Opportunities in Spice Industry of India have historically focused its spice export trade in turmeric, the most dominant black pepper and the spice world’s royalty, and the fiery Indian chili.
That has changed. ‘India Spice’s Annual Report 2023-24’ claims to have sold spices worth ₹ 1.25 trillion, last fiscal. Celery, seed spices, exotic herbs, oleoresins, and fortified blends spices have diversified and augmented the spice business.
This has provided the entrepreneurs with plenty of new avenues to explore, beyond the previously established ‘big three’ spices. Utilizing government data, export data, and certain government policies, new contestants readily set up spices processing and exporting units to maximize their profits.
The Market Landscape- India’s Growing Spice Export Basket
The new and novel opportunity is to shift focus and invest into the production of niche spices with no competition available in the Indian or global market. Then there are these reasons for new and niche spice segments exports.
- Higher Price: Specialty spices are sold at a higher price and have a larger profit margin as they are considered rare.
- Global Demand: Customers including health-oriented, gourmet, and spice lovers look for organic, exotic, and functional spices.
- Government Support: Support and Schemes from MoFPI, MoMs, and APEDA subsidize processing, structuring, and promotion of exports.
- Brand Differentiation: Startups can easily create unique brands in domains with low competition.
MSME Success Stories – Inspiration for New Entrepreneurs
- Kerala Herb Distillers: Started with small essential oil extraction, now supply FMCG giants worldwide.
- Gujarat Celery Processors: Used APEDA and MSME grants to build grading plants and now export globally.
- Rajasthan Organic Spice Firms: Focused on fortified blends and exotic herbs, earning premium space in European supermarkets.
The clear blueprint for startups is:
- Begin with one niche like celery oils, exotic herbs, or fortified blends.
- Use government subsidies for plant setup and certifications.
- Partner with farmer groups for raw material supply.
- Gradually expand into branded exports.
Import–Export Insights – Turning Data into Opportunities
Even though India leads in turmeric and pepper, exports of celery, seed spices and minor herbs are climbing fast. At the same time, many high value oleoresins and specialty extracts are still imported.
This is where startups can step in:
- Use export data to spot rising-demand spices.
- Set up domestic plants for import substitution.
- Export to premium markets certified, traceable products.
- Diversify into fortified spice blends and extracts to meet modern consumer demand.
Sectors of Spice Industry with the Most Future Potential
The spice industry of India has not been restricted only to turmeric, pepper, and chilly, but has also expanded to other spices which started glitches for startups. And which they are, and why they can be useful are discussed and analyzed here.
Celery and Seed Spices
What Makes This Spice Attractive:
- The demand for food, pharmaceuticals, and nutraceuticals are increasing.
- The export of celery seeds and related products is increasing.
- The imported high purity celery oils.
What is the required Setup:
Cleaning, grading, oil extraction and encapsulation units.
The How-To-Guide:
- Use the increasing celery cultivators to setup the base facilities in Punjab and Himachal Pradesh.
- Target and make high quality domestic production of celery oil to take the place of imported oils.
Exotic Herbs (Basil, Oregano, Rosemary)
What Makes This Spice Attractive:
- The demand of gourmet food, nutraceutical blends, and herbal teas is increasing.
- Export demand for organic dried herbs and essential oils is increasing.
What is the required Setup:
Controlled drying, sterilization, and essential oil extraction.
The How-To-Guide:
- These raw materials can be sourced from farmer clusters in the hilly areas.
- Use the MSME schemes for funding and APEDA to promote export for organic certification and entry to the market.
Read More: Manufacturing Business Opportunities in Indian Kitchen Spices
Nutraceuticals Spice extracts
Why attractive:
- Curcumin (turmeric extract) and piperine (pepper extract) are among the most booming supplements globally.
- Increasing demand and growth from the US, EU, and East Asia.
Setup Needed:
Solvent extraction, concentration, and encapsulation units to produce high purity extracts.
Startup Playbook:
- Begin with small to mid-sized extraction units.
- Emphasize supply to nutraceutical companies globally and across the country.
- Position products leveraging the “Made in India” purity and affordability advantage.
Specialty and Fortified Spice Blends
Why attractive:
strong market consumer growth for healthy and convenient seasonings.
Popular: Low Sodium Masalas, Turmeric with Vitamin D, Herbal Marinades.
Setup Needed:
Automated micro encapsulated blending plants and sterlized.
Startup Playbook:
- Access MoFPI product development aids and MSME packaging innovation grants.
- Pursue domestic retail and export e-commerce.
- Position wellness and health branded spice blends as differentiated.
Essential Oils and Oleoresins
Why attractive:
- Food, strategic, placed cosmetics and pharma industries utilize
- cardamom, clove, celery, and spice seed oleoresins and oils.
- High-value imports suggest strong domestic production capabilities.
Setup Needed:
Plants for oleoresins and essential oils, steam distillation, and solvent extraction.
Startup Playbook:
- Use small scale essential oil extraction as the first step.
- Subsequently, scale into blended formulations and oleoresins.
- Firms specializing in fast-moving consumer goods (FMCGs) and cosmetics should be approached as suitable bulk purchasers for marketing partnerships.
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Entrepreneurship Action Plan
- In step one, carry out a feasibility study with NPCS.
- In step two, apply for subsidies with MoFPI, MSME, and APEDA.
- In step three, invest in modern technologies for processing and packaging.
- In step four, obtain FSSAI, HACCP, and Organic certifications.
- In step five, invest in trade fairs and e-commerce for stronger export channels.
Future Trends – Beyond Turmeric and Pepper
- Mix Functional Fortification with spices, and add vitamins, probiotics, and medicinal herbs.
- For digital traceability, implement blockchain and QR codes for traceability and authentication.
- Adopt green processing through solar drying and other zero waste technologies.
- For DTC Export, sell through online platforms to global buyers.
Read Our Project Report: Click Here
Opportunities in Spice Industry: How NPCS Can Help You
Niir Project Consultancy Services (NPCS) helps entrepreneurs as well as experienced business people prepare and compile Detailed Project Reports (DPR).
That covers all aspects of manufacture including market study and analysis, process plant capacity and product mix determination, machinery and raw materials, and doing full (including) financial planning and business plan development and execution, as well as assisting in making it their vision come true by starting and growing spice related businesses.
Moreover, NPCS helps people utilize government entrepreneurial support schemes that enable continuous growth in neglected segments of the spice market economy in order to help transform these segments into competitive and sustainable businesses.
Find the Best Idea for Yourself With our Startup Selector Tool
Opportunities in Spice Industry: Conclusion
The current statistic on the spice export sector in India puts it at over ₹1.25 trillion, and show that it is growing at a fast pace. But the next area for growth is in the emerging spice segments such as celery, exotic herbs, oleoresins, and fortified blends.
These are premium segments that new businesses venturing into will be able to charge premium pricing, decrease the country’s import rates, and satisfy the growing global demand (Opportunities in Spice Industry).
The next spice revolution of India is now a possibility with the expert guidance of NPCS, government assistance and support, and the collaboration and partnership with farmers for entrepreneurs in India to create high-quality spice based businesses.
Opportunities in Spice Industry: Frequently Asked Questions
Q1. What are the spices with the highest potential for new business entrepreneurs?
High-margin and export potential spices include celery, exotic herbs, oleoresins, spice extracts, and fortified blends (Opportunities in Spice Industry).
Q2. How much funding is required to initiate a spice processing unit?
Small plants will require ₹20–50 lakh while medium-sized extraction units will need ₹1–5 crore.
Q3. Is there an advantage for women entrepreneurs in this field?
Yes, PMFME schemes provide specific grants and assistance for women entrepreneurs (Opportunities in Spice Industry).
Q4. What are the compulsory certifications for spice exports?
FSSAI, HACCP, ISO, and Organic certifications are a prerequisite for the foreign markets (Opportunities in Spice Industry).
Q5. In what ways can NPCS assist businesspersons?
NPCS helps with feasibility studies, DPRs, offers technological details, and helps with government schemes.
