Allied Market Research

Global Organic Spices Market Expected to Reach $406.6 Million by 2026


quote The organic spices companies have been making the most out of online platform. With rise in rate of internet penetration, companies have been stressing on key social media marketing activities. quote

Shankar Bhandalkar
Team Lead Research, Food and Beverage at Allied Market Research

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According to a new report published by Allied Market Research titled, "Organic Spices Market by Product Type, Form, and Distribution Channel: Global Opportunity Analysis and Industry Forecast, 2019 - 2026," the global organic spices market size was valued at $272.8 million in 2018, and is projected to reach $406.6 million by 2026, growing at a CAGR of 5.1% from 2019 to 2026. In 2018, North America accounted for nearly 30.64% share of the organic spices market. 

According to the USDA, the organic food segment is the fastest growing segment in the food & beverages industry in terms of value sales. North America is the dominant region in the global organic food & beverages market, owing to rise in number of health-conscious consumers seeking healthy and clean label food products in their day-to-day life. Apart from North America, other key countries around the globe have witnessed a gradual shift in preference for healthy food products, which includes organic food. As per USDA stats, in 2016, more than 180 countries have reported to have untaken organic crop agriculture accounting for nearly 1.2% of the global agricultural land. This has eventually paved a path for organic spices market to generate significant value sales.

Spices have been enduring higher demand from the household and commercial sector around the world. It has been used as an effective coloring agent, flavoring agent, or even as a preservative in various cuisines. Asia-Pacific is the largest market for various types of spices due to higher rate of spicy food consumption. Chinese food, Thai food, and Indian cuisine are prepared and served using these spices. Turmeric, chili, pepper, ginger, and coriander seeds are some of the spices gaining higher traction in the Asia-Pacific region. Moreover, over the past couple of years, the Asia-Pacific organic food market has witnessed significant growth in terms of value sales, owing to rise in awareness regarding various health benefits associated with the consumption of organic food products among its consumers. Thus, Asia-Pacific accounts for the highest value share in the global organic spices market.

Some of the key non-profit organizations have been taking necessary steps to boost the production of organic spices. For instances, in 2015, the Indian Spices Board started promoting the cultivation and export of organic spices from India with special emphasis on organic production of spices in North Eastern states. The Spices Board provides 50% subsidy for various programs such as support for vermicompost units, establishment of bio-agent production units, organic seed banks (production of organic planting materials/nurseries), organic value addition/processing unit, and organic farm certification assistance. Furthermore, a 12.5% of cost production subsidy is provided for the organic cultivation of ginger, turmeric, chilies, seed spices, and herbal spices. Similarly, in 2013, Organic Trade Association (OTA) partnered with Indian Competence Centre for Organic Agriculture (ICCOA) to host U.S. companies in India to learn about the organic spice global trade. Organic Trade Association (OTA) is membership-based business association for organic agriculture and products in North America. As a result, these initiatives taken by such organizations provide opportunity for global organic spices growth.

Varying and stringent trade regulation is one factor that is expected to hamper the organic spices market growth. Most of the foreign countries impose or regularize its trade regulations, which make it difficult to import organic spices for food manufacturer at one point. They even incur various other costs such as higher transportation cost as well as maintenance cost, which makes the organic spices much costlier.

The key players profiled for organic spices industry in the report include Organic Spices Inc., UK Blending LTD, The Watkins Co., Daarnhouwer & Co, SunOpta Inc, Spice Chain Corporation, Husarich GmbH, Sabater Spices, AKO GmbH, and Pacific Spice Company, Inc

Key Findings of the Organic Spices Market :

  • In 2018, based on product type, the turmeric segment accounted for around 34.8% organic spices market share, growing at a CAGR of 4.9% from 2019 to 2026. 
  • In 2018, based on form, the powder segment accounted for 32.3% share of the organic spices market and is expected to growth at the highest CAGR of 4.7%. 
  • In 2018, based on region, Asia-Pacific accounted for a prominent market share and is anticipated to grow at a CAGR of 4.7% throughout the forecast period. 

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quote Organic Spices Market by Product Type (Ginger, Turmeric, Clove, Pepper, Cinnamon, Nutmeg, Mustard Seeds, and Others), Form (Powder, Granular, Extract, and Raw), and Distribution Channel (Direct and Indirect): Global Opportunity Analysis and Industry Forecast, 2019 - 2026 quote

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