Spices like turmeric, coriander, cumin, mustard seeds, curry leaves, chili powder etc. are integral part of Indian cuisine and are used to enhance taste and aroma of dishes. India is the largest producer, consumer and exporter of spices in the world. Majority of Indian population consumes spices on a daily basis for various culinary purposes. With rapid urbanization and growing affluent population, demand for processed and ready-to-cook food products is increasing in India. Food manufacturers are developing wide range of products like frozen foods, soups, sauces, microwave meals etc. using different spices and herbs which drives the growth of spices market. Evolving tastes and preferences of people have also increased usage of new and exotic spices in daily cooking. The global India Spices Market is estimated to be valued at US$ 3945.37 Bn in 2024 and is expected to exhibit a CAGR of 21% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
One of the key trends in the India spices market is growing consumption of organic and natural spices. Consumers are increasingly conscious about health benefits of food products and prefer using spices that are free from synthetic inputs and cultivation methods like hydroponics. Various studies have shown that organic spices have higher nutritional value as compared to conventional ones. In order to meet rising consumer demand, many players are incorporating organic spices in their product portfolio and launching new organic blends. For instance, Everest spices launched a new range of organic spices including turmeric, coriander, cumin and chili powder. Rising popularity of ayurvedic medicinal properties of certain Indian spices is prompting companies to develop value-added products containing therapeutic herbs and medicines. This will potentially open new application avenues for spices in pharmaceutical and cosmetic industries over coming years.
Porter's Analysis
Threat of new entrants: The threat of new entrants in the India spices market is moderate. The market has low economies of scale and requires significant capital investment to process and store spices. However, buyers have high bargaining power as India is one of the major producers and suppliers of spices.
Bargaining power of buyers: Buyers have high bargaining power in the India spices market as India produces and exports a wide variety of spices globally. Buyers can switch between alternative spices and negotiate on prices.
Bargaining power of suppliers: Farmers and suppliers of spices have moderate bargaining power due to lack of substitute for spices and the dominance of few regional players in production. However, high fragmentation of suppliers balances their bargaining power.
Threat of new substitutes: The threat of new substitutes in the India spices market is low as spices have unique taste and are integral part of food preparation with very few alternatives.
Competitive rivalry: The competitive rivalry in the India spices market is moderate to high. The market is highly fragmented with the presence of both large and small regional players.
Key Takeaways
The Global India Spices Market Share is expected to witness high growth over the forecast period of 2024 to 2030.
Regional analysis: The India spices market dominates globally with India accounting for over 60% of global production. States like Kerala, Tamil Nadu and Andhra Pradesh accounts for majority production in the country. Rising popularity of Indian cuisine and health benefits of spices drives demand globally especially in countries like US, UK and Southeast Asia.
Key players: Key players operating in the India spices market are Afterpay, Zippay, VISA, Sezzle, Affirm, Paypal, Splitit, Latitude Financial Services, Klarna, Humm, and Openpay. India is the largest producer, exporter, and consumer of spices globally. Key players focus on introducing new products and expanding production capabilities to cater to the growing demand.
For more details on the report, Read- https://www.rapidwebwire.com/india-spices-market-growth-demand-and-overview/
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