The global demand for spices and herbs is rising, driven by changing population demographics, increasing disposable incomes, and an evolving consumer base. The demand for a more diverse food palette is also increasing. This is not just because of the growing multiculturalism in many countries, but also because of the rise in foreign travel and the influence that this has on cuisine.
The global spice trade industry has been steadily growing over the years as consumers have become more adventurous in their use of herbs and spices. As a result, the market for these products has seen significant growth.
The global market for spices and herbs has been expanding rapidly. From an annual growth rate of 4.5% between 2001 and 2010, it is expected to grow at a CAGR of 6.5% from 2011 to 2021, taking the market value from $4.1 billion in 2010 to $8.1 billion by 2021. The global trade in spices is estimated at over US$3.3 billion annually, with the largest importers being the United States (US), the United Kingdom (UK), Canada, and Germany, altogether accounting for 52% of all imports.
The spice industry is dynamic, constantly undergoing changes due to various factors such as changing consumer preferences, production fluctuations, and technological developments. In order to keep up with these changes, it is important that every business within the supply chain is well informed about market developments and trends so they can anticipate change and respond accordingly.
Demand for spices and herbs has been increasing in both developed as well as developing countries mainly driven by population growth and rising per capita incomes which have led to increased spending on foodstuffs by consumers.
Global Spice Trade 2021-2022
COVID-19 pandemic has severely affected imports and exports of spices around the world. India, one of the leading exporters of spices in the world, saw a significant decline in exports during 2020 as compared to 2019. Export volumes for spices like turmeric and chili pepper declined by 12% and 8% respectively in 2020 as compared to 2019.
India exported spices worth US$ 3,147 billion. The European Union was one of the leading importers from India with a share of 32%, followed by Saudi Arabia (11%), Vietnam (7%), Iraq (5%), and Iran (4%).
The United States imported spices worth US$ 2,082 million in 2020. China was the other largest supplier of spices to the United States with a share of 19% followed by Vietnam (13%) and Indonesia (9%).
Spices exported from India
Spices export from India is one of the most stable and reliable businesses in the country. According to the data, spices exported from India have a market value of US$ 3.1 billion with substantial growth over the last few years.
The Indian spice industry is one of the oldest in the world. In 2020-2021, India exported spices worth US$ 3.11 billion as compared to US$ 2.64 billion in 2019-2020, which is an 18% increase.
India is a leader in exporting spices in terms of quantity and value, and this trend is expected to continue in 2021-2022 as well.
The world spice trade is dominated by India, which has a share of about 57% of the total global trade followed by Vietnam (10%), China (4%), Indonesia (4%), Brazil, and Sri Lanka (2% each) and other countries.
Overall, the spices and herbs market is big, too big to ignore. With the right information, you’ll be able to get on board with this global industry today and find the product mix that’s right for your business.
