An Overview of the Spices Market of India

An Overview of the
Spices Market of India

2020

Background

Historically, India has been known as the ‘home of spices’. According to the Ministry of Commerce and Industry of India, India is one of the largest producers of spices in the world with about 75 varieties out of the 109 listed by the International Organization for Standardization. Having an exquisite aroma, texture, taste and medicinal value, Indian spices are undoubtedly the most-sought after, at a global level.

Key Takeaways

  • The Spices market in India is not only an essential sector for global trade but also is a significant contributor to India’s GDP as well as stature of being the ‘Home of Spices’.
  • For centuries now, there has been a massive demand for Indian spices desired by different cuisines across the world. Due to this growing demand and a wide extent of end users from industries to households, the future holds great growth potential for this sector. As per TSB estimates, and keeping into the current scenario due to the Covid-19 pandemic, the sector is expected to grow at CAGR 3.5-4% over the next few years.
  • As a one of the key recommendations of this report, spice production and trading must be promoted amongst MSMEs in the sector and they should be encouraged, both financially and otherwise to grow in the space. The small and mid-level spice manufacturers, processing units and exporters deserve the much-needed acknowledgment and priority by public and private sector institutions and there is a need for increased provisions for them.

Further, as per the analysis conducted by TSB, there is a disparity in the production of spices across various states. The states with a lower production can unlock their full potential by utilizing the favorable Indian climate as well as the resources available without affecting their existing produce. Hence, leveraging the growth in this sector, both domestically and through exports. There is also an immense scope of new innovations and blends and thus, the need for a more focused approach towards research and development.

Overall, the findings and analysis from this report help establish India as a continued leading producer of spices across the world for many more years to come as well as a motivation to deliver innovative, high quality solutions to the market in the long run.