Saffron Market to Witness Steady Growth Due to Wide Range of Health Benefits

The global saffron market accounts for a significant share of the spice industry. Saffron, which is derived from the flower of Crocus sativus, is one of the world's most expensive spices due to complex and labor-intensive process of manual harvesting. Saffron has wide applications in food & beverages, personal care & cosmetics, and pharmaceuticals industries. In the food sector, saffron is used to enhance flavors and colors in dishes. The spice is known to impart a slight bitter taste along with hints of nuttiness and hay-like fragrance to food. Saffron demand is increasing in personal care sector for its anti-inflammatory and antioxidant properties that help treat various skin conditions. It is also valued for boosting mood and reducing symptoms of depression in the pharmaceutical industry.

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).

Key Takeaways

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. The dominance of Iranian saffron is gradually diminishing due to expansion of production areas in other countries including India, Greece, Morocco, Spain and certain Central Asian countries. This is generating opportunities for new regional players to enter the market. Major companies are focusing on strategic partnerships and collaborations to expand globally and increase Saffron Market Demand. Growing health awareness is prompting consumers to use saffron as a natural ingredient in food, personal care and herbal medicine, thereby driving global expansion of the market.

Market Drivers

One of the key drivers of the saffron market is the wide range of health benefits associated with its consumption. Saffron contains antioxidants like zeaxanthin, lycopene, alpha-carotene and beta-carotene that helps improve eye health and fight cancer and heart diseases. Its anti-inflammatory properties help manage arthritis, asthma and skin issues like acne. Saffron is beneficial for mental health as it has compounds like crocin and safranal that boost mood and reduce symptoms of depression.

Market Restraints

he major restraint faced by the saffron market is its high production cost owing to extensive manual labor involved. Nearly 50,000 crocus flowers from which only 200-350 stigma are harvested daily are required to produce a kilogram of saffron. As a result, saffron remains an expensive spice and its mass consumption gets restricted to high income classes only. Concerns regarding adulteration of saffron due to similarity of color and taste with other substitutes acts as another major challenge for the market.

Segment Analysis

The saffron market is dominated by saffron threads sub-segment due to its high usage in cooking and food applications. Saffron threads are dried stigmas of Crocus sativus flowers, which are commonly used to flavor foods and impart color. They contain chemical compounds such as crocin, picrocrocin and safranal which are responsible for saffron's flavor, aroma and bright yellow-orange color. Over 80% of saffron produced worldwide is used as saffron threads, which are easily available globally through retail and business to business distribution channels.

Global Analysis

Regionally, Iran accounted for around 90% of the global saffron production owing to suitable agro-climatic conditions for saffron cultivation. However, countries including India, Greece, Spain, Italy and Morocco are emerging as major cultivators and exporters of saffron. The European market is the largest consumer of saffron globally, driven by demand from countries such as Spain, Italy, Germany and Switzerland. Europe accounts for approximately 60% of the total saffron consumption due to widespread applications in food preparations. The Asia Pacific region is poised to grow at a significant pace during the forecast period due to rising popularity of saffron in cuisines from countries including India, China and Japan.