The spices industry forms an integral part of Indian cuisine and culture. Spices are used to impart unique flavor, texture and color to various food products. Some of the major Indian spices in demand globally include turmeric, chili peppers, cumin, coriander, ginger, clove, cinnamon, fennel, ajwain, fenugreek, mustard seeds, black pepper, etc. These spices find extensive applications in making Indian curries, pickles, chutneys as well as in other international cuisines.
The global India Spices Market is estimated to be valued at US$ 3945.37 Bn in 2023 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 Dynamics
Expanding Food Industry: Food and beverages industry has been rapidly expanding in India over the past few decades in tandem with growing population and changing dietary preferences. This has translated to increased demand for various spices and seasonings to enhance the taste and flavors of food products. Rising popularity of ethnic cuisine worldwide has also boosted export opportunities for Indian spices. All these factors are favorably impacting growth of spices industry in the country.
SWOT Analysis
Strength: India is one of the largest producers and exporters of spices in the world. Spices have a long history of use in Indian cuisine and Ayurvedic medicine. The Indian spices industry has a number of farms and ancillary industries that support it.
Weakness: Climate change has negatively impacted production levels of some spices like pepper and cardamom in recent years. Small landholdings and fragmented supply chains make it difficult for farmers to benefit from economies of scale.
Opportunity: There is growing global demand for Indian spices and spice blends from changing consumer preferences towards more flavorful and authentic cuisines. Export markets provide an opportunity for higher values and margins.
Threats: Weather extremes due to climate change pose a threat to consistent production levels. Price volatility in the global commodities market can hurt farmers’ incomes. Competition from other spice producing countries may impact market share over time.
Key Takeaways
The Global India Spices Market Share is expected to witness high growth over the forecast period. The massive scale of production, wide variety of spices and established trading infrastructure makes India by far the largest contributor to global spice trade and consumption.
Regional analysis: Indian states of Gujarat, Kerala and Tamil Nadu dominating domestic as well as international spice production are expected to drive fastest growth over the next decade supported by favorable agro-climatic conditions and state government initiatives.
Key players operating in the India Spices Market are Afterpay, Zippay, VISA, Sezzle, Affirm, Paypal, Splitit, Latitude Financial Services, Klarna, Humm, and Openpay. They are focusing on offering flexible payment options to boost their market share.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it