The global saffron market is witnessing significant growth attributable to saffron’s extensive usage in various food applications such as rice dishes, paella, and others. Saffron is known to enhance the flavor and color of food products. It adds a distinct taste and yellowish-orange color to food. Along with its use in cooking, saffron is also gaining widespread acceptance in personal care and pharmaceutical products owing to its anti-inflammatory, antidepressant, and antioxidant properties. Saffron helps treat skin conditions like acne and pigmentation.
The global saffron market is estimated to be valued at US$ 4,76,689.60 Thousands in 2021 and is expected to exhibit a CAGR of 5.30 % over the forecast period (2021-2028).
Key Takeaways
Key players operating in the saffron market are Safrante Global Company S.L.U., Evolva, Rowhani Saffron Co, Sara Nuts, Tarvand Saffron Co, Hijos de Eustaquio Abad Co. S.L., USMS Saffron Co.Inc, Royal Saffron Company. The demand for saffron is growing significantly across various industries including food & beverage, personal care, and pharmaceutical. Major factors such as increasing health consciousness, rising popularity of Mediterranean cuisine, and growing awareness about saffron’s medicinal properties are fueling the global demand for saffron. Key players are also expanding their geographical reach to untapped markets to gain higher revenue share.
The global Saffron Market Demand is increasing rapidly mainly attributable to its extensive usage in the food industry. Saffron, known as red gold, adds flavor, color, and health benefits to food products. Countries like Iran, India, Spain, Greece, and Morocco are the leading producers of saffron worldwide. Further, saffron cultivation is also spreading to newer regions creating availability across global markets.
With growing awareness about numerous health benefits of saffron, many regional players are expanding production to cater to surging global demand. The market is also witnessing new product launches incorporating saffron extracts in various personal care and pharmaceutical products. Saffron’s potential in treating chronic diseases like Alzheimer’s is expected to open new growth avenues.
Market key trends
One of the major trends gaining prominence in the global saffron market is the increasing demand for organic saffron. Consumers are preferring organic variants due to rising health consciousness. Additionally, the shorter cultivation period of organic saffron is encouraging farmers to shift to organic production. Players are actively promoting organic saffron to attain sustainability and premiumization. Another key trend is the widespread adoption of saffron in nutraceuticals due to its antioxidant and anti-inflammatory properties. Leading companies are innovating diverse portfolio including saffron supplements and infusions to leverage growth opportunities.
Porter’s Analysis
Threat of new entrants: Entry barriers like patents and need for large production facilities keeps threats low.
Bargaining power of buyers: Buyers have moderate bargaining power as saffron is an unique spice with few substitutes available.
Bargaining power of suppliers: Farmers have high bargaining power due to lack of mechanization in production and volatile supply worldwide.
Threat of new substitutes: No close substitutes available for saffron due to its unique taste and color qualities.
Competitive rivalry: Intense competition exists among existing players to dominate markets in terms of price and quality.
Geographical regions: Iran accounted for about 90% of the global Saffron Market Regional Analysis production in value terms during the historical period. Availability of ideal agro-climatic conditions and traditional farming practices facilitated its dominance.
Fastest growing region: Countries like Spain, Greece and India are witnessing fastest growth in saffron production and exports due to supportive government policies and emergence of contract farming. Growing utilization of saffron across cuisines globally is driving high demand from these regions.