Contents:

Scope and Themes What you need to know Definition Abbreviations and terms Abbreviations Terms Executive Summary Market at a glance Factors influencing change What consumer behavior tells us Category momentum A future with opportunities Market Drivers Ethnicity diversity impacts the menu Population diversity Figure 1: Population by race and Hispanic origin, 2002-12 Foreign-born population stimulates culinary shifts International travel cultivates interest in new cuisines Figure 2: International tourist destination of American tourists*, 2004 Mapping diversity to the menu Figure 3: Leading cuisine categories of new menu items introduced Q1 2005 - Q 4 2006 Usage of seasonings increases with household size Figure 4: Household size by race and Hispanic origin of householder, 2006 Figure 5: Adults who use seasonings such as herbs and spices other than salt and pepper, by household size, January 2007 The Hispanic connection Figure 6: Adults who use seasonings such as herbs and spices other than salt and pepper, by race/ethnicity, January 2007 Households with children present opportunities Figure 7: Top 15 most frequently menued new items on children’s menus Q1 2005 - Q4 2006 Figure 8: Leading flavors on children’s menus, Q1 2005 – Q 4 2006 Restaurant menu items influence home seasonings Figure 9: Adults who use seasonings other than salt and pepper, by gender, January 2007 Figure 10: Leading usage of ingredient preparation techniques in new menu item preparations, Q1 2005 – Q4 2006 Figure 11: Growing momentum for use of ingredients/seasonings in new menu item preparations, 2005 and 2006 Dining out: a two-edged sword Dining out dollars siphon away monies spent on food at home Figure 12: Spending on food away from home, annual average spend per consumer unit, by age, 2001-05 But dining out experience influences receptiveness to purchasing seasonings Restaurants and chefs run with the seasonings sword Fresh (and health awareness) is the new mantra Fresh produce, herbs and seasonings a draw at retail Figure 13: Consumer attitudes toward the purchase of herbs, spices and seasonings, by gender, January 2007 Freshness also valued in restaurant setting Figure 14: Momentum for fresh and healthful marketing claims for newly menued items, Q1 2005 – Q4 2006 A mixed blessing for seasonings market Young adults more interested in cooking than people think Figure 15: Degrees of cooking enthusiasm, by age, April 2006 Figure 16: Attitudes and opinions of cooks, by age, April 2006 Older adults likely to cook from scratch but have unique health demands Figure 17: Incidence of and interest in cooking from scratch, by age, April 2005 Figure 18: Mrs. Dash—watch your dinner move, 2007 Connotations for rubs Market Size and Trends Figure 19: Total U.S. retail sales of seasonings, at current and constant prices, 2001-06 Market trends Figure 20: Product trends and activity in the U.S. seasonings category, 2001-06 Free-from/all natural new product launches on the rise Figure 21: Trending in free-from/all natural new product launches in the seasonings category, 2001-06 The premium movement Rubs and mixes also growing Market Segmentation Figure 22: Sales of seasonings, segmented by type, 2004 and 2006 Spice/seasoning (no salt/pepper) Figure 23: Sales of spices and seasonings, at current and constant prices, 2001-06 Dry meat/seafood/other seasoning mixes Figure 24: Sales of dry meat/seafood and other seasoning mixes, at current and constant prices, 2001-06 Salts Figure 25: Sales of salt, seasoned salts, and salt substitutes, at current and constant prices, 2001-06 Pepper Figure 26: Sales of pepper at current and constant prices, 2001-06 Extracts (flavoring and food colorings) Figure 27: Sales of extracts (flavoring and food colorings), at current and constant prices, 2001-06 Figure 28: Use of vanilla in new menu items, Q1 2005 – Q4 2006 Dry sauce mixes Figure 29: Sales of dry sauce mixes at current and constant prices, 2001-06 Supply Structure Foreign trade Figure 30: U.S. Imports of spices, by leading source country, 2004 and 2006 Figure 31: U.S. imports of spices, by type of spice, 2004 and 2006 Exports Figure 32: U.S. exports of spices, by leading destination country, 2004 and 2006 Figure 33: U.S. exports of spices, by type of spice, 2004 and 2006 FDM sales by manufacturer and brand Figure 34: Manufacturer FDM sales of seasonings in all categories in the U.S., 2005 and 2006 Spices/seasonings (no salt/pepper) Figure 35: Manufacturer brand FDM sales of spices/seasonings (no salt/pepper) in the U.S., 2005 and 2006 Dry meat/seafood seasoning Figure 36: Manufacturer brand FDM sales of dry meat/seafood seasoning in the U.S., 2005 and 2006 Salt, seasoned salts and salt substitutes Figure 37: Manufacturer brand FDM sales of salt, seasoned salts, and salt substitutes in the U.S., 2005 and 2006 Pepper Figure 38: Manufacturer brand FDM sales of pepper in the U.S., 2005 and 2006 Extracts (flavoring and food colorings) Figure 39: Manufacturer brand FDM sales of extracts (flavoring and food colorings) in the U.S., 2005 and 2006 Dry sauce mixes Figure 40: Manufacturer brand FDM sales of dry sauce mixes in the U.S., 2005 and 2006 Major companies McCormick & Company Unilever Bestfoods ACH Food Companies, Inc. (division of Associated British Foods) Morton Salt (Rohm and Haas Company) Frontier Natural Products Advertising and Promotion McCormick & Co. ACH Food Companies, Inc. (division of Associated British Foods) Figure 41: Spice Islands— How to add a little Latino magic, 2007 Morton Salt (Rohm and Haas Company) Frontier Natural Products Retail Distribution Introduction Figure 42: U.S. retail sales of seasonings, by channel, 2004 and 2006 Declining resources for the seasonings category Supermarkets Figure 43: U.S. supermarket sales of seasonings, at current and constant prices, 2001-06 Mass merchandisers and other channels Figure 44: U.S. mass merchandiser and other sales of seasonings, at current and constant prices, 2001-06 Traditional mass merchandisers Figure 45: Where Americans shopped for food and groceries in the past three months, 2006 Supercenters and superstores Warehouse clubs Specialty stores—natural and organic retailers Drug stores Figure 46: U.S. drug store sales of seasonings, at current and constant prices, 2000-05 The Consumer: Usage of Seasonings Introduction Summary Usage of seasonings Seasonings and blends/rubs Specific seasonings usage trends: traditional versus emerging Who uses herbs and spices Figure 47: Use of seasonings such as herbs and spices other than salt and pepper, by gender, January 2007 Figure 48: Use of seasonings such as herbs and spices other than salt and pepper, by size of household, January 2007 Figure 49: Use of seasonings such as herbs and spices other than salt and pepper, race/ethnicity, January 2007 Herbs, spices, blends or rubs used in past month Figure 50: Spices, herbs, blends or rubs used in the last month, January 2007 Specific seasonings usage trends: traditional versus emerging Traditional seasonings Figure 51: Trends in the use of popular herbs and spices over the past year, January 2007 Emerging or growing seasonings Figure 52: Trends in the use of emerging/growing seasoning/culinary ingredients over the past year, January 2007 The Consumer: Seasonings Purchase Rationales Introduction Summary Seasonings purchase rationales Figure 53: Attitudes toward the purchase of herbs, spices and seasonings, by gender, January 2007 Figure 54: Attitudes towards the purchase of herbs, spices and seasonings, by age, January 2007 Additional observations: income, presence of children, and race/ethnicity Household income Summarizing observations about consumer attitudes The Consumer: Factors Influencing Decision to Try New Seasoning Introduction Summary Factors influencing decision to try new seasoning Figure 55: Factors influencing decision to try a new herb, spice or seasoning blend in the past year, by gender, January 2007 Figure 56: Influencing decision to try a new herb, spice or seasoning blend in the past year, by age, January 2007 Figure 57: Influencing decision to try a new herb, spice or seasoning blend in the past year, by household income, January 2007 Figure 58: Influencing decision to try a new herb, spice or seasoning blend in the past year, by race/ethnicity, January 2007 The Consumer: Restaurant Influence Introduction Summary Restaurant influence Figure 59: Influence of meals containing seasonings consumed in the restaurant setting on new meals consumed at home, by age, January 2007 Figure 60: Influence of meals containing seasonings consumed in the restaurant setting on new meals consumed at home, by race/ethnicity, January 2007 Figure 61: Types of restaurants patronized, by race/ethnicity, March 2006 The Consumer: Putting “Fresh” into Perspective Introduction Summary Putting “fresh” into perspective Figure 62: Attitudes toward the purchase of herbs, spices and seasonings, January 2007 Figure 63: what motivates consumers to purchase and use fresh herbs over dried herbs and spices, by gender, January 2007 Deeper insights into the influence of “fresh” on seasoning purchases Figure 64: Source of fresh herbs, by gender, January 2007 Figure 65: Source of fresh herbs, by age, January 2007 Figure 66: Source of fresh herbs, by household income, January 2007 Future and Forecast Future trends Effortless flavor Upscale packaging for product differentiation Seasonings on the move Figure 67: Goya— How to add a little Latino magic, 2007 The cocktail market opportunity Population diversity Figure 68: Population by race and Hispanic origin, 2002-12 Market forecast Seasonings Figure 69: Forecast of total U.S. sales of seasonings, at current and constant prices, 2006-11 Seasonings segment Figure 70: Forecast of U.S. sales of the seasonings segment, at current and constant prices, 2006-11 Spices and seasonings Figure 71: Forecast of U.S. sales of spices and seasonings, at current and constant prices, 2006-11 Dry meat, seafood, and other seasoning mixes Figure 72: Forecast of U.S. sales of dry meat, seafood, and other seasoning mixes, at current and constant prices, 2006-11 Salt, seasoned salts, and salt substitutes Figure 73: Forecast of U.S. sales of salt, seasoned salts, and salt substitutes, at current and constant prices, 2006-11 Pepper Figure 74: Forecast of U.S. sales of pepper, at current and constant prices, 2006-11 Sauce mixes, extracts, and flavoring segment Figure 75: Forecast of U.S. sales of the sauce mixes, extracts, and flavoring segment, at current and constant prices, 2006-11 Forecast factors Appendix: Trade Associations

Companies Mentioned

McCormick & Company Unilever Bestfoods ACH Food Companies, Inc. (division of Associated British Foods) Morton Salt (Rohm and Haas Company) Frontier Natural Products