Saffron is a red coloured dried stigma extracted from the Crocus Sativus Linnaeus plant. Saffron extract constitutes three significant components, namely, Picrocrocine, Safranal, and Crocine, which are responsible for the bitterness, colour, and aroma of saffron extract, respectively. In the food industry, saffron extract is used as a food colouring and flavouring agent, as it gives a passionate yellow colour to the food product, and adds a pleasing aroma and flavour to too. Apart from its application in the food industry, saffron extract is used in medicines and pharmaceuticals for preventing and curing illness.
The versatility and proficiency of saffron makes it the king of spices, and opens the way for the saffron extract market.
The multi functionality of saffron extract has resulted in increasing market opportunity for the same. With the growing food and beverage industry, the demand for saffron as a colouring and flavouring agent is growing. Besides, the health benefits associated with saffron extract are fuelling its demand in the market. Saffron extract is used in the formulation of medicines and pharmaceuticals due to its mutation preventing, anti-inflammatory, cancer suppressing, immune modulating, and antioxidant properties.
With hectic lifestyles and increasing mental health issues in the population, the demand for saffron extract is expected to increase pace in the near future, as saffron extract is nowadays used as an antidepressant to pacify nervous tension and prevent symptoms such as anxiety, sociophobia, and loss of libido. Also, the potential of saffron extract as a dietary and weight loss supplement is expected to lead to growing market demand for the extract over the forecast year.
Saffron Extract Market: Market Segmentation
Saffron market is segmented of the basis of form and application. The growth among segments helps you analyse niche pockets of growth and strategies to approach the market and determine your core application areas and the difference in your target markets. On the basis of form, the global saffron extract market has been segmented as:
Future insight market reported that The thread segment was estimated to account for a value share of 55.8% by 2016 end. The thread segment is expected to remain dominant in terms of value over the forecast period. However, this segment is expected to lose 400 BPS by 2026 over 2016. The thread segment is anticipated to register a CAGR of 4.5% in terms of value over the forecast period.
The powder segment was estimated to account for a value share of 38.6% by 2016 end. This segment is expected to gain 510 BPS over the forecast period and account for a value share of 43.7% by 2026 end. Increasing usage of the powder form of saffron for application in the food & beverages industry and in medical applications is expected to support revenue growth of the segment over the forecast period.
The liquid segment was estimated to account for a value share of 5.6% by 2016 end. This segment is expected to lose 100 BPS over the forecast period. The powder segment is expected to register a relatively high CAGR during the forecast period. The liquid segment is projected to exhibit moderate growth registering a CAGR of 3.1% in terms of value over the forecast period. Low availability of products in liquid form may restrain revenue growth of the related segment over the forecast period.
On the basis of application, the global saffron extract market has been segmented as:
- Food Additives
- Medical and Pharmaceuticals
- Dietary Supplements
- Fragrance and Aromatherapy
- Cosmetics and Skin Care
Opportunities for Saffron Extract Market participants:
Saffron is native to Southwest Asia, and is the most exclusive and expensive spice in the world, due to the effort in manually extracting a large number of tiny stigmas from the flowers of the Crocus Sativus Linnaeus plant. Iran, India, Greece, Spain, Morocco, Italy, and Azerbaijan are dominant saffron producing countries, whereas, Europe and North America are the largest importers of saffron extract.
Saffron extract will see an increasing demand in regions such as Asia Pacific and Western Europe due to the immense popularity of saffron spice as a food colouring and flavouring agent. With the increasing health and wellness conscious population, the demand for saffron extract is expected to be boosted over the forecast period, owing to its numerous preventive and curative health benefits in medicines and pharmaceuticals. The need for saffron extract is also anticipated to increase in the future, seeing its potential as a dietary and weight loss supplement, and its ability to treat the symptoms of depression and anxiety in people. Regions such as North America, where a majority of the population is suffering from obesity and mental health issues, are likely to be primary consumers of saffron extract, resulting in increasing market opportunity.