Market analysis of fennel seed

This paper investigates the current and future trends of the Australian and international fennel market. It provides a baseline assessment of the global industry based on currently available information and identifies opportunities for future research. The market data available for fennel is limited and is often presented in a larger group of spices including juniper berries, anise seeds, badian, caraway, coriander and fennel (as whole seed, not ground or crushed). It is not possible to separate the individual spices from this grouped data so in these instances the overarching trends have been assessed. Throughout this report juniper berries, anise seeds, badian, caraway, coriander and fennel will be referred to as the ‘group of spices.’ Fennel is a hardy, biennial or perennial herb with yellow flowers and feathery leaves (Singh, 2017). Fennel produces aromatic dried fruits, which are commonly used as a spice in cooking. The flower and seeds are produced in terminal compound umbels and the dry fruits are 4-10mm long. India is the world’s largest fennel producing country with Syria, Egypt, Turkey, Germany, Spain and Pakistan also making significant contributions to global production. India and Egypt are significant exporters of fennel. Interestingly, for the group of spices including juniper berries and anise seeds, badian, caraway or fennel, India also imported the highest amount of these spices, followed by Germany. Other major importers include United States of America (USA), Turkey, United Kingdom (UK), United Arab Emirates (UAE), Brazil and Malaysia. The annual growth in the import market is 8.9% (ITC, 2019, UN Com Trade, 2019). The reason for this growth is unknown but it has been suggested it may be due to population growth or increased purchasing power of middle-class consumers. Australia’s domestic market for fennel and other similar spices is entirely supplied through imports. In 2018, Australia imported about 568tonnes of the spice group in question, worth about US$1.37million. The majority of imported spices in Australia are produced in India and China (UN Com Trade, 2019). There is evidence of continuous growth in the quantity of imported spices, which suggests there is an increasing demand for fennel and similar spices in Australia. Calculations made by CQUniversity using the available data and trend analysis suggest that in 2025 the demand for fennel and similar spices in Australia will exceed 2,000 tonnes per year. The unit trade price of fennel and other spices was volatile over the last few years. In 2018, the price was US$2,408/tonne. Given the unit value and the size of the market, it is likely that a local industry in Australia could initially target the domestic market before scaling up for international markets.