The growth of the processed food industry is fueling an increase in the global market for spices, according to a new report.
MarketsandMarkets projects that the spice market will expand at a compound annual growth rate (CAGR) of about 5 percent over the coming years and will be worth in excess of $10 billion by 2019.
The key driver of the market is the rise in consumption of processed food products in both developed and developing countries. There has been an increase in consumer spending on baked goods, confectionery products and ready-to-eat & fried food, particularly in developed economies. As a consequence, sectors such as bakery, confectionery and prepared food are buying more spices.
MarketsandMarkets also noted that the demand for natural ingredients is rising as a result of growing consumer awareness and stringent environmental laws.
The report examines the market in detail, including an analysis by type of spice (pepper, turmeric, nutmeg, ginger, coriander, cumin, clove, cardamom and garlic) and by application (bakery, confectionery, frozen food, soup, sauces, beverage, meat, snacks and convenience food).
Overall, North America accounted for the largest share of the spice market in 2013. But there is potential for strong growth in the Asia-Pacific region, with substantial opportunities in the snacks, ready-to-eat food products and confectionery sectors.
Key players in the spice market are McCormick & Company (U.S.), Olam International Limited (Singapore), Ariake Japan Company Limited (Japan), Associated British Foods plc (U.K.), Sensient Technologies Corporation (U.S.), and Kerry Group plc (Ireland).