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 smallscale farmers in regions like AsiaPacific 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 smallscale 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 subsegmented 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 curdbased 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 agroclimatic conditions to cultivate most spices and herbs; hence, they depend heavily on imports from semitropical 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 AsiaPacific 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, ALLSEASON HERBS Pvt. Ltd, ARJUNA NATURAL EXTRACTS LIMITED, BIOGEN EXTRACTS Pvt. Ltd., COSMARK Pty. Ltd., DHLER GMBH, FIRMENICH, INDENA S.P.A., JAMES FINLAY LIMITED, KALSEC Inc.
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Analyzing outlook of the market with the recent trends and Porter's five forces analysis
Market dynamics which essentially consider the factors which are impelling the present market scenario along with growth opportunities of the market in the years to come
Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and noneconomic aspects
Regional and Country level analysis integrating the demand and supply forces that are influencing the growth of the market
Competitive landscape involving the market share of major players along with the key strategies adopted for development in the past five years
Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis and strategies employed by the major market players
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Value chain analysis
Volume of the global spice and herb extracts market by type, application and geography
Consumer behavior analysis in country level