Clean Label Food Trend Argues well for Dried Spices Market, while Adulteration Dampens Sales, Reports Fact.MR
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Recent transactions show that leading F&B companies are attempting to shift their business models towards small-sized packaging to drive sales through affordability and convenience. Emerging players tend to challenge legacy brands by enriching their portfolios with organic, local, fresh, and healthy products, while leading and prominent players continue to show a marked preference for inorganic growth through the acquisitions of start-ups with high growth potential.
For a long time, the use of dried spices was limited to only Asia Pacific and the Middle East. However, globalization led to the creation of multiethnic cultures in many parts across the globe, which brought fame to cultural foods. Households in Europe and North America are now well aware of foods from the Middle East and Asia Pacific, which has led to a balanced surge in ingredients utilized for cooking. Processors and manufacturers of dried spices have also promoted the trend of experimenting with a wide range of cuisines across different geographies, and it is expected to thrive as more people are familiarized to worldwide cuisines.
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Clean Label Foods to Create Lucrative Opportunities
Food processors and restaurants have always been reliant on synthetic compounds to flavor their food products. Inducing particular aromas, flavors, and color in foodstuffs surges their demand among customers, and several times, hotels and restaurants utilize these artificial aromas and flavors to improve food products. However, as consumer consciousness on organic and clean label products has surged, food producers have been enforced to eliminate these unsafe compounds and incorporate organic and natural compounds. Increase in the demand for natural flavoring is an opportunity that dried spice manufacturers can leverage to their advantage.
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Adulteration of Dried Spices will Affect Consumer Confidence
Food adulteration has been a longstanding challenge for the global F&B industry. As many dried spices are expensive, the industry has become the target of adulteration. Consumers lack the sophisticated know-how to identify fake products that claim to have the same benefits as original dried spices. The issue has the potential to eat into the revenue share of companies. A concerted effort from regulatory authorities, enforcements, and industry associations is necessary to deal with the growing problem of food adulteration in this sector.
An FDA investigation in 2017 revealed that salmonella was much more common in dried spices than previously imagined. The findings of the investigation were covered by the mainstream media in the US, which led to concerns about the use of dried spices. Vulnerability of dried spices to disease-causing bacteria and viruses remains a concern, and is impeding its wider adoption.
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Asia Pacific Excluding Japan to Dominate the Regional Landscape
Asia Pacific excluding Japan’s dominance in the dried spices market is expected to continue with a market share of more than 45% by the end of 2029 owing to emerging food service industries, together with increasing number of convenience food services and growing street food industry, particularly in India, China, and ASEAN countries. This factor is projected to bolster the demand for dried spices in the APEJ region. Countries from Asia Pacific excluding Japan are involved in the production, trade, and export of dried spices to the world.
The food industry of Europe is ahead of other manufacturing sectors, and France, Germany, Italy, Spain, and the U.K. are the leading food producers in the region. The sector has highly harmonized food legislations, which makes it an attractive business destination for new players, which may ease business policies for new entrants in the dried spices market in the European region.
The food and beverage industry in North America spectates steady growth, as consumption shores up with a moderate rise in consumer spending. Similar to the FDA Food Safety Modernization Act (FSMA) of the U.S., the Canadian Food Inspection Agency has initiated a food inspection modernization process, intended at creating a unified approach to enforce food safety norms, which will improve the country’s food regulatory system. This factor is expected to regulate flavor ingredients and may boost the sales of dried spices in the region.
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