Beyond its rich history and ancient civilisation, India has long been known as the land of spices—a coveted title that lured the British into the country for the spice trade centuries ago. From black pepper to cardamom, India has been a global spice hub, evolving from loose spices to modern, ready-to-use packaged forms that find their way into almost every kitchen. “I believe the primary driver is that a lot of the unorganised market, particularly in the commodity market for spices, is transitioning to packaged branded products. This shift is why you’re seeing so many new brands emerging. Given that a significant portion of this market is regional, with variations every 50 kilometres, larger players are acquiring these brands and making their products more widely available. This, in turn, creates substantial opportunities,” Anand Ramanathan, partner and consumer products and retail sector leader, Deloitte India, told BrandWagon Online.
This is also why this shift has turned brands like MDH, Everest, and Catch into serious spice businesses. Recently, however, Indian spice exports came under international scrutiny as major markets like Singapore, Hong Kong, and the U.S. flagged concerns over contamination in products from MDH and Everest. These recalls prompted a swift response from the Spices Board of India, which ramped up quality inspections and compliance measures to safeguard the country’s global spice trade.
Experts believe that another major factor is the change in consumer behaviour. India is becoming increasingly aspirational, with a growing interest in food experiences and services. Increased international travel has also led to greater exposure to various spices. For instance, while certain spices dominate, there are also other global spices gaining acceptance. This expanding range of product options contributes to a rise in demand. “Additionally, there’s a notable increase in profitability. It’s not just a B2C market; there are also significant B2B opportunities, especially within the food service industry. As all of this grows, you’ll see heightened demand for B2B flavours derived from spices,” Ramanathan added.
Queries sent to MDH, BL Agro, and Frendy remained unanswered, till the time of publishing this story.
Life’s too short—add some spice!
No other country grows and consumes as many spices as India. It is one of the largest producers of spices with about 75 varieties out of the 109 listed by the International Organisation for Standardisation. In terms of production volume, Madhya Pradesh leads the country, as per Statista. “We are currently present in over 42 countries and continue to strengthen our presence in these markets. We are focusing on expanding our reach through both offline and online channels, as many of these geographies are evolving in terms of how consumers are reached,” Prerna Tiku, CMO, MTR, said.
As of 2024, the spice and culinary herbs market reported a revenue of over $666 million in India, per Statista. The revenue is expected to increase to about $825 million by 2028.
Meanwhile, DS Group’s masala brand Catch , which started with salt and pepper dispensers, expanded into kitchen spices, offering a variety of blends. “By observing evolving consumer tastes, we have successfully refined our product range to cater to diverse palates. This strategic approach has been instrumental in our sustained growth and success. To address the current market dynamics, we have recently introduced new categories (Ready to Cook Gravies under Kitchen Art) and product range additions in existing category variants (Peri Peri, in sprinklers, Schezwan in Cooking pastes) name a few. These additions further enhance our product portfolio to meet the evolving demands of our customers,” Sandeep Ghosh, business head, DS SpiceCo, DS Group, said.
While every millennial remembers the late Dharampal Gulati who was featured in every ad of Mahashian Di Hatti (MDH) and played a key role in driving the popularity. Not to mention ITC’s acquisition of Sunrise Foods Private Ltd (SFPL), a spice manufacturer, in an all-cash deal on July 27, 2020, is yet another reminder of the growth of this category. Not to mention, brands like MTR which initially started with masala, over a period of time have added ready-to-eat products too. “A significant portion of our portfolio, over 50%, still consists of spices and masalas. This focus on quality, including the ingredients we source and the recipes we provide, facilitates the conversion from loose spices to packaged spices. There are prevalent concerns around loose spices regarding quality and adulteration, which drives this shift. In rural areas, the conversion to packaged spices is still ongoing, influenced by various health dimensions,” Tiku highlighted.
As Ghosh mentioned, the company has recently joined the Rs 1000 crore club, achieving a year-on-year growth rate of 24% over the past two years. He noted that with a strategic vision, the company aims to enhance its presence and is targeting a Compound Annual Growth Rate (CAGR) of approximately 30% over the next five years.
The advertising and marketing play!
It is believed that much of the growth has been led by regional demand and quality products Spice brands like Everest, MDH, and Tata Sampann have invested heavily in marketing to build consumer trust by focusing on purity, authenticity, and the health benefits of their products. “In response to the increasing reliance on digital channels, we have strategically invested in e-commerce and Quick Commerce initiatives. This shift has enabled us to reach a wider audience and provide a seamless shopping experience. Our free-flowing table top salt dispenser was a revolutionary product introduced to address the lumpiness in salt. We continue to analyse consumer requirements and are constantly evolving to meet the market needs,” Ghosh highlighted.
MDH, with its iconic ads featuring the late owner Dharampal Gulati, became synonymous with trust and tradition, appealing to a sense of nostalgia among Indian consumers. Everest, on the other hand, seems to have focused on television commercials and endorsements by well-known chefs to reach a broad audience. Tata Sampann has positioned itself as a health-conscious brand, highlighting its use of natural, minimally processed ingredients in campaigns aimed at wellness-focused consumers featuring Sanjeev Kapoor. “As a brand, we have a wide reach, with nearly 5 lakh retail outlets across the country. General trade still constitutes the majority of our business, accounting for over 75% of our sales. However, e-commerce is rapidly growing for us, making up about eight to nine per cent of our total business, with quick commerce representing more than 60% of our e-commerce sales,” Tiku highlighted.
It is believed that digital marketing has also become a key tool in the spice industry’s growth. “Brands are increasingly using social media platforms to engage with younger, more tech-savvy consumers. Influencer marketing, particularly food bloggers and chefs, plays a critical role in showcasing new spice blends and culinary innovations, making spices more accessible and appealing to a broader demographic. By creating aspirational content around food and lifestyle, brands are shifting the narrative of spices from basic kitchen staples to essential ingredients for gourmet cooking,” a marketing expert said.
Challenges ahead!
Experts believe that the future of India’s spice industry looks promising, with continued growth expected both domestically and internationally. However, the industry will need to address key challenges such as quality control, adulteration, and the fragmentation of the market in order to fully capitalise on the opportunities ahead. “The spice industry faces several significant challenges. One of the primary issues is the sensitivity to commodity price fluctuations, particularly in trade spices, which are highly price-sensitive. These fluctuations can greatly impact profitability and pricing strategies for companies in the sector. Additionally, the industry is marked by intense competition, especially in categories such as whole and blended spices, which complicates the competitive landscape,” Ramanathan said.
Another major challenge is the fragmented nature of the sector, with significant regional variations. This fragmentation makes it difficult for companies to achieve economies of scale, a critical factor when trying to expand into global markets. The spice industry, especially when entering the flavour and fragrances segment, requires cost efficiency to remain competitive on a global scale. To achieve this, companies must focus on reducing costs related to water, power, labour, and overall production, ensuring that conversion costs remain low.
Consistency in manufacturing practices is also a challenge, particularly for businesses looking to expand internationally, Ramanathan added. Standardising these practices is crucial for maintaining consistent quality across different regions. Furthermore, the need for investment in manufacturing, supply chain optimisation, and infrastructure is essential. To drive these investments, capital must be made available to improve efficiency and support long-term growth.