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.
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.
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.
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.
Report Attribute |
Details |
Market size value in 2020 |
USD 944 million |
Revenue forecast in 2027 |
USD 1.6 billion |
Growth Rate |
CAGR of 7.3% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative units |
Volume in tons, revenue in USD million, and CAGR from 2020 to 2027 |
Report coverage |
Revenue forecast, company share, competitive landscape, growth factors and trends |
Segments covered |
Application, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S.; Italy; Spain; China; India; Brazil; Iran; Saudi Arabia; UAE |
Key companies profiled |
Rowhani Saffron Co.; Gohar Saffron; Saffron Business Co.; Iran Saffron Company; Esfedan Trading Company; Tarvand Saffron Co; Royal Saffron Company; Flora Saffron; Meher Saffron. |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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
b. The global saffron market size was estimated at USD 881.7 million in 2019 and is expected to reach USD 944 million in 2020.
b. The global saffron market is expected to grow at a compound annual growth rate of 7.3% from 2020 to 2027 to reach USD 1.55 billion by 2027.
b. Europe dominated the saffron market with a share of 39.5% in 2019. This is attributable to increasing research and development activities for saffron as an antioxidant, neuroprotective, and antitumor agent by major pharma manufacturers in the region.
b. Some key players operating in the saffron market 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.
b. Key factors that are driving the saffron market growth include growing demand from the pharmaceutical sector particularly in countries with rapid population expansion.
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Weaker consumer demand for lifestyle and wellbeing products due to social restrictions and lockdown policies shall have a negative impact on the demand patterns of cosmetic ingredients and certain categories of food additives. However, easing restrictions and public discourse about restarting economic activities in the consumer goods marketspace indicates that, the recovery of demand is imminent. The report will account for Covid19 as a key market contributor.