Europe Spice and Herb Extracts Market - Segmented by Type, Application, and Geography - Growth, Trends and Forecasts (2018 - 2023)
The Europe market for spice and herb extracts is expected to grow at a CAGR of 6.7% during the forecast period of 2018 - 2023. The spice and herb extracts market is estimated to be valued at USD 5.18 billion in 2016.
The market has a good trade potential, especially for small-scale farmers in countries s like Germany, the UK, France and the Netherlands where a significant local demand exists for spice and herb extracts. A large proportion of extracts traded in both, local and export markets, are produced by small-scale farmers, and the global trade provides them with multi-billion US dollar earnings.
Shifting Consumer Focus towards Natural Products
Due to high usage of synthetic chemicals, the food & beverage retail manufacturing industry as flavoring agents the manufacturers are trying to shift towards natural flavoring agents using various herbs and spices. European consumers are becoming more aware of healthier lifestyles. They take more responsibility for their personal health, integrating mental and physical wellbeing. Thus, people prefer consuming organic produce or food products that have organic ingredients. The addition of organic/natural spices and herbs extracts helps bring out the flavor of food.
Oregano Records the Highest Growth Rate
The spice and herb extract market is segmented by type, product type, and application. By type, spice and herb extracts are further segmented into celery, cumin, chili, coriander, cardamom, oregano, pepper, basil, ginger, thyme and other types of extracts. By product type, the market is sub-segmented into essential oils, seasonings, blends and others type of spice and herb extract based products. The major demand is for chilly and pepper extracts followed by Thyme with a CAGR of 8.4% during the forecast period.
Spice and herb extracts have their applications in the food, beverage and pharmaceutical industries. In the food segment, they are used in dairy, dressings and marinades, meat and poultry, snacks and others. In beverages, they are used in soft drinks, tea and herbal drinks, alcoholic beverages, and other applications. Meat and poultry applications hold maximum share of the market.
Germany to Dominate the Market
There are about 500 million consumers who consume spice and herb extract-based products in Europe. The region is known to be a global trading center for spices and herbs extracts, not only regarding imports from producing countries but also in trading among its members and other countries. Most of the demand is fulfilled through imports from developing countries like China, India and Vietnam; however, inter-European trade is also rising. Some specific spices and herbs are also produced in the EU, mainly in the Eastern region and some Southern European countries. Most of the local production of spice and herb extracts take place in Romania, Bulgaria and Hungary accounting for more than 80% of the total production in Europe.
Major Players: DÖHLER GMBH, SYNTHITE INDUSTRIES Ltd., KALSEC® Inc., NATUREX SA, MCCORMICK & COMPANY, Inc., ABF, KERRY GROUP, ALL-SEASON HERBS, PRINOVA GROUP Llc., FIRMENICH SA
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