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Europe gravitates to African spices

Shipping delays, limited production output and climate change impact Europe’s spice supply, creating opportunities for African brands to enter the captive market.

Spices have long been a hallmark within the European food landscape. Yet, various supply issues risk disrupting the continent’s ability to access in-demand spices in the required quantities.

Speaking at the Centre for the Promotion of Imports from developing countries (CBI) webinar African Spices-Seizing Opportunities in Europe, Luz Maria Barrientos, International trade consultant at Globally Cool says that while Europe currently has a steady spice demand, the supply dynamics are changing. These changes are prompting the market to look to Africa to provide a diverse and ample spice supply, propping up its current quantities.

Global disruption affects the spice supply

“Shipping issues like the obstruction of the Red Sea have been causing delays and extra supply costs,” Barrientos says. European producers are subsequently looking to other markets to provide sufficient spice quantities.

Consumption is also outstripping production output levels in some markets. “We also have the very big issue that key producing countries, for example, Indonesia, India, and China, are increasing their consumption faster than production, meaning they have fewer spices that they can put into the international market,” Barrientos says.

Global importers, including Europe, might be empty-handed or unable to source all the necessary spices. “That, of course, is driving them to look for alternate origins to mitigate that risk,” adds Barrientos.

Climate change is another significant factor impacting crops worldwide and spice and herb development. As a result, this creates more risk in the supply chain, opening opportunities for new products and brands. “Many African countries have good climate conditions for growing spices,” says Barrientos.

All these factors combined have created ample opportunity for African spice brands to enter and grow in the spice space, filling existing gaps in the European market.

Emerging opportunities for African-grown spice exports

The European market has traditionally been a significant consumer of spices, and the steady demand for African spices is creating an opportunity for African spice exporters. Over the last five years, a consistent 6% annual increase in African spice imports to Europe has shown a promising trend.

Since 2022, the total imports of spices and herbs from Africa to Europe have exceeded 30,000 tonnes, accounting for around 6% of the total imports, and this number is expected to continue increasing. “But Africa is still a small participant with a small share in the total of the imports, which is good news because it means we have a lot of chances to grow,” says Barrientos.

With its proximity to Europe, favourable climate and diverse range of high-quality spices, Africa is poised to become a significant player in the spice trade. Additionally, the geographical proximity of African countries to Europe offers a logistical advantage and presents a viable solution to mitigate the issue of shipping risks.

The landscape is ripe for African spice producers to meet the current demand and carve out a larger share of the European spice market. With abundant, flavourful, and aromatic spices, African-grown spices have the potential to emerge on the global stage.

Leading spice trends

African spices such as capsicums, ginger, anise, cinnamon, cloves, coriander seeds, pepper, and vanilla are popular among consumers. Capsicums have emerged as a standout success story, with a significant increase in European exports. Ginger, another highly sought-after spice, faced supply challenges due to production issues in Nigeria but remains a crucial player in the market.

Spices like anise, cinnamon, cloves, coriander seeds, pepper, and vanilla have also shown varying degrees of market presence and potential for growth. As African countries continue to harness their spice-growing potential and capitalise on the demand in the European market, new opportunities to export these spices are emerging.

Entering the European market

African spice producers are now focusing on meeting the European Union’s (EU) demands and benefiting from these new market opportunities.

Poul Wiertsema, Consultant and Expert in spice sourcing at Spice and Advice, said at the CBI Webinar that there are four key structural factors for African spices to enter the European market: EU quality regulation compliance, sustainability, investing in market development, and adopting customer needs. Gaining awareness and ensuring compliance in these areas is critical.

Regarding the main hazards in spices and herbs, Wiertsema says these are “residues of agrochemicals, looking at Hindi sites, looking at pesticides, insecticides”. In the EU, residues all have maximum levels that products entering the market must adhere to.

Paul de Rooij, Food Technologist and Founder and co-director of Trianon Investment, details the financial constraints facing exporters in this business. For example, the reality is that buyers like to buy big uniform lots. “That is the biggest issue in this business,” says de Rooij.

When trading from Africa, suppliers are asked for the full container load of one single product of one specific quality. Subsequently, spice manufacturers and brands need to buy the raw materials, engage in processing and handle the processing loss between the processing and collection periods.

African spice producers need to ensure consistent quality, a reliable supply and adherence to international standards to succeed in the European market.