Saffron is a spice extracted from the flower of Crocus sativus plant. It is highly valued for its vibrant color and distinct flavor. Saffron is mainly used as a food additive to enhance color, texture and flavor in dishes. It also finds extensive applications in cosmetics and personal care products due to its anti-aging properties.
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).
Saffron adds natural golden yellow color and woody, honey-like fragrance to food. It is commonly used in paella, risottos, seafood, spice pastes and desserts. Saffron has high medicinal value as well. It contains antioxidants like zeaxanthin, lycopene and alpha-carotene along with vitamins like riboflavin, pantothenic acid and niacin. Owing to these health benefits, Saffron Market Demand is increasing among health conscious consumers. The market is further propelled by constant introduction of novel saffron based food products.
Key Takeaways
Key players: 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.
Growing demand: Rising applications of saffron in food, cosmetics and pharmaceuticals has augmented the global demand. Changing consumer preferences towards herbal beauty products is a major factor driving market growth.
Technological advancements: Players are focusing on developing innovative production techniques to improve saffron yield and quality. Adoption of hydroponics and vertical farming is helping increase per acre saffron production.
Market Trends
Increasing Organic Saffron Cultivation: Organic saffron cultivation is gaining traction as it does not use synthetic fertilizers and toxic pesticides. Major producers like Iran are shifting towards organic practices to cater to health conscious consumers.
Rising E-commerce Sales: Online retail platforms are effectively marketing unique saffron products to global buyers. E-retailers showcase product information, manufacturing process and certificates to regain customer trust.
Market Opportunities
Development of Novel Applications: Extensive research on medicinal uses of saffron can lead to new drugs and therapeutics. Cosmetic firms are experimenting with saffron in anti-aging creams and serums.
Emerging Markets: Latin America, Eastern Europe and Asian countries offer immense potential for saffron market. Favorable climatic conditions allow large-scale cultivation and ensure supply security.
Impact of COVID-19 on Saffron Market Growth
The COVID-19 pandemic has significantly impacted the saffron market growth during 2020-2022. With the implementation of lockdowns and travel restrictions imposed worldwide, the supply chain networks were disrupted. This led to a decline in saffron production and trade activities across major producing and exporting countries like Iran, Greece, India and Spain. The demand from end-use industries like food & beverages and pharmaceuticals also witnessed a downfall due to decline in consumer spending and preference for essential goods only during the pandemic.
Though restrictions are being lifted now in many parts of the world, the recovery of saffron market has been slow. Challenges like workers shortage, rising input costs, higher freight charges are still affecting the operations. However, with increasing vaccination rates and revival of economic activities, the saffron demand is gradually recovering since 2022. Major food brands and pharmaceutical companies have started utilizing saffron again in their products which is supporting market growth. The e-commerce sector is also boosting saffron sales. Considering the improving conditions, the market is expected to regain its pre-pandemic size by 2024-2025 backed by consistent efforts from all stakeholders.
Iran dominates the world saffron production, accounting for over 90% of global supplies. Other major producing countries are Greece, India and Spain. Iran cultivates saffron on over 10,000 hectares annually, with East Azerbaijan province being the leader. In value terms as well, Iran contributes more than 70% to the global trade of saffron. Apart from production, Iran is also a prime exporter catering to various international markets.
The saffron market in India has expanded at a significant pace in the last decade. States like Jammu & Kashmir, Himachal Pradesh and Uttarakhand are the major domestic suppliers. Jammu & Kashmir produces over 5 metric tonnes annually and has witnessed 25% rise in sowing area over the years. With increasing cultivation, the output from this region is expected to increase further, driving the Indian saffron market.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
