It is one of the most expensive spices and is commonly used as a coloring and flavoring agent in food. Moreover, it is deemed to be more nutritional as compared to other spices as it boasts vitamin B, dietary minerals, and manganese.
Apart from these, the spice is also being abundantly used in the pharmaceutical industry as it has medicinal properties and is used to cure various conditions like cough, asthma, measles, cold, and others.
To illustrate, in a recent study conducted by the Center of Investigation in Clinical Nutrition, Belgium, between 2019 and 2020, it was observed that 6 weeks of saffron supplementation led to enhanced sleep duration and quality in 66 volunteers. The study was also able to raise claims that Saffron could emerge out to be a natural and safe replacement for sleeping pills in a longer duration of time.
However, factors like high cost of saffron, lack of supply due to ongoing COVID-19 crisis, and availability of artificially colored counterfeit saffron and its flavor in the global markets is expected to challenge the market growth over 2021 to 2027. Nevertheless, increasing awareness associated with its medicinal properties and mounting use of saffron in personal care products and perfumes would potentially create lucrative opportunities for players in the global saffron market space.
Not to mention, saffron’s heightened use during coronavirus pandemic subject to its innate medicinal and health benefits is also poised to change the industry outlook over the foreseeable time frame.
The food and beverages segment across overall saffron market is set to account for massive gains in the upcoming years predominantly due to the spice’s significant value in the industry as it is used as a flavoring agent and herb in different kinds of food items. The prominence of saffron is so widespread that various state and central governments have been going nine yards for producing the spice in abundance and exporting it internationally.
Recently, the Jammu and Kashmir government had in 2020, announced that its Kashmiri Saffron had received GI (geographical indication) tag and it was all set to launch the spice in the UAE market. This move positions J&K’s brand on the global map.
Cosmetically, saffron is said to have immense benefits when it comes to skincare. A Healthline report suggests that it provides protection against harmful UV radiation, fights inflammation, alleviates hyperpigmentation, and supports wound healing. Various business enterprises operating in the beauty space have also been working on developing saffron products to cater to the rising demand for illuminating skin by consumers.
South Africa’s first saffron season exceeds expectations
Quoting an instance, CASA KOKOBERNA had in 2020 unveiled its new Beautiful Body Collection, with its first product, Saffron Body Oil, for strengthening and illuminance of the skin. The handmade saffron oil was priced at $450.
With regards to region, the saffron industry is expected to hold a major foothold in the Middle Eastern countries. This is because of the spice’s high production in the region. In fact, it has been believed that Persian saffron is regarded to be the best in entire world. Moreover, Iran holds 88% of the world’s total saffron production.
Numerous industry players operating in the global saffron business space including JMD Agro Foods, Taj Agro Products (Taj Agro International), Good Life Global, Saffron Tech, Royal Saffron, Shahri Food Products, Gohar Nab Sara, and Pharmactive Biotech Products amongst others, are taking strategies efforts to gain a competitive edge over others to secure a prominent position in the overall industry.
During Early 2021, Saffron Tech, an Israeli firm engaged in saffron production, had introduced a new technology for automated, year-round cultivation of saffron. Apparently, it was reviewed that the technology was challenging the global Iranian monopoly of saffron supply.
Likewise, recently, Pharmactive Biotech Product’s Affron was awarded a US patent for its crucial role in augmenting mental wellbeing. Affron consists of a high concentration of safranal and crocins.
COVID-19 impact on saffron market growth
Coronavirus pandemic, a severe acute respiratory syndrome, came as a significant healthcare challenge for humans and the world in 2019 and is still persistent across various economies of the globe. It has downscaled the economic growth, paralyzed businesses, and also resulted in millions of deaths worldwide. However, the global saffron market has been predicted to stand still amidst the health crisis, with it observing a gradual growth in the recent years.
As a nutraceutical or drug supplement, the ingredient has been known to alleviate the magnitude of COVID-19 symptoms in patients. Moreover, the antioxidant, anti-inflammatory, and other medicinal properties attributed to saffron can help in both pre-and post-infection management strategies.
Global Saffron Market to Reach $1.4 Billion by 2027-
4 Billion by 2027, growing at a CAGR of 6.1% over the analysis period 2020-2027. Food, one of the segments analyzed in the report, is projected to record a 6% CAGR and reach US$708.4 Million by the end of the analysis period. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the Medical segment is readjusted to a revised 6.8% CAGR for the next 7-year period.
- The U.S. Market is Estimated at $248.6 Million, While China is Forecast to Grow at 9.2% CAGR
- The Saffron market in the U.S. is estimated at US$248.6 Million in the year 2020. China, the world`s second largest economy, is forecast to reach a projected market size of US$295.2 Million by the year 2027 trailing a CAGR of 9.2% over the analysis period 2020 to 2027. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 3.3% and 5.5% respectively over the 2020-2027 period. Within Europe, Germany is forecast to grow at approximately 3.9% CAGR.
- Cosmetics Segment to Record 5.6% CAGR
- In the global Cosmetics segment, USA, Canada, Japan, China and Europe will drive the 5.1% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$54.9 Million in the year 2020 will reach a projected size of US$77.9 Million by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$187.8 Million by the year 2027, while Latin America will expand at a 6.8% CAGR through the analysis period.
