Report Overview

The growth of the India spices market is attributed to the multidimensional cuisine of India and flourishing local production and availability of spices in domestic markets at competitive prices. Additionally, Indian spices are gaining popularity in the pharmaceutical and cosmetic industry, further boosting the market.

India Spices Market- Industry Trends & Forecast Report 2027

India spices market was worth USD 9.31 billion in 2020 and is further projected to reach USD 19.17 billion by the year 2027, growing at a CAGR of 10.8% during the forecast period. In India, the multidimensional cuisine with its stark regional diversity plays an important role in boosting demand for various spices. Additionally, the flourishing local spice production and the availability of spices in regional markets at competitive prices have contributed to the growth of the Indian spices market.

 

Source: BlueWeave Consulting

India Spices Market- Overview

A spice is a food additive whose primary function is to add flavor, aroma, color, or preserve food products. Aromatic seeds, roots, and barks are usually processed to manufacture spices. Spices give food a delicious flavor, aroma, and texture to cuisines. India is one of the leading producers of spices globally. There are many spices available in the country, such as chilies, turmeric, coriander, tamarind, cumin, mustard, fenugreek, etc. While some spices are medicinal in nature, others are prominently used in religious ceremonies, or for manufacturing cosmetics, or for perfume production. Moreover, spices are available in the market in several forms, such as fresh, whole dried, or pre-ground dried.

India Spices Market Forecast and Trends

Growth Drivers

Self-Sufficiency in Spices Production

India is among the leading spice producers in the world and contributes to around 75% of the global spice production. There are a variety of spices available, including dried red chilies, cinnamon, cumin, turmeric, coriander, etc. It has a wide range of spices such as dried red chilies, cinnamon, cumin, turmeric, coriander, etc., to offer. India’s self-sufficiency in spices allows it to regulate the price better than other countries. States like Uttar Pradesh, Madhya Pradesh, West Bengal, Tamil Nadu are also investing towards expanding their spice production in the next few years, which is anticipated to boost the growth of the India spices market in the forecast period.

Multidimensional Diversity in Indian Cuisine

Spices are considered one of the main ingredients in Indian cuisines. As a result of the strong influence of all four North and South, East and West regions of India, Indian cuisine is considered multidimensional. Indian cuisine is not just food but also a cultural identity passed down from generation to generation through generations. Indian spices are used to create culinary dishes with a unique taste and subtle flavor. Media influence is increasing, and spices from different regions are more readily available now. Thus, people are trying out new tastes and cuisine, which is expected to drive market growth overseas.

Restraints

High Exports and High Prices

The high consumption and limited production of spices in the country act as a major restraint for the growth of the India spices market. The demand for Indian spices is very prominent in various parts of the world. As a result, spice producers often export their production to increase their revenue. As a result, there are not enough spices to meet the growing market demand. This results in a surge in the prices which hinders the demand for spices in a price-sensitive market like India.

Impact of COVID-19 on India Spices Market

In India, an overwhelming number of patients were infected with COVID-19 during both the first and second waves of the coronavirus pandemic. Several drastic measures, such as the imposition of a complete lockdown, were taken by the government to prevent further casualties. This directly and negatively affected the India spices market. Additionally, the lockdown disrupted the production and supply channels for spices. While consumption of spices surged during the quarantine period due to an increase in home cooking, distribution channels ran short of supplies, resulting in severe losses for the market.

India Spices Market - By Product Type

Based on product types, the India spices market is segmented into pure spices and blended spices. The pure spices segment is further classified into chili, turmeric, coriander, cumin, pepper, tamarind, asafetida, bay leaf, clove, cardamom, cinnamon, tulsi leaf, and others. The demand for turmeric accounts for the largest share in the market as it is used for flavoring as well as coloring food. Furthermore, the medicinal properties of turmeric are also driving the growth of the pure spices market.

India Spices Market - By Application

Based on applications, the India spices market is segmented into veg curries, meat and poultry products, snacks and convenience foods, soups, sauces and dressings, bakery and confectionery, frozen foods, beverages, and others. Vegetable curries account for the largest share of the market since these dishes are staple foods in Indian households. As a result of the regular preparation of vegetarian curries and their consumption with rice or roti (chapati), it is no wonder that this category is growing at an accelerated rate across India. On the other hand, the segment of meat and poultry also represents a substantial share in the Indian market since these products are usually cooked with spices just for flavor.

India Spices Market - Regional Insights

Geographically, the India spices market is segmented into North India, South India, East India and West India. Among these regions, the Southern region of India dominates the India spices market. The state of Andhra Pradesh in South India consumes the spiciest food. The use of dried chili powder and red chilies is very prominent in this region. Similarly, Tamil Nadu and Telangana consume a lot of spices since they have some of the spiciest foods among Indian and south Indian cuisine. Spices are also used in South India to prevent food spoilage from the heat, which boosts their demand in this region.

Competitive Landscape

The leading players in the India spices market are Aachi Spices & Foods Pvt. Ltd, Patanjali Ayurved Limited, Badshah Masala, MTR Foods Pvt Ltd., Eastern Condiments Private Limited, Mahashian Di Hatti Private Limited, Everest Food Products Pvt. Ltd, Catch Foods, Rajesh Masala, Pushp Masale, and other prominent players.

Although the market is highly fragmented with the presence of several industry participants, it is dominated by a handful of players such as MDH, Badshan, Rajesh Masala, etc. The companies launch a wide range of products to cater to the needs of various regions, cuisine, and taste and offer various packaging sizes to boost their sales. They significantly focus on improving their distribution channels, such as making their products available at local retail stores and rely heavily on advertising and marketing for creating brand awareness. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.

Recent Development

• In October 2021, Saga Foods, a leading food products supplier, announced the launch of traditional Iyengar South Indian packaged and ready-to-use food products and masalas (spices).

Scope of the Report

Attributes	Details
Years Considered	Historical data – 2017-2020 Base Year – 2020 Forecast – 2021 – 2027
Facts Covered	Revenue in USD Billion
Market Coverage	India
Product Service/Segmentation	By Product Type, By Application, By Form, By Region
Key Players	Aachi Spices & Foods Pvt Ltd, Patanjali Ayurved Limited, Badshah Masala, MTR Foods Pvt Ltd., Eastern Condiments Private Limited, Mahashian Di Hatti Private Limited, Everest Food Products Pvt Ltd, Catch Foods, Rajesh Masala, Pushp Masale, and other prominent players.

 

By Product Type

• Pure Spices

1. Chilli
2. Turmeric
3. Coriander
4. Cumin
5. Pepper
6. Tamarind
7. Asafoetida
8. Bay Leaf
9. Clove
10. Cardamom
11. Cinnamon
12. Tulsi Leaf
13. Others

• Blended Spices

1. Garam Masala
2. Non-Veg Masala
3. Kitchen King and Sabzi Masala
4. Chole and Channa Masala
5. Chat Masala
6. Sambhar and Rasham Masala
7. Panner and Curry Masala
8. Pav Bhaji Masala
9. Jaljeera Masala
10. Others

By Application

• Veg Curries
• Meat and Poultry Products
• Snacks and Convenience Foods
• Soups, Sauces and Dressings
• Bakery and Confectionery
• Frozen Foods
• Beverages
• Others

By Form

• Packets
• Sprinkler
• Crusher

By Region

• North
• South
• East
• West

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