Updated Oct 23, 2022 16:43

Spice Market in Iraq

Market Overview
In , the Iraqi spice market decreased by -% to $ for the first time since 2012, thus ending a eight-year rising trend. In general, consumption, however, saw a buoyant expansion. Spice consumption peaked at $ in , and then fell in the following year.


Consumption
In , spice consumption in Iraq rose rapidly to tons, increasing by % compared with . In general, consumption enjoyed buoyant growth. Over the period under review, consumption reached the maximum volume at tons in ; afterwards, it flattened through to .

The revenue of the spice market in Iraq rose significantly to $ in , picking up by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption recorded a prominent expansion. Spice consumption peaked at $ in ; afterwards, it flattened through to .


Consumption by Type
Spices except pepper or ginger ( tons) constituted the product with the largest volume of consumption, accounting for % of total volume. Moreover, spices except pepper or ginger exceeded the figures recorded for the second-largest type, piper pepper ( tons), threefold. The third position in this ranking was held by cinnamon (canella) ( tons), with a % share.

From 2007 to , the average annual growth rate of the volume of spices except pepper or ginger consumptions amounted to +%. With regard to the other consumed products, the following average annual rates of growth were recorded: piper pepper (+% per year) and cinnamon (canella) (+% per year).

In value terms, spices with the largest market size in Iraq were nutmeg, mace and cardamoms ($), spices except pepper or ginger ($) and piper pepper ($), together accounting for % of the total market. These products were followed by cloves, cinnamon (canella), ginger, anise, badian, fennel and coriander, pimenta pepper and vanilla, which together accounted for a further %.

In terms of the main consumed products, anise, badian, fennel and coriander, with a CAGR of +%, recorded the highest rates of growth with regard to market size over the period under review, while market for the other products experienced more modest paces of growth.


Market Forecast
Driven by increasing demand for spice in Iraq, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Spice market in Iraq consists almost entirely of imported products. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Iraq remains a net importer of spice; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.