The organic spices market is set to thrive at an average CAGR of 4.5% during the forecast period. The market is expected to hold a share of USD 10.9 billion in 2023 while it is anticipated to cross a value of USD 17.0 billion by 2033.
The research report on the organic spices market explains that the rising demand for organic food substances and manufacturing facilities is driving the requirement for organic spices. Furthermore, advanced agricultural practices involve steam treatment with an autoclave machine, air pressure, and superheated water. Another organic way of agricultural production of spices is the dry heat method.
The growth is attributed to the focus of extensive research and development by manufacturers to support the healthcare sector with prominent offerings. Rising awareness around the benefits of organic spices along with the social media influence is fueling the sales of organic spices. Companies are trying to add outstanding customer and employee experiences to improve their services while also increasing the demand for organic spices.
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Manufacturers are working hard for research and development of innovative offerings to serve a large customer base and that may allow the organic spices market to grow. Hence, manufacturers are adopting strategies such as mergers & acquisitions to expand their global footprint and add disruptive packaging advancements to their product portfolio.
For instance, in early 2021, ORCO aka Organic Condiments launched 32 new products, adding to their vast portfolio of 100 percent natural, healthy, and certified organic condiments and spices. The brand was established in 2017 with the vision to empower women while providing hand-ground, hand-pounded, and hand-cleaned natural spices.
After a successful run in their first three years with their introductory range of 24 spices and mixed blends, the brand is now set to launch a new range of products, adding 32 organic condiments and spices to their range. The latest line-up also includes varieties of dry fruits and seeds to satiate every consumer’s need.
The new products include organic black pepper whole, organic green cardamom whole, organic nutmeg, organic garlic granule, organic onion flakes, organic natural sesame seed, organic cinnamon whole, organic black mustard, organic raisins, organic ginger powder, organic black chia seed, organic flax seed, organic sunflower seeds and many more.
Total sales in the organic spices market are likely to account for 6.4% of the global spices market share in 2022.
Attributes | Details |
---|---|
Organic spices Market CAGR (2023 to 2033) | 4.5% |
Organic spices Market Size (2023) | USD 10.9 billion |
Organic spices Market Size (2033) | USD 17.0 billion |
From 2017 to 2022, the global organic spices market registered a comparatively higher CAGR of 6.1%. This period witnessed higher growth as the demand for overall organic food products raised. People getting aware of the benefits of organic spices and their flavorful impact on food items impacted the sales of organic spices.
Consumer tastes are shifting as a result of changing lifestyles and higher disposable income. The demand for spices is expected to increase in response to increasing production and sales of processed food items such as soups, sauces, dressings, and condiments. These spices are being used to enhance the flavor, taste, and color of processed food products. The market is likely to grow steadily between 2023 to 2028.
To meet rising demand, key players in the food processing industry are expanding their production capacity. As it is not economic for processed food makers to utilize salt and sugar in excess, the usage of herbs and spices is increasing, as it lowers costs while improving the taste of the food product. The organic spices market is anticipated to thrive at a CAGR of 4.5% between 2023 to 2033.
According to the Organic Trade Association, in 2019, sales of organic food products in the United States totaled USD 50.1 billion. Moreover, the introduction of new and exotic flavors, rise in consumer disposable income, and acceptance of innovative flavors are also expected to drive regional demand.
Total sales in the United States are expected to hold 87% of the North American organic spices market share, with demand growing at a 2.8% CAGR over the assessment period. Moreover, strategic initiatives by key players have also fueled market growth. For instance, in May 2021, Olam Food Ingredients (OFI) acquired the United States private-label spices & seasonings manufacturer, Olde Thompson for a total amount of USD 950 million. The acquisition helped the company to strengthen its base in the North American market.
Region | Absolute Market Growth |
---|---|
USA | USD 1.2 billion |
United Kingdom | USD 159 million |
China | USD 753.3 million |
Japan | USD 504.3 million |
South Korea | USD 238.9 million |
Surging Demand for Organic Turmeric Powder May Fuel Growth
United States Market CAGR (2023 to 2033) | 4.3% |
---|---|
United States Market Absolute Doller Growth (USD million/billion) | USD 1.2 billion |
The presence of a vast food and beverage industry in the United States is expected to boost sales of organic spices in the forthcoming years. Total sales in the United States are expected to hold 87% of the North America organic spices market share, with demand growing at a 5.7% CAGR over the previous assessment period. The United States still leads the market in terms of CAGR and an expected market share with a CAGR of 4.3% between 2023 to 2033. The region is likely to hold a value of USD 3.4 billion by 2033.
Highly Developed Cuisines and Food Enthusiasts preferring Natural Spices are Propelling the Regional Growth
Region | Attributes |
---|---|
Chinese Market CAGR (2023 to 2033) | 3.9% |
Chinese Market Absolute Doller Growth (USD million/billion) | USD 753.3 million |
China is expected to thrive at a CAGR of 3.9% between 2023 to 2033 while it is anticipated to hold a value of USD 2.4 billion by 2033.
Social media influence, along with rising awareness regarding the benefits of organic spices is encouraging consumers to use organic spices in their daily diets. The growing popularity of organic spices such as ginger, cinnamon, turmeric, and cloves in the food service sector in China is anticipated to bolster the growth in the market.
Increasing Sales of Organic Saffron in Germany
As per FMI, Germany held more than 18.0% of the Europe organic spices market share in 2022.
Even though the production of spices in Germany is low, it is one of the leading countries in the consumption of organic spices in Europe. Increasing emphasis on a healthy lifestyle is spurring demand for organic ingredients in processed and regular food products, which may continue pushing sales in the Germany market over the assessment period.
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Segment | Top Form |
---|---|
Top Sub-segment | Powder & Granule |
CAGR (2017 to 2022) | 5.8% |
CAGR (2023 to 2033) | 4.2% |
Segment | Top Distribution Channel |
---|---|
Top Sub-segment | Direct Sales |
CAGR (2017 to 2022) | 5.6% |
CAGR (2023 to 2033) | 3.8% |
Based on form, sales in the powder & granules segment held a share of around 50.0% in the organic spices market in 2022. The demand is now expected to grow at a 4.2% CAGR over the forecast period.
Convenience is one of the key factors behind the high demand for powder & granules form of organic spices. They can be easily incorporated into a variety of food and beverage recipes, which is expected to drive sales in this segment over the forecast period.
In terms of distribution channels, growth in the direct sales channel segment is expected to increase at a 3.8% CAGR between 2023 to 2033. The market accounted for more than 60% of the total market share in 2022.
Increasing demand for organic food products is compelling food product manufacturers to incorporate organic spices in processed foods. This is also increasing their availability at direct sales channels, thereby augmenting the growth in the market.
Key players operating in the organic spices market are investing in mergers and acquisitions, product innovation, and production capacity expansion to gain a competitive edge in the market.
Market Developments
The market is valued at USD 10.9 billion in 2023.
SunOpta Inc., Organic Spices Inc., and Live Organics are the key market players.
The market is estimated to reach USD 17.0 billion by 2033.
A shifting preference for organic food substances drives organic spice sales.
Powder & granules are likely to remain preferred through 2033.
Market Size (2024) | USD 171,563.1 million |
---|---|
Market Value (2034) | USD 244,124.7 million |
Market CAGR (2024 to 2034) | 3.6% |
Market Value (2022) | USD 5,763.5 Million |
---|---|
Market Anticipated Value (2032) | USD 9,036.5 Million |
Market Projected CAGR (2022 to 2032) | 4.6% |
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