A spice is a seed, fruit, root, bark, berry, bud or other vegetable substance primarily used for flavoring, coloring or preserving food. Spices are distinguished from herbs, which are parts of leafy green plants used for flavoring or as a garnish. Many spices have antimicrobial properties. Spices produce a vast and diverse assortment of organic compounds, the great majority of which do not appear to participate directly in growth and development.
Today, Indian spices are the most sought-after globally, given their exquisite aroma, texture, taste and medicinal value. India has the largest domestic market for spices in the world. Traditionally, spices in India have been grown in small land holdings, with organic farming gaining prominence in recent times. India is the world's largest producer, consumer and exporter of spices. Demand for Indian spices is high because they are clean and hygienic as compared to that of other countries.
The total market size of branded spices is estimated at 6,600 crore, and is growing at 14 per cent annually. While the US is the main importer of Indian spices, contributing 16 per cent of the total export value, it is followed by China at nine per cent. The UAE and Malaysia are at six per cent, while Saudi Arabia, Germany, Sri Lanka, Singapore and the UK at four per cent each.
India produces almost all the known spices and the country takes pride in being one of the largest exporters of this commodity. As the spice is a mass consumption item that’s mostly used in culinary preparation or seasoning of food merchandise, its internal demand is heightening increasingly. Moreover, the Indian Spices Manufacturer in India uses matured technology-based machinery and quality-conscious resources or raw material to deliver customer-satiating products.
By 2020, the Indian spice market is anticipated to reach USD 18 billion approximately. Looking at the potential in the sector the manufacture of branded spices and spice mixes are expected to get a surge. The Indian government is also aggressively promoting spice exports through various initiatives such as setting up of “spice parks” that offer common processing facilities to both producers and exporters.
Blended Spices have shown remarkable growth in India in the past couple of years. The market is forecasted to grow with a CAGR of more than 9% in the near future. An increasing population of working women and consumers awareness towards adulteration has created a huge demand for blended spices. With higher purchasing power due to the high economic development of India, there has been a change in the preference of Indian consumers. The consumers are observed to be shifting from standard, local and regional brands towards national brands. The consumption of foreign brands is also observed to be increasing in Indian Blended Spices market. While the growth of blended spices and spices mix has opened a new segment for many of the players as it is currently consisting of regional players.
Food and beverage industry is the most important end user of spices in the world. With a rise in disposable income, the working class and urban population in general is willing to eat in restaurants and experience different cuisines. Packaged and frozen food are also utilizing spices to make the food seem more edible while preserving it for a long time simultaneously. This has been contributing to the overall market growth of spices and will define its direction in the upcoming years.
The Indian spices market is worth INR 40,000 crore annually. Key spices produced in the country include pepper, cardamom, chilli, ginger, turmeric, coriander, cumin, celery, fennel, fenugreek, ajwain, dill seed, garlic, tamarind, clove, and nutmeg among others. The market is largely unorganized and the branded segment makes up about 15%.
The population in India is surging and the increasing consumer expenditure on food explains the swelling demand for food in India. Accordingly, the demand for spices is expected to grow in the future which will lead to a prominent growth in the revenues from the sales of spices in India. The revenues from India market are expected to expand to around USD 18 billion in FY’2020, growing with a CAGR of ~% from FY’2016 to FY’2020. The highest contribution to this growth is expected to come from the spice mixes and blended spices.
Few Indian major players are as under
Sunrise Foods Pvt. Ltd.
Shubham Goldiee Masale Pvt. Ltd.
Paras Spices Pvt. Ltd.
M V J Spices (India) Pvt. Ltd.
M V J Foods (India) Pvt. Ltd.
Kitchen Xpress Overseas Ltd.