Spices Market in India 2024-2028

Spices Market in India 2024-2028

The companies operating in the market are involved in the manufacturing and selling of spices (pure and blended). The final products are sold in packets, sprinklers, crushers, and/or as unpacked spices by small-scale farmers, as well as large multinational corporations.

These products are used in vegetarian curries, meat and poultry products, snacks and convenience foods, soups, sauces and dressings, bakery and confectionery, and frozen foods, among others, to add/enhance flavors.

In recent years, the spices market in India has observed a notable shift in demand from consumers, with preference for packaged spices over loose variants. This shift is driven by concerns regarding adulteration. The market is fragmented with regional spice makers catering to localized consumer preferences, contributing to the dominance of the unorganized sector.

Key states such as Madhya Pradesh, Rajasthan, Gujarat, Andra Pradesh, Telangana, Karnataka, Assam, Maharashtra, Orissa, Uttar Pradesh, West Bengal, Tamil Nadu, and Kerala playing significant roles in driving market growth.

Market trends:

Packaged spices and seasonings are experiencing a significant uptrend in the Indian market, driven by a shift away from traditional unpackaged options. This movement towards packaged formats is particularly pronounced among younger millennials aged 26 – 32.

Factors such as the fast-paced, health-conscious lifestyles of millennials, their preference for convenience without compromising on taste, and increasing purchasing power are fueling this trend. Premium packaged spices are expected to see a surge in demand as millennials continue to embrace this shift.

Market drivers:

Sufficient infrastructure boosts farm productivity, and reduces farming expenses, and its rapid development augments agricultural and economic growth rates.

The availability of essential resources such as water (irrigation), land development, agricultural roads, transportation infrastructure, agricultural machinery and equipment, and information systems in agriculture has proven to be advantageous for farmers engaged in spice farming.

The combination of increased production, along with effective distribution and marketing strategies further bolsters exports. Consequently, this contributes significantly to the overall expansion of the spices market in India.

Key deterrents to the growth of the market:

Intense competition in the market and fluctuating raw material prices are projected to limit the growth of the spices industry over the forecast period.

In India, the prices of spices are impacted by irregular weather, inflationary pressures, and household finances. These factors impact the production and export of spices, including cumin, turmeric, red chili, clove, cinnamon, and dried ginger. These variables are projected to exert pressure on manufacturers’ profit margins.

The spices sector in India faces stiff competition from imported variants, mainly from Vietnam and Indonesia. This rivalry resulted in the lower pricing of some spices, such as cardamom, thus affecting the profits of Indian spice producers.