Seasoning and Spices Market

Market Overview

The global seasoning and spices market size was valued at USD 22.15 billion in 2022. It is expected to reach USD 35.62 billion by 2031 at a CAGR of 5.5% during the projected period (2023–2031). There is a growing awareness of the medicinal benefits of spices and herbs among consumers in the region, particularly in Southeast and South Asian countries, and there is a growing popularity of ethnic foods. Herbs are widely used in daily meals in these countries.

Spices and seasonings are used in food and beverages to enhance flavor, aroma, color, and taste. They can also occasionally serve as preservatives or antibacterial agents. In addition to flavor and taste, spices and seasonings are now used for their health benefits. They are used in food to treat illnesses or health issues because they have antioxidant properties. For instance, turmeric is highly antiox and can fight off conditions like Alzheimer's, cancer, and joint inflammation. Cumin seeds have antiseptic properties and boost the immune system. They can also be utilized in medications and cosmetics. Further, black pepper powder is used in the production of pharmaceuticals. It is frequently used to treat cancer, pneumonia, and digestive issues.

Highlights

• Spice dominates the product segment.
• Meat and poultry products dominate the application segment.
• North America is the most significant shareholder in the global market.

Market Dynamics

Global Seasoning and Spices Market Driver

Rising Awareness of the Medicinal Benefits of Spices and Herbs

Spices have been witnessing a remarkable demand from commercial and household sectors due to their taste, flavor, and association with health benefits. Many spices have antioxidant properties and are useful in treating several diseases and health problems. For instance, turmeric is a rich source of antioxidants and helps prevent illnesses such as Alzheimer's, joint inflammation, and cancer. Similarly, cumin seeds contain antiseptic characteristics and help boost the immune system. These can be used as alternatives for medicinal and beauty products. Black pepper powder is often used to treat upset stomachs, bronchitis, and colds. It can be directly applied to the skin to cure scabies and nerve pain (neuralgia). These properties associated with the product have increased its application in preparing numerous medicines.

Furthermore, as various scientific studies support the medicinal properties of spices, consumers' interest in spices has been increasing worldwide. In addition, seasoning and spice firms have been promoting these products by focusing on their medicinal properties. Similarly, as spices help boost immunity, the demand for spices like turmeric, garlic, and ginger has surged remarkably due to the COVID-19 outbreak. These spices have been witnessing strong demand all over the world. Regardless of the higher retail prices of these products, consumption has increased notably. Some governments have been taking initiatives to boost the production of spices to meet the rising demand. For instance, the Indian government has decided to focus on private-public partnerships to boost the production of turmeric during the Indian border lockdown.

Increasing Popularity of Ethnic Cuisines

The demand for ethnic products has been growing due to consumer readiness to try out new flavors and ethnic tastes, fueling the expansion of the seasoning and spice market. Due to the cuisine's natural flavors and light seasoning, Japanese restaurants have seen significant expansion in developed nations like the U.S. and Europe. Similarly, Mexican, Italian, Indian, and Chinese restaurants offering ethnic cuisines have grown globally. An upsurge in demand for authentic ingredients and a fusion of ethnic flavors has driven the market. For instance, Jalapeno pepper, taco seasoning, chili powder, fajita seasoning mix, chipotle, cilantro, cumin, cinnamon, and paprika are key spices and seasonings used in Latin cooking. Most Mexican restaurants offer blends of spices for their authentic dishes. The food service sector in the U.S. has been using these products to meet the demand for Mexican food for both migrated and local consumers.

With the growing popularity of Hispanic flavors, the demand for jalapeño pepper, chili pepper, taco seasoning mix, black pepper, and other peppers has grown significantly across the U.S. Therefore, these have become commonly purchased spices among consumers. In addition, the growing number of Hispanic and Asian people in the U.S. has resulted in the incorporation of new flavors in the nation's diet, and various flavors have gained a strong place in kitchens and restaurant menus. Ready-to-cook spice mixes are increasingly gaining popularity among consumers owing to their time-and effort-saving features. These pre-mix packages provide consistency in the taste of food with minimum effort. Subsequently, factors such as the hectic work schedules of parents and an increasing number of women in the workforce are driving the demand for ready-to-cook spice mixes. New varieties of aromatic and fusion spices created for particular and exotic foods are gaining traction among consumers, driving the global market.

Global Seasoning and Spices Market Restraint

Uncertain Climate in Key Spice-Producing Countries

Adverse weather conditions and natural disasters like floods, drought, earthquakes, pestilence, and frosts severely affect seasoning and spices production. Hence, the prices of raw materials in the industry often fluctuate, increasing the overall manufacturing and processing expenses of spices and herbs. Manufacturers are largely dependent on farmers or suppliers from Asian countries. Therefore, any natural disasters or adverse climatic conditions will likely result in huge losses for the players. According to the International Pepper Community, Indian black pepper production decreased to 36,000 MT in 2014 compared to 63,000 MT in 2013. Likewise, in 2016, it reduced to 47,500 compared to 69,000 MT in 2015. Untimely rains and severe drought in major pepper-growing states of India, Kerala, and Tamil Nadu were the key reasons for the drop in production.

Furthermore, in certain areas of Karnataka, spice production also experienced damage due to pest attacks. Both domestic supply and exports suffered as the farmers could not produce good-quality black pepper crops. A similar trend can be seen in Indonesia's production. Adverse weather not only hampers crop productivity but also reduces the overall market demand for the product at both domestic and international levels. The value chain for black pepper is severely disrupted whenever there is a lack of rain, which drives up the commodity's price. Such factors hamper the market growth.

Global Seasoning and Spices Market Opportunities

Health Benefits of Spices and Herbs

Seasoning and spices are one of the most commonly consumed cooking ingredients worldwide. Most dishes require seasoning and spices, creating demand for these among consumers. Similarly, the rising interest in regional ethnic cuisines has expanded the adoption of the product globally. In addition, various herbs blend well in contemporary eating styles, such as Sirtfood and Paleo diets. Therefore, the adoption of these products has been increasing over the world.

Spices and herbs are often consumed for their health benefits. For instance, the COVID-19 outbreak boosted the demand for spices and herbs that help prevent colds and promote immunity. Several spices and herbs are also marketed as salt alternatives. As a result, Mint, nutmeg, basil, Rosemary, cardamom, cinnamon, chili, chives, coriander, cumin, ginger, dill, Oregano, paprika, sage, thyme, parsley, and turmeric are gaining popularity in many cuisines. Large food firms such as Unilever have been altering their recipes to lessen salt intake by replacing it with herbs. These factors create opportunities for market growth over the forecast period.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global seasoning and spices market is segmented into North America, Europe, Asia-Pacific, the Middle East and Africa, and Central and South America.

Asia-Pacific is the most significant global market shareholder and is expected to grow at a CAGR of 6.5% over the forecast period. Consumers in the region, especially in Southeast and South Asian countries, use herbs extensively in their daily cuisines. The high consumption of herbs is largely attributed to Asian traditions, passed on from generation to generation to enhance food flavor and its medicinal properties. In Asian countries, especially India, garlic is used in numerous food preparations, particularly in curry powders, pickles, curried vegetables, tomato ketchup, and meat preparations. In addition, the region's rapidly growing middle-class population has been fueling protein consumption. According to a report by the Asia Research and Engagement (ARE), seafood and meat consumption is expected to rise by 33% by 2030 in Asia. This growth will increase the application of seasonings and spices in the meat and poultry sector.

North America is estimated to exhibit a CAGR of 6.1% over the forecast period. Spices have gained increasing popularity among U.S. consumers, with pepper and cinnamon being the most widely imported spices in the country. Over the past few years, cumin, paprika, and turmeric have gained appreciation in the food service sector by expanding menus to include international cuisines like Indian, Korean, and Ethiopian. The growing introduction of gluten-free, high-fiber, low-carb products has fueled the bakery industry owing to the increasing number of health-conscious consumers nationwide. This will likely directly influence the demand for various spices used in bakery and confectionery products. Rising interest in new flavors and healthier ingredients will propel market growth over the forecast period.

Europe is expected to exhibit an exponential CAGR during the projected period. Europe imports spices mainly from Asian countries. The region's leading consumers of seasonings and spices are the U.K., France, Germany, Romania, Hungary, and the Netherlands. Customers are becoming aware of the quality and origin of spices and seasonings, boosting the demand for natural and organic product variants. Some of the key brands for spices and seasonings are Spice Islands, Tone'sTone's, and Seven Hills, while prominent players in the market include British Pepper & Spice, General Mills, and Bart Spices. In addition, the demand for ethnic cuisines is increasing in the region, driving the demand for exquisite spices. Most consumers have hectic lifestyles and schedules, leaving less time for food preparation. As a result, the consumption of ready-to-use spice mixes has significantly increased as they help them save time and effort.

Segmental Analysis

The global seasoning and spices market is based on product and application.

Based on product, the global market is broadly divided into herbs (Rosemary, Fennel, Garlic, Mint, parsley, Oregano, and others), salt and salt substitutes, and spices (pepper, ginger, cinnamon, cumin, turmeric, cardamom, coriander, cloves, and others). 

The spices segment dominates the global market and is predicted to exhibit a CAGR of 6.01% during the forecast period. Shifting consumer food preferences toward various Asian and Middle Eastern cuisines propels the global demand for spices. Customers in Europe and North America have started using various spices in their cuisines, opening new opportunities for spices in the global market. Globalization, urbanization, and rising income levels are key factors in shifting customers' food preferences. In addition, due to the flourishing tourism and hospitality industries, the demand for Asian food has been increasing globally. Customers have started utilizing numerous ingredients to make food tasty and are experimenting with various cuisines when cooking. This has opened new scope for herbs. In addition, various spices and herbs mixture products have been introduced in the global market to cater to specific customers. For instance, low sodium salts have been introduced for hypertension patients. Such new launches propel the demand for these products in the global market.

Herb segment growth can be attributed to the many health benefits of herbs such as garlic, parsley, Oregano, Fennel, peppermint, and basil. People around the globe are increasingly using these herbs for their taste as well as exceptional medicinal purposes. For instance, garlic is known for its strong smell and delicious taste; however, it is also very beneficial for the common flu and related infectious diseases. It is also useful for the treatment of hypertension and cardiovascular diseases. Many herbs have their own health benefits and specific tastes, resulting in new scope for these in the market. In addition, fennel helps treat constipation, indigestion, and bloating, while basil can restrict the growth of various bacteria, yeasts, and molds. Oregano has been gaining popularity among consumers due to its taste and excellent antibacterial properties.

By application, the global market is bifurcated into bakery and confectionery products, meat and poultry products, frozen food, soups, sauces and dressings, beverages, and others. 

The meat and poultry product segment owns the largest market share and is predicted to exhibit a CAGR of 6.61% during the forecast period. Meat and poultry products make an important nutritional contribution to the daily diet of consumers. Over the past few years, the meat industry has witnessed key changes worldwide. In addition to manufacturing traditional meat products, industry participants have been developing and producing products with specialty ingredients to cater to the evolving tastes and preferences of the global consumer. Using different spices and seasonings has brought versatility to conventional meat products, increased their aesthetic appeal, and improved overall quality. For instance, garlic, peppercorns, and breadcrumbs are added to various meat products to enhance their flavor and aroma. Therefore, industry players are continuously innovating with new and exciting combinations.

Recent Developments

• April 2023- Tabitha Brown’s five new McCormick seasonings promised bold flavor, from barbecue to burgers.
• January 2023- Dabur acquired a 51% majority stake in Badshah Masala.