The South America market for spice and herb extracts is expected to register a CAGR of 5%, during the forecast period, 2018 – 2023. Supplements consisting natural herb and spice extracts are becoming extremely popular among North Americans, due to the increased health awareness, which has led to the increased the import of raw materials from the South American regions, like Peru, Argentina, and Brazil. They have established several R&D and processing centers within South America.
The key drivers that have led to the growth of the spice and herb extract market in South America are the shifting consumer focus towards natural products and increasing demand for convenience foods. Moreover, the growing trend for organic herb and spice extracts has opened up new market opportunities for producers. Further, South America is also a huge hub to produce aromatic herbal and spice extracts, which is in demand from the producers of aromatic waters.
Despite positive prospects of the market in the future, there are some constraints that are hindering the growth of the market, such as inefficient processing techniques leading to low-yields and poor quality products, adulteration, lack of awareness in the global market for locally grown herbs and spices, and availability of substitute products.
The South American market for herb and spice extracts has a huge growth potential as ingredients for convenience foods. The regional foods of South America are now part of a global world-class cuisine. Many chefs are bringing new concepts of fusion foods in the restaurants that have South American herb and spice extracts as key ingredients. This has opened up sustainable market opportunities for small traders in the export business of herb and spice extracts.
The South America spice and herb extract market is segmented by type, product type, and application. Extracts of paprika, chilly, and pepper are the prime products that are exported globally, mainly to Europe and the North American states. Brazil is one the main production hubs for making spice and herbal extracts. Stevia extract that is used as a natural sugar-free sweetener is commercially produced in South America and has a high global demand, mainly from Japan.
July 2016 - Doehler has strengthened its position in the botanical extracts space by acquiring Teawolf, an 8-year-old natural based extract company based in Pine Brook, New Jersey that specializes in coffee, tea, vanilla, and botanical extracts. Teawolf is one of the leading extractors of the new plant based extract guayusa and hibiscus, with an annual turnover of about US$20 million.
The key players of the South America spice and herb extracts market include - Arjuna Natural Extracts Limited, Bio-gen Extracts Pvt. Ltd., Cosmark Pty Ltd., Döhler GmbH Kalsec® Inc., K.Patel Phyto Extractions Pvt. Ltd., Kangcare Bioindustry Co.,Ltd., Kuber Impex Limited, Langdon Ingredients, Lehmann & Voss & Co. KG, McCormick & Company Inc., Nantong Sihai Plant Extracts Co. Ltd., Nutra Green Biotechnology Co. Ltd , Organic Herb Inc, Plant Extracts International Inc., Sigma-Aldrich Corporation, Synthite Industries Ltd., The Herbal Extract Company of Australia, Vidya Herbs Pvt Ltd and XENA BIO HERBALS, among others.
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