The Global Spice Market Lacks to Regain its Former Momentum

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‘World - Spices - Market Analysis, Forecast, Size, Trends and Insights’. This is a summary of the report’s key findings.

The global spice market amounted to $33.1B in 2019, leveling off at the prior year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which is included in the final consumer price). Over the time under review, the total market indicated a buoyant expansion from 2007 to 2019: its value increased at the average gross annual rate of +3.7% during the last twelve years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Global consumption peaked at $33.7B in 2017; however, from 2018 to 2019, consumption didn't regain the momentum.

Consumption by Country
India (4.8M tonnes) remains the major spice consuming country worldwide, comprising approx. 37% of total volume. Moreover, spice consumption in India exceeded the figures recorded by the second-largest consumer, Indonesia (634K tonnes), eightfold. Bangladesh (543K tonnes) ranked third with regards to total consumption with a 4.1% share.

In India, spice consumption expanded at an average twelve-monthly rate of +4.4% over the period from 2007-2019. The remaining consuming countries recorded the next average annual rates of consumption growth: Indonesia (+1.9% each year) and Bangladesh (+2.1% per year).

In value terms, India ($8.6B) led the marketplace, alone. The next position in the ranking was occupied by Indonesia ($1.9B). It had been followed by Ethiopia.

In 2019, the best degrees of spice per capita consumption was registered in Nepal (14 kg per person), accompanied by Thailand (6.25 kg per person), Viet Nam (4 kg per person) and Turkey (3.71 kg per person), while the world average per capita consumption of spice was estimated at 1.69 kg per person.

From 2007 to 2019, the common total annual growth rate of the spice per capita consumption in Nepal amounted to +4.9%. The remaining consuming countries recorded the following average gross annual rates of per capita consumption growth: Thailand (+2.3% each year) and Viet Nam (+6.9% each year).

Market Forecast 2019-2030
Driven by increasing demand for spice worldwide, the marketplace is likely to continue an upward consumption trend over the next decade. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +3.1% for the time from 2019 to 2030, which is projected to bring the marketplace volume to 18M tonnes by the end of 2030.

Production
In 2019, how much spices produced worldwide rose modestly to 13M tonnes, growing by 4.3% against 2018 figures. Overall, the total output indicated moderate growth from 2007 to 2019: its volume increased at the average gross annual rate of +4.0% during the last twelve-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded through the entire analyzed period. Based on 2019 figures, production increased by +60.2% against 2007 indices. Global production peaked in 2019 and is likely to see gradual growth in the immediate term. The overall positive trend in conditions output was largely conditioned by a temperate expansion of the harvested area and modest growth in yield figures.

Production by Country
The united states with the largest volume of spice production was India (5.7M tonnes), accounting for 42% of total volume. Moreover, spice production in India exceeded the figures recorded by the second-largest producer, China (1.2M tonnes), fivefold. Indonesia (659K tonnes) ranked third regarding total production with a 4.9% share.

In India, spice production increased at an average annual rate of +4.7% over the time from 2007-2019. The rest of the producing countries recorded the next average annual rates of production growth: China (+3.7% per year) and Indonesia (+1.0% per year).

Harvested Area
In 2019, the global harvested area of spices amounted to 6.7M ha, increasing by 3% against the year before. The harvested area increased at an average annual rate of +2.4% over the time from 2007 to 2019; the trend pattern remained consistent, with somewhat noticeable fluctuations in certain years. The growth pace was the most rapid in 2016 when the harvested area increased by 7% y-o-y. Over the period under review, the harvested area dedicated to spice production reached the maximum in 2019 and is likely to retain growth soon.

Yield
In 2019, the global average spice yield was estimated at 2 tonne per ha, therefore, remained relatively stable against the previous year. The yield figure increased at the average gross annual rate of +1.6% from 2007 to 2019; the trend pattern remained consistent, with somewhat noticeable fluctuations throughout the analyzed period. The growth pace was the most rapid in 2011 with a rise of 8.4% y-o-y. The global yield peaked at 2 tonne per ha in 2017; afterwards, it flattened through to 2019.

Imports
For the sixth consecutive year, the global market recorded growth in purchases abroad of spices, which increased by 2.8% to 3.5M tonnes in 2019. Overall, total imports indicated a temperate increase from 2007 to 2019: its volume increased at the average annual rate of +4.6% during the last twelve-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded through the entire analyzed period. Over the time under review, global imports reached the maximum in 2019 and so are more likely to continue growth soon.

In value terms, spice imports totaled $10.5B (IndexBox estimates) in 2019. Generally, imports recorded buoyant growth. The growth pace was the most rapid in 2011 when imports increased by 25% year-to-year. Over the period under review, global imports also hit record highs in 2019 and are more likely to see gradual growth in the immediate term.

Imports by Country
In 2019, the U.S. (428K tonnes), accompanied by Viet Nam (190K tonnes) and India (172K tonnes) represented the key importers of spices, together creating 23% of total imports. The following importers - Bangladesh (154K tonnes), Malaysia (142K tonnes), Germany (137K tonnes), holland (131K tonnes), Pakistan (129K tonnes), the United Arab Emirates (116K tonnes), Saudi Arabia (109K tonnes), Japan (107K tonnes) and the united kingdom (104K tonnes) - together made up 33% of total imports.

From 2007 to 2019, average twelve-monthly rates of growth in regards to to spice imports into the U.S. stood at +3.9%. At the same time, Viet Nam (+28.4%), India (+8.2%), holland (+6.3%), the united kingdom (+4.9%), Bangladesh (+4.6%), Saudi Arabia (+4.4%), Pakistan (+3.7%), Germany (+3.5%) and the United Arab Emirates (+1.3%) displayed positive paces of growth. Moreover, Viet Nam emerged as the fastest-growing importer imported on the planet, with a CAGR of +28.4% from 2007-2019. Malaysia experienced a comparatively flat trend pattern. In comparison, Japan (-1.0%) illustrated a downward trend over the same period. Viet Nam (+5.2 p.p.), the U.S. (+4.6 p.p.), India (+3.1 p.p.), holland (+2 p.p.) and Bangladesh (+1.9 p.p.) considerably strengthened its position regarding the global imports, as the shares of the other countries remained relatively stable through the entire analyzed period.

In value terms, the U.S. ($1.7B) constitutes the greatest market for imported spices worldwide, comprising 16% of global imports. The next position in the ranking was occupied by Germany ($597M), with a 5.7% share of global imports. It had been followed by India, with a 5.1% share.

From 2007 to 2019, the common twelve-monthly rate of growth with regards to value in the U.S. amounted to +8.3%. In the other countries, the average annual rates were the following: Germany (+5.7% per year) and India (+12.1% per year).

Import Prices by Country
In 2019, the common spice import price amounted to $3,034 per tonne, therefore, remained relatively stable against the previous year. Over the last twelve-year period, it increased at the average gross annual rate of +2.7%. The most prominent rate of growth was recorded in 2011 a rise of 19% year-to-year. Global import price peaked at $3,430 per tonne in 2015; however, from 2016 to 2019, import prices didn't regain the momentum.

Prices varied noticeably by the united states of destination; the united states with the best price was Germany ($4,374 per tonne), while Bangladesh ($1,132 per tonne) was among the lowest.

From 2007 to 2019, the most known rate of growth when it comes to prices was attained by Saudi Arabia, while the other global leaders experienced more modest paces of growth.  
Source: https://www.globaltrademag.com

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