Spice Trade Heats Up Globally

• The spice trade has grown by 259% from 2005 to 2024 and is projected to increase in the next decade. 
• India and mainland China dominate the spice export market, accounting for 50% of global export volume in 2024. 
• The U.S. is the largest importer of spices, focusing on peppers and ginger, while India, the world’s largest exporter of spices, leads in seven out of 15 categories including exports of genus Capsicum (peppers) and turmeric.
• The COVID-19 pandemic significantly boosted spice demand, partly driven by the belief in their immunity-boosting properties.
• Saffron and vanilla, which have a small share of overall trade by tonnage, showed a dramatic increase in their share of nominal value. Saffron, which is hand-picked, is considered the most expensive spice in the world.

The global spice trade has undergone a remarkable transformation over the past decade, showcasing an impressive growth trajectory that is likely to continue in the years ahead.

With a significant increase of 259% in trade volume from 2005 to 2024, the spice industry is poised for further growth from 2025 to 2035. We explore the key dynamics of the spice trade, highlighting the major players, trends, and future projections.

The spice trade is primarily characterized by its key exporters and importers. India and mainland China are at the forefront, collectively accounting for 50% of global spice exports in 2024. While India excels in exporting a diverse range of spices, including genus Capsicum (peppers) and turmeric, mainland China dominates in ginger exports. 

The U.S. stands out as the largest importer, with a focus on peppers (genus Capsicum and genus Pimenta), ginger, and genus Piper (pepper), reflecting its significant role in the global spice market. 

Spices have been traded for thousands of years, tracing back to ancient trade routes like the Silk Road. The primary trade routes in 2024 mirror those of the past, with India-mainland China, India-Bangladesh, and India-UAE routes being particularly significant.

The main difference between past and present is that the US is the main global importer, representing a larger import volume than third-ranked Bangladesh and fourth-ranked India combined. US imports were concentrated on peppers and pepper, which combined accounted for more than half of imports, and ginger. The US held the first place in import of vanilla, cloves and other spices.

The COVID-19 pandemic has had a pronounced impact on the spice trade, leading to a surge in demand for spices known for their health benefits. This phenomenon is evident in the increased consumption of spices like cloves, cardamom, and turmeric, which are often associated with boosting the immune system.

The pandemic-driven growth mirrors trends observed in other sectors, such as sports equipment, where demand surged during the same period.

The spice trade is expected to continue its upward trajectory, driven by increasing demand, due in part to the belief in spices' ability to boost the immune system. Spices associated with health benefits include cloves, cardamons, cumin seeds, turmeric and cinnamon.

While the volume of spice trade remains relatively low compared to salt, the nominal value is projected to be four times larger, highlighting the valuable nature of spices in global trade. 

The spice trade reflects culinary preferences and a dynamic economic sector with significant growth potential. As the world becomes increasingly health-conscious, the demand for spices is likely to rise, making it an exciting time for stakeholders in the spice industry.

With India and mainland China leading the way, the spice trade is set to flourish in the coming years, offering opportunities for exporters and importers alike.