Nutmeg Market Analysis
The Nutmeg Market size is estimated at USD 2.89 billion in 2025, and is expected to reach USD 3.78 billion by 2030, at a CAGR of 5.5% during the forecast period (2025-2030).
The nutmeg market is an essential segment of the global spice industry, driven by the culinary, pharmaceutical, and cosmetic industries. Nutmeg is derived from the seed of Myristica fragrans, a tropical evergreen tree. Its primary cultivation regions include Indonesia, India, and Sri Lanka, with Indonesia being the largest producer. According to FAOSTAT, Nutmeg production in Indonesia was 40,896 metric tons in 2022, which increased by 43,790 metric tons in 2023. Nutmeg is used for its aromatic flavour in cooking, baking, and beverages, as well as its medicinal and cosmetic properties due to its bioactive compounds.
Consumers increasingly prefer natural, organic, and unprocessed ingredients in their food. Nutmeg, being a natural flavor enhancer, aligns with this shift in preference. For example, organic nutmeg is widely used in premium spice blends and gourmet products. Nutmeg is known for its therapeutic properties, such as improving digestion, acting as an anti-inflammatory, and promoting better sleep. As awareness of natural remedies grows, demand for nutmeg in the pharmaceutical and wellness sectors rises. For instance, nutmeg oil is used in aromatherapy for stress relief.
As the global demand for processed foods increases, nutmeg’s inclusion in products like pre-packaged baked goods, sauces, and beverages (e.g., eggnog) boosts market growth. In regions like North America and Europe, nutmeg is a staple in holiday recipes, driving seasonal demand. With the increasing global fascination for exotic cuisines and spice blends, nutmeg has gained popularity. Nutmeg is a key component in Middle Eastern, Caribbean, and Indian dishes, making it a sought-after spice for chefs and food manufacturers.
Nutmeg Market Trends
Increasing International Trade of Nutmeg
The export of nutmeg has been on the rise due to several factors, including global demand for spices, increasing interest in health and wellness products, and the growth of culinary markets that favor exotic and traditional spices. Nutmeg is a highly sought-after commodity, especially in regions with a rich culinary heritage, and this demand is driving its export growth.
In Indonesia, the nutmeg trade is geared more toward export than domestic consumption. For instance, according to the ITC Trade Map, nutmeg exports from Indonesia were 14 million metric tons in 2022, which increased by 16 million metric tons in 2023. Nutmeg is commonly converted into sweets and syrup in the local market to add value from raw to processed form. Because marketing is limited to production areas, the marketing opportunity for sweets remains enormous. Nutmeg is primarily grown in the southern state of Kerala, although it has lately moved to the eastern state of Andhra Pradesh and the northeastern region of India.
The European Union is one of the fastest-growing export markets for Indonesian nutmeg. However, the European Union applies severe laws (private standards) to all imported products, including nutmeg, particularly in terms of health and food safety. The European people's health-conscious culture drives them to seek natural ingredients in the food they consume. The consumption of Indonesian nutmeg in the European Union is divided into two categories including dry nutmeg (whole nutmeg and powder nutmeg) and dried mace. Whole dried nutmeg is widely used for flavoring in the food industry, meat and dairy products (sausages, soups, spice mixes, baked goods, eggnog, ice cream, etc), as well as in the home. The increasing consumption is anticipated to grow the nutmeg trade during the forecast period.
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Asia-Pacific Dominates the Market
Asian countries are the key consumers of Nutmeg spice. The popularity of this spice is explained by the wide range of regional dishes using it as a major spice ingredient and the age-old tradition of using it in medicine. Guatemala, India, and Indonesia are the key producers and export markets for nutmeg. The growth in the Oleoresins industry has further augmented the market growth for nutmeg in the region. Oleoresins from spices such as nutmeg are interesting ingredients for food manufacturers to create ethnic dishes.
Nutmeg is produced as a commercial crop with other spices and crops in a multidrop scenario. It is grown primarily in homesteads in Kerala and provides significant revenue to households. According to the Directorate of Arecanut & Spices Development, over 50,000 farmers in Kerala are involved in nutmeg cultivation.
The large Asian community which includes India and Indonesia lives across different parts of the globe and uses nutmeg as an ingredient in the garam masala employed to make seasonal curry dishes. With growing interest in Asian cuisines, the demand for nutmeg spice in Asia - Pacific is likely to grow during the forecast period. Oleoresin extractions for nutmeg take place in countries, such as India and Sri Lanka, so they have export opportunities in the region. With the rise in demand from the international community, the market for nutmeg is likely to grow during the forecast period.
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Nutmeg Market News
- October 2023: For organic nutmeg from Sri Lanka and India, the Fairtrade Minimum Price is USD 1.74/kg with a premium of USD 0.24. For all other nutmeg traded under Fairtrade, the premium is 15% of the commercial price. As of October 2023, there are 24 Fairtrade-certified nutmeg producers globally, with eight in India and 16 in Sri Lanka.
- October 2022: Goa, a state in India, is promoting alternative cola from the nutmeg fruit. A former IT professional from Goa has formulated a herbal cola from the agro waste of the nutmeg fruit and it is likely to go for largescale production soon, it is anticipated to provide additional income to farmers growing the fruit.
Nutmeg Industry Segmentation
Nutmeg which is the seed or ground spice of several species of the genus Myristica is considered. The Nutmeg Market Analyzes the Production (Volume), Consumption (Value and Volume), and Trade in terms of Import (Value and Volume), Export (Value and Volume), and Price Trend Analysis across the World. The Market is segmented by Geography into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. The report offers the market size and forecasts in terms of volume in metric tons and value in (USD) for all the above segments.
| Geography | North Amercia | United States | |
| Canada | |||
| Guatamela | |||
| Europe | Netherlands | ||
| United Kingdom | |||
| Germany | |||
| Spain | |||
| Italy | |||
| Asia - Pacific | India | ||
| Indonesia | |||
| Vietnam | |||
| Srilanka | |||
| China | |||
| Japan | |||
| South America | Brazil | ||
| Middle-East and Africa | South Africa | ||
| Egypt | |||
| Saudi Arabia | |||
| United Arab Emirates | |||
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Nutmeg Market Research Faqs
How big is the Nutmeg Market?
The Nutmeg Market size is expected to reach USD 2.89 billion in 2025 and grow at a CAGR of 5.5% to reach USD 3.78 billion by 2030.
What is the current Nutmeg Market size?
In 2025, the Nutmeg Market size is expected to reach USD 2.89 billion.
Which is the fastest growing region in Nutmeg Market?
Europe is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Nutmeg Market?
In 2025, the Asia accounts for the largest market share in Nutmeg Market.
What years does this Nutmeg Market cover, and what was the market size in 2024?
In 2024, the Nutmeg Market size was estimated at USD 2.73 billion. The report covers the Nutmeg Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Nutmeg Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Nutmeg Industry Report
Statistics for the 2025 Nutmeg market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Nutmeg analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
