Over the course of centuries, spices have become an essential part of our food. Spice traders in Asia, North Africa and Europe started trading products like cinnamon, cassia, cardamom, ginger, pepper, and turmeric thousands of years ago. The spice industry has expanded dramatically and worth billions of dollars today. The East still dominates the market. The value of the Indian spices export market stands at a massive $3.11 billion in 2020. India exported 1.08 billion kilograms of spices in 2020 to different countries in the world. South Asia’s spices have always been the most in-demand around the world due to their unique aroma and taste. Nevertheless, there are five major geographic regions for the spice market, namely North America, South America, Europe, APAC, and Middle East and Africa. The major countries for the market in these regions are as follows:
- North America: The U.S., Canada, Mexico
- South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
- Europe: The U.K., Germany, Italy, France, The Netherlands, Belgium, Spain, Denmark
- APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
- Middle East and Africa: Israel, South Africa, Saudi Arabia
Spices have a variety of end user industries including bakeries, cosmetics, pharmaceuticals, and most importantly the food and beverage industry. In the year 2018, the global spices market size stood at $8.4 billion. Due to increasing demand for spices on account of expanding urbanization, during the forecast period of 2019-2025, the spices market will experience growth with a standard compound annual growth rate (CAGR) of 4.80%.
The US is also a major player in the spice industry. With a market cap of over $23 billion, Maryland-based McCormick & Company Inc. (NYSE: MKC) is one of the largest spice companies in the world. In the first quarter, McCormick & Company (NYSE:MKC)’s revenue jumped 22%, beating the Street estimates by $110 million. Consumer segment sales jumped 35% to $946.8 million. Adjusted EPS in the period came in at $0.72, beating the Street estimates by $0.14. Based on these results, McCormick & Company (NYSE:MKC) increased its 2021 outlook. It now expects sales to jump 8% to 10% in the year on a year-over-year basis, compared to the previous project of 7% to 9%.
The primary usage of spices is in the food and beverages industry. In addition to retail customers, foodservice companies and restaurants are the biggest users of spices. Packaged food companies such as Tyson Foods, Inc. (NYSE: TSN) are known for their usage of spices in their popular spicy chicken nuggets. Moreover, the Premium Hot N Spicy Fully Cooked Breaded Chicken Breast Filet and the Hot and Spicy Chicken Wing are also products by Tyson Foods, Inc. (NYSE: TSN) that use large quantities of spices. Moreover, McDonald’s Corporation (NYSE: MCD) has a wide variety of spicy eatables such as its Spicy McCrispy, Hot ‘n Spicy McChicken, and Vegan Spicy Nuggets. The famous multinational brand KFC by Yum! Brands, Inc. (NYSE: YUM) also offers spicy items on its menu such as its Hot Wings, and the Nashville Hot Chicken. Restaurants such as McDonald’s Corporation (NYSE: MCD) and KFC by Yum! Brands, Inc. (NYSE: YUM) are known for their spicy food options.
This also has to do with the changing consumer trends. Customers, especially in the Asian markets, prefer spicy foods. That’s why companies like McDonald’s Corporation (NYSE: MCD), Yum! Brands, Inc. (NYSE: YUM) and Tyson Foods, Inc. (NYSE: TSN) are increasing their spicy food offerings.
Changing Trends in the Spice Industry
Spices are consumed not only by the food & beverage industry. The cosmetics industry is also using spices for their organic and healing properties. Herbs such as rosemary and sage are prevalent in the essential oils market for their distillation and the beneficial properties of their essences. They are further used for making perfumes and colognes. The perfume industry utilizes many spices including clove, vanilla, and cinnamon in their range of fragrances. Makeup artists are now spreading the usage of cosmetics in making face packs and hair masks out of spices on account of their medicinal properties. This trend has the potential to disrupt the spices market in the upcoming years and shift the focus of spices market slightly from the food and beverage industry towards the cosmetics industry.
Impact of the Coronavirus
Due to the coronavirus and consequent lockdowns in many parts of the world, there has been a sharp decline in the demand of spices. For example, within a week of the Indian borders closing, the price of Indian cardamom dropped by 50%, and the price of Vietnamese pepper decreased by about 10%. In Europe, however, people feared scarcity, and started to buy huge amounts of shelf‑stable food, including condiments and spices. These included mixed spices and sweet spices, such as cinnamon, allspice, ginger and nutmeg.
Moreover, the spices that were considered to strengthen the immune system such as turmeric, ginger and garlic, rose in demand. Despite higher retail prices for these spices, buying did not slow down. According to industry sources, the demand for turmeric and ginger for food supplements increased by 300%. The Indian government recently decided to invest in private-public partnerships to increase the production of turmeric to meet the growing demand. This decision was made during the Indian border lockdown.
The spice industry saw a boost thanks to an increased demand from companies like McDonald’s Corporation (NYSE: MCD), Yum! Brands, Inc. (NYSE: YUM) and Tyson Foods, Inc. (NYSE: TSN) that scrambled to keep up with the rising demand of orders as people continued to stay at home and order food and groceries online.
With this context and industry outlook in mind, we now discuss the 15 largest spice companies in the world.
Largest Spice Companies in the World
15. Rajesh Masala
Rajesh Masala, also known as Rajesh Spices, is an Indian producer, distributor, and supplier of ground spices. The company prides itself on its efficiency and hygienic methods as it uses modern equipment and plant machinery in its production and packaging processes. Moreover, Rajesh Spices conduct regular surveys in its target market to understand customer needs, choices, and eating habits. Using the gathered data, the company strives to improve and innovate in its products. The company’s most purchased spices are its Sambhar masala, Shahi Paneer masala, and Meat masala. Moreover, the company sells blended spices for sweetmeats. The reported revenue of Rajesh Spices in 2020 was $136,000.
The company ranks 15th in the list of the largest spice companies in the world.
14. The Watkins Company
The Watkins Company was initiated in 1866 and is committed to making high quality, authentic products from natural ingredients. Even at present, the company prides itself on using all-natural ingredients for all its products. The company is especially known worldwide for its Madagascar Bourbon Pure Vanilla and the Granulated Black Pepper which has won gold medals and awards. Moreover, The Watkins Company offers a wide assortment of extracts, spices, blends, seasonings, baking mixes, and food colors. Other popular products of the company are its cumin, parsley, garlic powder, oregano leaves, black pepper, chili powder, and red pepper. In 2020, the company reported a revenue of $10 million.
SpicesInc.com originated as a small e-commerce business by a couple in 2008 from a spare bedroom of their house. The company manufactured spices, marketed them using its website, and delivered them solely via United Parcel Service, Inc. (NYSE: UPS) and FedEx Corporation (NYSE: FDX). Gradually, the company shifted to a warehouse and grew substantially. Presently, the company has reported revenues of $15 million in the year 2020 and shows good prospects for growth in 2021. Even now, the company hand-blends its spices and packages them manually as it strives to remain true to its soul and provide authentic gourmet spices to its customers. The most popular products by SpicesInc.com are its Cajun Seasoning, Pennsylvania Pepper, Ground Nutmeg, Ginger Powder, and Mediterranean Oregano.
The company ranks 13th in the list of the largest spice companies in the world.
12. Tony Chachere’s
Tony Chachere founded the Tony Chachere’s Creole Foods seasonings and ingredients brand. The company produces a wide range of spices, seasoning blends, dinner mixes, marinades, sauces, batters, and frozen items. Moreover, the company also has a variety of cookbooks on its product list. The most popular product of the brand is the Tony Chachere’s Original Creole Seasoning. The revenue reported by the company for the year 2020 is $21 million. The company ranks 12th in the list of the largest spice companies in the world. Like McCormick & Company Inc. (NYSE: MKC) , Tony is one of the largest spice companies.
11. Empresas Tajín
The company has a Mexican origin with its headquarters in Zapopan, Jalisco, Mexico and was founded by Horacio Fernandez in 1985. Empresas Tajín manufactures and distributes a variety of spices and condiments. Tajín Clássic Seasoning, also commonly referred to as Tajín, is its most popular condiment, and is used as an all-purpose seasoning for all kinds of dishes. The spice was originally manufactured to liven up and elevate the flavor of fruits, vegetables, drinks and more. Moreover, the brand’s website also features Tajín recipes for inspiration about the usage of its spices. The company’s products are sold online as well as in more than 24,000 locations across the United States. In 2020, Empresas Tajín reported a revenue of $44.5 million.
The company ranks 11th in the list of the largest spice companies in the world.
10. Badia Spices
Badia Spices, established in 1967, is a family-owned Hispanic company that manufactures, markets, packages, and distributes its products to more than 70 countries worldwide. The various product lines that Badia Spices deals with includes spices, sauces, teas, seasonings, and marinades. Moreover, it offers organic and gluten-free products to its customers, keeping up with the times. The company is also associated with Safe Quality Foods (SQF) which rigorously audits food safety management, therefore making Badia Spices more credible for its customers. Badia Spices sells its products to customers, food distributors, and the foodservice industry. Its most popular products are its complete seasoning, garlic and parsley seasoning, mojo marinade, and crystallized ginger. The annual revenue reported in 2020 by Badia Spices was $60.38 million. Increasing demand of spices from companies like McDonald’s Corporation (NYSE: MCD), Yum! Brands, Inc. (NYSE: YUM) and Tyson Foods, Inc. (NYSE: TSN) are helping spice companies like Badia and McCormick & Company Inc. (NYSE: MKC).
The company ranks 10th in the list of the largest spice companies in the world.
9. Weber-Stephen Products
The daughter company of Weber-Stephen Products that deals with spices is named Weber Sauces and Seasonings. The company manufactures, packages, and distributes seasonings, sauces, rubs and marinades produced specifically for all kinds of meats and vegetables. The founder of the company, George Stephen, invented the kettle grill. Subsequently, Weber Sauces and Seasonings produces seasoning blends, rubs, marinades, sprays, and sauces especially for the purpose of grilling food. Therefore, the most popular products by Weber Sauces and Seasonings are its array of barbeque sauces, barbeque seasonings, steak seasonings, and honey garlic rub. The reported revenue of Weber Sauces and Seasonings in 2020 was $96.39 million. Like McCormick & Company Inc. (NYSE: MKC), B&G Foods, Inc. (NYSE: BGS), Weber-Stephen is one of the largest spice companies in the world.
MDH is the business name of Mahashian Di Hatti Private Limited, an Indian producer and distributer of spices that is based in New Delhi, India. The company has the second largest share in the Indian market right after the spices sold by Everest Industries Limited (NSE: EVERESTIND.NS). The brand sells over 62 different variants of spices, all pf which are reportedly free of preservatives. Some popular products by Mahashian Di Hatti Private Limited are Chana Masala, biryani Masala, and Kitchen King Mixed Spices Powder. Along with India, the company distributes its products to the United States of America, Canada, United Kingdom, Europe, South East Asia, Japan, U.A.E. and Saudi Arabia. The revenue of MDH in 2020 was $126 million.
MDH ranks 7th in the list of the largest spice companies in the world.
B&G Foods was established in 1889 primarily as a holding company for branded foods. The name originated from the Bloch and Guggenheimer families who originally sold pickles in Manhattan. However, presently, the company has about 2,500 employees and is based in Parsippany, New Jersey. As part of its growth strategy, B&G Foods, Inc. (NYSE: BGS) has been acquiring various brands. One of its daughter brands is Spice Islands, which is famous for its Saigon Cinnamon, Cumin, Bay Leaves and many more spices, seasonings, dried herbs, extracts, and flavorings. Moreover, The revenue reported by B&G Foods, Inc. (NYSE: BGS) for the fiscal year 2020 was $132 million.
B&G Foods, Inc. (NYSE: BGS) ranks 7th in the list of the largest spice companies in the world.
6. Shan Foods
Shan Foods Limited, headquartered in Karachi, Pakistan is a producer, distributor, and exporter of packaged spice mixes used in Pakistani cuisine. The company was established in 1981 by Sikander Sultan as a single-room operation. Currently, the company’s products are exported to over 65 countries in 5 continents such as in the United States, UAE, and Saudi Arabia. The company sells a wide range of products from pure and mixed spices to sauces, cooking pastes, instant noodles, and even dessert mixes. The high popularity of the products of Shan Foods is due to the reduction in time required to make traditional meals. The most popular products by the company are Karahi Masala, Sindhi Biryani Masala, and Vegetable Masala. The reported revenue of the company in the year 2020 was $157 million. Like McCormick & Company Inc. (NYSE: MKC), Shan is one of the largest spice companies in the world.
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Disclosure: None. 15 Largest Spice Companies in the World is originally published on Insider Monkey.