Home Food & Beverages Saffron Market Size, Share Report, 2031

Saffron Market

Saffron Market Size, Share & Trends Analysis Report By Grade (Grade I, Grade II, Grade III, Grade IV), By Type (Organic, Traditional), By Form (Liquid, Powder, Stigma, Petals, Stamen), By Application (Food Supplements, Cosmetics, Personal Care Products, Food and Beverage, Others), By Distribution (B2B, B2C), By Region (North America, Asia-Pacific, Europe, The Middle East and Africa, Latin America) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2031

Report Code: SRFB55921DR
Study Period 2019-2031 CAGR 7.0%
Historical Period 2019-2021 Forecast Period 2024-2031
Base Year 2022 Base Year Market Size USD 590.1 million
Forecast Year 2031 Forecast Year Market Size USD 1,084.8 million
Largest Market Middle East and Africa Fastest Growing Market Asia Pacific
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Market Overview

The global saffron market size was valued at USD 590.1 million in 2022 and is projected to reach USD 1,084.8 million by 2031, registering a CAGR of 7.0% during the forecast period (2023-2031). The saffron market share has increased due to its use in the food and Beverage, cosmetics and personal care, and pharmaceutical industries.

Saffron is a valuable spice derived from the flower of Crocus sativus, also known as the saffron crocus. The spice is well-known for its vibrant color, distinct flavor, and numerous culinary, medicinal, and cosmetic applications. Saffron has cultural significance in many cuisines and traditional practices, frequently representing luxury and auspiciousness. Saffron demand in cosmetic and pharmaceutical applications will drive the market throughout the forecast period. Saffron's main active ingredients are picrocrocin, safranin, and Crocin. These compounds reduce brain inflammation and oxidative damage. Saffron's memory-boosting, anti-inflammatory, and antioxidant properties will boost saffron market growth. It is also used in cosmetics as a natural UV-absorbing component. Electric noses, pilot scales, and image processing are essential processing technologies.

However, image processing separates stigmas faster than manual methods. Due to global demand and high costs, adulteration has proliferated. Adulteration occurs when saffron-like materials are mixed. Due to adulteration, product quality may vary, affecting price.

Highlights

  • Grade I accounts for the largest share of the market by grade.
  • Traditional is a significant contributor to the market by type.
  • Petals influenced the market growth by form.
  • Food and Beverages are the most common applications of the market.
  • B2B commands the most share by distribution channel.
  • The Middle East and Africa dominate the global market.

Market Dynamics

Global Saffron Market Drivers:

Culinary Demand

Culinary demand for saffron is a significant driver of market growth. The spice is highly valued for its distinct flavor, fragrance, and the rich golden-yellow color it adds to dishes. It is a critical ingredient in many cuisines worldwide, contributing to the characteristic flavor of traditional and gourmet recipes. Spain is a major saffron importer and exporter. Spain will be the world's largest exporter of saffron in 2022, with 199,000 kilograms exported. Spain imported USD 31.4 million in saffron in 2021, making it the world's second-largest importer. Saffron is used extensively in the preparation of paella, a popular rice dish in Spanish cuisine. The spice is responsible for the rice's color and flavor. Saffron's use in paella highlights its importance in creating authentic and flavorful regional dishes. Saffron, likewise, is a popular spice in Indian cuisine. It's used in sweet and savory dishes and is especially popular in northern India's decadent Mughlai dishes. The annual demand for saffron in India is 100 tons, but the country only produces 6-7 tons annually.

As a result, India imports a significant quantity of saffron. Saffron culinary demand has a direct impact on the market's economic dynamics. Saffron demand increases as restaurants, chefs, and manufacturers seek high-quality, authentic ingredients, influencing domestic and international markets. The saffron market trend is expected to flourish as culinary tastes continue to globalize and the popularity of gourmet and specialty foods grows. Saffron remains a coveted spice in the evolving culinary landscape as chefs and home cooks explore unique and authentic flavors.

Global Saffron Market Restraints:

High Cost

The high cost of saffron is a significant market restraint due to its labor-intensive cultivation and harvesting. Saffron threads are meticulously hand-harvested from saffron crocus flowers, and many flowers are required to produce a small amount of saffron. This complex process contributes to the spice's high price. A gram of high-quality saffron can cost between USD 5 and USD 20 in the United States. However, real saffron is expensive, and one gram should cost at least USD 10. Saffron prices vary according to quality, region, and market demand. Iranian saffron, for example, can cost anywhere from USD 1500 to USD 7500 per kg; in some cases, it can cost as much as USD 10,000 per kg.

Furthermore, saffron's high cost impacts the entire supply chain, from growers to distributors and retailers. To balance quality and market competitiveness, stakeholders must carefully manage production costs, distribution expenses, and pricing strategies. Saffron's high economic value also makes it vulnerable to fraudulent practices. Some argue that saffron's lack of popularity is due to adulteration. Adulteration with other substances, such as artificial colorants or lower-grade saffron, frequently jeopardizes the authenticity of saffron. Adulteration practices in the saffron market can result in quality issues and erode consumer trust in the purity of saffron products.

Global Saffron Market Opportunity:

Diversification of Cosmetics and Skincare Products

Saffron's use in cosmetics and skincare has significant potential for diversification and expansion. Saffron is a popular cosmetic ingredient due to its anti-inflammatory, anti-allergic, and antioxidant properties. Saffron can help improve skin elasticity and collagen production and reduce the appearance of fine lines and wrinkles. It can also be used to treat rashes and acne. This diversification could include the creation of saffron-infused creams, serums, masks, and natural dyes. According to a 2013 study, the active compounds in saffron can reduce melanin, which can help with hyperpigmentation. Beauty and skincare companies can create Saffron-infused facial creams to capitalize on the spice's ability to promote healthy and radiant skin. Saffron's natural antioxidants may aid skin rejuvenation, addressing aging and environmental concerns.

The skincare industry has seen increased demand for anti-inflammatory and skin-brightening products. Saffron fits into this trend, providing opportunities for cosmetic companies to incorporate it into formulations addressing specific skincare concerns. The impact of integrating saffron into cosmetic and skincare products is the creation of a niche market segment. Saffron-infused beauty products can meet natural alternatives and premium skincare solutions. The potential benefits to skin health may entice a discerning consumer base.

Regional Analysis

The global saffron market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

The Middle East and Africa Dominate the Global Market

Middle East and Africa are the most significant global saffron market shareholders and are estimated to grow at a CAGR of 7.3% over the forecast period. The Middle East and Africa dominated the market, accounting for 50% of total revenue. This is due to increased demand for its use in traditional cuisine. Saffron is a critical ingredient in many regional dishes, including biryanis, pilafs, and tagines, and it is also used to flavor sweets and desserts. The spice is regarded as a symbol of hospitality and is frequently served to guests as a mark of respect.

Additionally, Iran is the world's largest producer of saffron, accounting for more than 90% of global output. The Khorasan Razavi province and Gonabad region are on the arid and semiarid central Iranian plateau. Iran established a gene bank for saffron bulbs in November 2022 to identify and register a specific species of Iranian saffron with the United Nations Food and Agriculture Organization. The gene bank has collected saffron bulbs from 57 different regions in Iran and intends to expand its collection. This initiative aims to protect and preserve the genetic diversity of Iranian saffron bulbs for future generations.

Asia-Pacific is anticipated to exhibit a CAGR of 7.5% over the forecast period. Various factors drive the Asia Pacific saffron market, including its cultural and historical significance, use in traditional medicine and culinary applications, and growing popularity as a premium ingredient in luxury products. Saffron has been used in traditional medicine for centuries in many Asian countries, including India and China, for its various health benefits, such as improving digestion, treating respiratory ailments, and reducing inflammation. It is also used in Ayurvedic medicine and other traditional healing systems because it is thought to have mood-enhancing properties. SoulTree, a brand specializing in Ayurvedic beauty and wellness products, will launch its Advanced Kumkumadi line of products in June 2022. This collection is made with only 100% pure, certified organic Mogra saffron and is based on the fundamental principles of Ayurvedic traditions.

North America is expected to grow steadily during the forecast period because of its numerous health benefits; saffron is becoming increasingly popular in North America. Anxiety attacks are becoming more common among adults as a result of modern lifestyles, and saffron is highly effective in treating them. Saffron tablets contain bioactive compounds such as Crocin, which have a variety of medicinal and health benefits.

Europe holds a significant market share. The growing awareness of saffron's health benefits and rising demand for organic and natural products propels the European saffron market forward. As a result, consumer demand for high-quality saffron is increasing, fueling the growth of the European saffron market. According to a BIOPRO Baden-Württemberg GmbH article, Innovation Matters, a German start-up, is developing a robot-assisted process for saffron cultivation. The robot Oscar can detect and cut flowers, but saffron thread extraction must still be done by hand. Germany has the potential to become a net saffron exporter. The company intends to release test products soon and collect data from genuine customers.

Report Scope

Report Metric Details
Segmentations
By Grade
  1. Grade I
  2. Grade II
  3. Grade III
  4. Grade IV
By Type
  1. Organic
  2. Traditional
By Form
  1. Liquid
  2. Powder
  3. Stigma
  4. Petals
  5. Stamen
By Application
  1. Food Supplements
  2. Cosmetics
  3. Personal Care Products
  4. Food and Beverage
  5. Others
By Distribution
  1. B2B
  2. B2C
By Region
  1. North America
  2. Asia-Pacific
  3. Europe
  4. The Middle East and Africa
  5. Latin America
Company Profiles Esfedan Trading Company Safran Global Company S.L.U. Tarvand Saffron Co. Saffron Business Company Gohar Saffron Rowhani Saffron Co. Mehr Saffron Flora Saffron Royal Saffron Company Iran Saffron company.
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global saffron market is segmented based on grade, type, form, Application, distribution, and region.

The market is further segmented by grade into Grade I, Grade II, Grade III, and Grade IV.

Grade I accounts for the largest share of the market.

Grade I

Grade I is the highest quality available in the global market, accounting for over 65% of total revenue in 2022. These threads are characterized by their vibrant red color, length, and potent flavor. They have a higher concentration of essential oils, such as safranal, which contributes to the aroma of the spice. This premium grade is harvested and processed with care to ensure minimal breakage and the integrity of the saffron threads. Grade I saffron is prized for its exceptional sensory qualities, making it the preferred choice for culinary and medicinal applications and for those seeking the ultimate saffron experience.

Grade III

Grade III saffron is characterized by moderate quality, with saffron threads less intense than higher grades in color, aroma, and flavor profile. While it has a milder flavor, Grade III, saffron is still suitable for culinary use, particularly in dishes requiring a more subtle influence. This grade is frequently more affordable, making it more accessible to a broader range of consumers. While less valuable than higher grades, Grade III saffron is still a viable option for those seeking saffron of acceptable quality for various applications.

Based on type, the market is fragmented into Organic, Traditional.

Traditional is a significant contributor to the market.

Traditional

Traditional types generated 60% of global revenue in 2022. Traditional farming methods may use synthetic fertilizers, pesticides, and other agricultural practices to grow saffron. This saffron can be produced using generations-old methods. While only sometimes organic, traditional saffron remains a market presence and is often cheaper. It targets buyers who value affordability over organic certification. Traditional saffron is still famous, especially in areas with solid farming traditions. 

Organic

Organic saffron is grown sustainably without synthetic pesticides, fertilizers, or GMOs. Organic agriculture emphasizes soil health, biodiversity, and natural pest control. Organic saffron is chemical-free and a premium and environmentally friendly choice. Its organic farming promotes ecosystem sustainability and consumer and environmental well-being. Those seeking natural, responsibly produced products prefer this saffron.

The market is sub-segmented based on form into Liquid, powder, stigma, petals, and stamen.

Petals influenced the market growth.

Petals 

In 2022, the petals form led the global market with a 50% revenue share. The flower petals of the Crocus sativus plant are referred to as saffron petals. Saffron petals, while less commonly used than saffron stigma, can also be used in various culinary applications. They may contribute a milder saffron flavor and can be used in dishes that call for a subtle saffron influence. Saffron petals are sometimes used for decoration or in recipes where a hint of saffron aroma and color is desired. Still, the intense flavor associated with the stigma is not desired.

Stigma 

The red-orange filaments harvested from the saffron crocus flower are represented by saffron stigma, also known as threads or strands. These delicate threads, which contain the spice's concentrated flavor and color compounds, are the most sought-after part of the saffron plant. The stigma of saffron is frequently used in traditional culinary applications such as rice dishes, stews, and desserts. Saffron stigma, known for its superior quality, is ideal for recipes that value visual presentation and intense saffron flavor.

The market can be bifurcated by application into Food Supplements, Cosmetics, Personal Care Products, and Food and Beverages.

Food and beverage are the most common Application of the market.

Food and Beverage

The food and beverage application is expected to grow significantly in revenue. The growing demand for natural and healthy food ingredients is driving the market for food and beverage applications in the saffron industry. Saffron is a highly valued spice popular in various food and beverage products due to its distinct flavor, aroma, and color. Saffron's health benefits, such as its antioxidant properties and potential therapeutic effects, drive demand for saffron-based food and beverage products.

Cosmetics

Over the forecast period, the market for cosmetics applications is expected to grow significantly. The saffron market is experiencing increased demand for its use in cosmetics applications owing to rising consumer interest in natural and organic beauty products. Saffron is well-known for its anti-inflammatory and antioxidant properties. It is a popular ingredient in skincare products that brightens skin tone, reduces fine lines and wrinkles, and improves overall skin texture.

Based on the distribution channel, the market is divided into B2B and B2C.

B2B commands the most share.

B2B

During the forecast period, the B2B distribution channel is expected to grow significantly in revenue. The growing trend of using saffron as a natural coloring and flavoring agent in food and beverages is helping to expand the saffron market in the B2B distribution channel.

B2C

The market for B2C distribution channels is expected to proliferate. Several factors drive market growth in the B2C distribution channel, including increased availability of saffron products through online retail channels, the rising popularity of saffron-based supplements and dietary products, and increased use of saffron in the cosmetics and personal care industries.

Market Size By Grade

Recent Developments

  • August 2023- Tata Consumer Products introduced Grade 1 Kashmiri saffron under the Himalayan brand.
  • December 2023- Large-scale saffron corm cultivation is underway in Menchukha, Arunachal Pradesh, and Yuksom, Sikkim, with ten quintals per site, and pilot cultivation in medium-potential sites is continuing to validate site suitability.

Top Key Players

Esfedan Trading Company Safran Global Company S.L.U. Tarvand Saffron Co. Saffron Business Company Gohar Saffron Rowhani Saffron Co. Mehr Saffron Flora Saffron Royal Saffron Company Iran Saffron company. Others

Frequently Asked Questions (FAQs)

What is the projected market value of the global Saffron Market?
The global Saffron Market size is projected to reach USD 1,084.8 million by 2031.
Middle East and Africa region has the largest share of the Saffron Market.
The Grade I segment is expected to dominate over the forecast period.
Esfedan Trading Company, Safran Global Company S.L.U., Tarvand Saffron Co., Saffron Business Company, Gohar Saffron, Rowhani Saffron Co., Mehr Saffron, Flora Saffron, Royal Saffron Company, Iran Saffron company., are the prominent players in the Saffron Market.
The global Saffron Market growing at a CAGR of 7.0% from (2023–2031).


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