The India spices market is an integral part of the Indian cuisine which is renowned worldwide for its use of aromatic and herbal spices. Spices provide taste, texture, color and nutrition to various Indian dishes. In addition to imparting flavor to food, spices also have several health benefits such as aiding digestion, boosting immunity, maintaining heart health and fighting cancer etc. The growing health awareness among Indian consumers has elevated the demand for spices significantly. Furthermore, rapid urbanization and rising disposable income have led people to experiment with new dishes, thus augmenting the sales of various spices.
India spices market is estimated to be valued at US$ 48.85 Bn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the India spices market are Afterpay, Zippay, VISA, Sezzle, Affirm, Paypal, Splitit, Latitude Financial Services, Klarna, Humm, and Openpay. These players are investing heavily in order to expand their product portfolio and strengthen their market presence through strategic collaborations.
The growing demand for exotic and international cuisines in India has opened lucrative opportunities for spices producers to introduce new blends and seasonings. The online retail boom witnessed in India during the pandemic has further augmented the sales of spices through e-commerce platforms.
Several Indian spices companies have ventured into global markets like North America, Europe and Asia-Pacific in order to tap the growing popularity of Indian food worldwide. Acquisitions and partnerships with restaurants and food brands have enabled companies to penetrate new geographies swiftly.
Market drivers
Increased health awareness: Research proving the various medicinal properties of spices has prompted consumers to include them in their diet. Diseases like diabetes and high blood pressure are compelling people to add spices like turmeric and cinnamon to their meals on a regular basis.
Rising disposable incomes: Economic growth over the past decade in India has expanded purchasing power. This allows people to spend more on value-added spices and premium products.
Market restrain
Volatility in raw material prices: The costs of major spices such as chili, turmeric, coriander and cumin fluctuate due to factors like weather changes, crop yield and global demand-supply forces. This affects the prices of end products.
Segment Analysis
India Spices Market Demand is dominated by turmeric sub-segment which holds around 25% of total market share. Turmeric is one of the most important ingredients used in Indian cuisine which gives a distinctive yellow color and flavor to food. It is extensively used for cooking various Indian dishes like curries, soups, lentils etc. Wide application in food processing industry has also boosted the demand for turmeric. Coriander powder sub-segment holds around 15% share owing to its usage for seasoning and preservation purposes in various food products. Chili powder sub-segment is also expanding at a fast pace since last few years as demand for spicy food items is rising across regions.
Global Analysis
In terms of regions, South India dominates the Indian spices market with around 40% share primarily due to turmeric cultivation in states like Tamil Nadu. North India also captures sizable share of around 30% as many northern states are major producers of chili, coriander, cumin and other spices. The eastern region holds around 15% share and is emerging as a high growth pocket due to expansion of food processing units in West Bengal and Odisha. West India and central India accounts for remaining share and their market is growing due to rising export demand from Middle East and African countries. Among all the major spice producing nations, India accounted for almost 55% of production globally in 2020 establishing its dominance in spices world wide. Rising health consciousness and expansion of food processing industry is driving the demand across key global regions like North America and Europe.
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About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
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