Global Nutmeg Market: 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, 2024-2032

Nutmeg Market Outlook

The Procurement Resource nutmeg industry report comprehensively analyses vital segments, nutmeg market trends, drivers, restraints, the competitive landscape, and other essential market aspects.

The global nutmeg market reached a value of about 134 thousand tonnes in 2021. The industry is further expected to grow at a CAGR of about 4.5% in the forecast period of 2022-2027 to reach a value of around 167 thousand tonnes by 2027.

The prices of nutmeg in 2021-2022 are expected to be affected due to the rising cost of nutmeg and mace. The nutmeg market price rise can be attributed to the scarcity of the product in the market and several other difficulties that have led the farmers to demand higher prices. The critical 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 market comprises application segments such as food, pharmaceutical, and cosmetic industries. 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 and hence, these regions hold major nutmeg market share. Turmeric is popular because it is used in many different regional dishes and has a long history of use in medicine.

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 regional export opportunities. These extractions are in high demand in Europe and the United States.

During the forecast period, the nutmeg market is expected to develop due to increased demand from the international community. Global trade is expanding the market, as the popularity of Asian cuisines like Indian and Thai grows among Westerners.

Additionally, the oleoresin industry is experiencing high growth rate, which is driving further expansion of the nutmeg market. 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. This is affecting the nutmeg price 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 a common ingredient in garam masala, a spice blend used in many Asian cuisines, particularly Indian and Indonesian.  For example, in the European Union, the Indonesian community in the Netherlands is a rather large consumer of nutmeg products. Such broad drivers are propelling the nutmeg market in the European Union.

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. The dried nutmeg kernel must be aflatoxin-free before being traded because aflatoxin (AFs) is a hazardous secondary metabolite of A. flavus.

However, aflatoxin detection is inefficient and expensive, making it difficult to carry out at the farmer level. Technologies like high-performance liquid chromatography (HPLC), liquid chromatography-mass spectrometry (LC-MS), and enzyme-linked immune assay (ELISA) have been developed to test aflatoxin levels. However, these methods are tedious, expensive, and unsafe. As a result, a technology that can detect aflatoxin levels promptly, at a low cost, without damage, and readily, especially at the farmer level, is required.

Category Management Studies

Nutmeg and mace are used as spices because they have a lot of fragrant chemicals that make them flavourful. In addition, nutmeg, and mace, both dried and crushed, are commonly utilised in the culinary sector for their flavouring properties. The nutmeg seed contains 30-55% aromatic oil, 5-15% essential oil, and 24-40% fixed oil (or nutmeg butter).

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

Nutmeg and mace are commonly used as spices in Grenada, particularly baking, dairy, and alcoholic beverages. Nutmeg is required in the distinctively flavourful Grenadian rum punch, and local nutmeg ice cream is delicious. Seasoning marine seafood with mace is a trend.

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 wasted by-product of the nutmeg business. Pods make jams, jellies, and syrups, preserved in syrup, "cheese," and candied pods in the local area. Owing to its versatile utilisation there has been a rise in the nutmeg market demand.

As per the nutmeg market dynamics, the cracked shells are used as firewood mulch in the field and for distributing on pathways, nurseries, and greenhouse floors. The pods are served as a 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 in this mixture. All these factors are impacting the nutmeg market price globally.

The critical zones for the nutmeg market can be allocated into North America, Europe, the Asia Pacific, South America, and the Middle East and Africa.

Nutmeg Market Key Players

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

Market Landscape

The global nutmeg market is greatly divided—a substantial measure of nutmeg is imported by Europe. 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, that use it in the seasonal curry dishes. Because of this, the market is witnessing growth.

Key Initiatives by Companies

• Vancouver based, Camino Minerals, is running three copper ventures in Peru – Maria Cecilia, Los Chapitos, and Plata Dorada that began in 2021.
• Vizcachitas site in central Chile is progressed by Los Andes Copper. The deposited copper-molybdenum porphyry is built in 150 km northeast of Santiago.