India is the world’s largest producer of spices. The country produces 70 percent of the world’s ginger, turmeric, and chilies and 65 percent of its dry onions, according to the latest data from the Agricultural and Processed Food Products Export Development Authority (APEDA).
Overall, India exports spices worth Rs 30,000 crore annually. Out of this, dried ginger exports are estimated at Rs 3,000 crore while turmeric exports fetch Rs 1,500 crore.
India accounted for 45% of the global spice trade in terms of quantity and 17% in terms of value. The country exported spices worth US$ 3,945 Mn in 2017-18 (April-December), a rise of 3.2% over the previous fiscal year.
In terms of quantity, the top five spices exported by India are pepper (consisting of black pepper and white pepper), dry chilies, cumin seeds, cardamom, and turmeric ginger.
These five spices account for almost 50 % share in total export value and 75 % share in total quantity exported from India during 2017-18 (April-December).
Ginger was the only spice among the top 5 spices exported by India that recorded significant growth in terms of both quantity and value during 2017-2018 (April-December). The spice recorded 27% growth in quantity and 50 % growth in value. In volume terms, ginger exports went up from 38 thousand tonnes to 48 thousand tonnes during the same period. Major buyers of ginger from India were China, Chile, Mexico, Germany and Sri Lanka.
In 2019, the total export value of spices and preparations around the world was over 15.1 billion U.S. dollars. This number has only risen over time, as the export value in 2000 totaled around seven billion dollars.
Global Spice Industry
The world spice industry is expected to witness moderate growth of 3.5% during the forecast period. Spices are used in almost all cuisines, as they are the most commonly used ingredient in food and beverages to enhance their taste.
However, developing regions such as Asia-Pacific and LAMEA account for more than 50% share in the global market owing to changing lifestyles and growing awareness about health benefits associated with spices. North America accounts for more than 20% share owing to a strong focus on R&D activities. Other factors that drive the growth of this market include rising income levels, expanding middle-class population, and increasing demand from food & beverages industries due to changing consumer preferences toward spices.
The global spice market reached a value of US$ 15.9 Billion in 2019 and is further anticipated to reach a value of US$ 22.2 Billion by 2025, exhibiting a CAGR of 5.8% during 2020-2025.
Global Spice Trade
As the second-largest agricultural export from developing countries, spices and herbs are one of the most important plantation crops in the world. They provide a livelihood for over 60 million people worldwide, from farmers and collectors to traders and processors. The spice trade is a vital part of our global agri-food system.
Many different spices are produced around the globe – ginger, pepper, cinnamon, vanilla and coffee are just some examples – with some regions specializing in certain products.
Indian spice market and prospects for Indian Spices Exports
The market for Indian spices is growing globally at a fast pace. The global spice market is almost USD$20 billion per annum, with India accounting for around USD$3 billion of that. The country is the third-largest producer and consumer of spices in the world.
The European Union, the US, and the Middle East are major export destinations for Indian spices. The Indian spice industry has the potential to grow by 3-4 times in the next few years as per estimates by industry experts.
Prospects for India’s spice exports are largely positive as demand is expected to rise in the future. Spices are widely used across cultures due to their health benefits and medicinal properties. They also add flavor to food dishes and make them more palatable. The global demand for chili peppers, pepper, cardamom, turmeric, ginger, and celery seed is projected to increase at a rate of 8-10%.
The total value of Indian spice exports was estimated at $2.5 billion in 2005-06. During April-November 2007, India exported 2,36,000 tonnes valued at $867 million as compared to 1,74,000 tonnes valued at $670 million during April-November 2006. However, there has been a decline in exports during the month of November 2007 when compared to November 2006 mainly due to poor demand from importing countries on account of high prices of Indian spices.
The Spice segment dominated the Global Spices and Condiments Market by Type in 2019 and would continue to be a dominant market till 2026. The Edible Seeds segment is estimated to grow at the highest CAGR during the forecast period.
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The global spice export market is predicted to reach a value of $5.4 billion by 2022, according to reports.
