San Francisco, 20 March 2024: The Report: The Report Saffron Market Size, Share & Trends Analysis Report By Grade (Grade-I, Grade-II, Grade-III, Grade-IV), By Application, By Type, By Form, By Distribution, By Region, And Segment Forecasts, 2024 - 2030

The global saffron market size is anticipated to reach USD 959.38 million by 2030, growing at a CAGR of 7.1% from 2024 to 2030, according to a new report by Grand View Research, Inc. The market is expected to experience significant growth in the forecast period due to increasing demand for the spice in medical and cosmetic applications. Saffron is a potent source of antioxidants that provide numerous health benefits, with active compounds such as picrocrocin, safranal, and crocin contributing to reducing oxidative damage and inflammation in the brain. Its antioxidant, anti-inflammatory, and memory-enhancing properties are likely to drive market growth. In addition, the cosmetics industry uses saffron as a natural UV-absorbing agent.

Image processing technology, pilot scale, and electric nose are some of the key technologies used in processing saffron. Manual separation of stigmas has been the norm, but the image processing method offers a less time-consuming approach. ISO Standard 3632 is the requirement that governs quality measurement. However, adulteration is a growing concern in the global market due to saffron's high price and increased demand, with products resembling saffron being mixed in as adulterants.

The market in Middle East and Africa is growing and is attributable to the increasing demand to its use in traditional cuisine. Saffron is an essential ingredient in many dishes in the region, such as biryanis, pilafs, and tagines, and it is also used to flavor sweets and desserts. The spice is considered to be a symbol of hospitality and is often served to guests as a sign of respect.

In September 2022, Iran signed a USD 300 million deal with Qatar to supply saffron. Qatar received 200 tons of Iranian saffron, with the first shipment arrived on October 1st. The two countries have been expanding their economic and political ties, with trade exchange growing by 34% in 2021. The Qatari minister hopes to continue expanding economic, trade, and investment cooperation.

Growing demand for saffron in medical and cosmetic applications is expected to be a key driving factor for the market in the forecast period. Saffron is rich in antioxidants and offers several health benefits. The main active compounds present in saffron include picrocrocin, safranal, and crocin. These compounds help reduce oxidative damage and inflammation in the human brain. Furthermore, saffron is known for its memory-enhancing, antioxidant, and anti-inflammatory properties, which are likely to propel the growth of the market. Furthermore, it is used as a natural UV-absorbing agent in the cosmetics industry.

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Growing demand for saffron in medical and cosmetic applications is expected to be a key driving factor for the market in the forecast period. Saffron is rich in antioxidants and offers several health benefits. The main active compounds present in saffron include picrocrocin, safranal, and crocin. These compounds help reduce oxidative damage and inflammation in the human brain. Furthermore, saffron is known for its memory-enhancing, antioxidant, and anti-inflammatory properties, which are likely to propel the growth of the market. Furthermore, it is used as a natural UV-absorbing agent in the cosmetics industry.

Saffron Market Report Highlights

• Grade-I dominated the grade segment with highest revenue share in 2023. This is owing to the excellent coloring and flavoring strengths and aroma of this grade
• The traditional type accounted for a revenue share of 63.6% in 2023. The market for traditional saffron harvest is driven by several factors, including its unique flavor, aroma, and color, which make it a highly valued ingredient in cooking, cosmetics, and traditional medicine
• The market for liquid form is expected to witness a significant growth with a revenue CAGR of 7.9% over the projected period. The various uses of liquid form of saffron like its culinary and medicinal uses, saffron liquid is also used in the perfume industry to add a unique and exotic aroma to fragrances, is driving the segment
• The market for B2C distribution channel is expected to witness a significant growth with a revenue CAGR of 7.4% over the projected period owing to the rising prevalence of saffron products in online retail platforms and the increasing demand for saffron-based supplements and dietary items
• Middle East and Africa accounted for a revenue share of nearly 51.2% in 2023 owing to rising product demand in the personal care & cosmetic sector in the region owing to increasing recognition of saffron's health advantages, along with the surge in demand for organic and natural commodities

Key technologies used in processing include image processing technology, pilot scale, and electric nose. The process of separating stigmas has been done manually so far, however, using the image processing method to separate stigmas is less time-consuming. ISO Standard 3632 is the requirement that concerns merely the measurement of the quality. Adulteration has been growing rapidly in recent years owing to the high price and increased demand in the global market. The adulteration includes the mixing of products that look similar to saffron.

The market is expected to exhibit a low threat of new entrants on account of the extensive portfolio offered and distribution network operated by existing players, which results in a high entry barrier for new entrants. Besides, the high switching cost for the buyers makes it difficult for new players to gain a significant market share, thereby lowering the threat of new entrants.

Saffron Market Report Scope

 The adulteration results in variations in the quality of the product and the consequent variation in prices. The standard comprises 2 parts, ISO 3632-1 and ISO 3632-2, which identify the test methods for various classifications of dried, cut threads, powders, and threads. The main purpose of the standards is to test the strength of flavor, scent, and color of saffron, which helps protect consumers from purchasing a fake product that is expensive as well as has no food value.

The U.S. has witnessed increasing demand over the past few years owing to the growing awareness among consumers about the medicinal properties and health benefits of saffron. The trade between Iran and the U.S. witnessed a surge after the U.S. revoked trade restrictions that were imposed on imports from Iran. Growers in the U.S. have been increasingly investing in cultivation. The growers from the states, such as Vermont, Pennsylvania, and Washington, have been taking initiatives with an aim to increase the product’s cost-effective domestic supply.

The global market is dominated by a small number of players, with production primarily concentrated in Middle Eastern countries. However, there is significant potential for emerging and new players in need of comprehensive support throughout the value chain. Both established and new market participants are increasingly emphasizing strong brand management to improve key differentiators, such as portfolio diversity, and competitive pricing. Additionally, consumers favor buying Saffron through B2C sales channels. As a result, manufacturers in the industry are introducing online platforms for delivering consistent and bulk quantities to home chefs and domestic use.

List of Key Players in the Saffron Market

• Esfedan Trading Company
• Safran Global Company S.L.U.
• Tarvand Saffron Co.
• Saffron Business Company
• Gohar Saffron
• Rowhani Saffron Co.
• Mehr Saffron
• Flora Saffron
• Royal Saffron Company
• Iran Saffron company