Saffron is a spice that is used as a coloring or flavoring agent in the food and beverage industry. It is also used in the pharmaceutical industry in the preparation of antioxidant, anti-depressant, and antiseptic medicines. Moreover, saffron is also used to treat asthma, whooping cough, and skin related problems. Other application of saffron includes textile dyeing and herbal remedy.
The global saffron market is expected to surpass US$ 6,84,764 Thousands in terms of value by the end of 2028.
Apart from the food industry saffron is also used in the cosmetic industry which is expanding its application, thus fueling the market growth. In the cosmetics industry, it is used as an herbal ingredient due to its exceptional properties that help in enrich and nourish skin and hair. Due to these various manufacturers of the cosmetics industry have started using saffron as one of the key ingredients in cosmetics products such as lotions, creams, shampoos, and others. Thus, the growing use of saffron in the cosmetic industry is projected to stimulate market growth.
Increasing cultivation of natural and organic saffron is projected to provide lucrative market opportunities in the near future. According to USDA's Economic Resources Service, currently, around 10,000 farmers in North America have made the transition to the production of organic food products on around 2.3 million acres of land. This reveals that the demand for organic food products is growing in North America, which is one of the major consumers of saffron. Thus, the growing cultivation of organic saffron is projected to favor market growth.
Global Saffron Market: Recent Developments
Factor such as low output and supply of saffron as it is limited to a few regions is expected to hinder the market growth of saffron. For instance, Iran is the major cultivator of saffron, followed by Spain, Greece, and India. Iran contributes to approximately 80% of global saffron production. Also, the output of saffron from crops in terms of volume is very low, which is further expected to restrain the market growth.
Global Saffron Market - Impact of Coronavirus (Covid-19) Pandemic
The Covid-19 outbreak has had an adverse impact on various industries around the globe. Due to the strict rules and regulations undertaken by government to curb the spread of the infection, companies are looking to function remotely. Moreover, various companies are looking to implement strict measures to operate at minimum risks. Additionally, various companies had shutdowns their manufacturing units which had an adverse impact on saffron market.
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The growing trend of consuming plant-based natural ingredients is expected to support the market growth of the saffron. Due to this various manufacturers are using saffron for manufacturing packaged food products. For instance, instead of using FD and C yellow no 5: a synthetic food coloring agent that is a very common allergy trigger, manufacturers are using saffron as a hypoallergenic natural ingredient for manufacturing packaged food products. Thus growing consumption of plant-based natural ingredients is propelling the market growth.
Growing strategic partnerships and agreement in the industry is one of the emerging trends. For instance, in June 2020, the Institute of Himalayan Bioresource Technology (CSIR-IHBT) and the Department of Agriculture, Government of Himachal Pradesh, have forged strategic and implementation partnerships to meet the demand of saffron and hing (asafoetida) in India. The CSIR-IHBT partnership is expected to provide immense benefits to Himachal Pradesh by way of increased farm income, livelihood promotion, and rural development.