Believe it or not, big reputed brands are foraying in Indian spices market. Foraying of branded players like Emami, TCPL (Tata consumer products limited) and ITC (Indian tobacco Company) in Indian spices market is not a new trend but biggest of names have given spices market a miss. Spices trade has always been accepted as small scale industry and only 40% of spice market is branded. India is known for its diverse tastes and quite naturally spices market here is segmented. Popularity of different spices in different segments of Indian spices market is simply decided on the basis of regional taste preferences. A spice may be rage in one region and would find no takers in other regions. Thus local processing of spices to cater to local demand has been the hallmark of Indian spices market. Go to any neighborhood provision store and you will find limited stocks of branded spices lying among stacks of unbranded spices. This situation reflects the reality of ₹60000 crore worth Indian spices market. 60% of Indian spices market is unbranded.
Can Brands Takeover?
Currently branded spices market is younger brother of unbranded spices market. Ratio between branded and unbranded is 4:6. If big brands foray into Indian spices market than ratio can be just opposite. Presence of brands in Indian wheat market and Indian rice market was more or less negligible once but today many big brands have forayed in these markets and share of branded rice, wheat and wheat flour is considerable in market today. Spices market can follow the trend. Some consumers prefer branded products for specific reasons. Brands bring their goodwill with products to the market. It is easy to have faith in brands like ITC, Tata or Emami rather than some unnamed company. It is often believed that brand can be guarantee of quality, purity, authenticity and hygiene. Even if brands takeover, unbranded spice processors will always be there to cater to local demand. Brands will mainly dominate export market. For example ITC is eying export market along with domestic market. ITC has acquired Sunrise foods private limited and made its intentions amply clear. It has explored markets like EU, USA and Japan to say the least. TCPL has given charge of taking its spices to South Indian market to its spices brand Tata Sampann. This brand has sold spices worth ₹100 crore in 2021-22. Emami agrotech has launched Mantra, its new spices brand. ₹700-1000 crore revenues in five years is target of Emami.
Big brands foraying into Indian spices market will not spell doom for unbranded spices traders and unbranded spices traders will keep catering to regional needs. Brands will mainly move to export spices. Trend of rise in online spices trade will continue. Major part of Spices Exporter in India will shift to online B2B platforms. In such a scenario spice sellers will need to choose B2B platforms carefully. Secret of success of any B2B platform lies in the buyer database. Spice sellers need to choose a B2B platform with wide ranging and huge database of global spice buyers. Tradologie.com is one such platform.