Driven by increasing initiatives from private as well as public entities in the agricultural and food processing sector, organic spice market size could surpass USD 55.70 billion by 2027, states a report from Global Market Insights Inc.

The F&B sector has been popularising healthy food trends in recent times, driven by heavy inclination towards hearty regimes such as the Mediterranean diet and organic food products. Food industry players are actively pursuing innovative production techniques to add novel foods with a high-nutritional profile.

To that end, the demand for organic spices is likely to grow in the food processing sector as F&B manufacturers work on improving overall quality of packaged, ready-to-cook and ready-to-eat products.

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Why are natural and organic products gaining so much traction?

The agriculture sector is promoting organic farming owing to the rising demand for eco-friendly production standards that are economically, socially, and ecologically sustainable. The trend of organic farming is also backed by multiple government initiatives since it safeguards biodiversity, improves soil quality, and fosters the development of the farming community.

Organic herbs and spices have a relatively higher nutrient content as compared to their non-organic counterparts as they are fertilized with natural biotic manure and biofertilizers.

Some of the most prominently advertised health benefits of organically grown spices include:

  • Production without unwanted fillers and flavours, which may cause harm in long term.
  • Prevention of pesticide overdose since only biocompatible adjuvant formulations are used to maintain soil health.
  • Natural spices and herbs are also free from anti-clumping agents, that are otherwise very common in non-organic spices to prevent lump formation and extend product’s shelf life and integrity.

The European Union (EU) is fostering growth in the organic farming sector with a 25% target for 2030 in line with Farm to Fork strategy, while the German government is ambitiously striding along aiming for organic farming to acquire 30% share of agricultural land by 2030.

Manifold rise in domestic consumption & export of organic food from India to push regional growth

Despite the emergence of the COVID-19 pandemic, the organic agricultural, food, and retail sectors of India grew substantially through 2020 and 2021. India’s total export of organic products exceeded $1 billion, acquiring a solid mark in the global market with the United States responsible for 54% of these exports.

Beyond the imploding export performance, India’s domestic consumption of organic spices and food products has been notably driven by the pandemic which increased the demand for natural, clean, and nutritious foods. As per India’s Agricultural and Processed Food Products Export Development Authority (APEDA), through MY 2020-21, the organic crop production in India soared to 3.2 million metric tons, a 36% rise from 2019-20 volume.

Between 2020 and 2021, India recorded total production of certified organic products of 3496800.34 MT comprising of spices, aromatic & medicinal plants, dry fruits, processed foods, tea, coffee, pulses, oil seeds, cereals & millets, sugar cane, and cotton. The total export volume during the same period was 888179.68 MT with the organic food export incurring USD 1040.95 million, of which spices and condiments held 5% export value.

The country exports organic foods to Canada, Korea Republic, USA, European Union, Great Britain, Switzerland, Vietnam, Israel, Ecuador, Australia, and others.

In particular, India is a major turmeric manufacturer with 80% of the global production coming from the country.

Globally, India is recognised as a net exporter of turmeric – the region generated USD 201 million in turmeric exports in 2020. The U.S. ranked as the largest importer of Indian turmeric with 22% consumption followed by Bangladesh, Iran, and UAE with 18%, 6% and 5% import respectively. India also presents a rich diversity with nearly 40-45 different turmeric species offering lucrative scope for the growth of the spice in the country. These numbers amply prove that India is set to be lucrative hub for the global organic spice market.

In the years to come, changing consumer habits amidst higher prevalence of infectious and novel diseases will push people toward nutritionally rich, organically harvested natural produce, thereby boosting organic spice industry.

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