Spices, Essential Oils & Oleoresins Market Trends

Europe offers interesting opportunities for companies that export spices and herbs. The increasing interest in international ethnic cuisines combined with the healthy living trend offers opportunities for exporters from developing countries. European importers are also looking for high-quality and sustainably sourced spices and herbs, which can provide opportunities for suppliers interested in following production and sustainability standards. On this page you'll find answers to important questions about how you can get spices and herbs on the market in Europe.

The increasing interest in international ethnic cuisines combined with the healthy living trend offers opportunities for exporters from developing countries. European importers are also looking for high-quality and sustainably sourced spices and herbs, which can provide opportunities for suppliers interested in following production and sustainability standards.

European demand for cardamom is slowly but steadily growing. Important European markets for cardamom are the United Kingdom, the Netherlands, Germany and Scandinavian countries. These countries use cardamom in several traditional recipes. Europe also has an increasing population of Asian descent interested in recipes containing cardamom.

The European market currently provides excellent opportunities for trading in cinnamon, due to continued rises in import levels and favourable prices. Europe is mainly a cassia market, but opportunities for Ceylon cinnamon are present in specific countries and segments. The United Kingdom, Italy and Belgium import a much larger share of Ceylon cinnamon than the European average. There are also good prospects for sustainable suppliers and those supplying processed cinnamon.

The market for cloves is relatively small, and has been stable over the past five years. Madagascar and Sri Lanka are the biggest suppliers on the European market, although supplies from developing countries have decreased on average. Suppliers that operate according to food safety principles have an important competitive advantage in the European market.

Although pepper production has increased and prices have slightly decreased, a sense of scarcity continues in the pepper industry. European companies are constantly looking for suppliers that can offer sustainable supplies of good-quality pepper and that comply with food safety requirements. It is even better if your pepper can be traced back to the source. Opportunities are also growing for crushed pepper.

Although the market for nutmeg is relatively small and has been shrinking, suppliers of high-quality nutmeg may expect to do well in the European market. Indonesia is by far the biggest supplier. Smaller suppliers such as Vietnam and Grenada are expected to increase their market share in the coming years. Suppliers that operate according to food safety principles have an important competitive advantage in the European market. Sustainability is in demand as well.

The European market offers interesting opportunities for coriander seeds as the popularity of Asian food continues to increase. The most important European buyer of coriander seeds is the United Kingdom, where demand continues to grow. Other European countries also rely greatly on the coriander seed supply from developing countries. This brings opportunities for you as a supplier.

The European market is promising for turmeric suppliers from developing countries. Turmeric has many health benefits that meet the needs of European consumers. European buyers are already familiar with turmeric and its applications in the health product industry, which creates an opportunity for suppliers of turmeric from developing countries.

Dried Moringa oleifera powder is mainly used in nutritional supplements in the European health products sector. Demand for such products is forecast to grow in the coming years. The main drivers are increasing life expectancy of European consumers, rising disposable incomes and growing consumer awareness. Health product companies are looking for natural ingredients that give active and functional properties to their products, whilst consumers are looking for natural alternatives to synthetic products.

The popularity of spicy food contributes to the increasing demand for dried chillies on the European market. European dried chilli consumers prefer mild chilli varieties and are showing interest in the authentic and new chilli flavours. Spain is the largest dried chilli importer in Europe but the market is largely concentrated by the import of cheap dried chillies from China. Therefore opportunities for new developing country suppliers can be found in less concentrated markets such as Germany, the United Kingdom, the Netherlands, France and Poland.

Europe is an interesting and growing market for exporters of dried ginger. The demand is expected to grow in the coming years and prices are slowly rising. The most interesting markets are the top three markets in Europe: the Netherlands, the United Kingdom and Germany. These countries import huge volumes of ginger from developing countries, which makes them good focus markets. In addition, also Italy and Spain could be interesting for reasons of size and direct imports coming from Developing Countries.

The European market for value-added spices and herbs directly sourced in developing countries, such as crushed or mixed, is growing, but competition with European processors remains fierce. Especially for consumer-packaged spices and herbs, competition from European companies is very strong. As an exporter already supplying whole spices and herbs, the first step in adding value to your product would be to try and sell crushed or ground spices and herbs. You can then choose to also sell mixtures or even a consumer-packaged variety. An important first step to value addition is investing in the quality and food safety of your product.

There is a big opportunity on the European market for suppliers from all countries of origin who can deliver high-quality vanilla. Structural problems in the world’s leading supplier, Madagascar, has created a vast shortage of supply, providing room for others. A special opportunity exists for suppliers who apply sustainable practices or who hold organic or Fairtrade certification.

On the competitive European market for vanilla extracts, you can gain a competitive advantage if you offer extracts with unique specifications. European buyers are particularly interested in extracts from sustainably sourced vanilla. Expect competition from both natural vanilla and synthetic vanillin.

Aromatherapy products are gaining popularity in Europe. The reason is that European consumers are looking for more natural and green ways to improve and maintain their health. As a result, the demand for essential oils is increasing in Europe. It is expected that this trend will continue, as essential oils offer many beneficial properties and can be used as a complementary treatment to conventional healing methods.

The growing European market for oleoresins offers many opportunities. Increasing competition for the spices, herbs and other raw materials for oleoresin extraction stimulates European importers to search for new sources. For you as an exporter, the production of oleoresins can be much more profitable than the production of the raw materials alone. European buyers are looking for this added value, because they can use the oleoresins to manufacture a wide range of foods. They particularly value the natural origin of oleoresins. This aspect requires extra attention on your part to natural and sustainable production processes.

Paprika oleoresin fits very well within the clean labelling trend in Europe. However, European buyers have difficulty securing paprika oleoresin of good quality. If you are able to guarantee consistent quality and quantity of paprika oleoresin, you can explore the many opportunities that the European market offers.