What Are The Latest Trends In The Spices Market In India

The Indian spice market is witnessing a trend from loss to branded products. Also, regional spice companies are the dominant players in the market.

The spices market in India is set to become a ₹50,000 crore market by 2025, but it is the branded spices that will constitute half of the spices produced in the country. The prediction is based on the increasing demand for spice mixes to ease the cooking process and only brands can provide such blends.

Reasons For Shift Towards Branded Spices

Due to the availability of various blends, buyers are increasingly switching from loose to branded spices that help develop flavor. Or it will be better to say that manufacturers that provide more options in flavors make more sales. The buyers want to look further than the traditional spices. They want to experiment with different blends and improve their taste.

Another reason for this shift towards branded spices is the push given by regional spices manufacturers in India. These companies may be minor in the global context, but they are by no means small in the country. They are doing well in their respective fields and have the potential to take their brand to the international markets.

Current Market Size Of Branded Products

Branded spices constitute approximately 35% of the overall market size in the country. The total market size of both packaged and loose spices is estimated at Rs 70,000 crore. According to a research paper prepared by investment bank Avendus Capital, 15 spice brands are expected to cross ₹1,000 crore revenue mark by FY2030. Out of these brands, four companies can become companies with an annual turnover of Rs 5,000 crore by FY2030.

How Are Brands Gearing Up To Achieve The Expected Growth?

There are reports that Hindustan Unilever Limited (HUL) is looking to invest in Mahashiyan Di Hatti Private Limited, popularly known as MDH, to increase its market share. In a similar move, cigarette-to-cookies company ITC Ltd acquired Kolkata-based spice maker Sunrise Foods Pvt Ltd last year for an estimated ₹2,100 crore. Spice exporters in India are also getting offers from overseas brands that want to increase their footprint in the Indian market.

Norway-based packaged consumer goods firm Orkla has inked a deal worth Rs 2,000 crore with Kerala-based spice maker Eastern Condiments Pvt Ltd. to acquire a 67.8% stake in the company. It wanted to create a larger enterprise by merging the existing MTR Foods business with the Kerala-based company to launch a new range of ready-to-eat spices. At the same time, an investment firm A91 Partners invested Rs 125 crore in Indore-based spice brand Pushp.

How COVID-19 Affected The Spice Market In India?

The lockdown only spurred the demand for Indian spices as the people were encouraged to relish delicious home-cooked food, and they needed quality spices and blends to achieve different flavors. It was a time when people shifted to branded products that come packed in airtight packing. Also, the consumers were willing to pay a premium for products like pastes and blended spices. Increased awareness about health and demand for freshness further pushed consumers to branded products.

Which Are The Dominating Players In The Market?

The research paper discussed above found that the market was dominated by indigenous regional brands that produce spices and blends keeping in mind the local cuisines and cuisines. And for this reason, foreign brands took interest in regional manufacturers, such as Norway's Orkla, buying a Kerala-based spice company to capture the regional market.

The regional market is stronger than the national market in the country. The demand for some spices is higher in specific regions than at the national or international level. Also, some blends and blends are available only in regional markets due to their demand. Since spices are produced for specific dishes, consumers have also shifted their attention to loosely branded products. A similar trend is visible in spices export.

Top 5 Spices Brands In India

1. Everest Spices

One of the oldest spice brands, Everest Spice is at the forefront of the market with its pan-India presence. Also, it is one of the biggest exporters of ground spices and other mixes. The company plans to expand its presence in both national and international markets.

2. Badshah Masala

Badshah is an internationally recognized brand with over six decades of experience in manufacturing spices with a wide variety of blends and blends. It has forayed into the overseas spices markets with its products like chili flakes, pizza-pasta seasoning, and Piri Piri masala. Today it is one of the biggest spices exporters in India.

3. MDH Spices

The winning mantra of MDH Spices is to reduce the workload of grinding spices with hands. Established almost a century ago, MDH Spices is a household name in India. It produces a wide range of spices found for use at home. Plus, it provides an amazing mix of flavors to cook different flavors.

4. Catch Spices

Catch Spices witnessed fast growth in the highly competitive spice market of the country. This manufacturer is known to select Indian spices for the production of ground spices and blends. But it is best known for its cooking pastes and sprinkler seasoning. Also, it has a strong presence in India as well as in the world.

5. Rajesh Masala

It is a new entry into the top five spice manufacturers and exporters of the country but this spice company is doing a commendable job by providing a wide range of quality products. The strength of this company is its hold over regional spices. Also, read What Is The History Of Indian Carpet Export?

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