Spices Trade

Spices are fragrant parts of tropical plants that are traditionally used to flavor food, or dried seeds or fruits of temperate plants. Some of the substances we call spices come from the bark or roots of certain plants, but most are berries, seeds, or nuts.

In addition, these spices enhance the taste and aroma of food products and are used as a preservative in various processed food products. Furthermore, during the recent pandemic, the spices were used as the major immunity boosters among the people gave a sudden increase in the demand.Moreover, the application of spices in the pharmaceutical industry as an ingredient for medicines is boosting the growth of the target market.

The increasing demand for ready-to-eat food and beverages is a major factor driving the growth of the global spices market. Rapid urbanization, increasing disposable income, influence of social media and internet, and changing lifestyles are anticipated to promote market growth.

The global spices market is expected to reach USD 21.56 billion by 2025, according to a new report by Grand View Research, Inc. The growing consumer inclination toward healthy and tasty food is expected to be the key factor driving the demand for spices. Moreover, the product is gaining popularity in end-use segments such as bakery and confectionery owing to its therapeutic and medicinal properties. Consumers are spending more on spices due to their increasing awareness about the benefits of consuming organic products.

Furthermore, the growing demand for organic spice products is anticipated to support market growth in the coming years. In addition, manufacturers are focusing on expanding their product portfolio by introducing a variety of organic spices in the market.

The product is gaining popularity as an alternative remedy due to its therapeutic properties. To cite an instance, ginger has anti-inflammatory properties and can be used as a remedy for colds and nausea. Cinnamon can be used as an antiseptic agent while black pepper helps in treating indigestion and respiratory issues.

Spices are widely used all over the world in almost all types of cuisines. India is the largest producer of spices and spice products in the world. Spices are an essential part of the food processing industry; they add texture, aroma, colour, and flavour to various foods. The spices market is divided into two segments – savoury spices and sweet spices.

The global market for savoury spices is expected to reach USD 32.1 billion by 2020, at a CAGR of 6.3% from 2015 to 2020 (market segmentation by revenue).

The global market for sweet spices is expected to reach USD 11.5 billion by 2020, at a CAGR of 5.8% from 2015 to 2020 (market segmentation by revenue).

The report provides key statistics on the current state of the industry, along with a detailed analysis of the factors influencing demand in different regions around the world and those that will continue shaping future trends in this sector over the next five years.

Spices have been traded around the world for thousands of years, but where exactly do they come from?

Spices are derived from plants. Their seeds, fruits, roots, bark, or other plant parts are used in medicine and as preservatives, flavorings, and fragrances.

The word "spice" comes from the Latin species which means merchandise. The spice trade has been going on for thousands of years and is still popular today.

The first recorded history of the spice trade was in ancient times, when Egypt, China, and India were the major players. The spice trade developed throughout the Middle East and Europe, with Egypt being the greatest exporter of them all.

When you think of the spice trade, it's easy to imagine silk-clad merchants and camel caravans crossing deserts. However, many spices actually come from more temperate parts of the world, including some you might grow in your own garden.

Today, the United States is the world's largest importer of spices. The list of top imports includes:

1. Pepper: Black pepper comes from India and Vietnam. White pepper comes from China and Indonesia.

2. Chili pepper: This heat-packing spice is also known as cayenne pepper or red pepper and is an important ingredient in Mexican food as well as Asian dishes. It comes from Mexico, Guatemala, Nigeria, Spain, and India.

3. Vanilla: Vanilla pods are native to Central America but now most of the world's supply comes from Madagascar and Indonesia.

4. Mustard: Mustard seeds are grown around the world but most mustard today comes from Canada and the United States, with smaller production in England, France, and Denmark.

5. Ginger: Ginger is native to southern Asia but also grows in Brazil and Jamaica; these countries lead in ginger production today along with China, India, and Nigeria.

The largest exporter of spices is India with a share of around 20% of the world’s total spice exports. The major exporting countries of spices are listed below.

• India (19.95%)
• Vietnam (12.8%)
• Indonesia (9.7%)
• China (8.8%)
• Turkey (6.3%)

The largest importer of spices is the USA with a share of around 11% of the world’s total spice imports, followed by Germany and China. The major importing countries of spices are listed below.

• United States (11.2%)
• Germany (9.5%)
• China (8.4%)
• Netherlands (5.1%)

According to the United Nations Comtrade Database, the export value of spices in 2016 was around $6.22 billion; that number increased to $7.87 billion in 2017. The global import value of spices was about $11.4 billion in 2016 and $12.95 billion in 2017.

The U.S. is the largest importer of spices, accounting for over 20 percent of all spice imports worldwide. India is the largest exporter of spices, accounting for almost 30 percent of allspice exports worldwide.

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