Spice Prices Hit Gold-Standard Gains: Industry Transforms Amid Cost Pressures

The days of affordable spices and seasonings appear to be fading. Major flavor companies are reshaping their pricing strategies for 2026, signaling that shoppers should prepare for noticeably higher costs when restocking their spice racks. The shift reflects broader pressures facing the seasoning industry, from surging ingredient expenses to the widening impact of international trade tariffs.

McCormick & Co. (MKC), the household name in herbs and seasonings, is leading this wave of adjustments. During a recent earnings call in February 2026, CEO Brendan Foley announced that the company would implement “targeted price changes” across its consumer products division, with additional increases beginning this month. As reported by AlphaSense, Foley explained that these adjustments represent McCormick’s strategy to pass along costs that have accumulated from tariff pressures. CFO Marcos Gabriel added that pricing power—not just volume growth—will drive the company’s expansion in 2026, suggesting that price increases will be central to the business strategy going forward.

Why Spice Makers Are Raising the Bar on Pricing

The pressure to adjust spice pricing stems from two converging forces. First, the raw material landscape has shifted dramatically, with ingredient costs for staples like garlic and black pepper climbing steadily. Second, tariffs continue to strain company margins, forcing manufacturers to make a choice: absorb the costs or transfer them to consumers. McCormick and its competitors have largely chosen the latter path.

B&G Foods (BGS), which owns popular brands including Dash, Ortega, Accent, and Spice Islands, began implementing price increases in October 2025, a move CEO Kenneth Keller discussed during the company’s November earnings presentation. International Flavors & Fragrances (IFF), a critical supplier to food and beverage producers, similarly reported price increases during its earnings call but declined to disclose specifics. The pattern is clear: across the flavor and seasoning sector, price adjustments are becoming standard practice.

What distinguishes this wave is its scope. Unlike premium food categories where consumers can trade down to cheaper alternatives, spices and seasonings occupy a unique market position. Most households have limited substitutes—you can’t easily replace black pepper or garlic powder, and most consumers view these items as essential rather than discretionary.

A Market Unlike Any Other: Why Consumers Can’t Escape Higher Spice Bills

This presents a fascinating dilemma for budget-conscious shoppers. Consumers have already adapted to economic pressures by increasing shopping frequency but reducing items per trip—a pattern Foley noted during McCormick’s recent call. They’ve embraced bulk buying, bargain hunting, and home cooking specifically to save money. Yet the spice aisle remains largely inelastic. When seasoning prices rise, households have few options beyond paying more or fundamentally changing their cooking habits.

This pricing power explains why the flavor industry maintains such resilience. The U.S. spice and seasoning market, currently valued at approximately $2.9 billion annually, is projected to expand to roughly $4 billion by 2030 according to Mordor Intelligence research. That growth trajectory persists even as price increases take effect, suggesting that demand for flavor in home-cooked meals remains robust regardless of cost.

The Flavor Industry’s Golden Opportunity: Growth Despite Price Pressure

Foley emphasized an important insight during his comments: “consumers, particularly those in low- and middle-income brackets, are making more frequent shopping trips but buying fewer items each time.” This behavioral shift underscores a deeper truth—home cooking continues to function as a cost-saving strategy for millions of households, and herbs and seasonings remain among the most popular items in grocery stores.

The spice industry is betting that this dynamic persists. Rising ingredient costs and tariff pressures may have triggered the pricing adjustments, but they’ve also revealed the fundamental value of spices in consumer budgets. As the market reaches toward $4 billion by the end of the decade, that value will likely only increase, making the current price restructuring less of a burden and more of an inevitable market correction.