Top 25 Spice Producing Countries in the World
In this article, we look at the top 25 spice producing countries in the world. You can skip our detailed analysis on the spice industry and head over directly to the Top 10 Spice Producing Countries in the World.
Spices are used in both fresh and dry form for seasoning and preservation of food, as well as adding flavor to it. They are the 618th most traded product in the world, according to The Observatory of Economic Complexity (OEC).
In addition to being used by the food and beverages industry, spices are also now being widely utilized by the cosmetics industry due to their organic and healing properties. A number of herbs and spices are used as ingredients in the production of perfumes and colognes, such as cinnamon, vanilla, saffron, chili pepper, ginger, coriander, and cardamom. Terre d'Hermès first used black pepper in its Hermès Twilly perfume to create a warm and sensual fragrance. On the other hand, vanilla is widely used as an ingredient in several other perfume brands, including but not limited to Saint Laurent, Dior, and Chanel.
The global spices and seasoning industry is estimated to have had a value of approximately $18 billion in 2021, and is projected to grow to $25.4 billion by 2029 at a compound annual growth rate of 4.67%, as noted by Fortune Business Insights. Asia on a whole constitutes more than 80% of all production of spices, a major chunk of it coming from southern Asia. Some of the largest spice companies in the region include India’s Everest Food Products Pvt Ltd and Mahashian Di Hatti Private Limited (MDH), which both together hold around 30% share of the country's spice market.
Everest's products are stocked by more than 400,000 stores nationwide. According to the company’s website, 20 million households in India use Everest’s products every day and more than 3.7 billion packs of Everest are sold each year. The company’s product range comprises more than 200 products, which includes 52 different spices that are sold across 80 countries. Shan Foods, headquartered in Karachi, Pakistan is another large spice company that sells a variety of pure and mixed spices, and also maintains a product line of cooking pastes, sauces, and dessert mixes. Founded in 1981, the company exports its products to 65 countries across 5 continents. Shan Foods generated a revenue of $490 million in 2021.
Spice Market in the United States
The United States is the largest spice importing country in the world, with an import bill of $1.99 billion in 2022, an increase of 7.16% compared to 2021. Wide use and demand for spices in the country is forcing companies in the spice industry to adopt new trends to become more efficient and what they do.
McCormick & Company, Incorporated (NYSE:MKC), the largest spice company in the world, employs artificial intelligence to come up with new flavors to tantalize consumer taste buds. The company in 2019 announced that it was working with IBM to build an AI system that mines 40 years of data and information related to spices to help the management come up with new spice combinations. McCormick & Company, Incorporated (NYSE:MKC) is the global leader in the manufacturing and distribution of spices, seasoning mixes, and other flavor-enhancing products to retailers and food businesses. Its products are sold in over 170 countries. In 2022, McCormick & Company, Incorporated (NYSE:MKC) recorded $6.35 billion in sales.
On the other hand, several corporations are venturing into the spice segment by establishing units dedicated to the commodity. American food company B&G Foods, Inc. (NYSE:BGS) acquired Spice Island, Tone’s and Durkee brands of the spice and seasoning business of ACH Food Companies in 2016 for $365 million. The rationale behind B&G Foods, Inc. (NYSE:BGS)'s decision was to venture into the spice industry and reap rewards due to its high demand in the United States.
At the time of acquisition, B&G Foods, Inc. (NYSE:BGS) projected its new business unit to generate over $220 million per annum in revenues after it gets fully integrated. The company announced to reorganize itself into four units in 2022 – spices and seasonings, frozen and vegetables, meals, and specialty. The spice segment is forecasted to make 18% of all net sales.
The Kraft Heinz Company (NASDAQ:KHC), this year, announced plans to bring Just Spice, Europe’s favorite spice brand to the United States, a year and a half after it acquired a majority stake in the business. Just Spices sells mixed spice blends to consumers through online and retail channels. The Kraft Heinz Company (NASDAQ:KHC) in 2021 took over 85% of the shareholding of the Germany-based startup that had a product portfolio of 170 items, generating sales of €60 million. Rafael Oliveira, the international zone president of The Kraft Heinz Company (NASDAQ:KHC) described the deal as an opportunity to further accelerate his company’s growth and anticipate trends in consumer preferences.
Kitchenware providers are also looking to take advantage of the business potential offered by the spice industry. Lifetime Brands, Inc. (NASDAQ:LCUT), for instance, offers a Free Spice Refill incentive for its customers if they purchase its spice rack from any authorized dealer. After doing so, customers that register with the company get free spice refills for the next five years, excluding shipping costs. Lifetime Brands, Inc. (NASDAQ:LCUT) is a listed kitchenware company whose shares are traded on NASDAQ.
Methodology
We have ranked the top 25 spice producing countries in the world using data released by The Food and Agriculture Organization (FAO) of the United Nations in 2021. This is the latest year for which data on food production is available. Items ranging from pepper, chili, capsicum, ginger, garlic and coriander to anise, badian, cumin, nutmeg, cardamom, cloves and cinnamon among several other spice and aromatic crops were considered for this article. Countries are ranked in ascending order of spice production volume in tonnes. Moreover, we have also included information related to spice trade for each country in our list. The figures were sourced from The Observatory of Economic Complexity (OEC).
If interested, also take a look at the 15 Largest Spice Companies in the World.
Let’s now head over to the list of the top spice producing countries in the world.
25. Burkina Faso
Production (tonnes) in 2021: 74,381
Burkina Faso is a country in West Africa. Spices are the 64th most exported products of the country, which generated $677,000 in revenue in 2021. Germany is the largest importer of spices grown in Burkina Faso.
24. Peru
Production (tonnes) in 2021: 88,140
Peru ranks 24th on the list of top spice producing countries in the world. Spices commonly grown and found in the South American country include black pepper, cinnamon, basil, chincho, cloves, and oregano among others.
23. Egypt
Production (tonnes) in 2021: 89,239
Next up is Egypt, where the spices and herbs market is valued at $150 million, according to Market Research Future. Cumin is the most commonly used spice in Egypt. It is also termed as the country’s ‘staple spice’ for its wide use in local dishes.
22. Morocco
Production (tonnes) in 2021: 89,748
Morocco is a country located in North Africa. It exported spices worth nearly $10 million in 2021. The five most common spices in Morocco are cumin, saffron, ginger, turmeric, and black pepper.
21. Russia
Production (tonnes) in 2021: 90,063
Russian spices like caraway seeds, chervil, and sorrel among various others add great tastes, flavors and zests to local cuisines. The country is among the 21st largest producers of spices in the world.
20. Cameroon
Production (tonnes) in 2021: 104,256
Spice production in Cameroon is projected to rise at a compound annual growth rate of 0.7% between 2021 and 2026. The country exported $441,000 in spices in 2021. The three top buyers of Cameroon’s spices were France, Canada, and the United States.
19. Ghana
Production (tonnes) in 2021: 111,871
Garlic, chili peppers, and cumin are the most used spices in Ghanian cuisine. Spices are the 166th most exported product by Ghana, and earned the country $631,000 in exports in 2021. The United States, United Kingdom, Netherlands, Canada, and Australia were the top five buyers of Ghana's spices in 2021.
18. Brazil
Production (tonnes) in 2021: 118,057
Brazil is the largest producer of coffee, and also ranks among the top spice producing countries in the world, with an estimated production volume of nearly 0.12 million tonnes in 2021. The country exports spices worth over $60 million each year.
17. Benin
Production (tonnes) in 2021: 137,226
Benin, located in West Africa, is a major producer of chillies and peppers. Cinnamon, cloves, nutmegs, chillies and pepper are some of the spices that are grown in Benin.
16. C?te d'Ivoire
Production (tonnes) in 2021: 138,327
C?te d'Ivoire, also known as Ivory Coast, has had a steady output of spices, over 120,000 tonnes each year. The country is located in West Africa, and borders Burkina Faso to the north – which is another large spice producing country. More than 40,000 tonnes of spices are consumed in Ivory Coast each year.
15. Sri Lanka
Production (tonnes) in 2021: 138,464
Sri Lanka is one of the largest and finest producers of tea. A number of spices are also grown in Sri Lanka, such as nutmeg, cardamom, clove, and pepper. It exported spices worth over $9 million in 2021. The United Kingdom is the largest importer of Sri Lankan spices.
14. Myanmar
Production (tonnes) in 2021: 147,949
A wide variety of spices are grown in Myanmar, including garlic, ginger, turmeric, chili and coriander. The country’s spice production is projected to grow at a compound annual growth rate of 0.4% between 2021 and 2026.
13. Mexico
Production (tonnes) in 2021: 213,378
Mexico does not only rank among the largest spice producing countries in the world, it also has a high spice consumption rate, estimated to be 150,000 tonnes each year. Production of spice in Mexico has grown by 3% per annum since 2017. Coriander, Mexican oregano, anise, cacao, and cinnamon are some of the most commonly used spices in Mexican cuisine.
12. Yemen
Production (tonnes) in 2021: 214,411
Yemen is a country in the Middle East that grows a large volume of spices such as cardamom, chili peppers, and cumin. Yemen exported nearly $700,000 worth of spices in 2021. Neighboring Saudi Arabia was the largest buyer of Yemeni spices and had an import order of $435,000 that year.
11. Pakistan
Production (tonnes) in 2021: 219,739
Pakistan generated $87 million in export revenue of spices in 2021. Major destinations Pakistan exports its spices to are Saudi Arabia, the United States, and the United Kingdom. The country is also home to one of the world's most familiar spices or masala brand, Shan Foods.
Click to continue reading and see the Top 10 Spice Producing Countries in the World.
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Disclosure: None. Top 25 Spice Producing Countries in the World is originally published on Insider Monkey.