The asafoetida market is expected to grow at a CAGR of 8.8%, reaching a market size of US$850.835 million in 2029 from US$558.839 million in 2024.
Asafoetida is a pungent resin extracted from the roots of the Ferula plant. This distinctive spice has been used for centuries in traditional medicine and culinary practices across different cultures. It provides numerous health benefits and is traditionally used to treat digestive problems such as bloating, indigestion, and flatulence. Asafoetida contains anti-inflammatory properties used to treat respiratory conditions such as chronic bronchitis and asthma. It is widely utilized in numerous applications including the food industry, pharmaceutical industry, and cosmetic industry. Increasing investments in the pharmaceutical sector and demand for natural and organic products are major driving forces behind the Asafoetida market growth.
Market Drivers
Consumers are more health-conscious and aware of the potential negative effects of synthetic ingredients, due to which they are actively seeking out alternatives that align with their desire for a healthier lifestyle. Asafoetida's ability to improve digestion, reduce flatulence, and treat respiratory problems has made it a popular choice for health-conscious people. Due to the advanced health benefits of asafoetida, health-conscious consumers prefer organic products, which has positively accelerated the asafoetida market growth. Additionally, according to the Agricultural & Processed Food Products Export Development Authority (APEDA), India produced approximately 2.9 million MT (2022-23) of certified organic products, which included a variety of food products and spices.
Asafoetida is a valuable pharmaceutical ingredient derived from the root of Ferula plants. This resinous substance is widely used for its medicinal properties, and in the pharmaceutical industry, it is used to produce a variety of medicines and formulations. The increasing investments in the pharmaceutical industry contributed to the Asafoetida market growth. For instance, according to the White House data, in September 2022, the Department of Health and Human Services announced its investment of $40 million to expand biomanufacturing's role in producing active pharmaceutical ingredients (APIs), antibiotics, and key starting materials for vital medications and pandemic response.
Asafoetida is widely used in the manufacturing of cosmetic products due to its distinct odour and serves as a valuable natural fragrance ingredient in perfumes, skincare products, and cosmetics. Its antimicrobial and antifungal properties make it an ideal ingredient in facial cleansers and acne-fighting creams, and it also has antioxidant and anti-inflammatory properties, making it suitable for soothing irritated skin and reducing inflammation. People are becoming more conscious of their appearance and self-care, which increases demand for cosmetic products and drives the construction of new manufacturing facilities. For instance, in May 2023, Beiersdorf AG announced its investment of €300 million in a cutting-edge and environmentally friendly plant in Leipzig-Seehausen, Germany, which will produce up to 450 million cosmetic products for the European market each year.
Asia Pacific is projected to grow significantly.
Asia Pacific is anticipated to account for a significant share of the asafoetida market due to the numerous establishments in major countries in the region. For instance, in November 2022, ITC announced the launch of a global spices processing facility in Andhra Pradesh, with processing lines for turmeric, chili, and blended spices. The facility will produce over 15 organic spices and boost ITC's food exports globally, thereby supporting a major spice value chain. Additionally, in November 2023, Nu Skin Enterprises announced the official launch of a new manufacturing facility in Shanghai, China, with an investment of approximately $55 million. The new facility will increase the company's production capacity and supply chain responsiveness in China and other Asian markets.
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