Saffron is a spice famously known as costliest spice in the world is the bright red color stigma obtained from a flower. Demand for saffron is high as it contains antioxidants such as zeaxanthin, lycopene, a- and ß-carotenes that protect humans from stress, cancers, infections, and also act as immune modulators. In addition it has many therapeutic applications which has increased its demand in the pharmaceutical industry. These properties of saffron are expected to drive market growth over the forecast period.
According to latest report, titled “Saffron Market: Industry Trends, Share, Size, Grsowth, Opportunity and Forecast 2020-2027”, The global saffron market size was valued at USD 881.7 million in 2019 and is anticipated to attain a revenue-based CAGR of 7.3% from 2020 to 2027. It means the market size is expected to reach USD 1.6 billion by 2027.
The growing food industry, improved standard of living, and increasing consumer disposable income are likely to trigger the demand for saffron products over the coming years. It is majorly used in the food industry to add flavor, aroma, and color to the food products. Accelerating popularity in the medical application due its calming and soothing properties is adding key growth constituent to saffron business; apart from this its organic factor has also germinated its abundant usage in pharma industries in the forecasted time period of 2020 to 2027.
Example: In 2015, the saffron market for target countries (Netherlands, Iran, U.S., U.K., Germany, France, Spain, China, Belgium, Luxembourg & Italy) was valued at nearly US$ 350 Mn which is expected to reach nearly US$ 480 Mn by 2021 end. The saffron market for target countries is expected to be valued at nearly US$ 620 Mn by the end of 2026, registering a CAGR of 5.3% over the forecast period. The market is estimated to represent incremental opportunity of nearly US$ 270 Mn between 2016 and 2026.
Also, The Organic Saffron Market is projected to be valued at USD 395.15 Million by the end of 2024 with registering 6.10% CAGR during the forecast period of 2019–2024.
Based on the report, In terms of volume, Asia Pacific held the largest market share in 2019 and is likely to expand at CAGR of 6.9% from 2020 to 2027 owing to increasing exports and domestic demand for natural ingredients. India is one of the largest market of saffron . In addition, growth in healthcare and food and beverage industries is likely to propel the demand for saffron in developing economies such as China and India over the next few years.
In terms of production, Iran is the largest country with a share of over 90% at a global level. However, exports are less as compared to production owing to a higher percentage of re-exports from France, Italy, and Spain. Growing production of saffron in Afghanistan is likely to affect the market dynamics over the coming years. Other key producers include Spain, Italy, India, Greece, Morocco, and Azerbaijan.
Last Point: Adverse effect of counterfeit saffron
Growth of the global saffron market is being impacted due to the production of fake saffron. Counterfeit saffron is sold at far lower prices, which is affecting overall market growth. The trade of counterfeit saffron is affecting consumer purchasing decisions and negatively impacting the goodwill of manufacturers. In addition, with reduced market credibility, there is a lack of government regulations and steps to control the flow of counterfeit saffron in the market, which is further expected to restrain market growth during the forecast period.”