Developing organic spices to enter billion-dollar market

The world organic spice market is large. This is an opportunity for the Vietnamese spice industry to develop organic spices for export.

The demand for organic spices and spices with sustainability certification is increasing globally. According to the Vietnam Trade Office in Belgium and the EU, the global organic spice market is quite large and is growing by 7.5% per year in the period 2021 - 2026. It is forecasted that by 2026, the global organic spice market will be nearly 20 billion Euros.

While Asia is the world’s largest spice import market in general, North America and the EU are the two largest organic spice import markets. According to the Vietnam Trade Office in Belgium and the EU, in Europe, countries such as Switzerland, the Netherlands, Germany, France, Italy, etc. are major spice import markets. In particular, spices with sustainability certification (organic, Fairtrade, RA) have great export potential to this market.

Organic pepper garden of Thien Nong farm in Phu Van commune (Bu Dang district, Binh Phuoc ). Photo: Son Trang .

The market share of sustainably produced spices and flavourings in Europe is currently very low (less than 1%) but is growing. In Europe, the growth rate of organic spice consumption is forecast to be particularly high in Sweden and the UK, with an increase of more than 5.5% per year over the next 7 years.

Also according to the Vietnam Trade Office in Belgium and the EU, the next decade is expected to be marked by impressive growth in organic spices and flavours, in line with the rapidly growing organic food trend.

Growing demand for sustainably produced (including organically produced) spices, new origins as well as growing concerns about the health benefits of spices and the use of spices and flavourings in international cuisine are leading trends opening up opportunities for exporters from developing countries, including Vietnam.

To seize market opportunities, in recent times, many companies in the spice industry have been promoting organic certification or sustainable certification for spices with export potential. For example, Phuc Thinh Import-Export Investment Joint Stock Company (PTEXIM) has collaborated with a number of cooperatives and many farming households to build 35.4 hectares of organic pepper in Dak Song district (Dak Nong province); 90 hectares of organic cinnamon in Van Yen district (Yen Bai province). In addition, PTEXIM also has a 35.4-hectare organic star anise raw material area in Gia Loc commune, Chi Lang district, Lang Son province.

Yen Bai is currently the province with the largest organic cinnamon area in the country. Photo: NNVN.

Master Bui Khanh Tung, senior officer of the Biotrade SECO Project (CRED), said that in 2023, PTEXIM was granted organic certification for its cinnamon raw material area of 78 hectares. In addition, PTEXIM has chosen to apply and certify the UEBT/RA standard to increase competitiveness and meet the requirements of the EU market.

Farmers producing spices with organic certification, or applying organic methods and having links with export enterprises are now having stable output.

Mr. Dang Duong Minh Hoang, owner of Thien Nong farm in Phu Van commune (Bu Dang district, Binh Phuoc province) said that the farm has 8 hectares of pepper, all of which have been certified organic by the US. Thanks to this certification, in recent years, all of Thien Nong's pepper has been purchased at good prices by Nespice Vietnam - a leading enterprise in the Vietnamese pepper industry today. Thien Nong's organic pepper is being exported to many demanding markets.

According to the survey results of the current status of pepper and spice plants in 2024 conducted by the Vietnam Pepper and Spice Association, cinnamon is currently the spice plant with the largest organic area with 14,509 hectares in Yen Bai province and 4,230 hectares in Lao Cai province. Thus, the area of organic cinnamon has now reached nearly 19 thousand hectares, accounting for more than 10% of the cinnamon area nationwide.

Source: https://nongsanviet.nongnghiep.vn/phat-trien-gia-vi-huu-co-de-tham-gia-thi-truong-ty-do-d398868.html