Despite being the largest producer and exporter of spices, India holds only 0.7% share in the global seasoning market which was valued at $14 billion in 2024.

• In comparison, China holds 12% and the U.S.A. 11% of the global seasoning market.

About Spices

• Spices are natural plant substances that enhance the flavor, aroma, and color of food and beverages. Example: cinnamon, cumin, paprika, turmeric, cloves, and black pepper,etc.
  • Many spices have medicinal properties, such as anti-inflammatory, antioxidant, and antimicrobial effects. They elevate dishes with exotic and tantalizing flavors, making them essential in cuisines.

• India is a land of diverse agro climatic zones which helps the country to produce 76 out of the 109 different spice varieties listed by International Organization of Standardization (ISO).
  • 85% of spices grown in India are consumed domestically.
• Key Spice Producing Regions In India:
  • South India: Known for growing spices like black pepper, cardamom, cloves, and curry leaves.
  • North India: Significant consumer and producer of spices such as cumin, coriander, and red chili.
  • West and Central India
    • Madhya Pradesh is the largest spice-producing state in India. 

India Spices Market Segmentation Based On Product Type

• Pure Spices: Pure spices dominate the Indian spice market.
  • Includes single-ingredient spices like turmeric, cumin, coriander, and chili.
• Blended Spices: Growing Segment
  • This category comprises various spice mixes tailored for specific cuisines and dishes, allowing consumers to easily recreate traditional flavors without the need for extensive knowledge of individual spices
  • Increasing demand due to convenience and evolving consumer preferences.
  • Example: Garam Masala, Chaat masala mix etc.

Factors Responsible For the Growth of Indian Spice Market

• Expanding Food Processing Sector: Growing demand for innovative flavors and authentic cuisines is driving spice consumption.
  • Ethnic and traditional tastes are increasingly sought after in the food and beverage (F&B) sector.
• High Usage of Spices in Traditional Dishes: The demand for traditional spices such as chilli, turmeric, cumin etc is rising due to their essential role in traditional cooking.
• Shift Towards Convenient Packaging: Consumers prefer small and resealable pouches for easy storage and convenience. This trend is influencing packaging innovations in the spice industry.
• Rising Demand for Natural and Organic Spices: Rising awareness about the synthetic additives is driving consumers preference for organic and natural spices.

Government Schemes For Development of Indian Spice Market

• SPICED Scheme: The Spices Board of India, under the Ministry of Commerce and Industry, has unveiled the SPICED scheme (Sustainability in Spice Sector through Progressive, Innovative and Collaborative Interventions for Export Development).
  • Aim: To boost spice exports and improve cardamom productivity.
  • Budget: Rs. 422.30 crore for implementation till FY 2025-26.
  • Duration: The scheme will be implemented during the 15th Finance Commission cycle, ending in FY 2025-26.
  • Beneficiary Focus: The scheme prioritizes assistance to farmers’ Groups (FPOs, FPCs, SHGs), SC/ST Communities and SMEs (Particularly from the North-Eastern regions) and Exporters.
• Spice Parks: The Spice Board of India has established 8 crop specific Spices Parks in the major producing/market centers.
  • A Spices Park can be defined as an industrial park for processing and value addition of Spices and Spice products which offers the processing facilities at par with the international standards.
  • Spices Parks Locations In India: 
    • Chhindwara, MP: Garlic & Chilli
    • Puttady, Kerala: Pepper & Cardamom
    • Jodhpur, Rajasthan: Cumin & Coriander
    • Guna, Madhya Pradesh: Coriander
    • Guntur, Andhra Pradesh: Chilli
    • Sivaganga, Tamil Nadu: Turmeric & Chilli
    • Kota, Rajasthan: Coriander & Cumin
    • Rae Bareli, Uttar Pradesh: Mint
• Codex Committee on Spices and Culinary Herbs (CCSCH): The CCSCH is a subsidiary body of the Codex Alimentarius Commission, a global food standards-setting body established by the Food and Agriculture Organization (FAO) and the World Health Organization (WHO). 
• • The commission aims to develop international food standards that promote food safety, quality, and fair trade practices. 
  • India has been a member since 1964.

Challenges in the Indian Spice Market

• Adulteration and Quality Concerns: Widespread adulteration and inconsistent quality affect consumer trust and market reputation. 
  • Example: Hong Kong and Singapore recalled certain spice mix products of the MDH and Everest Group allegedly over the presence of a higher than prescribed level of the sterilising agent Ethylene Oxide (ETO).
• Low Value Addition: Limited processing and packaging of spices reduces profitability and export competitiveness. 
  • Example: Most Indian spices are exported in raw form, while countries like the UAE and Germany reprocess and repackage them for higher value sales.
• High Production Costs: Rising input costs and labor expenses impact overall profitability.
  • Example: Increasing wages and higher costs of fertilizers and pesticides have made spice cultivation expensive in states like Kerala and Karnataka.
• Rising Global Competition: Competing spice-producing nations like Vietnam, China, Indonesia, and Brazil are emerging as strong competitors. Africa has recently entered spice production.
  • Example: Vietnam’s dominance in black pepper exports has reduced India’s share in international markets.
• Traditional Distribution Challenges: Heavy reliance on conventional distribution channels limits the reach of modern retail, especially in rural areas. 
  • Example: Many small spice traders still operate in unorganized markets, making it difficult to ensure consistent quality and supply chain efficiency.
• Impact of Climate Change and Pests: Unpredictable weather, pests, and diseases threaten spice yield and quality. 
  • Example: Erratic monsoons and fungal diseases have affected cardamom production in Kerala, leading to supply shortages.

Way Forward

• Enhancing Production Efficiency and Cost Reduction; Implement modern farming techniques, mechanization, and optimized supply chain management to increase yield and lower production costs.
  • Example: Precision farming and drip irrigation in Gujarat have improved cumin yield while reducing water usage.
• Strengthening Quality Control and Sustainable Cultivation: Example: The Spices Board of India’s initiative to promote organic certification has boosted exports of pesticide-free turmeric.
• Developing Climate-Resilient and High-Yield Spice Varieties: Invest in research and development (R&D) to introduce drought-resistant and disease-tolerant spice crops.
  • Example: The Indian Council of Agricultural Research (ICAR) and the National Research Centre on Seed Spices have developed improved varieties of cumin and coriander that are resistant to climate stress.

• Innovation and Product Development: Investing in R&D to introduce unique spice blends and value-added products. 
  • Example: MDH and Everest have launched spice mixes like Shahi Paneer Masala and Kitchen King Masala to cater to evolving tastes.
• Expanding Seed Spice Cultivation: Enhance R&D to boost seed spice value, meet demand, and expand exports. 
  • Promote cultivation beyond Rajasthan and Gujarat, where Hadoti region of Rajasthan ie., districts of Kota, Baran, Bundi and Jhalawar, alone contributes over 70% of seed coriander.
• Exploring Nutraceutical and Pharmaceutical Potential: India should explore the nutraceutical and pharmaceutical value of spices to add value.
  • Many spices are already used in Ayurveda and other traditional medicine systems.
• Technology Advancements in India’s Spice Sector: The adoption of IoT, blockchain, and robotics enhances transparency, traceability, and efficiency in India’s spice sector. These advancements help meet global demand swiftly while strengthening trust in Indian spices.

Conclusion

India’s spice market, the world’s largest, thrives on its diverse, high-quality produce and strong global demand. Leveraging Geographical Indication (GI)-tagged spices for branding, sustainable farming, and innovation will ensure its continued growth and global dominance.

DOWNLOAD PDF