India spices are popular around the world since ancient times due to their authentic flavour and texture. They are famous for their aroma and taste which enhance food quality. Furthermore, exotic spices from other cuisines such as Italian, Mexican are also gaining popularity in India. Food products of India are popular owing to the combination of spices that are used in them. There are diverse spices that are put in curries, snacks, flavouring agents for food products such as chillies, turmeric and others.
India spices market was valued at US$ 5.74 Billion in 2021 in terms of revenue, exhibiting a CAGR of 5.3% during the forecast period (2022 to 2030).
Drivers
Rising innovative flavors, authentic cuisines, and ethnic tastes is predominantly fueling the growth of the India spice market. There is high household consumption of spices to enhance the taste and flavor of food products. Moreover, consumers are preferring spices which benefit their health such as turmeric boosts immunity. Hence, rising demand for spices by households is projected to propel the market growth of the spices over the forecast period.
Increasing e-commerce sales of consumer products is projected to foster the market growth over the forecast period. Consumers prefer to purchase groceries and other products online due to high flexibility, discounts, diverse product range availability and others. For instance, according to the India Brand Equity Foundation (IBEF) October 2022 data, India’s e-commerce market is expected to reach US$ 111 billion by 2024 and further to US$ 200 billion by 2026.
Figure 1. India Spices Market – Opportunity Analysis
Market Restraints
Intense competition in the market and fluctuating prices of the raw material of the spices is expected to curb the market growth of the spices over the forecast. Such factors are expected to result in constant pressure on the profit margin of the manufacturer. Hence, intense competition in the market is expected to hinder the market growth of the Spices over the forecast timeframe.
Spices can cause hemorrhoids and digestive problems such as gastritis and others when consumed in large quantity. Moreover, they are not advisable for children and geriatric population by health professionals as spices can cause digestive issues in them. Hence, these factors are expected to hamper the market growth of the Spices.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2021 | Market Size in 2021: | US$ 5.74 Bn |
| Historical Data for: | 2017-2021 | Estimated Year: | 2022 |
| Forecast Period 2022 to 2030 CAGR: | 5.3% | Forecast Period: | 2022-2030 |
| Segments covered: |
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| Companies covered: |
Everest Food Products Pvt Ltd., Aachi Spices & Foods Pvt Ltd., Dabur India, DS Group, Eastern Condiments Private Limited, Mahashian Di Hatti Private Limited, MTR Foods Pvt Ltd., Patanjali Ayurved Limited, Pushp Brand (India) Pvt. Ltd., and Ushodaya Enterprises Private Limited |
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Market Opportunities
Increasing growth in food processing industry is expected to create a lucrative opportunity for the market growth. Spices are widely used in ready meals, instant foods, soups, snack mix, and others. Processed food are demanded across the country as they are easily available and reduce time in cooking. Thus, this factor is expected to boost the market growth over the forecast period.
The rising demand for organic spices is expected to propel the market growth in the country. Many companies are focussing on marketing organic spices as consumers are preferring products which do not have harmful chemicals and preservatives. For instance, in April 2021, Chef Prateek Sadhu of India launched a spice brand named Paushtik, which contains organic spices from certified organic farms. The brand has its manufacturing unit in Pune, India.
Figure 2. India Spices Market Value Share (%), By Product Type, 2021
On the basis of product type, in 2021, chillies accounted the largest market share of 34.7% in terms of revenue, followed by chopped/crushed and whole. This is mainly because of high convenience of powder spices for consumers with hectic work schedules and their sedentary lifestyles.
Recent Developments
Competitive Section
Major players operating in the India spices market include Everest Food Products Pvt Ltd., Aachi Spices & Foods Pvt Ltd., Dabur India, DS Group, Eastern Condiments Private Limited, Mahashian Di Hatti Private Limited, MTR Foods Pvt Ltd., Patanjali Ayurved Limited, Pushp Brand (India) Pvt. Ltd., and Ushodaya Enterprises Private Limited.
India is considered as the home of spices since ancient times, as it boasts a long history of trading with the ancient civilizations of Rome and China. Even in current times, India spices have popularity around the world. India spices market witnessed a growth owing to the rise in demand for organic spices and growing popularity for India cuisine.
Market Dynamics
Rising popularity of India cuisines is expected to fuel the market growth for spices. India food and snacks are made from various combination of spices such as pepper, coriander, and others. Spices provide flavor, aroma, and color to food. This factor is expected to propel the demand for spices over the forecast period.
Among Form, consumers are opting for powder spices as they have larger shelf life than the other forms and they are easy-to-use. Powdered spices are commonly used by households for making snacks and curries. This is expected to boost the demand for powder spices.
Consumers’ growing awareness regarding organic spices as these spices are considered fresh than the spices which are made from chemicals and preservatives. Continuous improvements in spices through product launches have caused rivals to earn a larger market share. Hence, these factors are also anticipated to boost the market growth.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective section
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