GLOBAL ORAGANIC SPICES MARKET (2023 - 2030)

The Global Organic Spices Market was valued at USD 0.8 billion in 2022 and is projected to reach a market size of USD 1.26 billion by the end of 2030. Over the forecast period of 2023-2030, the market is estimated to grow at a CAGR of 6.7%. 

The rising demand for organic food substances and manufacturing facilities is steering the requirement for organic spices. Organic spices market is one of the fastest growing markets due to health awareness among the masses, growing emphasis on ethical consumption, escalating food safety concerns, imposition of various government policies and regulations, increasing expenditure budgets and adoption of eco-friendly packaging. Increasing awareness around the benefits of organic spices along with the influence of social media is shooting the sales of organic spices. Companies are trying to come up with outstanding customer and employee experiences to improve their services while also increasing the demand for organic spices.

Key Market Insights:

Wellness, health and food are interlinked. The quality of the food products that are consumed on daily basis has a direct impact on our health. In addition to the above, the roots of the food products have also been estimated to have a direct relationship with the health, nutrition and fitness. As a result of such awareness among people, there is shift in the choice of food consumed, from unhealthy and junk food to healthy and organic food. Hence it is forecasted that global Organic Food market grows at a CAGR of 11.6%.

As per the Spices Board India, it is estimated that approximately, 2,929 metric tons of Organic spices have been exported from India alone valuing 12,719.03 lakhs.

With respect to the distribution channels of Organic Spices, it is expected that there is going to be a hike in the CAGR by 3.8% between 2023 to 2033.

Based on segmentation by Form, sales in the powder & granules segment held a share of around 50% in the organic spices market. The demand is now expected to grow at a rate of 4.2% CAGR over the forecast period.

Organic Spices Market Drivers:

• Heightened health awareness among the consumers driving market expansion.

As mentioned above, the increasing consciousness of the health implications associated with food choices is significantly influencing the organic spices market. In addition, the emerging fitness culture and preventive healthcare regimes are leading to the demand for organic spices in various healthy diets. Moreover, the chemicals that are used in the traditional agriculture can lead to a range of health issues, including allergies, digestive problems, or severe long-term consequences. As a result, individuals are striving towards organic spices as a safe and healthier alternative.

• The growing emphasis on ethical consumption is expanding market sales.

The growing importance on sustainability, which is influencing purchasing decisions based on ethical considerations, is driving the market growth. In line with this, organic farming practices are observed as more sustainable and socially responsible due to their reduced impact on the environment and support for localists. Moreover, organic farming is less detrimental to farmers, as it eliminates the usage of synthetic pesticides and fertilizers. These factors in union make organic spices an increasingly popular choice among ethically conscious consumers.

• The escalating food safety concerns is propelling market growth.

The growing importance to food safety, owing to the increasing number of food-related sickness, coupled with an increased understanding of the long-term impacts of synthetic additives, is propelling the market growth. Organic spices aid in mitigating these concerns by keeping away from the utilization of synthetic pesticides and fertilizers in their production processes. In addition, organic spices are labelled with certification that indicates their organic status. This transparency enables end users to make informed choices about the items they buy, being aware that they have met specific organic standards.

Organic Spices Market Restraints and Challenges:

• High Production Cost.

In the world, there is limited or restrictive agricultural land that is suitable for organic farming, higher production costs and potential supply chain challenges are the bottlenecks to the growth of the global Organic Spice market.

• Stringent Organic Certification.

In addition to the above, strict Organic Certification standards hinder farmers from cultivating or producing various Organic crops including spices and many more.

• Weather Conditions.

Weather in few parts of the world is quite unpredictable and hence vulnerability to weather fluctuations and variations can pose hurdles to the production, supply and pricing of the Organic spices.

Organic Spices Market Opportunities:

Manufacturers are working hard for research and development of innovative and sustainable offerings to serve a large customer base and that may lead to the rise in Organic Spices market to grow. Hence, manufacturers are adopting plan of actions such as mergers & acquisitions to expand their global footprint and add disruptive packaging modifications to their product portfolio.

GLOBAL ORGANIC SPICES MARKET REPORT COVERAGE:

Organic Spices Market Segmentation:

• By Product Type:

• Ginger
• Turmeric
• Nutmeg
• Cinnamon
• Clove
• Pepper
• Mustard Seeds
• Others

As per the research, it is noted that Turmeric holds the largest segment among the rest of the Spices. It is dominating the market as it is widely used in natural treatment and cure for conditions like Arthritis, Digestive issues and skin problems. Furthermore, it has versatile applications in various cuisines around the world, especially South Asia making it universally appealing.

• By Form:

• Powder & Granules
• Whole
• Chopped/Crushed

Among the list provided above, Powder represents the largest share in the global market. Powdered organic spices are dominating among the rest because of the ease of its usage, as they are easy to measure, mix, and incorporate into dishes. Additionally, grinding spices into a powder enhances the release of flavours and aromas when added to dishes.

• By End User:

• Commercial
• Household

Organic Spices are majorly used for Commercial purposes and therefore accounting for the largest market share. It is dominating the market as Organic Spices are widely used in various restaurants, food manufacturers, and other food service businesses to cater to health-conscious and environmentally aware-consumers around the world. Most importantly, culinary industry is emphasising on using high-quality, natural and organic ingredients to enhance the flavour and health value of dishes.

• By Distribution Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Stores

As per the market research, supermarket/hypermarkets are accounted for the largest market share because they provide a one-stop shopping experience where consumers can find a diverse variety of products, including organic spices, in a single destination. Such easier accessibility to consumers helps them find the specific spices that they are particularly looking for without having to visit multiple specialty stores. Besides this, this distribution channel offers competitive pricing due to their purchasing power and economies of scale, which makes organic spices more accessible to a broader range of consumers.

• By Region:

• North America
• Asia-Pacific
• Europe
• South America
• Middle East and Africa

Currently, Asia-Pacific is a clear dominant among the rest of the world, owing to the largest producer and exporter of different Organic spices. The growing popularity of various regional cuisines such as Indian, Chinese, Japanese, Thai, etc is a key element boosting demand for various spices. Also, the presence of large multicultural groups in emerging countries like India, China, and Japan adds to the growth. The combination of these two reasons has resulted in increased demand for organic spices throughout Asia-Pacific.

With respect to the fastest growing region, Europe is expected to grow exponentially in the global Organic Spice market. European food producers are immensely investing in Research and Development and innovative products. The inclination of Millennials and GenZs towards healthy and organic food or drinks is persuading business growth.

COVID-19 Impact Analysis on the Global Organic Spices Market:

Emergence of Covid-19 has influenced the market’s distribution, supply chain & logistics, and manufacturing. Though the outbreak of Covid-19 pressurised governments around the world to announce lockdowns, shutdowns and social distancing, food products were considered a basic necessity by governments allowing spices to be easily available. Also as mentioned earlier, growing consumer concern related to health is driving the demand for organic and natural spices owing to their immunity-boosting abilities and various other applications

Latest Trends/ Developments:

Increasing demand for Organic food to propel market growth

The urge for Organic food items has increased notably in recent years, particularly in developed nations, as a result of rising disposable income and health consciousness worldwide. The addition of chemical pesticides and fertilisers on crops will have negative outcome on the environment, human health and consumers are becoming more aware of this fact. On the other hand, while cultivating or processing Organic Spices, no such dangerous compounds are used. Hence, this factor is driving the market CAGR for Organic Spices.

Also, due to the antibacterial qualities and antioxidant content of Organic Spices, pharmaceutical companies throughout the world are spending heavily on these drugs. A significant element persuading the growth of the Organic Spice market is the increasing popularity of medical procedures like Ayurveda or traditional Chinese medicine in Asia and the rising awareness in Europe and North America.

However, key trends that are driving this market includes product innovations.  For market expansion, the top market players are coming up with cutting-edge products. For instance, ORCO, an Indian player who has added 32 new products in the market which are 100% natural, healthy and organically grown seasonings and condiments. Pesticides and other detrimental chemicals are avoided in ORCO spices.

Key Players:

• Frontier Co-op
• Simply Organic
• Spicely Organic
• Organic Spices Inc.
• Starwest Botanicals
• McCormick & Company, Inc
• The Spice Hunter
• Pacific Spice Company
• SunOpta Inc.

Recent Developments

• In the month of February 2023, Frontier Natural Products Co-op unveiled a new sustainable bulk packaging for its various products like spices, herbs, and botanicals.
• In March 2023, McCormick & Company Inc. launched an innovative and brand-new packing design for its core line of herbs and spices.
• In May 2023, Organic Spices Inc. announced that it has stretched into contract manufacturing and private label co-packing to bring values and enhanced experience to customers.