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Global Nutmeg Industry Report: By Application: Food Industry, Pharmaceutical and Cosmetic Industry; Country Overview; Value Chain Analysis; Production Process; Price Analysis; Market Dynamics: SWOT Analysis; Industry Best Practices: Sourcing Strategy, Procurement Model, Contract Structure, Negotiation Levers, Pricing Model, Key Factors Influencing the Quotation; Key Supplier Analysis, 2022-2027

Nutmeg Industry Report by Regional Category Spend, Price Analysis, Key Demand and Price Indicators, and Best Buying Practices


The global nutmeg market reached a value of about 130 thousand tonnes in 2021. The industry is further expected to grow at a CAGR of about 6% in the forecast period of 2022-2027 to reach a value of around 180 thousand tonnes by 2027.

The industry report gives a comprehensive analysis of the industry including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The prices of nutmeg in 2021-2022 are expected to be affected as the price of nutmeg and mace have risen significantly due to a scarcity of the product on the market, including several other difficulties that have encouraged farmers to expect higher prices. The key demand indicator in the industry report is the highest category spender by region—Asia Pacific.

Industry Definition and Segmentation

Nutmeg is the seed or ground spice of several Myristica species. For example, myristica fragrans (fragrant nutmeg or true nutmeg) is a dark-leaved evergreen tree cultivated for two spices: nutmeg (from the seed) and mace (from the seed covering). It's also a commercial source of nutmeg butter and essential oil. The nutmeg industry report comprises application segments such as the food industry, pharmaceuticals, and cosmetic industry. The report also includes major nutmeg-producing regions such as Indonesia, Guatemala, India, Nepal, Sri Lanka, Laos, Grenada, Bhutan, Tanzania, and others.

The Asia Pacific Region is Driving the Growth of the Industry

Nutmeg spice is primarily consumed in Asia and the Middle East. The wide diversity of regional dishes that use it as a primary spice element and its long-standing practise in medicine explains the spice's popularity. Nutmeg's leading producers and export markets are Guatemala, India, and Indonesia. The rise of the oleoresins industry has heightened the nutmeg market in the region. Spices like nutmeg contain oleoresins, which are fascinating elements for food makers to use in ethnic dishes. Nutmeg oleoresin extraction occurs in nations like India and Sri Lanka, providing export potential in the region. These extractions are in high demand in Europe and the United States. During the forecast period, the market for nutmeg is expected to develop due to increased demand from the international community. Some of the reasons driving the market expansion for nutmeg during the forecast period include an increase in international commerce due to the rising popularity of Asian cuisines such as Indian and Thai foods among the Western community and high growth in the oleoresin industry. It is grown and exported mainly in Guatemala, India, and Indonesia, with Europe, the Middle East, and the United States serving as significant import destinations. It is a spice commonly used in Asian cuisine and is gaining popularity in other parts of the world. For example, it is one of the most popular spices in Europe. The growing popularity of ethnic cuisines such as Indian and Thai has boosted the food producers’ demand for spices like nutmeg. Nutmeg is used in the garam masala used to produce seasonal curry dishes by the big Asian community, including India and Indonesia, who live in various world regions. For example, in the European Union, the Indonesian community in the Netherlands is a rather large consumer of nutmeg.

The high cost is expected to hamper the growth of the market. Moreover, nutmeg procurement is affected by the frequent price fluctuations because of the rise in demands during festivals.

Aflatoxin Contamination of Nutmeg Caused During the Post-Harvest Stage

Some fungi, such as Aspergillus flavus, thrive due to the traditional method of sun-drying nutmeg. Because aflatoxin (AFs), one of A. flavus' secondary metabolites, is known to be hazardous, the dried nutmeg kernel must be aflatoxin-free before being traded. Unfortunately, aflatoxin detection is time-consuming and expensive, making it difficult to carry out at the farmer level. To test aflatoxin levels, several technologies have been developed, including high-performance liquid chromatography (HPLC), liquid chromatography-mass spectrometry (LC-MS), and enzyme-linked immune assay (ELISA), all of which are time-consuming, costly, and hazardous. As a result, a technology that can detect aflatoxin levels promptly, at a low cost, non-destructively, and readily, especially at the farmer level, is required. According to many publications, aflatoxin is known to fluoresce with blue and green luminescence intensities under UV light with emission wavelengths of 420-450 nm and excitation wavelengths of 350-370 nm.

Best Procurement Practices

The global nutmeg industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by the major consumers of nutmeg across the globe, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

Nutmeg and mace have been used as spices for centuries due to the enormous quantity and range of fragrant chemicals found in the seed and mace of the nutmeg fruit. In addition, nutmeg and mace, both dried and crushed, are commonly utilised in the culinary sector for their flavouring properties. The aromatic oil content of the nutmeg seed ranges from 30 to 55 percent, with the "essential oil" accounting for 5-15 percent and the "fixed oil" or "nutmeg butter" accounting for 24-40 percent.

End-Use Applications is Further Propelling the Global Procurement of Nutmeg

Nutmeg and mace are commonly used as spices in Grenada, particularly in baking, dairy, and alcoholic beverages. Nutmeg is required in the distinctively flavourful Grenadian rum punch, and local nutmeg ice cream is undeniably delicious. Seasoning marine seafood with mace is a popular choice. Warm ground nutmeg with a "soft candle" or petroleum jelly to make a balm. Massage stiff muscles and painful joints with diluted oil. The ripe open pods of the fruit are a severely underutilised by-product of the nutmeg business. Pods are used to make jams, jellies, syrups, preserved in syrup, "cheese," and candied pods in the local area. The cracked shells are used as firewood mulch in the field and for distributing on pathways, nurseries floors, and greenhouse floors. The pods are served as sweetmeat in the far east, sliced, salted, and cooked in rice recipes. The leftover residue from the extraction of fixed oil is mixed with chopped pods, coated in a layer of dirt, and then covered with banana leaves. The edible mushroom Soletus moschocarganus is grown on this mixture.

The regional markets for the industry can be divided into North America, Europe, the Asia Pacific, South America, and the Middle East and Africa.

Key Industry Players Mentioned in the Global Nutmeg Industry Report

  • Royal Spices
  • McCormick & Co. Inc.
  • Olam International
  • P. C. Kannan and Co.
  • Eastmade Spices and Herbs Private Limited

Market Landscape

The global Nutmeg market is highly fragmented. Europe imports nutmeg in a large quantity. For instance, the Netherland imports about 28% of the total European nutmeg trade. There is a massive demand for nutmeg spice in Asian communities, including India and Indonesia, living across the world that uses it in the seasonal curry dishes.

 

1.    Executive Summary
2.    Global Nutmeg Market Snapshot

    2.1.    Nutmeg Market Outlook
    2.2.    Nutmeg Industry Analysis by Application
        2.2.1.    Food Industry
        2.2.2.    Pharmaceutical and Cosmetic Industry
    2.3.    Country Overview
        2.3.1.    Indonesia
        2.3.2.    Guatemala
        2.3.3.    India
        2.3.4.    Nepal
        2.3.5.    Sri Lanka
        2.3.6.    Laos
        2.3.7.    Grenada
        2.3.8.    Bhutan 
        2.3.9.    Tanzania
        2.3.10.    Others
3.    Impact of Recent Events 
4.    Covid-19 Impact on Supply Chain
5.    Nutmeg Value Chain Analysis
6.    Nutmeg Production Process
7.    Nutmeg Price Analysis (2019-21)
8.    Trade Analysis 
9.    Nutmeg Market Dynamics

    9.1.    Drivers & Constraints
    9.2.    Innovations & Trends
    9.3.    SWOT Analysis
    9.4.    Porter’s Five Forces
        9.4.1.    Buyer Power
        9.4.2.    Supplier Power
        9.4.3.    Threat of New entrants
        9.4.4.    Threat of Substitutes
        9.4.5.    Industry Rivalry
10.    Key Demand Indicators
11.    Key Price Indicators
12.    Industry Best Practices

    12.1.    Safety Criteria and Requirements
    12.2.    Procurement Model
    12.3.    Contract Structure
    12.4.    Pricing Model
    12.5.    Key Factors Influencing the Quotation
13.    Key Supplier Analysis
    13.1.    Royal Spices
    13.2.    McCormick & Company
    13.3.    Olam International
    13.4.    P. C. Kannan and Co.
    13.5.    Eastmade Spices and Herbs Private Limited

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Key Questions Answered in the Report

In 2021, the global attained a value of around 130 thousand tonnes.

In the forecast period of 2022-2027, the market is projected to grow at a CAGR of 6%.

The nutmeg procurement strategies include contract terms, engagement models, negotiation levers, and sourcing strategies.

Long term contracts and negotiation strategies in terms of competitive pricing and sourcing are the current trends being witnessed in nutmeg procurement.

The rapid increase in international commerce due to the rising popularity of Asian cuisines such as Indian and Thai foods among the Western community, and high growth in the oleoresin industry are expected to drive the nutmeg category growth.

The high cost is expected to hamper the growth of the market. Moreover, nutmeg procurement is affected by the frequent price fluctuations because of the rise in demands during festivals.

Royal Spices, McCormick & Co. Inc., Olam International, P. C. Kannan and Co., Eastmade Spices and Herbs Private Limited are the key suppliers of optical fibre.

Nutmeg is in great demand due to the rising popularity of Asian cuisines such as Indian and Thai foods among the Western community, and high growth in the oleoresin industry. Despite rising demand, the nutmeg sector is plagued by serious quality issues in both raw materials and finished oil products.

Key cost components for the category include raw material, labour, utilities, and transport.

Analyst Review

The global nutmeg market reached a value of about 130 thousand tonnes in 2021 to grow at a CAGR of about 6% in the forecast period of 2022-2027. The nutmeg industry report comprises application segments such as the food industry, pharmaceuticals, and cosmetic industry. The report also includes major nutmeg-producing regions such as Indonesia, Guatemala, India, Nepal, Sri Lanka, Laos, Grenada, Bhutan, Tanzania, and others. Nutmeg spice is primarily consumed in Asia and the Middle East. The wide diversity of regional dishes that use it as a primary spice element and its long-standing practise in medicine explains the spice's popularity. During the forecast period, the market for nutmeg is expected to develop due to increased demand from the international community. Some of the key suppliers of optical fibre in the market are Royal Spices, McCormick & Co. Inc., Olam International, P. C. Kannan and Co., Eastmade Spices and Herbs Private Limited.

Procurement Resources’ detailed research approach explores deep into the industry, encompassing the macro and micro aspects of the industry. Its team of experts uses a combination of cutting-edge analytical tools and their expertise thus, delivering its customers with market insights that are accurate, actionable, and help them remain ahead of their competition.

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