Star Anise Market

Star Anise Market Size and Forecast (2023-2028):

The Global Star Anise Market shares value is expected to grow at a CAGR of xx% during the forecast period 2023-2028 to reach USD xx billion by 2028 from USD xx billion in 2022.

Market Overview:

Star Anise, which is scientifically known as Illicium Verum, is a spice used in various cuisines for its intricate flavor and aroma. It is an evergreen shrub that is native to Asia, and it is known for its star shape, distinct aroma, and licorice-like flavor. It is an essential part of dishes, and it is either used as a whole or in a powdered form. Star anise has a sweet and aromatic flavor, and this flavor is due to the compound called anethole. It is commonly used in Asian cooking, particularly in Chinese, Vietnamese, and Indian cuisines. It is added to soups, stews, sauces, and marinades to add a unique flavor. It is not only used for adding a savory flavor but also added in sweets such as baked goods, desserts, and cakes. In India, star anise is commonly used in tea to add a spicy flavor. Star anise has also been used traditionally in various cultures for its potential medicinal properties. Studies show it also aids in relieving inflammatory symptoms. The star anise seeds contain shikimic acid, which is used in the manufacturing of oseltamivir. Star anise oil, known for its intense fragrance, is used in cooking, perfumes, soap production, toothpaste, mouthwash, and skincare formulations.

Recent Developments in Star Anise Industry:

• Pernod Ricard, a French company, was created in 1975 from the merger of two French anise-based spirits. The company has since undergone several acquisitions, including the acquisition of Allied Domecq, which includes brands such as Mumm Perrier-Jout. However, it is unclear if Star Anise was a focus of these acquisitions.

REPORT COVERAGE:

Drivers:

The increasing demand for star anise in the food and beverage industry is one of the significant driving factors that is propelling the star anise market share. Star anise, due to its aromatic and savory flavor, is a popular spice in Asian culture, and it is used in a variety of dishes such as soups, stews, and curries. It has a sweet and licorice-like flavor that bends with other spices and brings out a unique taste to the dishes. Star anise is mixed with pepper, chilies, and gingers in different cuisines. It is also used in traditional Chinese dishes such as Peking duck and Wonton soup. The wide usage of star anise in Asian cultural cuisine is driving the demand for star anise in the food and beverage industry. In the United States, due to cultural mixing, the number of Asian restaurants has increased, and the growing popularity of fusion cuisine has propelled the star anise market demand. In addition to this, its use in the beverage industry has also caused a rise in the market share. For example, star anise is a key ingredient in liquors such as sambuca and ouzo. Sometimes, it is also used in gin and pastis. In bakery and confectionary, it adds flavor to cookies and breads. Hence, the increasing use of star anise in food and beverage products is fuelling the star anise market size.

The rising trend for organic and natural medicines has led to the growth of the star anise market in the pharmaceutical industry. Consumers are looking for natural alternatives over conventional medicines. The oil derived from star anise is used for relaxing the muscles in the digestive tract, and it helps to relieve cramps and spasms. It is also used as an expectorant to loosen phlegm and mucus in the respiratory tract, making it easier to cough up. Its anti-bacterial and anti-fungal property helps fight infection. The anti-oxidant characteristic helps protect cells from damage. The star anise seeds extract also contains shikimic acid, which was a chemical intermediate in the synthesis of oseltamivir, also called Tamiflu. Thus, the increasing demand for herbal medicines, as well as the growing popularity of star anise oil, is driving market growth. Along with this, the increasing mixing of culture and cuisines has also led to the star anise market growth.

Restraints:

One of the significant factors that are limiting the star anise market expansion is the limited production; star anise is only grown in a few countries such as China, Vietnam, and Indonesia. The limited production increases the cost of spice and decreases the demand. Further to this, the harvesting and processing of the star anise is labor-intensive and, thus, adds more cost to the spice. This star anise is harvested by hand, and the pods are dried and processed to preserve the flavor. Moreover, there are various substitutes available, such as fennel and licorice, and these substitutes are less expensive. This can be a challenge for the star anise market growth, as consumers have alternatives and may choose these substitutes instead of star anise.

Thus, the high cost and availability of alternatives restrict the star anise market value.

Opportunities:

Star anise is anti-fungal and anti-microbial, and this property can be used in cosmetics to prevent acne and fight bacteria and fungi. Star anise oil, which is extracted from the seeds, has an anti-oxidant property that protects the skin from damage caused by free radicals, as free radicals lead to premature aging and dull skin. Thus, incorporating star anise oil in creams and lotions can provide an opportunity for manufacturers to produce organic and natural anti-aging cosmetics for consumers. Star anise, because of its astringent properties, can help in skin tightening and reduce the pigmentation and appearance of the pores. Furthermore, the licorice aroma of star anise is popular in many perfumes. It can be used in cosmetics such as serums, moisturizers, and lotions to add a unique and exotic scent. Thus, the growing demand for organic and natural cosmetics is creating opportunities for star anise in the cosmetic industry.

COVID-19 Impact on Star Anise Market:

The star market anise faced challenges and significantly impacted the star anise market; the outbreak of COVID-19 caused severe disruptions in the supply chain due to the implementation of lockdown and travel restrictions. It caused a reduction in the workforce and led to the shutting down of industries. The closure of the border and limited transportation disrupted production and processing, and this caused a decrease in demand and sales. Further, the closure of restaurants and cafes led to a decline in the demand for star anise; as more consumers spent time at home due to social distancing, the demand for star anise decreased, and it affected the production rate. The pandemic also affected international trade; changes in the shipping routes and import regulations created hurdles, which affected the timely delivery and availability and created star anise shortage in the majority of the countries. The COVID-19 had a negative impact on the star anise market size.

Star Anise Market Segmentation Analysis:

By Type:

• Organic Star Anise
• Normal Star Anise

Based on the type, the star anise market is divided into organic star anise and normal star anise. The normal star anise has the highest market share as it is cheaper, and its availability is more than the organic star anise. At the same time, organic star anise is expected to grow at a higher rate during the forecast period due to changing consumers for more organic products because it is considered healthier and environmentally friendly.

By Application:

• Spices Industry
• Pharmaceutical Industry

Based on the application, the star anise market is classified into the spices and pharmaceutical industry. The spices industry has the highest market share. Star anise is widely used as a spice in various culinary dishes, especially in Asian cuisines, because of its distinct flavor and aroma, which makes it a popular ingredient in both sweet and savory dishes. This application in the spices industry can significantly contribute to the demand for star anise. The high consumption of star anise in cooking, baking, and beverages caused a rise in the star anise market size. At the same time, the pharmaceutical industry is expected to hit the highest CAGR by the end of the forecast period. Increasing popularity because of its medicinal properties is elevating the growth rate of the segment. Star anise contains compounds like anethole, which helps in reducing inflammation. It also has shikimic acid, which is the essential compound of oseltamivir. It helps in maintaining digestive and respiratory health. Additionally, star anise extract is sometimes used in the pharmaceutical industry as a flavoring agent for medicines and syrups due to its pleasant taste and aroma.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

By Region Analysis:

Based on the region, the star anise market is classified into North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa. The Asia Pacific region dominates the star anise market, accounting for the highest market share. The region is predicted to continue to dominate the market during the forecast period, owing to the increasing demand for star anise in the food and beverage industry, as well as the pharmaceutical industry. Star anise is a popular spice in Asian cuisine and is used in a variety of dishes, such as soups, stews, and curries. In China, star anise is used as a part of traditional five-spice powder. It is also one of the major ingredients which is used to make the broth for the Vietnamese noodle soup called phở. It is also an important ingredient in traditional Chinese medicine to treat a variety of ailments, such as coughs, colds, and digestive problems. Therefore, the increasing demand for star anise in both the food and pharmaceutical industries is driving the market and leading to its increase in market size. Europe has the largest market share and CAGR, as many pharmaceutical companies have been exploring star anise for its medicinal properties. Also, many European cuisines have been using star anise to bring out the flavor and aroma. North America has been seen to have significant growth in the star anise market, as it has been used in beverages by health-conscious consumers to maintain digestive and gut health. The Middle East and Africa have steady market growth as it is widely used in cuisines. Latin America has the lowest market share as compared to other regions.

Key Players in the Market:

Major Key Players in the Global Star Anise Market are

• BTL Herbs & Spices
• Mother Herbs
• Union Trading Company
• Jagdish Masala Company
• Babji Marketing
• Mahaveer Marketing
• VLC Spices
• The Counts
• Shrih Trading Company Private Limited
• Kore International.