Overview

Toned down: Supermarket price wars have constrained industry revenue growth

The Herb and Spice Processing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • The industry has benefited from cooking reality TV shows inspiring consumers to try new flavours
  • Popular cooking reality TV shows have boosted the use of processed herbs and spices
  • Supermarket competition will remain fierce and continue to force down industry prices

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    Industry Analysis & Industry Trends

    Consumer appetites for processed herbs and spices have grown over the past five years. While many of the Herb and Spice Processing industry's products are staple items, consumers have demonstrated an increasing willingness to experiment with their food, trying new products and flavours. Industry revenue is expected to grow by an annualised 0.7% over the five years through 2017-18, to $232.4 million. Popular reality TV cooking shows and a general trend towards higher quality, healthier food have driven industry revenue growth over the past five years. However, the dominance of large-scale supermarkets as distributors of industry products has suppressed prices and kept industry revenue growth in check. Consequently, industry revenue is expected to decline by 1.5% in 2017-18...

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    What is the Herb and Spice Processing industry?

    The Herb and Spice Processing industry is moderately capital-intensive. For every dollar spent on capital costs, an estimated $4.89 is spent on wages. The level of capital intensity varies among smaller and larger industry players. Large-scale operators are able to invest in more sophisticated machinery that is suited to higher production volumes, ultimately enabling greater economies of scale and lower per-unit prices. In contrast, small-scale operators are generally more labour-intensive, working with older or smaller equipment and using labour instead. Capital intensity is expected to have increased slightly over the past five years, as the use of modern machine processing techniques becomes the norm, ultimately reducing industry wage costs as a portion of revenue...

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    Additional Insights for the Herb and Spice Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Herb and Spice Processing Industry are

  • Proximity to key suppliers
  • Guaranteed supply of key inputs
  • Establishment of brand names
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Real household disposable income in the Herb and Spice Processing industry impact industry performance..

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    Products & Brands

    Major products in this industry
    Spices
    Leafy herbs
    Root herbs
    Seed herbs
    Flower herbs
    Mixed spices and seasonings
    Examples of brands in this Industry
    MasterFoods
    McCormick
    Gourmet Garden

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Demand from supermarkets and grocery stores
  • Real household disposable income
  • Demand from cafes, restaurants and takeaway food services
  • Trade-weighted index

  • Current Performance
  • Rising popularity
  • Supermarket prices
  • Trade and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Stable demand
  • Supermarket competition
  • Export markets
  • Participation and profit
  • Table: Herb and Spice Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Herb and Spice Processing Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Soft Drink and Pre-Packaged Food Wholesaling
  • Accommodation and Food Services
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Outdoor Vegetable Growing
  • Under Cover Vegetable Growing

  • Products & Services
  • Spices
  • Leafy herbs
  • Mixed spices and seasonings
  • Seed herbs
  • Root herbs
  • Flower herbs
  • Chart: Herb and Spice Processing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets and grocery stores
  • Export markets
  • Wholesalers
  • Food manufacturers
  • Food service establishments
  • Chart: Major Market Segmentation for the Herb and Spice Processing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Herb and Spice Processing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Herb and Spice Processing Industry

  • Industry Globalization
    Major Companies
    McCormick Foods Australia Pty LtdMars Australia Pty Ltd
  • Table: McCormick Foods Australia Pty Ltd - financial performance
  • Table: Mars Australia Pty Ltd - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Herb and Spice Processing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Herb and Spice Processing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Food Standards Australia New Zealand
  • The agency responsible for developing and administering requirements for food safety and labelling in Australia and New Zealand.
  • Private-Label Products
  • A product purchased from a contracted manufacturer by a retailer or supplier, and sold under the brand name of the retailer or supplier, not the manufacturer.
  • Wholesale Bypass
  • A rising trend in the food supply chain, where end sellers and processors deal directly with each other and bypass intermediary wholesalers.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Herb and Spice Processing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Herb and Spice Processing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Herb and Spice Processing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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