Market Trends of Europe Spice and Herb Extracts Industry
This section covers the major market trends shaping the Europe Spice & Herb Extracts Market according to our research experts:
Shifting Consumer Attraction Towards Organic Products
With rising health consciousness, the food and beverage industry's retail manufacturers are attempting to shift toward natural flavoring agents such as spices and herbs.However, with the high availability and acceptance of Asian cuisines among European consumers, most consumers have shifted their choice towards natural or organic flavors or spices in their food, which is the key driver accelerating the spice growth and herb extract markets. According to the ITC Trademap, in 2021, France will have the largest food and beverage industry in Europe, accounting for around 19% of the total turnover; Germany will have 17%, Italy will have 13%, Spain will have 11%, the Netherlands will have 7%, Poland will have 5%, and Belgium will have 5%.
Furthermore, in Europe, demand for processed food products and out-of-home consumption has increased significantly in recent years, providing a great opportunity for ingredient producers to meet consumer demand by launching novel and innovative organic spice blends propelling from processing industries without compromising ingredient quality. As a result, people prefer organic spices or food products made with organic ingredients, because using organic spice blends and herbal extracts enhances the unique or natural flavor of food.
Germany Holds a Prominent Share in The Market
Europe is the world's largest market for spice and herb extracts. Despite low production, Europe is inclined toward importing spices, herbs, and extracts from developing regions such as Asia-Pacific, the Middle East, and Africa. Changing consumer taste preferences, healthy living habits, and convenience are the primary factors driving Germany's spice and herb extract market. Another growing trend in the country is the inclination toward Asian cuisines such as Chinese, Continental, Japanese, etc. The spices consumed in Germany are peppers and allspice, while the primary herbs consumed are thyme and oregano.
Germany is famous for being a worldwide trading center for herbal extracts and spices, with regard to imports from countries that manufacture and trade with its members and other nations. However, the demand is successfully fulfilled through imports from emerging countries such as Vietnam, China, and India. Furthermore, along with all these, inter-European trading is rising in the region, which plays a significant part in boosting market growth. Additionally, German consumers are willing to buy natural flavoring agents such as seasoning herbs and organic spices, which are naturally extracted from plants and not harmful to health. According to the ITC Trademap, Germany is by far Europe's largest importer of spices and herbs, with an import of 154 thousand metric tons in 2021, which amounts to 21% of total European Union imports. Germany's main imported product categories are pepper and capsicum (33%), ginger, saffron, curcuma, and others (32%), and vanilla (14%). Thus, European consumers' consumption of organic herbs and spices drives the market's growth.
