Global Spice and Herb Extracts Market - Segmented by Type, Application, and Geography - Growth, Trends and Forecasts (2018 - 2023)
Globally, the global spice and herb extracts market is expected to grow at a CAGR of 7.1% from 2017 to 2022. The market is valued at USD 6.91 billion in 2017. A good trade potential for spice and herb extracts especially for small-scale farmers in regions like Asia-Pacific where climatic conditions are favorable is expected during the forecast period. A large proportion of extracts traded in both, local and export markets, are produced by small-scale farmers.
High Penetration of International Cuisines
The key drivers leading to the growth of the spice and herb extract markets are the increased availability of international cuisines in the major economies, shifting consumer focus towards natural products, increasing demand for convenience foods and rising preference for organic flavors among consumers.
Many companies like Doehler are focusing on natural herb & spice extracts as they are becoming popular in every segment of the food and beverage industry and offer plenty of scope for new and attractive taste creations. The inconsistencies in the prices and high cost of production are primary challenges hampering the growth of the market.
Chilly and Pepper Leads the Market
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. 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. For example, herbal extracts are added to Indian curd-based drink that is sold worldwide.
North America dominates the Market
North America herb and spice market has the largest market for spice and herb extracts, followed by Europe. Most of the EU countries like the UK and Germany do not have suitable agro-climatic conditions to cultivate most spices and herbs; hence, they depend heavily on imports from semi-tropical countries. However, some specific spices and herbs are produced in the EU, mainly in Eastern region and some Southern European countries. The European region is known to be a global trading center for spice and herb extracts, not only regarding imports from producing countries but also in trading among its members and other countries. Developing countries are the major suppliers, led by countries such as China, India and Vietnam.
The Asia-Pacific region is an emerging market as these extracts act as key ingredients in the local cuisine. In North America, the market is driven by a rise in the street and convenience food. In the South America and Africa regions, the market has a high local demand and is less import dependent. The consumers prefer extracts of those herbs and spices that are grown locally and through organic methods.
Major Key Players: ALKALOIDS CORPORATION, ALL-SEASON HERBS Pvt. Ltd, ARJUNA NATURAL EXTRACTS LIMITED, BIO-GEN EXTRACTS Pvt. Ltd., COSMARK Pty. Ltd., DÖHLER GMBH, FIRMENICH, INDENA S.P.A., JAMES FINLAY LIMITED, KALSEC Inc.
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