Overview

The spice of life: A wider variety of locally available cuisines has boosted industry demand

IBISWorld’s Herb and Spice Processing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Popular TV shows have driven further use of processed herbs and spices over the past five years
  • 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. The introduction of popular TV cooking shows and a general trend towards higher quality, healthier food has 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. Industry revenue is expected to grow by an annualised 1.9% over the five years through 2016-17, to reach $227.9 million. This includes forecast growth of 1.0% in the current year...

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    What is the Herb and Spice Processing industry?

    The industry is characterised by moderate barriers to entry. The most prohibitive barrier is the industry's level of market share concentration. The well-established Gourmet Garden, McCormick and MasterFoods brands attract a degree of consumer loyalty, making it difficult for new players to gain a foothold in the market. The dominance of the major supermarket chains also presents a barrier to entry. As the supermarkets increase the proportion of shelf space dedicated to private-label products, it becomes more difficult for new processors to access the industry's largest market.

    Establishment of production facilities can also present a barrier to entry. Large-scale processing machinery and equipment requires a significant capital outlay. Thi...

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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 farmers
  • Effective cost controls
  • Having a loyal customer base
  • 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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    New Zealand Special Report

    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
  • Leafy herbs
  • Spices
  • 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
  • Food manufacturers
  • Wholesalers
  • 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Fresh Herb Paste
  • Minimally transformed herbs that have been crushed into a paste rather than dried or ground into a powder form.
  • Private-Label Products
  • Products under the banner of the store they are sold in, which are usually cheaper due to reduced marketing costs.
  • 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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