The Indian spice market has grown at a CAGR of 15 percent during the period of 2015-20. According to market analysts, the spice market is expected to continue on this growth trajectory during 2021-2026.
India is known as the land of spices. Since ancient times, the country has been trading with civilizations of Rome and China. We are the spice bowl of the world and the spice routes are proof that these were our earliest exports thousands of years ago. Even today, the cloves, cinnamon, nutmeg, and pepper from India are most sought after globally, due to their exquisite taste, aroma, texture and also medicinal value. The country is the largest producer, consumer and exporter of condiments and spices and is responsible for 50 percent of the global trading in this domain.
Local demand for spices and condiments
No other country produces as well as consumes as many spices and condiments as India. India has a wide range of climates and topography, conducive to the cultivation of myriad kinds of spices and luxury goods. It produces and consumes as many as 75 varieties out of the 109 shortlisted by the International Organization for Standardization. Pepper and cardamom are ingrown in Kerala, Karnataka, and Tamil Nadu. Ginger and turmeric are grown in Andhra Pradesh, Karnataka, and Kerala among other states. Rajasthan, Uttar Pradesh, and Uttaranchal grow coriander.
Indian cuisine is dominated by different types of condiments, making the country one of the largest consumers of spice globally. Some of the commonly consumed spices in India are Cayenne pepper that aids in digestion and stimulates the circulatory system, cloves that add warmth to any curry dish, fenugreek that reduces blood sugar levels, fennel that aids digestion and reduces bloating, cardamom to enhance the flavor of tea and puddings, and turmeric for its anti-inflammatory benefits.
The domestic market is the largest in the world. Farmers in small landholdings are involved in cultivation; organic farming has also been gaining prominence in recent times. The total market for spices currently stands at INR 70,000 crore.
Branded spice is another growing sector in India, constituting 35% of the overall spices market in the country. The branded spices market in India is all set to double to INR 50,000 by 2025, according to experts. Fifteen spice companies are expected to exceed INR 1,000 crore in revenue by the financial year 2030. Among these, four companies will achieve as much as INR 5000 crore in annual turnover.
Spice export in India
- Spices worth US$ 3.62 billion were exported from India in the financial year 2020.
- Major importers of Indian spices in the financial year 2021 are UAE, UK, Hong Kong, Australia, Canada and the US.
- Pepper, cardamom, ginger, turmeric, coriander, cumin, celery, fennel, fenugreek, nutmeg, spice oils and oleoresins, and mint products are the major spices exported from India. Processed spices such as curry powder, mint powder, seasonings, and oils are also exported.
- The state of Madhya Pradesh was the largest producer of spices within India in 2021, with an estimated production of over three million metric tons.
Impact of COVID-19 on spice exports
- The global health crisis has created awareness about fitness in the minds of people and this has further enhanced the demand for Indian spices for their immunity enhancing properties. The export of spices from India is showing an upward trend despite the worldwide lockdown during 2020-21. There has been an all-time record export in 2020-21 in terms of both volume and value. There was an increase of 30% in volume, 23% in rupee terms, and 17% in dollar terms as compared to the previous financial year.
Market drivers
- Adoption of the traditional knowledge about spices being a strong immunity builder
- Rising consumer awareness about the negative health impact of synthetic additives, increasing the demand for organic spices
- Increase use of spices as natural preservatives
- The rise in demand for healthy and nutrition-rich food
- Strengthening economies of countries in the Asia Pacific region with a rise in disposable income
- The rise in demand for processed and ready-to-eat foods
- Increasing demand for innovative flavors and authentic cuisines
- Growth in the food processing industry
Connect with Tradologie.com and tap into a growing domain
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