The spice market - Spain

The global spice market is on a growth trajectory, with an expected annual expansion rate of 6.5% until 2027, anticipated to reach a value of US$9.7 billion. The pepper segment commanded a significant share of the market revenue, though other spices, like turmeric, are projecting more dynamic growth. In Spain, the spice industry witnessed an upsurge in domestic usage, especially during 2020, with supermarket spice sales soaring by 17% in volume and 20% in value due to increased home cooking amidst the Covid-19 pandemic. Spanish exports and imports of spices expanded as well, climbing by +12.1% and +25.5% respectively, over five years leading up to 2022.

On the production front, Spain boasts a diverse offering, with paprika and pepper leading in volume. The industry is highly fragmented, dominated by private labels which capture the majority of the market in both volume (85%) and value (76%). Despite the challenges of the pandemic and its impact on eating habits, reaching 5212 employees in 2020 within the spices, sauces, and condiments sectors. The effects of Covid-19 also led to a shift in Spanish eating habits, substantially increasing home consumption of spices, with a notable value increase in this segment.

Trends and Insights in the Spice Market of Spain

In recent years, the spice market in Spain has demonstrated noticeable growth attributed to varying factors like the rising popularity of exotic cooking among the younger demographic and an increased inclination towards home cooking. This surge in domestic interest has seen significant increments in supermarket spice purchases, though the industry is still rebounding from the impacts of the COVID-19 pandemic that had temporarily dampened sales to the hospitality sector. Despite experiencing a descent in both volume and value by ranges like 7.7% and 8.6% respectively from a preceding year, there is an overall escalation over a two-year period with increases landing at about 17% for both consumption metrics. When isolating household expenditure on spices, it represents a small fraction, about 0.19% of food and beverage budgets on average. The market structure of Spanish spice exports reflects a predominant orientation towards Western nations with the United States, France, and Portugal being notable importers. In contrast, Spain's imports hail chiefly from Eastern countries epitomized by Iran, China, and India.

Delving into industrial usage, spices in Spain find applications beyond culinary practices, seeping into the realms of the agri-food and cosmetics industries. Intriguingly, sectors such as industrial chocolate, dairy products, and care products make up a noteworthy proportion of the spice consumption within the industrial fabric of Spain. In the corporate landscape, a limited number of companies dominate with just fifty businesses exceeding two million euros in annual turnover, thereby painting a picture of a highly fragmented market--with private labels reigning supreme in terms of volume and value capture. As for labor market implications, the economic breadth of the spice industry is telling through an upward trend, with the number of individuals employed in this sector increasing by about 7% recently. Regulation in Spain adheres to the European framework, ensuring that flavorings comply with specific conditions of use, labeling, and declaration of allergens. Interestingly, Spain boasts a handful of spices with Protected Designation of Origin status, underscoring the relevance and specificity of certain regional spice varieties. In looking at the overall picture, it is evident that the spice market.

Key Players in the Global Spice Industry Landscape

The spice market, brimming with aromatic allure and culinary excitement, is supported by a constellation of key players, each bringing unique flavors and business strengths to the table. The following companies stand out in this vibrant and diverse industry:

• Jesús Navarro (Carmencita): As Spain's leading spice brand, Carmencita has become a household name synonymous with quality and tradition. With a rich history dating back to its founding in 1920, Carmencita has mastered the art of spice production, offering a wide array of spices and blends that cater to both home cooks and professional chefs alike.
• Ramón Sabater: A group boasting a strong reputation within the industry, Ramón Sabater, often simply known as "Sabater," is a hallmark of quality and innovation in the spice market. Specializing not only in a variety of spices but also in other related food products, Sabater's expansive portfolio ensures its presence in many a kitchen.
• Herbex Iberia: Distinguished for its dedication to natural and fresh products, Herbex Iberia is a leading name when it comes to aromatic herbs and spices. Present in the market since 1995, the company has made its mark with the commitment to deliver farm-fresh quality and flavor to consumers.
• Just Spices (Germany): A newer operator on the scene, this German-based company has swiftly carved out a place for itself in the international market. Just Spices showcases a modern approach to spices, with a range that includes individual spices as well as creatively crafted blends, all packaged with a contemporary and appealing design.
• McCormick : A diversified food giant that has its flavorsome fingers in many pies, McCormick's Spain segment shows their commitment to the local spice market. Their global presence and extensive expertise make them a significant player in the world of spices, commanding respect and a loyal customer base.
• Ceylon Manufactures : Contributing to the diversity of the spice market, Ceylon Manufactures offers spices that are imbued with the rich and exotic heritage of its origin. The company ensures that each product retains the authentic flavors that are sought after by culinary aficionados around the globe.
• Conservas Dani Group : This group is an emblematic figure in the Spanish spice sector, showcasing a commitment to quality across their product lines.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 31/03/2023

Summary and extracts

List of charts

• Evolution of spices turnover
• Evolution of spices turnover
• Destination of spice exports
• Origin of spice imports
• Trade balance in the spice market
• Overview of eating habits in the home
• Percentage increase in consumer prices
• Covid-19-driven growth in spices and seasonings, by source
• Percentage of food industry turnover by sector
• Sales of cosmetic products by category
• Spice supply by volume and value produced
• Production and turnover of major spice producers
• Estimated market share of private label brands
• Top companies in the spices sector by revenue
• Evolution of the number of companies in the spices and seasoning market
• Spices and seasonings production EBITDA evolution
• Evolution of the number of employees in the spices and seasonings industry
• The world's most expensive spices