INDIA SPICES MARKET ANALYSIS

The India Spice market Anal was valued at US$ 6.05 Bn in 2022, exhibiting a CAGR of 5.9% in terms of revenue over the forecast period (2023 to 2030) to reach US$ 9.6 Bn by 2030.

Indian spices are popular around the world since ancient times due to their authentic flavor and texture. They are famous for their aroma and taste, which enhances food quality. Furthermore, exotic spices from other cuisines, such as Italian and Mexican, are also gaining popularity in India. There are diverse spices that are put in curries, snacks, and flavoring agents for food products, such as chilies, turmeric, and others.

Covid-19 Impact on India Spice Market

• The lockdowns and restrictions on movement imposed to control the spread of COVID-19 have disrupted the supply chain of spices in India. Farmers have faced difficulties in transporting their produce to markets, and traders have faced challenges in procuring and distributing spices.
• The hospitality industry, which is a major consumer of spices, has been severely impacted by the pandemic. With hotels and restaurants closed or operating at reduced capacity, the demand for spices has decreased significantly. India is a major exporter of spices, but the pandemic has led to challenges in exporting due to restrictions on movement and trade. This has impacted the revenue of spice exporters in India.

India Spices Market Drivers

• Rising innovative flavors, authentic cuisines, and ethnic tastes: Rising innovative flavors, authentic cuisines, and ethnic tastes are predominantly fueling the growth of the India spice market Analysis. There is high household consumption of spices to enhance the taste and flavor of food products. Moreover, consumers are preferring spices that benefit their health, such as turmeric boosts immunity. In 2020, the Indian spice company, Everest, launched a new range of spice blends called "Everest Super Blends." These blends combined traditional Indian spices with super foods such as quinoa and chia seeds, to create healthy and innovative flavors.

• Increasing e-commerce sales of consumer products: Increasing e-commerce sales of consumer products such are projected to foster 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’s (IBEF) October 2022 data, India’s e-commerce market is expected to reach US$111 billion by 2024 and further reach US$ 200 billion by 2026.

India Spices Market: Restraints

• Intense competition in the market and fluctuating prices of the raw material for the spices: Intense competition in the market and fluctuating prices of the raw material for the spices are 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 In 2021, the spice industry in India faced intense competition from imported spices, particularly from countries such as Vietnam and Indonesia. This competition led to a decrease in the prices of some spices, such as cardamom, and impacted the profitability of Indian spice companies.
• Counterbalance: The price fluctuation of the spices can be counterbalanced by considering certain factors such as the area where the spice is grown, whether it is locally or far away,, rarity of the spice, geographical restrictions, whether the spice is seasonal, and if climatic conditions are needed to be maintained. This factor needed to be ensured to maintain price fluctuations.
• Possibility of causing hemorrhoids and digestive problems after consumption of spices: Spices can cause hemorrhoids and digestive problems such as gastritis, among others, when consumed in large quantities. Moreover, they are not recommendable for children and the geriatric population by health professionals, as spices can cause digestive issues in them like Irritation, Acid reflux. Hence, these factors are expected to hamper the growth of spices.
• Counterbalance: The adverse effects of certain spices can be minimized by balancing it with an acid that can help neutralize the molecule’s activity.

India Spices Market Opportunities

• Increasing expansion in the food processing industry: Increasing growth in the food processing industry is expected to create a lucrative opportunity for market growth. Spices are widely used in ready meals, instant foods, soups, snack mixes, and others. Processed foods are demanded across the country as they are easily available and reduce cooking time. Thus, this factor is expected to boost market growth over the forecast period.

• Increased demand for organic spices: The rising demand for organic spices is expected to propel market growth in the country. Many companies are focusing on marketing organic spices as consumers are preferring products that 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.

India Spices Market Trends

• Growing popularity of value-added spices: Value-added spices such as spice blends, flavored salts, and infused oils are gaining popularity in the Indian market. These products offer convenience and unique flavor profiles, making them attractive to consumers.

Export growth

India is the largest exporter of spices in the world, and the demand for Indian spices in international markets continues to grow. The country's spice exports have been increasing steadily over the years, with a focus on quality and safety standards.

India Spices Market- Segmentation

Figure no 1. India Spices Market, By Product Type, 2022

• On the basis of product type, chilies accounted for the largest market share of 34.70% in terms of revenue, followed by chopped ginger/crushed and whole. This is mainly because of the high convenience of powder spices for consumers with hectic work schedules and sedentary lifestyles

Recent Developments

• In November 2022, Catch Salts & Spices, a brand of DS Group, launched a new advertising campaign with actors Akshay Kumar and Bhumi Pednekar. This is aimed to strengthen the company's position in the market
• In September 2020, Kerala-headquartered Eastern Condiments Pvt Ltd., a spice and masala powder maker, was acquired by Norwegian conglomerate Orkla.The acquisition was part of Orkla's strategy to expand its presence in the Indian market and strengthen its position in the fast-growing food and beverage sector.Eastern Condiments is a well-established brand in India, with a strong presence in the southern and western regions of the country. The company produces a wide range of spice and masala powders, as well as pickles, rice, and other food products.
• In July 2022, India-based Emami Agrotech, the food manufacturing division of the Emami Group, launched its new brand Mantra Spices. The brand includes pure and blended powder spices and tastemakers that are manufactured using cryogenic grinding technology, technique of pulverizing spices and herbs at freezing temperatures, in Jaipur, India.

Competitive players

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.