Saffron Market Size, Share & Trends Analysis Report By Application (Food, Medical, Cosmetics), By Region (North America, Europe, Central & South America, APAC, MEA), And Segment Forecasts, 2020 - 2027

Report Overview

The global saffron market size was valued at USD 881.7 million in 2019 and is anticipated to attain a revenue-based CAGR of 7.3% from 2020 to 2027. The market is expected to grow over the next few years on account of growing demand from the pharmaceutical sector particularly in countries with rapid population expansion.

Saffron is one of the most expensive spices by weight and is used in various applications, including food, beverages, and medicines. At present, major demand comes from herbal remedy, perfumery, textile dyeing, and cooking spices. Medicinal application is likely to remain a key focus area for market vendors on account of its use as an anti-depressant, antioxidant, and antiseptic. It can also be used in the treatment of whooping cough, asthma, and dry skin.

The U.S. market has witnessed a considerable increase in consumption of saffron in the recent years. Iran has started exporting their Iranian saffron to the U.S. after trade regulations were removed thus, boosting their trade relations. Growing demand for saffron in a variety of food products and developments in the medical field are boosting the market growth in the region. Increasing preference of natural products over artificial colorings and flavorings is likely to contribute to saffron consumption in U.S. Also, due to expensive nature of the products, increasing income levels is projected to remain a key contributing factor in the U.S. market.

Rapid development in the cosmetics industry on account of increasing population and improved standard of living is likely to boost the demand for saffron in the coming years. Growing demand for anti-blemish creams, fairness creams, and cleansers is also projected to be a key driving factor for the market.

Increasing labor costs, requirement of specific conditions for cultivation, and high price of the products are projected to restrain the market growth over the coming years. Additionally, lack of integration in the supply chain may create challenges in the distribution network, which may hinder the expansion of the saffron market.

Application Insights

Food was the largest application segment with a volume share of 50.5% in 2019 and is projected to grow at healthy rate from 2020 to 2027. Saffron has a significant value in culinary industry as it is used as spice, herb, and flavoring agent and is likely to witness lucrative demand in regional markets of Asia, Middle East, North Africa, and Europe. Increasing demand for saffron as an alternative to artificial additives is projected to create a positive impact on the market in the long run.

The cosmetics application segment is projected to expand at a volume-based CAGR of 6.5% from 2020 to 2027. Saffron is used in hair care and skin care products. It is known to brighten the skin and strengthen hair growth. Rising popularity of cosmetic products owing to concerns regarding aging along with changing climatic conditions is expected to fuel the product demand in the cosmetics segment.

Medical sector is likely to create new sales avenues for market participants over the coming years. Saffron contains elements like crocin and safranal, which are presumed to have anti-depressant properties and cure nervous system related issues. In addition, treatment of diseases such as cancer, arthritis, and heart disorders also attract saffron demand. Increasing research and development activities for saffron as an antioxidant, neuroprotective, and antitumor agent is also a promising sector for the saffron producers.

Regional Insights

In terms of volume, Asia Pacific held the largest market share in 2019 and is likely to expand at CAGR of 6.9% from 2020 to 2027 owing to increasing exports and domestic demand for natural ingredients. India is one of the largest producers of saffron due to the availability of raw materials and proper land for farming. In addition, growth in healthcare and food and beverage industries is likely to propel the demand for saffron in developing economies such as China and India over the next few years.

In terms of production, Iran is the largest country with a share of over 90% at a global level. However, exports are less as compared to production owing to a higher percentage of re-exports from France, Italy, and Spain. Growing production of saffron in Afghanistan is likely to affect the market dynamics over the coming years. Other key producers include Spain, Italy, India, Greece, Morocco, and Azerbaijan.

Europe was the second largest consumer of saffron and related products. With increased exports in the European market, the demand for saffron has gone up significantly. Developed trade channels, high quality, and grading standards, and attractive packaging are the key driving factors for the regional market growth.

Key Companies & Market Share Insights 

Intense competition in the market has led to improved quality and packaging standards among manufacturers. Numerous players are focused on integrating supply chain, affordable pricing structure, and new customer acquisitions. These players are also likely to concentrate on the integration of the supply chain to maintain consistency in sales and maintain their market share. The key market participants include Rowhani Saffron Co., Gohar Saffron, Saffron Business Co., Iran Saffron Company, Esfedan Trading Company, Tarvand Saffron Co, Royal Saffron Company, Flora Saffron, and Meher Saffron.

Saffron Market Report Scope

Segments Covered in the Report

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global saffron market report based on application and region: 

• Application Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

  • Food

  • Medical

  • Cosmetics

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

  • Europe

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

  • Central and South America

    • Brazil

  • Middle East & Africa

    • Iran

    • UAE

    • Saudi Arabia