Global Seasonings and Spices Market: Companies Make Use of Online Marketing to Establish Strong Brand Identity, says TMR
The global seasonings and spices market is highly fragmented, with the top six companies holding only 15% of the value share in 2012, states Transparency Market Research in its new study. These companies are McCormick, Everest Spices, Kraft Foods, Unilever, MDH Spices, and S&B Foods. The rivalry among players is expected to remain high owing to low switching costs. The presence of regional players has also upped the intensity of rivalry among the market players. In a setting such as this, a distinct brand image is playing a big role. The threat of substitutes is expected to be low. The threat of new entrants will be medium owing to the low regulatory requirements.
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Players are mostly focusing on product differentiation. Increasing marketing campaigns and brand awareness programs are some of the strategies adopted by key players in the global seasonings and spices market. According to the report, the global seasonings and spices market is expected to rise from US$13.7 bn in 2015 to 16.6 bn by 2019. On the basis of product, the salt and salt substitutes segment is anticipated to lead and be worth US$4,742.5 mn by 2019. By geography, the European seasoning and spices market is expected to reach US$5,723.3 mn by 2019.
Globalization to Act as Key Driver of Seasonings and Spices Market
Globalization has enabled consumers to become aware of different cultures and food habits, and has also boosted food trade. Globalization has facilitated the availability of different products and varieties all across the globe. As people migrate to different countries, they take their food habits along, and seasonings and spices play an important part in ethnic cuisines. As consumers get attracted towards new tastes through these ethnic cuisines, the result is a high demand for seasonings and spices used in these foods. Thus, globalization is one of the key drivers of the market.
Another factor contributing to the demand for seasonings and spices is rise in the income levels of consumers across the world, allowing them the luxury to experiment with new tastes. Moreover, the medicinal benefits of spices are expected to fuel their demand. The medicinal properties of spices have forced countries in the West to make use of them extensively, which is expected to boost the market.
Uncertain Climatic Conditions May Hamper Production
All major agricultural products, including seasonings and spices are dependent on favorable climatic conditions and an efficient supply chain for their production. The supply of most the seasonings and spices produced in Asian countries is often marred by uncertain climatic conditions, creating a challenge for the industry. For instance, India experiences calamities such as floods and famines, resulting in spoilage of large quantity of agricultural products, impacting the seasonings and spices market.
Online Marketing Campaigns Offer Expansion Opportunities for Seasonings and Spices Market
Seasoning and spices companies have started new online advertising campaigns, encouraging consumers to try new recipes at home. Players in the market are adopting different methods for their campaigns such as creating their own apps for product recipes, contests, social media promotions, on sites such as Facebook, Twitter, Pinterest, and YouTube. Such campaigns help players to improve their connectivity with consumers, which in turn helps establish their brand identity.
Today, consumers across the world are preferring natural products for good health. Organic seasonings and spices are also expected to benefit from this trend as a large number of companies have entered this segment of the market. At present, the organic segment accounts for only 10% of the global seasonings and spices market. However, this segment is expected to grow in the coming years and create new growth opportunities.
This information is based on the findings of a report published by Transparency Market Research, titled “Seasonings and Spices Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019.”