POPPY SEEDS MARKET Challenges and Opportunities

This market is facing a major challenge due to the stringent regulations imposed by various governments regarding the cultivation and trade of poppy seeds. Poppy seeds are extracted from poppy plants which are also used to produce opioids such as morphine and heroin. Many countries such as United States, India, Australia have strict laws to control and monitor the cultivation of poppy plants and international trade of poppy seeds. The producers and exporters have to comply with various norms and acquire multiple regulatory certifications which increases the production and trade costs. Moreover, certain countries such as Saudi Arabia have even banned the cultivation and import of poppy seeds which is shrinking the potential market size. The regulations are expected to get tougher in the coming years to curb opioid trafficking.

Market Opportunity - Expansion of the food processing industry in emerging markets

The expansion of food processing industry in emerging markets is presenting lucrative growth opportunities for the market. Poppy seeds are widely used as a food ingredient and cooking condiment in various cuisines across regions. With rising incomes and growing health-conscious consumer base, the demand for processed and packaged food products is escalating rapidly in developing countries. Many emerging nations are witnessing heavy investments in food manufacturing, research & development and marketing activities by leading food companies. The food processing sector is contributing significantly to the economic development of these countries. With increasing urbanization and busy lifestyles, there is a rising trend of consuming ready-to-eat packaged food products.