The South America spice and herb extracts market is expected to grow at a CAGR of XX% from 2017 to 2022. The market is estimated to be valued at USD XX million in 2017 and is projected to reach a value of USD XX million by 2022. Only few spice and herb extracts like chili and pepper are exported from the South American region despite having a huge natural diversity of herbs and spices in the region. The main reason is the lack of awareness among consumers about the utilities of lesser known spice and herb extracts. However, in the South American region itself, the market for spice and herb extract is stable due to the strong local demand. North America is one of the key trade destinations for spice and herb extracts from South America, which are used in making nutraceuticals.
The key drivers that have led to the growth of the spice and herb extract markets are the shifting consumer focus towards natural products and increasing demand for convenience foods. Many companies, like Doehler, are focusing on natural herb & spice extracts as they are becoming popular in every segment of the food and beverage industry and offer plenty of scope for new and attractive taste creations. 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 spice and herb extract market is segmented by type, product type, and application. By type, spice and herb extracts are further segmented into celery, cumin, chili, coriander, cardamom, oregano, pepper, basil, ginger, thyme and other types of extracts. By product type, the market is sub-segmented into essential oils, seasonings, blends and others type of spice and herb extract-based products. The major demand is for chilly and pepper extracts, which are mostly used in convenience and street foods.
Spice and herb extracts have their applications in the food, beverage and pharmaceutical industries. In the food segment, they are used in dairy, dressings and marinades, meat and poultry, snacks and others. In beverages, they are used in soft drinks, tea and herbal drinks, alcoholic beverages, and other applications. For example, herbal extracts are added to lassi, an Indian curd-based drink that is sold worldwide.
The South American region grows a wide variety of herbs and spices, most of which are consumed locally. Extracts of paprika, chilly and pepper are the main spice extracts 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. Within South America, there is a high demand for locally grown spice and herbs. The extracts made from annatto seeds, pink pepper, tonka beans, paracress and lemon verbena are popularly used in the nouvelle cuisine. However, they do not have a demand outside the region.
South America is also a huge hub to produce aromatic herbal and spice extracts, which are mainly used in making aromatic waters. Some of these popular herbs and spices, from which these extracts are made, are vanilla, ishpingo, molle, achiote, verbena, aji, kidron, asnac-yuyo, congona, pennyroyal and cat’s claw. These plants are mainly grown in the highlands of the Andes of Peru, and Ecuador. The Bolivia America plant is used to prepare aromatic waters.
Some of the major players capturing the South American spice and herb extract market include –
Recent Industry Insight
“Dohler acquires Teawolf. Strengthens its position in trending botanical extracts."
"Synthite eyeing â‚¹ 3000 cr turnover by 2020."
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 trend, and local flavors are coveted in several restaurants in countries like the USA and Hong Kong. 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. Since supplements, having natural herb and spice extracts, are becoming popular among North Americans, due to the increased health awareness, many North American companies have 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.
Key Deliverables in the Study
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