The
global seasonings and spices market is highly fragmented, with the
top six companies holding only 15% of the value share in 2012, states
Transparency Market Research in its new study. These companies are
McCormick, Everest Spices, Kraft Foods, Unilever, MDH Spices, and S&B
Foods. The rivalry among players is expected to remain high owing to
low switching costs. The presence of regional players has also upped
the intensity of rivalry among the market players. In a setting such
as this, a distinct brand image is playing a big role. The threat of
substitutes is expected to be low. The threat of new entrants will be
medium owing to the low regulatory requirements.
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Players
are mostly focusing on product differentiation. Increasing marketing
campaigns and brand awareness programs are some of the strategies
adopted by key players in the global seasonings and spices market.
According to the report, the global seasonings and spices market is
expected to rise from US$13.7 bn in 2015 to 16.6 bn by 2019. On the
basis of product, the salt and salt substitutes segment is
anticipated to lead and be worth US$4,742.5 mn by 2019. By geography,
the European seasoning and spices market is expected to reach
US$5,723.3 mn by 2019.
Globalization
to Act as Key Driver of Seasonings and Spices Market
Globalization
has enabled consumers to become aware of different cultures and food
habits, and has also boosted food trade. Globalization has
facilitated the availability of different products and varieties all
across the globe. As people migrate to different countries, they take
their food habits along, and seasonings and spices play an important
part in ethnic cuisines. As consumers get attracted towards new
tastes through these ethnic cuisines, the result is a high demand for
seasonings and spices used in these foods. Thus, globalization is one
of the key drivers of the market.
Another
factor contributing to the demand for seasonings and spices is rise
in the income levels of consumers across the world, allowing them the
luxury to experiment with new tastes. Moreover, the medicinal
benefits of spices are expected to fuel their demand. The medicinal
properties of spices have forced countries in the West to make use of
them extensively, which is expected to boost the market.
Uncertain
Climatic Conditions May Hamper Production
All
major agricultural products, including seasonings and spices are
dependent on favorable climatic conditions and an efficient supply
chain for their production. The supply of most the seasonings and
spices produced in Asian countries is often marred by uncertain
climatic conditions, creating a challenge for the industry. For
instance, India experiences calamities such as floods and famines,
resulting in spoilage of large quantity of agricultural products,
impacting the seasonings
and spices market.
Online
Marketing Campaigns Offer Expansion Opportunities for Seasonings and
Spices Market
Seasoning
and spices companies have started new online advertising campaigns,
encouraging consumers to try new recipes at home. Players in the
market are adopting different methods for their campaigns such as
creating their own apps for product recipes, contests, social media
promotions, on sites such as Facebook, Twitter, Pinterest, and
YouTube. Such campaigns help players to improve their connectivity
with consumers, which in turn helps establish their brand identity.
Today,
consumers across the world are preferring natural products for good
health. Organic seasonings and spices are also expected to benefit
from this trend as a large number of companies have entered this
segment of the market. At present, the organic segment accounts for
only 10% of the global seasonings and spices market. However, this
segment is expected to grow in the coming years and create new growth
opportunities.
This
information is based on the findings of a report published by
Transparency Market Research, titled “Seasonings and Spices Market
- Global Industry Analysis, Size, Share, Growth, Trends and Forecast,
2013 - 2019.”
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