Saffron market

Definition of Market/Industry:

Saffron is a type of spice that is used across a wide range of end-user industries such as pharmaceutical, food &beverage, etc. Saffron is derived from stigmas of the crocus sativus or autumn crocus flower. After harvesting it is dried and utilized as coloring and flavoring agents across various food products applications in order to add flavor to the dishes.

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).

Recent Developments:

1. 9^th June 2020,The Institute of Himalayan Bio-resource Technology (CSIR-IHBT) & The Department of Agriculture ,Government of Himachal Pradesh has taken initiate to impart training to state agricultural department officers and farmers ,IHBT has developed production technology for saffron as well as the department has developed tissue culture protocol for the production of disease free corms of the saffron
2. 20^th September 2020, Latest studies has shown that saffron tea is rich in nutrients, scientist are studding for their potential health benefits. It contains Crocin and Crocetin , antioxidants that may help to improve memory functions, Researchers believe these antioxidants have the potential to treat the diseases like Alzheimer’s & Parkinson’s .
3. 2^nd November 2021,according to a report by Risingkashmir ,Kashmirs produced saffron or flowers admired more than Iran’s worldwide, saffron being the costliest spice in the world & Kashmiri saffron is nearly 50% more valuable than Iranian saffron ,but the market cap of Kashmiri saffron is better than Iranian saffron ,is even less than 5% while the saffron grown in Iran , Spain & elsewhere holds 95% of market around the world

Iran held dominant position in the global saffron market in 2020, accounting for 5.70% share in terms of volume, followed by U.S. and France respectively.

Figure 1. Global Saffron Market Value (US$), by Country , 2020

Drivers:

Growing demand for natural ingredients is propelling the market growth of saffron. Increasing consumer preferences towards natural ingredients due to growing health-conscious consumers around the globe is again expected to foster the market growth of saffron. Moreover, rising health benefits awareness regarding the saffron coupled with the increasing government support to encourage the use of organic ingredients in the food products is further projected to augment the market growth of saffron.

Saffron offers various health benefits, which is one of the key factors fueling market growth. Saffron contains essential minerals such as magnesium, calcium, zinc, selenium, and others. Moreover, it also contains antioxidants such as lycopene, a- and ß-carotenes, Zeaxanthin, etc. which helps in prevention of various chronic disease such as cancers, infections, stress, and also boost the immune system. Additionally, it has various medical applications such as anti-oxidant, antiseptic, and antidepressant which is again expected to support the market growth of saffron. 

Market Opportunities

The growing use of saffron in the medical industry is projected to bring new market opportunities over the forecast period. As saffron contains important elements such as crocin and safranal as they are likely to have anti-depressant properties, thus beneficial in curing the nervous system related issues. Also, saffron is used to treat various chronic diseases such as arthritis, cardiovascular disease, and cancer. Hence, the increasing prevalence of various chronic diseases is projected to augment the demand for saffron.

The increasing urban population coupled with the growing disposable income is encouraging them to spend on healthy food products. This is expected to offer profitable market opportunities over the forecast period. An increase in the consumption of organic food products and growth in the working population is also attributed to the market growth of the saffron. All these factors together are propelling the marker growth of the saffron over the forecast timeframe. 

Market Trends

Sustainability and certification is a growing trend around the globe and this is attributed to the growing food safety concern among consumers as they are becoming more concerned regarding the origin, quality, and authenticity of food products. Due to this various manufacturers have started offering certified food ingredients. For instance, Zargol Saffron Agriculture Group offers ISO 14001:2004, ISO 22000:2005, OHSAS 18001:2007, ISO 9001:2008, and HACCP certified saffron products.

Increasing export of the saffron is a growing trend around the globe. According to the trading economy, in 2018, the world exports of "Saffron" exceeded $118 million and it was $436 million in the previous year. In 2018, Spain accounted for 45% of the world exports ($54 million) and Afghanistan accounted for 17.8% of the world exports ($21 million). Thus increasing exports of the saffron around the globe in order to cater to growing demand is projected to accelerate the market growth.

Figure 2. Global Saffron Market Share, By Food Services, 2020

Key Takeaways of the Graph:

• The Culinary products from the food services by end use held dominant position in the market and accounted for 43.52% share in the global saffron market in 2020. The segment is expected to reach US$ 89,908.22 Thousands in 2028.
• Saffron is a spice which is very difficult to describe by its taste which is unique & hard to compare with any other spice .It has a smocky ,heady, bright, floral & musky flavour with an earthy and sweet touch .These flavourful spice is added in a variety of dishes in Asian as well as Middle eastern Countries in a large amount ,Incorporating saffron in the dishes give it a unique colour and fragrance due to which it is used for making rice dishes and sherbets in various countries

Market Restraints

The high cost of the saffron is projected to restrict the use of these products. For instance, in Afghanistan, a single kilogram of saffron is purchased for US$ 1500 to US$ 1,700 from farmers. Thus the high price of saffron is projected to hamper the market growth.

The availability of counterfeit saffron is another major factor hampering product demand. Counterfeit saffron is sold at far lower prices, which is affecting the overall market growth. The increasing trade of counterfeit saffron is negatively affecting consumer’s purchasing decisions and also the goodwill of manufacturers. This factor is projected to inhibit the market growth of the saffron.

Competitive Section:

Company Names 

1. Safrante Global Company S.L.U.
2. Evolva
3. Rowhani Saffron Co
4. Sara Nuts
5. Tarvand Saffron Co
6. Hijos de Eustaquio Abad & Co. S.L.
7. USMS Saffron Co.Inc
8. Royal Saffron Company
9. Saharkhiz International Group Companies
10. Gohar Saffron
11. Novin Saffron Co.
12. Azafranes Manchegos SL