Saffron Market Overview
The Saffron Market size is estimated to reach $682.3 million by 2027, growing at a CAGR of 8.1% during the forecast period 2022-2027. Saffron is an aromatic, bitter grassy spice fabricated from a flower named crocus sativus which belongs to the Iridaceae plant family used for food coloring. This spice has a hay-like aroma because of its phytochemicals presence and comes in a variety of colors which include red, yellow, orange, and others. Saffron is one of the costliest (by weight) and most commonly used seasoning and coloring agents that confer adequate color to foods. Safranal, crocin, crocetin, kaempferol, and monoterpene glycoside picrocrocin are examples of chemical compounds that are found in this medicinal spice and help in preventing certain brain complications. Moreover, they safeguard body cells from free radical attacks. Apart from antioxidants, saffron is home to vitamins such as riboflavin, vitamin A. Vitamin C, and niacin play a decisive role in ensuring the overall health of the body. The ascending awareness among people regarding health benefits and heightened demand for packaged food, natural coloring agents, and spices like chili powder are factors set to drive the growth of the Saffron Market for the period 2022-2027.
Report Coverage
The report: “Saffron Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Saffron Market.
Key Takeaways
- Geographically, Asia-Pacific Saffron Market accounted for the highest revenue share in 2021. Furthermore, Asia-Pacific is poised to dominate the market over the period 2022-2027.
- Enlarging health conditions like asthma, Alzheimer's, and cancer, spiking threat of communicable viruses, and escalating usage in foods, pharmaceuticals, and personal care products are said to be preeminent drivers driving the growth of the Saffron Market. Exorbitant prices, negatively impacted processing activities because of the pandemic, and the growing threat of climatic abnormalities are said to reduce the market growth.
- Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Saffron Market report.
Saffron Market Segment Analysis-By Application
The Saffron Market based on the Extension of application type can be further segmented into personal care products, food & beverages, nutraceuticals, and others. The food & beverages segment held the largest share in 2021. The growth is owing to the high demand for the charismatic aroma and flavor of the saffron during the preparation of a persity of dishes. Saffron works as a featured spice in soups, seafood (paella, bouillabaisse), pasta, chicken, stews, and many others. Moreover, considering the health hitches associated with artificial food coloring products, the confectionery and bakery industry is slightly moving toward healthy options like saffron. Moreover, saffron is widely infused into milk as it helps in enhancing appetite, immunity, and maintaining skin health. Furthermore, the nutraceutical and personal care product segment is estimated to be the fastest-growing with a CAGR of 9.3% over the forecast period 2022-2027. This growth is owing to the rising demand for dietary supplements and cosmetics. Saffron-made lotions and creams protect skin from the harmful effect of UV rays, reduce hyperpigmentation, and support rapid healing of wounds. Rising possessiveness among youngsters regarding their outer appearance is providing fairgrounds for the growth of the saffron market. On another hand, dietary supplements are being used extensively to maintain the nutritional value of the diet.
Saffron Market Segment Analysis-By Forms
The Saffron Market based on the basis of forms can be further segmented into strands and powder. The strands segment held the largest share in 2021. Even though both the forms have no such difference in their nutritional value but there are a few factors that drive people toward thread form more than the powder. Threads have more appealing aesthetics compared to powder; as well as it is quite easy to practice adulteration in powder as compared to threads. In addition to that, strands hold a high shelf life of 2-3 years; whereas powder lasts only 3-6 months. Nevertheless, the powder segment is estimated to be the fastest-growing with a CAGR of 9.9% over the forecast period 2022-2027. This growth is owing to the eventful lifestyles of people. The problems with threads are that they need proper preparation before use; whereas, the powder can be used directly which saves time. Unlike threads, the powder gets dispersed on a dime and provides color are aroma within a fraction of seconds.
Saffron Market Segment Analysis-By Geography
The Saffron Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Asia-Pacific held the largest share with 41% of the overall market in 2021. The growth in this segment is owing to the factors such as the presence of the biggest saffron-producing countries like India and Iran. India, China, and Iran are amongst the top exporters of saffron to the world. Saffron produced in Iran and India is considered to be of top-notch quality; therefore, always remains in demand. The perse climate of Iran and favorable weather and altitude of Indian states especially Kashmir extend a conducive environment for saffron cultivation. Not to mention, India and Iran are recognized for their massive tea consumption; therefore, augmenting the trend of saffron tea is further stimulating the market demand. However, Asia-Pacific and the Middle East are expected to be the fastest-growing segments over the forecast period 2022-2027. This growth is owing to the growing living standards of people and rising awareness regarding health benefits linked with saffron consumption. On another hand, after the Taliban take over Afghanistan which is one of the biggest saffron-producing countries, the demand for Indian and Iranian saffron has heightened.
Saffron Market Drivers
Rising saffron production and demand are anticipated to boost market demand.
According to a report by Iran's national Saffron council, with a 30 percent hike, Iran’s saffron exports reached 325 tons in FY20-21. Similarly, it has exported nearly 206 tons of saffron within the first 9 months of the current fiscal year. There is no doubt about it that the pandemic has adversely impacted the production and export of countries but the situation is very likely to go normal as the pandemic is coming to an end. On another hand, the growing usage of saffron as a coloring and flavoring agent in the food and beverage industry is likely to support the growth of the saffron market.
Rising cosmetic demand and augmenting health complications are expected to boost the market growth.
Most people especially youngsters in today’s world are concerned with their looks. They want to do everything to feel accepted. In recent times, disliking one’s appearance is a pretty common phenomenon. According to a report, nearly 60-61 percent of teenagers worldwide have body dissatisfaction. Therefore, many people including teens and adults are tilting toward saffron owing to its wide-ranging applications in personal care. On another hand, being a powerful source of antioxidants and essential nutrition, saffron helps in reducing obesity and cancer threats. Obesity is a big issue in North America and the Southwestern Pacific Ocean. Obesity rates in nations like Nauru, Palau, and the Cook Islands are over 55 percent with a body mass index over 32. Also, growing mechanization is spiking the obesity figures around the globe.
Saffron Market Challenges
Exorbitant prices and environmental threats are Anticipated to hamper the market growth.
Saffron is the costliest spice in the world. Even buying 1 kg of it can up to INR 3.5 lakh. Therefore, the extortionate price of saffron can prove to be its biggest challenge in the steady growth of the aforementioned market. Even though the living standards and disposable incomes are rising in developing countries but still millions are in extreme poverty in countries like India and struggling to earn one-time food. In addition to that, altering the course and duration of seasons is anticipated to pose severe threats to saffron cultivation and its overall yield.
Saffron Industry Outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the aforementioned Market. Saffron market top 10 companies include-
- Taj Agro International
- Shahri Food Products
- Esfedan Trading Company
- Iran saffron Company
- Flora saffron
- Saffron Business Company
- HEA & Company
- Damon Enterprises
- Great American Spice
- Grandor
Recent Developments
- On February 23, 2022, Mumbai, India-based pharmaceutical company “ENTOD Pharmaceutical” has launched a saffron-made eye care supplement named “Macusaff” in the Indian market. The company claimed the product is manufactured entirely from natural saffron and contains 5 percent crocin and is beneficial in treating retinitis pigmentosa and glaucoma-like conditions.
- In June 2020, the Institute of Himalayan Bio-resource Technology (CSIR-IHBT) & The Department of Agriculture, the Government of Himachal Pradesh took the initiative to impart training to state agricultural department officers and farmers. IHBT developed a production technology for saffron as well as a tissue culture protocol for the production of disease-free corms of the saffron.
- On May 11, 2020, Miami, United States-based newly registered company CASA KOKOBERNA launched its saffron-made body oil to ensure skin health. The company claimed that oil has several herbal properties that are said to increase the illuminance of the skin. Moreover, the product was made available to the public at a price of $450.
