4 Ways The Spice And Seasoning Market Is Growing.
Spices and seasonings are an interesting product category. Most people consume some form of spice or food seasoning every day and yet few give the industry itself much thought. The latest research indicates that may be changing.
According to Market Data Forecast, the North American spices and seasonings market reached $4.9 billion in 2021. Moreover, it is expected to grow at a healthy annual rate of 6.3% to reach $8.3 billion in sales by 2026. Interesting indeed.
What’s somewhat unusual about the spices and seasonings market is the level of fragmentation. Consider the latest research from IBISWorld. In the soda pop industry, three players (Coca-Cola Company, PepsiCo, Dr. Pepper Snapple Group) account for 94% of the market. When it comes to motor vehicle tires, just four companies (Goodyear, Michelin, Cooper and Bridgestone) hold 91% of the market. Home appliances? Four industry giants (Whirlpool, AB Electrolux, GE and LG) control 90% of sales.
Compare that to spices and seasonings. According to Fact.MR, 70% of the market is held by “unorganized” players while only 30% is controlled by major companies like McCormick, Kerry Group and Sensient Natural Ingredients. It’s not often that sales of mass-market consumer products are dispersed so broadly.
Spices and Seasonings: Four Reasons for Growth
It’s also interesting to note the reasons behind the category’s projected growth curve. Whether you’re talking about spices like pepper, cinnamon, nutmeg and turmeric, or herbs and seasonings such as thyme, basil, oregano and parsley, some historic shifts in consumer behavior are being felt throughout the industry. Here are four widely recognized trends currently shaping the market.
#1: Health-conscious consumers are looking to spices
Generally speaking, Americans are becoming more health conscious. The CDC says the share of American adults who smoke cigarettes dropped from 21% in 2005 to less than 13% in 2020. Researchers at Archer Daniels Midland found that 77% of Americans want to do more to maintain their health in the future. And, L.E.K. Consulting found that 93% of consumers want to eat healthy foods at least part of the time.
Spices and seasonings are one of those healthy choices. Pharmaceutical manufacturers, in fact, are seeing increased demand for spices believed to have medicinal benefits. For example:
- Sage is shown to improve brain function and memory.
- Turmeric and ginger have anti-inflammatory properties.
- Rosemary is found to suppress allergic responses and nasal congestion.
#2: COVID-19 encouraged use of immunity-boosting spices
The COVID-19 pandemic accelerated the first trend – particularly in regard to spices believed to boost immunity to infectious disease. Consumers worldwide have sought out a number of spices and seasonings as an added dose of protection against the coronavirus.
- Holy basil has been found to increase immune system function while curtailing the growth of bacteria and mold.
- The cinnamaldehyde present in cinnamon is a natural bactericide.
- Coriander has shown both antibacterial and antioxidant properties in tests.
#3: COVID-19 changed how people eat
The locked-down experience of COVID-19 also changed how and where people eat. With restaurants closed and social distancing in full force, home cooking experienced a renaissance in American homes. This trend continues and it isn’t about hamburgers and ham sandwiches. Demand for exotic spices has surged as people attempt to replicate the flavors of their favorite Thai, Indian, Mexican and Chinese restaurants.
#4: Ready-to-use mixes are on the rise
The fourth recognized trend pertains to how spices and seasonings are being sold. A wider variety of ready-to-use spice mixes are being brought to market in an effort to tap consumers’ love of convenience. The timing for this trend has been serendipitous. With more people cooking at home – and actively seeking the health benefits of fresh spices – premixed spices have been an easy sell.
The Pouch House: Flexible Packaging Ideal for Dry Spices
The Pouch House manufactures a wide variety of custom-printed flexible packaging products that are ideal for bringing dried herbs and spices to market. We possess digital printing capabilities – complete with G7 Master Printer certification – to help your brand stand out on the shelf. Our Safe Quality Food (SQF) certified facility enables the delivery of safe, fresh products every time. We offer low minimum order quantities and fast turnaround times, both of which are ideal for the smaller players that make of the majority of the spice and seasoning industry. And, our ordering process couldn’t be easier.
Thanks to The Pouch House, the packaging industry now offers an easy approach to ordering. Custom-printed spice and seasoning mix packaging can be ordered online at the click of a button. In a matter of seconds, you can choose from:
- Lay flat versus stand up pouch designs
- A variety of pouch sizes
- Multiple film options
- Window or no window, and more
Make sure your packaging solution is poised to make the most of the growing demand for spices and seasonings. Contact The Pouch House to learn more about our flexible packaging products and to get a custom quote.