Fresh Herbs Market

The global fresh herbs market is expected to register a notable growth rate during the forecast period. The growth of the foodservice industry and rising popularity of cross-cultural cuisines are driving the growth of the market. Moreover, increasing demand for organic fresh herbs offers significant growth opportunities to market players. However, volatile raw material prices are expected to restrain the growth of the market.

Globalization has led to an increase in global trade as well as tourism with increased exposure to various authentic ethnic cuisines. Consumers these days are willing to experiment with food habits and try new cuisines. This trend is being observed in both dine out and home-cooked foods and has contributed significantly to the sales of non-traditional/exotic fresh herbs in various countries. Globalization has also opened career opportunities across the globe which has resulted in the migration of populations. According to the United Nations Migration Report, the number of migrants in 2019 is estimated to be 272 million with the majority originating from India, Mexico, and China. The migrant population tends to reside in North America and Europe with the US, Germany, Russia, the UK, France, and Canada among the top 10 destinations. Immigrants bring with them the traditions and cuisines of their native lands, resulting in the rising popularity of cross-culture cuisines worldwide. For instance, tabbouleh is a parsley salad that is historically popular in Middle Eastern culture but is now widely available in the US. The adoption of Western culture and cuisine by consumers in Asia has led to the increased demand for herbs such as rosemary, thyme, basil, and sage. Similarly, the rising popularity of Asian food in Europe and North America has resulted in the increased consumption of herbs such as coriander, bay leaf, and holy basil. Thus, the adoption of cross-cultural cuisines and eating habits is significantly boosting the growth of the global fresh herbs market.

Consumer awareness across the globe is rising with regard to the environmental and health impact of chemicals during food cultivation. Due to the increasing awareness regarding the negative impact chemicals can have on human health, consumers are shifting toward the use of organically cultivated and processed products. Thus, the global demand for organically produced foods is growing rapidly. According to MRFR analysis, the global sales of organic food have increased by ~USD 82.0 billion from 1999 to 2017. This is further influencing the demand for natural and organic food ingredients. Along with North America and Europe, the adoption of organic food ingredients is increasing in Asia-Pacific, the Middle East, and Africa. Consumers in these regions are becoming aware regarding the benefits of organic products, which creates a lucrative opportunity for the producers of organic fresh herbs.

The prices of various fresh herbs are constantly fluctuating as they depend on production and demand. The major herb-producing countries are concentrated in Asia and Europe. Asia was the largest herb-producing region in 2018 with vast quantities exported to North America, Europe, and the Middle East. Globally, herbs production is highly volatile and is largely affected by environmental factors, such as rainfall, floods, and draughts, creating a gap in demand and supply. Political unrest in the countries where much of the world production is found also causes price fluctuations. According to Spice Board India, the average international prices of coriander have seen a decline from USD 2.76/kg in 2014 to USD 1.76/kg in 2015. Thus, fluctuations in the prices of fresh herbs are expected to restrain the growth of the market during the forecast period.

The fresh herbs market is fragmented with a large number of small and regional players operating in the market. There is stiff competition among these players with limited product differentiation. Moreover, the small and regional players have a strong hold on the market owing to their widespread presence, low prices, and conventional and established consumer bases. Consumers are reluctant to switch from traditionally used products as they have first-hand experience of product quality. Also, most consumers are price-sensitive, which further poses a challenge to the organized brands in establishing their dominance in the unorganized market.