additionally, spices and seasonings market companies are also identifying changing in preference of the target consumers and expanding their particular product channel to reap maximum revenues. For instance, in February 2016, a prominent Japanese company, Ajinomoto Co. Inc. expanded its production of Masako due to the augmented demand from the Indonesia seasonings marketplace.

Another factor responsible for the growth of the spices market is the increasing preference for ready-made spices such as chilly spices with a fusion of ethnic tastes. The growth of the seasonings market can be further fathomed by the increasing trade in the parent industry that includes sauce, mixed condiments, and seasoning. According to the International Trade Centre (ITC), the trade value corresponding to the parent industry was gauged to be $12.94 billion as of 2018, and the value had witnessed an increment of 9% between 2017 and 2018. These include various seasonings such as Italian seasoning and poultry seasoning. Similarly, the spices market is also observing an increase in worldwide trade, which is the evidence of the spices and seasonings market growth.

As a result of the market disruptions and growing demand from the consumers, the spices and seasonings market size was evaluated at $2.29 billion in 2018, and it is poised to grow at a healthy CAGR of 5.5% during the forecast period 2019-2025.

Europe Spices and Seasonings Market & Opportunities for the Companies:

In 2018, Europe had the maximum spices and seasonings market share with 42% in global revenues. The growth prospects in the Europe spices and seasonings market is attributable to the growing trend of healthy living, the interest of consumers in new tastes, and the increase in the sales of convenience foods that contain spices and seasonings. There is a growing trend of turmeric tea, capsules, nuts, and ghee, which is the reason spices are gaining traction in the European countries. The demand influx in the Europe spices and seasonings market reflects the growing import in the parent industry. Here’s the table that signifies the import of sauce, mixed condiments, and seasonings in the major markets of Europe – 

Table 1 – 2018 Import Value of Seasonings, Sauce, and Mixed Condiments

There is a conspicuous rise in the import value corresponding to the parent industry in the countries mentioned above, which reflects the growth of the Europe seasonings market. Additionally, Europe is also a lucrative spice marketplace for the players in the developing countries that export different types of ethnic spices to leverage the trending business of spice and seasonings in the Europe food industry.

· The Impact of the Growth in the Disposable Income in European Countries on the Spices and Seasonings Market –

According to the Organisation for Economic Co-operation and Development (OECD), the European countries are witnessing a surge in disposable at 1.2% to as much 4.4%. Now, this rise in disposable incoming is allowing the consumers to splurge more on food products such as fast food and convenience food, which is creating opportunities in the Europe spices and seasonings market growth.

· The Increasing Preference towards Natural Spices Expanding the Europe Spices Market –

Healthy living has been gaining a propitious prominence in the Europe food industry for years now. It is quite evident when natural spices and herbs increasingly replace the salt, sugar, and other synthetic additives. This is reflecting on the trend of clean labels that indicate that the food product doesn’t contain allergen-free and gluten-free ingredients. The need for giving accurate information of ingredients to the consumers are making European F&B companies resort to natural spices and herb, and this, in turn, is leading to opportunities in the spices and seasonings market.

· The Sustainable Spice Initiative Transforming the Europe Spice Marketplace –

European buyers are well-aware about the best environmental practices and are focusing on the sustainability of the products. While this has led to changes in many industries, the Europe spice market is undergoing transforming too. Sustainable Spice Initiative (SSI) by IDH – the Sustainable Trade Initiative, has a goal of securing future sourcing of spice and also supporting the economic growth of the developing countries in which the spices are produced. This initiative will also provide opportunities to the small and medium-sized players that can thrive in the Europe spice market.

Spices and Seasonings Market – Global Scenario and Growth Drivers:

· The Key Segment in the Spice and Seasonings Market – Spices

The most lucrative segment in the spice and seasonings market is found to be the spices market, the size of which will grow at a CAGR of 4% through to 2025. This is attributable to the growing demand for spices in various countries due to the increasing interest of the public in diverse food products and tastes. The growth of the global spices market can also be gauged by the increasing export from the Indian spice industry. According to the India Brand Equity Foundation (IBEF), total spices export from India was evaluated at 1.08 billion Kgs between 2017 and 2018.

Furthermore, $1.84 billion worth spices were exported to various countries between April-October 2018. This evinces the growing demand for spices in various regions or countries of the world. The upcoming years foresee a gamut of transformation in the F&B industry such as inclination towards ethnic foods, emphasis on sustainability, and the consumption of natural spices and herbs, which will further flourish the spices market during the forecast period. 

· The Changing Lifestyle of Consumers Creating a Demand Influx in the Spices and Seasonings Market –

In the millennial generation, there is a substantial change in the lifestyle. The growing predilection towards convenience is quite evident in the exponential growth of online buying portals such as Amazon. The inclination towards convenience is also evident in the F&B industry, wherein consumers are showing a preference for fast food and convenience. According to the International Food Information Council Foundation, the convenience factor played 54% role as a purchase driver in the food industry as of 2018. This evinces the growing sales of convenience food worldwide, and these food items more often than not are prepared with spices and seasonings to satiate the taste buds of the consumers. The growth of the convenience food segment is further propelling the spices and seasonings market.

· The Increasing Sales of Meat and Poultry Products Increasing the Spices Market Size –

The Food & Agricultural Organization (FAO) of the United Nations (UN) had projected the growth of the meat trade across the world, and the value was estimated to reach 322 tons by the end of 2018. Furthermore, according to the Poultry Hub, global poultry production was gauged to be 111 million metric tons in 2015, and the production is projected to reach 131.255 million metric tons by the end of 2025. Meat and poultry products are sprinkled with spices and poultry seasoning to induce taste, and the growth of the production and trade of these products is creating prospects for the spices and seasonings market players.

Apart from these, the bakery industry is also creating a profitable demand influx, which the seasonings market companies are leveraging to increase their revenues. 

Spices and Seasonings Market – Competitive Landscape:

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