Spice And Herb Extracts Market Analysis by Mordor Intelligence
The spice and herb extracts market size is valued at USD 13.21 billion in 2025 and is forecast to reach USD 18.11 billion by 2030, reflecting a 6.51% CAGR driven by rising clean-label mandates, rapid process innovations, and sustained demand from food and nutraceutical formulators. Brand owners are switching from synthetic flavors to botanical concentrates to satisfy retailer transparency rules, while piperine-rich pepper oleoresins and supercritical CO₂ turmeric extracts illustrate how functional benefits now carry equal weight with taste. Liquid oleoresins dominate form choices because their oil solubility and thermal stability simplify dosage in sauces, snacks, and ready meals. Asia-Pacific maintains a production and consumption edge, yet South America is closing the gap as Brazil and Argentina scale export-oriented acreage. Vertically integrated processors with captive farms, supercritical capacity, and blockchain traceability are best positioned to offset raw-material volatility and synthetic competition.
Key Report Takeaways
- By source type, pepper captured 21.27% of the spice and herb extracts market share in 2024, consolidating its lead across food and pharmaceutical formulations.
- By form, liquid oleoresins accounted for 40.82% of the spice and herb extracts market size in 2024 while micro-encapsulated formats are advancing at an 8.13% CAGR through 2030.
- By application, pharmaceuticals are expanding at an 8.56% CAGR to 2030, the fastest among end uses, even though food retained 61.18% revenue share in 2024.
- By geography, Asia-Pacific held 36.25% of the spice and herb extracts market size in 2024, whereas South America is forecast to grow at a 7.89% CAGR through 2030.
Global Spice And Herb Extracts Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Growing demand for natural and clean-label ingredients | +1.2% | Global, with North America and Europe leading regulatory adoption | Medium term (2-4 years) |
| Growth in health-conscious consumer preferences for antioxidant-rich extracts | +1.0% | North America, Europe, Asia-Pacific urban centers | Medium term (2-4 years) |
| Increasing adoption in pharmaceuticals and nutraceuticals for therapeutic benefits | +1.4% | Global, with Asia-Pacific and North America driving clinical applications | Long term (≥ 4 years) |
| Surge in global cuisines and ethnic food trends boosting spice usage | +0.9% | North America, Europe, Middle East | Short term (≤ 2 years) |
| Advancements in extraction technologies improving yield and purity | +1.1% | Global, concentrated in Europe and Asia-Pacific manufacturing hubs | Long term (≥ 4 years) |
| Supportive regulations favoring natural over synthetic additives | +0.9% | Europe, North America, with spillover to Asia-Pacific | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Growing demand for natural and clean-label ingredients
Growing demand for natural and clean-label ingredients propels the spice and herb extracts market as food manufacturers replace synthetic flavors and preservatives with authentic botanical alternatives. According to recent industry surveys, 73% of European consumers are prioritizing products with fewer synthetic additives driving significant changes in European food formulation strategies and this shift aligns with the European Food Safety Authority's updated Novel Foods guidance, effective February 2025[1]Source: European Food Safety Authority, "European Food Safety Authority, “Navigating Novel Foods: What EFSA’s Updated Guidance Means for Safety Assessments,” efsa.europa.eu. Consumers scrutinize labels for transparency, favoring extracts that deliver potent aroma, taste, and bioactives without artificial additives or chemical residues. Regulatory pressures on clean-label compliance accelerate adoption in processed foods, beverages, and snacks where spice oleoresins enhance shelf stability naturally. This shift enables premium positioning, as certified natural extracts command higher margins amid wellness trends emphasizing whole-food purity. Retail expansion of "natural" aisles and e-commerce boosts visibility for extract-infused products.
Growth in health-conscious consumer preferences for antioxidant-rich extracts
Growth in health-conscious consumer preferences for antioxidant-rich extracts accelerates the spice and herb extracts market as buyers seek functional ingredients delivering polyphenols, flavonoids, and curcuminoids from turmeric, ginger, and black pepper. Black pepper extract is gaining traction as a bioavailability enhancer; piperine increases curcumin absorption by up to 2,000%, making it a mandatory co-ingredient in premium turmeric supplements[2]Source: National Institute of Health, "Strengthening Knowledge and Understanding of Dietary Supplements", ods.od.nih.gov. These bioactives combat oxidative stress, support immunity, and reduce inflammation, aligning with preventive wellness trends in supplements and fortified foods. Demand surges for standardized extracts with verified ORAC values, enabling precise dosing in nutraceuticals and RTD beverages. Wellness influencers and clinical studies amplify awareness, positioning spice extracts as natural alternatives to synthetic antioxidants. Food formulators incorporate them into clean-label snacks, sauces, and meal kits for health halo claims.
Increasing adoption in pharmaceuticals and nutraceuticals for therapeutic benefits
Increasing adoption in pharmaceuticals and nutraceuticals for therapeutic benefits propels the spice and herb extracts market as formulators integrate standardized extracts for anti-inflammatory, antimicrobial, and digestive applications. As consumers increasingly seek foods that promote specific health outcomes, manufacturers are turning to turmeric for its anti-inflammatory properties, ginger for digestive support, and oregano for its antimicrobial effects, according to CBI data [3]Source: CBI, "What is the demand for natural ingredients for health products on the European market", cbi.eu. Gingerols from ginger and capsaicin from chili drive demand in anti-nausea tablets and pain relief formulations, backed by clinical validations enhancing regulatory approvals. Nutraceutical brands leverage turmeric's curcumin for joint health and cognitive supplements, capitalizing on proven efficacy in meta-analyses. Pharmaceutical pipelines incorporate black cumin seed extracts for immune modulation amid rising chronic disease prevalence. This shift elevates extracts from flavorants to active ingredients, commanding premium B2B pricing with stringent purity specifications.
Surge in global cuisines and ethnic food trends boosting spice usage
Surge in global cuisines and ethnic food trends significantly boosts the spice and herb extracts market by increasing demand for authentic flavors and traditional ingredients. As consumers embrace diverse culinary experiences from Asian, Middle Eastern, Latin American, and African cuisines, the use of specialty extracts such as cumin, coriander, and cardamom rises. Restaurants, food manufacturers, and home cooks seek concentrated, standardized extracts to replicate authentic taste profiles consistently. This trend supports product innovation in ready-to-eat meals, snacks, and beverages enriched with ethnic spice blends. Growing multicultural populations in North America and Europe further expand market penetration through fusion cuisine popularity. Trade facilitation and improved supply chains enable easier access to exotic spices, accelerating adoption.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High production costs due to raw material volatility | -0.8% | Global, acute in Asia-Pacific and South America production zones | Short term (≤ 2 years) |
| Limited supply of high-quality organic and sustainable spice sources | -0.6% | Global, concentrated in India, Vietnam, Indonesia | Medium term (2-4 years) |
| Price sensitivity in mass-market and emerging economy segments | -0.5% | Emerging markets in Asia-Pacific, Africa, Latin America | Short term (≤ 2 years) |
| Competition from cheaper synthetic flavor alternatives | -0.7% | Global, particularly in cost-sensitive food categories | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
High production costs due to raw material volatility
High production costs due to raw material volatility significantly restrain the spice and herb extracts market, as prices fluctuate from weather disruptions, climate change, and geopolitical tensions in key producing regions like India and Vietnam. Droughts, floods, and crop diseases reduce yields of critical spices such as black pepper and turmeric, creating supply shortages that inflate procurement expenses. Currency fluctuations and export restrictions further exacerbate cost unpredictability for global buyers dependent on imported botanicals. Labor-intensive harvesting and stringent post-harvest handling to preserve extract quality add to overheads, squeezing manufacturer margins. These volatilities hinder long-term pricing stability, deterring investment in capacity expansion and innovation. Smaller processors face acute challenges, often passing costs to consumers via premium pricing that limits market penetration.
Limited supply of high-quality organic and sustainable spice sources
Limited supply of high-quality organic and sustainable spice sources restrains the spice and herb extracts market, as demand for certified organic and ethically sourced botanicals outpaces available production capacities. Organic farming yields 20-30% lower than conventional methods due to prohibited synthetic inputs, constraining volumes of turmeric, ginger, and pepper extracts. Sustainable certifications like Rainforest Alliance or Fair Trade require extensive audits and traceability, limiting eligible suppliers in major regions like India and Indonesia. Climate vulnerabilities exacerbate shortages, with erratic monsoons and soil degradation reducing arable land for high-potency cultivars. This scarcity drives premium pricing, favoring large buyers while sidelining SMEs unable to secure allocations. Processing bottlenecks for organic extracts further delay fulfillment amid rising nutraceutical demand.
Segment Analysis
By Source Type: Pepper Dominance Anchors Value Chain
Pepper commanded the largest share of source-type revenue in the spice and herb extracts market in 2024, accounting for 21.27% of the total. This dominance stems from pepper's exceptional versatility, making it indispensable across diverse applications in food preparation, pharmaceutical formulations, and cosmetic products. In the food sector, pepper serves as a staple seasoning, enhancing flavors in savory dishes, sauces, and ready-to-eat meals worldwide. Its pharmaceutical uses leverage piperine for bioavailability enhancement and anti-inflammatory properties in drug delivery systems. Cosmetics benefit from pepper extracts in skincare for antioxidant and antimicrobial effects, supporting anti-aging and acne treatments. This broad applicability across industries solidifies pepper's position as the leading source type, underpinned by consistent global demand and established supply chains.
Cumin, on the other hand, stands out as the fastest-growing source in the spice and herb extracts market, achieving a compound annual growth rate (CAGR) of 7.76% through 2030. This accelerated expansion is propelled by surging popularity in Middle Eastern and Latin American cuisines, where cumin imparts distinctive earthy flavors to traditional dishes and fusion recipes. Rising global interest in ethnic foods drives its integration into mainstream menus and packaged products. Cuminaldehyde, cumin's key bioactive compound, fuels growth through emerging applications in digestive health supplements, offering benefits like improved gut motility and reduced bloating. Health-conscious consumers increasingly seek cumin-based extracts for natural remedies targeting indigestion and metabolic support.
Note: Segment shares of all individual segments available upon report purchase
By Form: Liquid Oleoresins Lead on Solubility and Shelf Stability
Liquid oleoresins dominated the form-based revenue in the spice and herb extracts market in 2024, capturing 40.82% of the total share. Their leadership is attributed to superior oil solubility, which ensures seamless integration into lipid-based food formulations, beverages, and processed products. Concentrated flavor profiles deliver potent aroma and taste intensity, allowing manufacturers to achieve desired sensory attributes with minimal usage volumes. Compared to essential oils, liquid oleoresins offer significantly extended shelf life, reducing spoilage risks and enhancing cost-efficiency in supply chains. This stability makes them ideal for industrial-scale applications, including sauces, seasonings, and confectionery. Their versatility across savory and sweet categories cements liquid oleoresins as the preferred form for consistent performance and scalability in global markets.
Micro-encapsulated extracts emerge as the fastest-growing form in the spice and herb extracts market, expanding at a compound annual growth rate (CAGR) of 8.13% through 2030. This surge is driven by escalating demand for controlled-release mechanisms that preserve volatile compounds until consumption, optimizing flavor delivery in end products. Heat-stable properties enable their use in high-temperature processing for beverages, dairy items, and baked goods without degradation. Encapsulation technology masks off-notes and bitterness, broadening appeal in clean-label formulations popular among health-focused consumers. Innovations in micro-encapsulation enhance bioavailability of bioactive components like antioxidants and anti-inflammatories from spices.
By Application: Food Dominates, Pharmaceuticals Accelerate
Food applications dominated the spice and herb extracts market in 2024, accounting for 61.18% of total revenue. This substantial share highlights the extensive use of these extracts across a wide range of food products including dairy, sauces, meat, snacks, and beverages. Their natural flavors, aromas, and health benefits make them indispensable ingredients in enhancing taste and preserving freshness. The versatility of spice and herb extracts allows food manufacturers to cater to diverse consumer preferences for clean-label and authentic products. Additionally, growing demand for ethnic and specialty foods further drives the adoption of these extracts in food formulations. The established presence in food applications solidifies this segment’s leadership in market revenue.
Pharmaceutical applications represent the fastest-growing segment in the spice and herb extracts market, expected to expand at a compound annual growth rate (CAGR) of 8.56% through 2030. This rapid growth is driven by increasing interest in natural and plant-based ingredients for health and wellness products. Spice and herb extracts are increasingly used for their bioactive compounds, which have therapeutic properties such as anti-inflammatory, antioxidant, and antimicrobial effects. Rising consumer preference for alternative medicines and dietary supplements strengthens demand in this segment. Moreover, advancements in extraction technology are improving the efficacy and standardization of these extracts for pharmaceutical use.
Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Asia-Pacific commanded the largest share of the global spice and herb extracts market in 2024, capturing 36.25% of total market value. This dominance is firmly anchored by India's unparalleled position as the world's leading producer and exporter of spices, supplying a vast array of raw materials and extracts to international markets. The region's expansive agricultural base, favorable climates, and traditional expertise in spice cultivation underpin its market leadership. Proximity to major consumption hubs in Asia further enhances supply chain efficiency and cost competitiveness. Government initiatives promoting spice processing and value-added extraction technologies bolster production capacities. Overall, Asia-Pacific's entrenched role ensures its continued preeminence in driving global spice and herb extracts revenue.
South America emerges as the fastest-growing region in the spice and herb extracts market, projected to expand at a compound annual growth rate (CAGR) of 7.89% through 2030. This accelerated growth is propelled by Brazil's strategic expansion of black pepper and pink pepper cultivation, targeting high-demand export markets. Favorable agro-climatic conditions and investments in modern farming practices enhance yield and quality standards. Rising global interest in South American botanicals for exotic flavors and functional ingredients fuels export momentum. Infrastructure improvements in processing facilities support scalable extract production for food and pharmaceutical applications.
North America maintains a strong market presence through advanced processing capabilities and high demand for premium extracts in food and nutraceuticals, supported by robust import networks from Asia-Pacific. Europe exhibits steady growth driven by stringent food safety regulations and consumer preference for clean-label products, with key hubs in the Netherlands and Germany facilitating trade and innovation. These regions collectively contribute to market stability, with North America focusing on value-added applications and Europe emphasizing sustainability certifications.
Competitive Landscape
The spice and herb extracts market exhibits a moderate level of fragmentation, characterized by the presence of numerous small to mid-sized players alongside well-established global corporations. This structure reflects the highly specialized nature of extraction processes and the diverse range of raw materials sourced from various geographic locations. Companies often focus on niche segments such as specific spice types, organic or natural certifications, or customized formulations tailored to food, pharmaceutical, and cosmetic industries. The moderate fragmentation allows for healthy competition, fostering innovation and encouraging differentiation in product offerings.
Despite fragmentation, key players maintain influence through strong supply chain integration, technological advancements, and strategic partnerships. These companies invest in advanced extraction and encapsulation technologies to enhance product efficacy, shelf life, and application versatility. Leading firms leverage global sourcing networks and rigorous quality control measures to ensure consistency and compliance with international standards. Such efforts help build consumer trust and brand loyalty, particularly in markets where organic and clean-label products are prioritized. Furthermore, collaboration with farmers and cooperatives enables players to secure quality raw materials while supporting sustainable agricultural practices.
The moderate fragmentation also opens opportunities for new entrants and regional specialists to carve out market share by addressing local consumer preferences and specialized applications. Small players benefit from flexibility and agility, enabling faster response to emerging trends such as demand for functional extracts or natural preservatives. At the same time, regulatory complexity and the need for certification present barriers that protect established participants. Overall, the competitive landscape encourages continuous improvement and niche innovation, shaping a dynamic market environment conducive to growth-oriented businesses.
Spice And Herb Extracts Industry Leaders
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Kerry Group plc
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Olam International
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McCormick & Company, Inc.
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Döhler GmbH
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Kalsec Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: DSM-Firmenich broke ground on a new state-of-the-art production facility in Parma, Italy, set for completion in Q1 2027, which will enhance capabilities in concentrated powder flavors, culinary blends, and functional blends while creating over 100 jobs. The facility will serve growing market demands in Europe, India, and the Middle East, utilizing advanced technologies for efficient production in the 'Parma Food Valley' location.
- November 2024: Jiaherb Inc., a prominent manufacturer of botanical and herbal extracts, has bolstered its operations by inaugurating a cutting-edge laboratory and research and development facility in China. This move aims to boost both production capacity and innovation. The new facility, equipped with state-of-the-art extraction technologies and stringent quality control measures, focuses on functional ingredients, catering to the surging global demand.
- November 2023: Kalsec opened a new savory innovation centre in Netherlands. To open the centre, the company collaborated with Oost NL (the East Netherlands Development Agency), Foodvalley NL, and Wageningen University & Research. The facility offers solutions for sauces, dressings, and condiments.
Global Spice And Herb Extracts Market Report Scope
Spice and herb extracts derived from natural or organic flavor sources in the plant.
The global spice and herbal extracts market is segmented by product type, application, and geography. By product type, the market is segmented into Celery, Cumin, Chili, Coriander, Cardamom, Oregano, Pepper, Basil, Ginger, Thyme, and Others. By Application into Food Applications (Dairy, Meat & Poultry, Dressings, Soups and Sauces, Snacks and Convenience Food, and Other Food Applications), Beverage Applications (Tea and Herbal Drinks, Alcoholic Beverages, Soft Drinks) By geography, the scope includes North America, Europe, Asia-Pacific, South America, and Middle East & Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
| Celery |
| Cumin |
| Chili |
| Coriander |
| Cardamom |
| Oregano |
| Pepper |
| Basil |
| Ginger |
| Thyme |
| Cinnamon |
| Other Source Types |
| Liquid Oleoresins |
| Powder Extracts |
| Essential Oils |
| Micro-encapsulated Extracts |
| Food | Dairy |
| Dressings, Soups and Sauces | |
| Meat and Poultry | |
| Snacks and Convenience Food | |
| Other Applications | |
| Beverages | |
| Pharmaceuticals | |
| Personal Care and Cosmetics | |
| Other Applications |
| North America | United States |
| Canada | |
| Mexico | |
| Rest of North America | |
| Europe | United Kingdom |
| Germany | |
| France | |
| Spain | |
| Italy | |
| Netherlands | |
| Rest of Europe | |
| Asia-Pacific | China |
| Japan | |
| India | |
| Australia | |
| South Korea | |
| Indonesia | |
| Philippines | |
| Singapore | |
| South Korea | |
| Rest of Asia-Pacific | |
| South America | Brazil |
| Argentina | |
| Rest of South America | |
| Middle East and Africa | Saudi Arabia |
| United Arab Emirates | |
| South Africa | |
| Rest of Middle East and Africa |
| By Source Type | Celery | |
| Cumin | ||
| Chili | ||
| Coriander | ||
| Cardamom | ||
| Oregano | ||
| Pepper | ||
| Basil | ||
| Ginger | ||
| Thyme | ||
| Cinnamon | ||
| Other Source Types | ||
| By Form | Liquid Oleoresins | |
| Powder Extracts | ||
| Essential Oils | ||
| Micro-encapsulated Extracts | ||
| By Application | Food | Dairy |
| Dressings, Soups and Sauces | ||
| Meat and Poultry | ||
| Snacks and Convenience Food | ||
| Other Applications | ||
| Beverages | ||
| Pharmaceuticals | ||
| Personal Care and Cosmetics | ||
| Other Applications | ||
| By Region | North America | United States |
| Canada | ||
| Mexico | ||
| Rest of North America | ||
| Europe | United Kingdom | |
| Germany | ||
| France | ||
| Spain | ||
| Italy | ||
| Netherlands | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| India | ||
| Australia | ||
| South Korea | ||
| Indonesia | ||
| Philippines | ||
| Singapore | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Middle East and Africa | Saudi Arabia | |
| United Arab Emirates | ||
| South Africa | ||
| Rest of Middle East and Africa | ||
Key Questions Answered in the Report
What is the 2025 global value of the spice and herb extracts market and its projected growth rate?
The sector is valued at USD 13.21 billion in 2025 and is forecast to expand at a 6.51% CAGR through 2030.
Which end-use is recording the quickest revenue gains for spice and herb extracts?
Pharmaceuticals lead with an 8.56% CAGR to 2030, fueled by capsaicin patches, piperine adjuvants, and curcumin formulations.
Why do food processors favor liquid oleoresins over essential oils?
Oleoresins dissolve in fats, withstand high-heat cooking, and retain flavor longer, thereby streamlining dosage in sauces, snacks, and ready meals.
How does raw-material price volatility influence purchasing strategy?
Buyers increasingly lock in long-term contracts or invest in captive farms to shield margins from weather-driven pepper or turmeric price spikes.
Where are the strongest regional expansion opportunities for new entrants?
South America, led by Brazil and Argentina, is growing at roughly 7.9% CAGR thanks to scalable pepper, oregano, and thyme supply chains.
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