Spices such as turmeric, chilli, coriander, cumin, and ginger have various health benefits and add flavor, aroma and color to food. They play a major role in Indian cooking and also have medicinal properties which helps in controlling blood sugar levels, cholesterol levels and stomach related issues. The growing awareness about health benefits associated with regular consumption of spices is driving the growth of the India spices market. The global India Spices Market is estimated to be valued at US$ 3945.37 Bn in 2024 and is expected to exhibit a CAGR of 21% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Growing health benefits awareness
One of the major market opportunity in the India spices market is the growing awareness about health benefits associated with consumption of different spices. Spices play an important role in Indian cooking and also provide various health advantages. Regular consumption of spices like turmeric helps in reducing risk of heart disease, controlling blood sugar levels and prevents inflammation. Chilli contains compound called capsaicin which helps in weight management and improves metabolism. Ginger contains anti-inflammatory and antimicrobial properties helpful for treating nausea, arthritis pain and cold. The rising awareness about divers health advantages of spices is fueling demand for spices in India and driving growth of the India spices market over the forecast period.
Threat of new entrants: The threat of new entrants is moderate as India has a very strong agriculture base and spices are produced domestically which provides low-cost advantage. However, established brands, distribution networks and buyer loyalty act as barriers.
Bargaining power of buyers: The bargaining power of buyers is high due to the availability of a wide range of spices produced by many players. Buyers can negotiate on price easily.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While suppliers have control over prices of agricultural commodities, established players have integrated supply chain which reduces their dependence.
Threat of new substitutes: The threat of substitutes is low as spices have distinct flavours and health benefits. Each spice has its unique properties.
Competitive rivalry: The competition is high among existing players.
Strength: India is the largest producer, exporter, and consumer of spices globally. It has a favorable climate and soil for cultivating various spices. There is easy availability of raw materials.
Weakness: Low mechanization, lack of cold storage facilities, inadequate processing and packaging infrastructure leads to wastage and quality issues. Small and scattered land holdings reduce economies of scale.
Opportunity: Rising health consciousness and demand for organic products provide new opportunities. Growth of food service industry and export potential to new markets can be tapped.
Threats: Climate change is impacting production of some spices. Price volatility of agricultural commodities is a threat.
The Global India Spices Market Share is expected to witness high growth over the forecast period aided by rising domestic consumption as well as exports. The market size is projected to reach US$ 3945.37 Bn by 2024 registering a CAGR of 21%.
Regionally, the southern region currently dominates the Indian spices market owing to favorable climatic conditions for producing a variety of spices such as pepper, cardamom, ginger and turmeric. States like Kerala, Tamil Nadu and Karnataka are the major producers.
Key players operating in the Indian spices market are Afterpay, Zippay, VISA, Sezzle, Affirm, Paypal, Splitit, Latitude Financial Services, Klarna, Humm, and Openpay. Strategic partnerships with farmers, setting up of processing units and expanding exporter network will be the focus over the coming years.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it