The global dried herbs market size was valued at USD 1.86 billion in 2022. It is projected to reach USD 2.91 billion by 2031, growing at a CAGR of 5.10% during the forecast period (2023–2031)
Dried herbs are gaining momentum in recent times, owing to their several benefits over fresh herbs. They can be stored and used anytime and have no risk of fungus and bacterial diseases. The demand for dried herbs is increasing in numerous industries, including food, beverages, cosmetics, pharmaceutical, and others. Moreover, the demand for dried herbs is increasing in processed foods and convenience foods, owing to their longer shelf-life.
|Market Size||USD 2.91 billion by 2031|
|Fastest Growing Market||Asia Pacific|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The use of dried herbs is increasing in the food processing industry on account of the surging demand for ready-to-eat meals and other ready-to-eat food items. The dried herbs give a tasty and flavourful touch to the food. Moreover, the usage of dried herbs is increasing in culinary for salad making and dressing. Several herbs are used in making different types of drinks, such as infused drinks, herbal drinks, and other beverages. The increasing demand for processed foods, such as pickles, snacks, beverages, and others, has surged the demand for dried herbs as these herbs are exceptional at enhancing flavor and aroma.
Fig 1: European Imports of Bay Leaves, 2015–2017 (Metric Tons)
Source: CBI (Ministry of Foreign Affairs)
HoReCa and the food processing industry are gradually inclining towards natural flavoring and avoiding the use of synthetic flavors. The growing health-conscious population is demanding healthy food with natural flavorings and clean label products. By considering this, food manufacturers are incorporating dried herbs as natural flavors in their food products and cuisines. Moreover, the increasing consumption of processed pre-cooked meals and foods provides an impetus to the market growth. Processed food manufacturers are adding a variety of herbs to their food products to give the food a distinct flavor.
Europe dominates the dried herbs market on account of the increasing demand for dried herbs in the culinary and food processing industry. Europe has the largest food industry in the world. This industry employs a significant percentage of the population in the region. The key application of dried herbs is in the food and beverage industry.
Europe imports various types of dried herbs from developing and developed countries. As per the data published by the CBI (Ministry of Foreign Affairs), Poland and Germany are the top importers of bay leaves in Europe. In 2017, Germany and Poland together represented around 36% of the European bay leaves market.
Apart from this, the presence of a large health-conscious population is another factor driving the regional market growth. The herbs based medicines and dietary supplement are in high demand in the European region. People in Europe mostly opt for natural and healthy products.
India and China to Bolster Asia-Pacific’s Market Growth
Asia-Pacific is expected to be the fastest-growing market for dried herbs on account of the increasing manufacturing facilities, growing pharmaceutical industry, and rising demand for processed food. India and China are expected to drive the market growth in the region. India has a strong Ayurveda medicines market, which uses dried herbs for different medicines formulations. Pakistan and China are the largest users of Unani medicines, which also uses more than 90% herbal medicines. In addition, the increasing organic market in the region is expected to drive the market. In 2016, according to FiBL, India had the largest number of organic producers in the world.
Fig 5: Key European Importers of Bay Leaves
Fig 6: European Imports of Thyme 2015–2017 (Metric Tons)
The demand for thyme and bay leaves is high in the European food industry. According to CBI (Ministry of Foreign Affairs), the imports of thyme are increasing significantly from developing countries. Among the EU, Germany is the top importer of thyme followed by the U.K. and Italy. The U.K., Germany, and Italy together accounted for approximately 50% of the European imports of thyme. Other important European markets for thyme include France, Spain, and the Netherlands, which held a market share of 8%, 7%, and 8%, respectively.
Fig 2: Key Importers of Thyme in Europe (2017)
Similarly, imports of bay leaves are steadily growing in Europe as bay leaves are extensively used in European countries in the culinary and food processing industries. The prime importers of bay leaves in Europe include the U.K., Spain, Belgium, and France. As per the Eurostat, these four countries together accounted for around 34% of the total European bay leaves the market in 2017.
Organic herbs are expected to be the fastest-growing segment, owing to the consumers increasing demand for organic products. According to Eurostat, in Europe, the share of the organic area in total agriculture area is 7.5%. The total organic area in Europe continues to increase. In 2018 over 13.4 million hectares of land was organic land. Also, according to “The World Counts”, the global sales of organic food products have reached USD 95 billion.
Fig 3: Growth of Global Organic Agricultural Land from 2013–2017
The above chart represents the growth of agricultural land globally. The organic land area in 2013 was only 43.1 million hectares, in 2017 the organic agricultural land area increased to 69.8 million hectares globally. This growth in the organic industry fuels the demand for organic dried herbs. The conventional dried herbs account for a significant share of the market. The conventional segment holds more than 90% of the global dried herbs market in 2019.
Fig 4: Global Dried Herbs Market Share (%), By Nature, 2019
Source: RM Analysis