Tahini Market Analysis

Tahini market (Global, 2023)

Introduction

In recent years, the tahini market has attracted a great deal of attention, especially because of the growing interest in plant-based diets and the growing popularity of Mediterranean and Oriental cuisines. Tahini, a very versatile ingredient made from ground sesame seeds, is appreciated not only for its rich, nutty taste but also for its nutritional value, which includes a high percentage of essential fats, vitamins and minerals. This report analyzes the various factors affecting the tahini market, such as changing consumer preferences, the emergence of healthy eating habits and the growing availability of tahini products in the retail and foodservice industries. Also, the competition, the major players and the latest trends in tahini consumption are analyzed.

PESTLE Analysis

Political

In 2023, the tahini market is influenced by many political factors, such as the tariff policy and the agricultural policy. The import tariff on sesame seeds, which is the main ingredient in tahini, was set at 5.4 percent for 2024, which affects the strategies of tahini producers. Besides, the geopolitical tensions in the Middle East, from where a large part of the sesame is imported, have led to a higher level of scrutiny and potential sanctions, which affect the stability of the supply chain and the market.

Economic

In 2023 the tahini market is characterized by the changing price of raw materials and the changes in the buying habits of consumers. The average price of sesame seeds is about eighteen hundred dollars per tonne in the first quarter of 2024, a rise of twelve per cent over the previous year, due to the disruptions in supply. In the meantime, the average expenditure on food specialties, including tahini, has risen to about four hundred and fifty dollars per year per household, reflecting the growing concern with the quality of diet.

Social

In 2023 the trend towards a more plant-based diet has had a positive influence on the tahini market. Surveys indicate that 35% of consumers in the USA are flexitarians, and tahini is in greater demand as a versatile ingredient in vegetarian and vegan recipes. Also, the increasing popularity of the Mediterranean diet has led to a 25% increase in the number of searches on the Internet for tahini recipes, thereby increasing the demand for tahini.

Technological

The 2023 market for tahini was strongly influenced by developments in food-processing and packaging technology. High-speed grinding machines were able to reduce production costs by up to 15%, allowing manufacturers to increase output without compromising quality. In the same period, the use of e-commerce platforms was on the rise, with sales of tahini products on the Internet growing from zero in 2021 to a projected 20% of total sales in 2024.

Legal

Legal aspects affecting the tahini market are food safety regulations and labelling requirements. In 2023 the FDA imposed stricter labelling requirements, and tahini products must now clearly state that they contain sesame, which has had an effect on marketing and packaging. These regulations are expected to cost manufacturers an average of $ 10,000 per product line, with the smaller companies being more affected than the larger ones.

Environmental

Increasingly, in the tahini market, the question of the environment is becoming important, especially in terms of sustainable production. By 2023, about 30% of the sesame production was organic, which reflects the growing desire of consumers for environment-friendly products. Sesame is known to require 1,200 liters of water per kilogram of seeds, which makes it necessary to reduce the water footprint of this crop.

Porter's Five Forces

Threat of New Entrants

The market for tahini is characterised by a moderate level of competition, with the need for special equipment and a knowledge of production processes. The barriers to entry are moderate. With the growing demand for tahini, newcomers may find it difficult to establish their brand and secure distribution channels in a market with established players.

Bargaining Power of Suppliers

‘There are many and various suppliers of the raw material for tahini, mainly sesame seeds. This abundance reduces the suppliers’ bargaining power, because the manufacturers are able to change suppliers in order to obtain the lowest prices and the best quality.

Bargaining Power of Buyers

The consumers have a great choice in the tahini market. There are various brands and products. The competition is so strong that consumers can bargain for the price and demand higher quality, which puts a lot of pressure on producers to differentiate their products.

Threat of Substitutes

The medium - Although tahini has its special properties and uses, there are several alternatives, such as peanut butter and other nut butters. These alternatives can be used on the basis of price, taste, and dietary preferences, especially in places where tahini is less ingrained in the culture. The threat of substitution is moderate.

Competitive Rivalry

The market for tahini is characterized by the fierce competition between the established brands and the newcomers. Many companies are competing for a share of the market, and with the growing interest in healthy food and a plant-based diet, the price competition is becoming more and more aggressive.

SWOT Analysis

Strengths

• High nutritional value, rich in healthy fats and protein.
• Growing popularity in vegan and health-conscious diets.
• Versatile ingredient used in various cuisines and dishes.
• Established supply chains and production methods.
• Strong brand loyalty among consumers.

Weaknesses

• Limited awareness in non-traditional markets.
• Higher price point compared to other spreads.
• Potential allergen concerns for sesame allergies.
• Dependence on specific regions for sesame sourcing.
• Short shelf life if not stored properly.

Opportunities

• Expansion into emerging markets with rising health trends.
• Innovative product development, such as flavored tahini.
• Increased demand for plant-based and gluten-free products.
• Partnerships with health food brands and restaurants.
• Growing online retail channels for wider distribution.

Threats

• Fluctuations in sesame seed prices due to climate change.
• Intense competition from alternative spreads and dips.
• Regulatory changes affecting food labeling and imports.
• Economic downturns impacting consumer spending on premium products.
• Potential supply chain disruptions due to geopolitical issues.

Summary

The market for tahini in 2023 is characterized by a strong nutritional profile and by a growing interest in health-related products. Challenges such as price sensitivity and the concern about allergies could hamper market penetration. Opportunities for growth lie in new products and new markets. Threats, such as price volatility and competition from substitute products, must be strategically managed.