The Spice Market to Be Supported by Rising Household Demand During the Pandemic

IndexBox has just published a new report: 'World - Spices - Market Analysis, Forecast, Size, Trends, and Insights.' Here is a summary of the report's key findings.

The pandemic forced us to change the way we live. People started to eat more at home, which caused some changes in the distribution channels of spices. During the lockdown, the drop in demand from retail was offset by a sharp surge in household demand.

The most exported spices in 2020 were chili pepper (2.6 million tonnes were exported) and caraway (1.53 million tonnes). There were also increases in cardamom exports (up to 369% as compared to 2019) and turmeric (up to 42%). The growing popularity of these spices during the pandemic was associated with a widely held view on their ability to increase human immunity. During the year, there were sharp jumps in the prices of some spices, such as ginger. (IndexBox estimates)

The leading exporter and producer of spices, India increased exports of these products by 19% between April and September 2020 compared to the same period the previous year. In the first 3 quarters of 2020, India exported over 800 thousand tons of spices. The total Indian exports reached over 900 thousand tons in 2020.

Driven by increasing demand for spice worldwide, the market is expected to continue an upward consumption trend over the next decade.

Global Spice Exports to Keep on Growing

For the fourth consecutive year, the global market recorded growth in spices' overseas shipments, which increased by 1% to 3.4M tonnes in 2019. The total export volume increased at an average annual rate of +3.3% over the period from 2012 to 2019; the trend pattern remained relatively stable, with somewhat noticeable fluctuations observed in certain years. The pace of growth was the most pronounced in 2014 when exports increased by 14% year-to-year. Over the period under review, global exports hit record highs in 2019 and are likely to see gradual growth in years to come.

In value terms, spice exports contracted to $10.1B (IndexBox estimates) in 2019. The total export value increased at an average annual rate of +4.0% from 2012 to 2019; the trend pattern indicated some noticeable fluctuations recorded throughout the analyzed period. The pace of growth was the most pronounced in 2014 when exports increased by 18% year-to-year. Global exports peaked at $10.5B in 2018 and then reduced modestly in the following year.

India (905K tonnes) and China (798K tonnes) represented roughly 51% of spices' total exports in 2019. It was distantly followed by Vietnam (277K tonnes), creating an 8.2% share of total exports. The following exporters - Indonesia (128K tonnes), the Netherlands (109K tonnes), Brazil (106K tonnes), Spain (87K tonnes), Thailand (82K tonnes), Peru (58K tonnes), and Turkey (56K tonnes) - together made up 19% of total exports.

In value terms, India ($1.8B), China ($1.3B), and Vietnam ($824M) were the countries with the highest levels of exports in 2019, together comprising 39% of global exports. These countries were followed by Indonesia, the Netherlands, Spain, Brazil, Turkey, Peru, and Thailand, which accounted for a further 19%.

Source: IndexBox Platform