Market Trends of North American Seasonings and Spices Industry
This section covers the major market trends shaping the North American Seasonings & Spices Market according to our research experts:
Increased Demand for Spice Blends in the Food Industry
Blended spices have witnessed a huge demand from various strata of the population in the region as they are convenient across various applications, such as savory snacks and ready meals, among others. Recently, there has been a lot of interest in blends containing Middle Eastern and Mediterranean spices in North American cuisines, such as a mix of turmeric, coriander, and warm brown spices. Greater mainstream acceptance of seasonings, like North Africa's harissa and Ethiopia's berbere, have paved the way for the emerging demand for the spice blend. It is a blend of crushed ground peanuts and spices, like ginger, cayenne, garlic, and onion, which have gained popularity among the American population in recent years.
Moreover, during the COVID-19 pandemic, consumers weren't dining away from home as much. However, consumers sought bold flavors and spices reminiscent of restaurant-quality food for at-home consumption. As a result, companies are increasingly innovating in the spice blends category to capture the rising consumer demand. Various studies have depicted that 50% of US consumers seek to try new, exciting flavors. This is indirectly supported by the rising demand for ethnic cuisine food offerings that include different gravies and sauces, driving the demand for spice blends across the region.
The United States Dominates the Market
North Americans are becoming increasingly aware of health issues, resulting in a shift in their attitude toward natural products due to a powerful 'green wave,' a strong driving force for herbs like basil, oregano, and parsley. California and Florida, with their favorable weather conditions, remain leading regions for domestically-produced fresh herbs. Hawaii and New Jersey are important second-tier sources of domestically-produced herbs, although buyers' demand for reliable year-round supplies limits the ability of the Northern regions to compete in the market. In North America, fresh herbs are primarily marketed through wholesale channels, whereas smaller volumes are sold directly to consumers through farmer's markets. The market players are also engaging in mergers and acquisitions with companies to strengthen their portfolios. For instance, in April 2022, Kerry Group Inc. completed the acquisition of US-based Natreon Inc., a leading supplier of branded Ayurvedic botanical ingredients. Natreon supplies branded and scientifically studied and tested Ayurvedic extracts to the dietary supplement and functional food and beverage industries globally.
