Organic Saffron Market is expected to grow at a 6.7% CAGR and reach USD 419.45 million by 2030.
The organic saffron market size is projected to register a CAGR of 6.70% from 2022 to 2030. Growing demand for saffron in cosmetic and medicinal applications is anticipated to be a major market driver for the organic saffron market throughout the projected period. Saffron has many health advantages and is high in antioxidants. Picrocrocin, safranal, and crocin are the three primary active ingredients found in saffron. These substances aid in lowering inflammation and oxidative brain injury. Saffron is also thought to improve memory and have anti-inflammatory and antioxidant qualities, promoting market expansion. It is also utilized as a natural UV-absorbing ingredient in the cosmetics sector. Furthermore, the market is expanding due to growing consumer demand and rising acceptance by the cosmetics industry. Increasing personal disposable income, increased organic saffron use in the food and additives industry as a seasoning or flavoring agent, and rising consumer health consciousness, particularly in developing nations, are other indirect factors driving the market's growth. Long-term potential for the profitable and rewarding market for organic saffron expansion will also be brought about by increasing e-commerce platform penetration, manufacturers' greater attention to product innovations, and changing customer lifestyles.
On the other hand, the market for organic saffron will face significant obstacles to expansion in the long run due to the high price of organic saffron relative to traditional saffron. Low cultivation rates encourage impurity, further slowing the market's growth rate.
COVID-19 Impact Analysis
The world market for organic saffron was significantly affected by the COVID-19 outbreak. The market suffered from a lack of supply and a slowdown in the farming community's adoption of organic farming methods. Lockdowns and limitations implemented by governments around the world had a negative impact on the expansion of the market. For some time now, however, the world has been recuperating from the effects of COVID-19, creating chances for businesses in the scent and smell sector. COVID-19 has also significantly impacted clients, consumers, and brands. Consumers are now more open to trying new products in a market with such low stock levels.
Organic Saffron Market Dynamics
The employment of an electric nose, pilot scale, and image processing technology are important processing technologies. However, employing the image processing method to separate stigmas takes less time than the manual process used up to this point. ISO Standard 3632 is the criterion that only addresses quality measurement. The high cost and increased demand worldwide have caused adulteration to increase quickly in recent years. Combining items that resemble saffron is one form of adulteration. The adulteration causes changes in the product's quality, which in turn causes variations in the cost. The standard is divided into two sections, ISO 3632-1 and ISO 3632-2, which specify the test procedures for different classes of dried, cut threads, powders, and threads. The primary objective of the standards is to evaluate the intensity of the flavor, aroma, and color of saffron, which helps prevent consumers from buying a false product that is pricey and has no nutritional benefit.
The primary factors encouraging the growth of the market for organic saffron are the increasing prevalence of organic saffron seeds worldwide and greater recognition by the corrective industry. Other unintended market development variables include growing consumer awareness of consumer health, especially in developing economies, an increase in the use of organic saffron by the food and additives sector as a seasoning or preparing expert, and rising individual discretionary income.
Compared to conventional saffron, the high costs of organic saffron will provide a serious challenge to the industry's long-term growth because of the depreciating value of the product at a slow rate that will also slow down market growth.
Demand for premium saffron is increased by the rising popularity of high-end goods, which supports the segment's expansion. Saffron is graded according to its quality and authenticity, and the ISO 3632 standard inspects these factors and the labeling and packaging. The product's grade and the outcomes of these inspections impact the market price due to its high safranal (fragrance) content.
Organic Saffron Market Segmentation
Product Type Insights
The organic saffron market segmentation, based on product type, is thread, powder, and liquid. The organic saffron market growth was prominently high under the liquid segment in 2021. Saffron liquid can be used in cooking dishes. The benefit of using liquid saffron in a dish is that it equally distributes color, perfume, and flavor.
Distribution channel Insights
The organic saffron market segmentation, based on distribution channels, is store- and non-store based. In 2021, the non-store-based segment accounted for the largest market share of the market, with rising consumer inclination towards online shopping and the growth of the e-commerce industry.
Global Organic Saffron Market Share, by Region, 2021 (%)
Organic Saffron Market Overview, by Region
By region, the organic saffron market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific accounted for the most extensive market share. Europe will exhibit the highest CAGR during the forecast period.
In 2021, the Asia-Pacific led the market for organic saffron, accounting for the biggest revenue share. While China and India are the two top consumers in the Asia Pacific, India is the region's top producer. Due to its historical significance in cuisine and medicine, saffron is one of the most prized spices in these nations. Due to its distinctive color and flavor, India's Kashmiri saffron is highly sought after worldwide. China, Australia, Japan, the United States, Germany, and a few South Asian nations receive most of its exports.
Europe is anticipated to grow significantly in the market due to its large re-export activities since some of its members enjoy significant competitive advantages in their processing, packaging, and branding capacities. These importers are constantly searching for more high-quality products because the value-added revenues from re-exports are sizable. Europe's market share in the worldwide sector is projected to rise due to the rising re-exports by European nations.
Organic Saffron Market Competitive Landscape
The few firms present on the market are what define it. In Middle Eastern nations, production is mainly centered. The market potential for new and developing firms is enormous, and they need widespread support throughout the value chain. The established and the new market participants have been emphasizing strong brand management to enhance various distinctive aspects, such as portfolio diversity, varied packaging styles, including premium packaging, and competitive pricing. For instance, in May 2022, Spicely Organic reported sourcing almost 1.3 million pounds of organic spices and herbs, a 385% growth over the previous three years. The continued investment made by organic farmers in growing the cleanest spices and herbs in the world is supported by this steady increase. Similarly, in February 2022, Arunachal Pradesh and Meghalaya were selected as having the best conditions for saffron growth by the North East Centre for Technology Application and Reach (NECTAR) as part of the Saffron Bowl initiative. A provisional sum of INR 6 lakh has been set aside for construction at the Barapani (Meghalaya) site, with the overall anticipated cost for Arunachal Pradesh and Meghalaya being INR 17.68 lakhs.
Prominent players in the organic saffron market research include Mehr Saffron (Iran), Rowhani Saffron Co.(Iran), Spicely Organics (US), and Frontier Organic Products Co-op. (Norway), Valdosta S.L. (Spain), Epicure Garden (US), Alpen Food Group B.V.(Netherlands), Tatva Health & Wellness Private Limited (India), Organic India Inc. (India), and Noor Brand Saffron (India) among others.
Scope of the Organic Saffron Market Report
Product Type Outlook
Distribution Channel Outlook
Objectives of the Study
The objectives of the study are summarized in 5 stages. They are as mentioned below:
Organic Saffron Market Forecast & Size:
To identify and estimate the market size for the organic saffron market report segmented by product type and distribution channel by value (in US dollars). Also, to understand the consumption/ demand created by consumers in the organic saffron market forecast between 2022 and 2030
Market Landscape and Trends:
To identify and infer the drivers, restraints, opportunities, and challenges in the organic saffron market growth
Market Influencing Factors:
To find out the factors which are affecting the organic saffron market size among consumers
Impact of COVID-19:
To identify and understand the various factors involved in the market affected by the pandemic
To provide a detailed insight into the major companies operating in the market. The profiling will include the company's financial health in the past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
|Market Size||USD 419.45 million|
|Forecast Units||Value (USD million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product Type and Distribution channel|
|Geographies Covered||North America, Europe, Asia-Pacific, and the Rest of the World (RoW)|
|Key Vendors||Mehr Saffron (Iran), Rowhani Saffron Co.(Iran), Spicely Organics (US), Frontier Organic Products Co-op. (Norway), Valdosta S.L. (Spain), Epicure Garden (US), Alpen Food Group B.V.(Netherlands), Tatva Health & Wellness Private Limited (India), Organic India Inc. (India), and Noor Brand Saffron (India) among others.|
|Key Market Opportunities||Rising demand for high-quality saffron|
|Key Market Drivers||Increasing prevalence of organic saffron seeds and Rising demand from the medical and cosmetic industries|
The organic saffron market forecast period is 2022 - 2030
The market is expected to register a CAGR of ~6.7% over the next 10 years, according to organic saffron market research.
Europe is expected to register the highest CAGR during 2022 - 2030
Asia-Pacific held the largest share in 2021
The market size is expected to be USD 419.45 millionby 2030.
Mehr Saffron (Iran), Rowhani Saffron Co. (Iran), Spicely Organics (US), Frontier Organic Products Co-op. (Norway), and Valdosta S.L. (Spain) are the major companies operating in the market.