SAFFRON MARKET ANALYSIS

One of the major challenges faced by the saffron market is its high production cost. Saffron is known to be one of the most expensive spices in the world due to the labor-intensive process required to cultivate it. Saffron is obtained from the dried stigmas of Crocus sativus, commonly known as saffron crocus. To obtain a mere 1 kg of saffron, it is estimated that around 150,000 to 200,000 flowers are required. Since the process of manually plucking three stigmas from each flower has to be done with extreme care, it becomes a very time-consuming task. It takes nearly 800 man-hours of labor to produce just 1 kg of saffron. Additionally, the saffron crocus also has very low per acre yield potential which further drives up production costs. High labor and land costs coupled with low yields make saffron a very expensive spice. This poses a major challenge for the industry players to make saffron accessible to mass consumers. Unless production costs are brought down significantly, saffron is likely to remain a niche luxury product consumed only by the affluent population.

Opportunity: Product Innovations using Saffron

The saffron market has huge potential for product innovations using this exotic spice. Due to its rich color and distinct flavor, saffron can be utilized in developing new food and beverage products. Food manufacturers can come up with saffron infused teas, coffees, biscuits, cakes and desserts to expand the existing consumer base for saffron. Apart from the food industry, saffron also has applications in health and personal care sector. Cosmetic and herbal companies can leverage the anti-oxidant and skin healing properties of saffron and introduce premium lines of face creams, lotions and other beauty products. Pharmaceutical industry too is exploring saffron’s medicinal advantages in treating conditions like depression, Alzheimer's, asthma etc. Through continuous innovation and value addition, the saffron market players aim to shift saffron from being an exotic luxury commodity to an accessible ingredient across multiple industries. This will be the key growth driver in the coming years.