The Growing Aroma Of Indian Spices: From Home Ground To Packaged Spices
India has always been known as the land of spices and it was the spices that brought several foreigners to India ever since the ancient times. The history of Indian spices is said to date back to about 7,000 years ago, even before the Roman and Greek civilisations existed.
From grandma’s spice box to packaged spice mixes, the Indian kitchen has seen a glorious journey of spices. The country which was known as the spice box of the West has seen a beautiful transformation of the market from home ground spices to packaged spices. Brands both big and small have found a space for themselves not just in native Indian markets, but also across the world.
The Indian spices market size reached Rs 160,676 crore in 2022. According to the industry insiders and observers, it is expected that the market will reach Rs 298,909 crore by 2028, exhibiting a CAGR of 10.9 per cent during 2022-2028.
The ongoing trend of transitioning from loose spices to branded ones is shaping the Indian spices market. As consumers increasingly opt for branded spice products, they are contributing to the projected growth in the sector. By the fiscal year 2030, industry leaders predict that around 15 spice companies are anticipated to surpass Rs 1,000 crore in revenue, with four of them crossing the Rs 5,000 crore annual turnover mark.
India's preference for spicy and savoury meals has solidified its position as one of the largest spice consumption markets globally. Spices play a central role in nearly every Indian meal. The pandemic has led to increased demand for spice products, driven by lockdowns, work-from-home practices, and heightened interest in home-cooked meals. Health awareness and the desire for freshness have further propelled the trend. Consumers are willing to pay a premium for products such as pastes and blended spices that facilitate quick and efficient cooking. This demand for convenience is shaping product preferences.
The demand for convenience and ease in cooking is driving the popularity of spice mixes or blends. Consumers are seeking ready-to-use spice combinations that simplify cooking processes, leading to a rise in demand for branded spice mixes. Blended spices are anticipated to witness a 25 per cent Compound Annual Growth Rate (CAGR) until 2025. Consumers' willingness to experiment with various spices and use dish-specific blends is driving this growth.
India’s packaged spices market has seen tremendous growth. Catch is one of the most popular names in India and is owned by DS Spiceco, which is a part of the Multi-Business Corporation DS Group. Catch was launched in 1987 with the Tabletop Salt & Pepper Sprinklers and has built up strong brand equity over the years through its constant emphasis on superior quality, and innovation and its ability to understand consumer sentiments and market.
Catch Salt and Spices has been consistently growing with a CAGR exceeding 20 per cent over the last five years. The brand has a substantial presence and enjoys a leadership position in multiple states in the north and east of India. The position transcends channels with both general trade, modern trade, e-commerce and now quick commerce contributing substantially. Catch is ambitiously strategising to dominate the Indian kitchen space with differentiated products that bring purity, taste, and convenience as key drivers. The brand is making substantial investments in brand building (marketing), technology, innovation and R&D which will help the brand evolve to the needs of the consumer.
According to Sandeep Ghosh, Business Head, DS Spiceco, “The priorities over the next few years are building the brand portfolio with expansion and extension of existing and newer categories aimed at addressing the regional local preferences of the evolving consumers. This includes products that are convenience and innovation-driven, like culinary paste, cuisine-based blends and more. Secondly, expansion of distribution reach, with a focus on expanding the rural footprint, along with a significant presence in the emerging channels, i.e., modern trade, e-commerce, quick commerce etc., especially in the south and western regions of the country. The brand is continuously focussing on generating trials and increasing household penetration so that more and more consumers experience the superior offering.”
Talking about technology being used to increase the quality and freshness of packaged spices, Ghosh said that the company’s state-of-the-art manufacturing facility ensures best-in-class product delivery to the consumers. The manufacturing facility has the latest Low Temperature Grinding (LTG) technology, which prevents the evaporation of volatile and delicate oils from spices, thus retaining the aroma and wholesome flavour. The potency of the spices is also high as the company follows the
“no fillers” practice which gives the consumer the benefit of spices that are pure, giving a wholesome and authentic flavour to the food.
South Indian brand MTR Foods has a legacy of over 85 years and over the years has spread its wings not just all over India, but also beyond the borders. The brand began in 1924 with the establishment of the MTR Restaurant by the Maiya family in Bangalore. In 1975, Maiyas diversified into the business of convenience foods and instant mixes. As the business expanded, modernisation and state-of-art facilities, including dedicated lab and printing and packaging facilities, were added. Today MTR is one of the leading players in the southern market and has a sizeable share in north India too.
Prerna Tiku, General Manager Marketing, MTR Foods said that as a heritage brand with decades of experience in the culinary space, MTR Foods has been a part of the spice industry, solving for flavour needs of consumers. “Our legacy is deeply rooted in strong cuisine understanding, sourcing great quality ingredients and stringent checks through the value chain, all with the aim of delivering consistent taste and flavours to our consumers. We meticulously source our spices from authentic sources to give the best flavours -- for example in our masalas we use chilli sourced from Byadgi, Karnataka, known world over for great colour and flavour. Similarly, we source spices like cumin and coriander from Rajasthan. Through our packaging and tech innovation, we are not only able to give consistent flavours to our spices and masalas but also deliver long lasting flavours.”
From basic spices to mixed masalas, MTR’s range has it all. Said Tiku, “Our product line in this category encompasses a wide range of offerings, including a variety of Spices, Blended Masalas, Chutney Powders and Seasoning available in various SKUs to meet the distinct needs of our consumer segments. We have a strong hold in the overall spices market, known for our high quality and authenticity. In terms of market share we are a key player in the southern states of India with strong leadership in Karnataka and Andhra Pradesh in our core segments. In fact, in some of our core masalas, our shares are over 70 per cent.”
As per the numbers, masalas and spices are the highest contributor to the India business of MTR Foods, reflecting the brand’s commitment to expanding its presence and the rising demand for traditional spices in both urban and rural markets. “We are dedicated to continue on our part of growth and innovation to meet our customers' evolving preferences. In our trajectory ahead, our primary focus continues to be strengthening our traditional segments and adding new segments like seasoning and chutney powders. Our aim is to build strong brand affinity and deliver authentic flavours that our customers have come to love,” Tiku added.
Another popular brand in north India is Paras Enterprises, which has been in the industry since 1982 and launched its retail brand Orika in 2018, looking at the urban market in a big way. Paras Budhiraja, Co-founder, Orika Spices said that technology has played a significant role in enhancing the quality and prolonging the shelf life of packaged spices. “One notable advancement is the adoption of the cold grinding technique, which effectively preserves the volatile oils and flavours inherent in spices. Furthermore, in the packaging phase, meticulous measures are taken to execute the process within a controlled environment.” Talking about his brand, Budhiraja said, “Our packaging boasts a triple-layer material that significantly extends shelf life, now featuring an innovative zip-lock for the first time. Our aesthetically pleasing packs are not only visually appealing but also designed for reusability. This meticulous approach prevents the introduction of air into the packaging, thus contributing to the overall preservation of spice quality and longevity.”
The brand has strong expansion plans ahead. Said Budhiraja, “We’re planning to increase the retailer footprint from the current 7,000 outlets to 20,000 outlets in the current financial year. We’re also
looking at exponentially increasing our market penetration on e-commerce and modern trade platforms. A lot of work on ensuring the right product mix, marketing mix; sales team, operations, and supply chain readiness has been done over the last one year before we decided to pursue our objectives more aggressively.”
The last one decade has seen a lot of food brands venturing into the spices market as well. Pansari Group is a five-decade old company that initially entered the market by selling oil. The company introduced spices range under the name “Shasha” three years back in 2020. Spices contribute to 3 per cent of the total revenue of the company.
Shammi Agarwal, Director of the Pansari Group said that venturing into spices is beneficial for any FMCG business as they come with more value and higher GP (Gross Profit). “We procure spices directly from farmers and local markets. We do sustainable sourcing. As we know India is famous for its spices and each state has its distinctive variety. Likewise, we source black pepper and green cardamom from Kerala, black cardamom from Sikkim, coriander, cumin, and fennel from Rajasthan and Gujarat, chili from Andhra and Karnataka, etc.”
Talking about technology, Agarwal said, “We use ancient methods for processing our spices like cleaning, drying, grading, shorting, roasting, and grinding as it helps in maintaining the natural oil content and aromas of spices. We believe that many technologies available right now may increase the shelf life but it will hamper the taste of the spices. To solve the problem of shelf life we have made sure that all our spices are available in small packs so that consumers can enjoy the taste and benefits of Shasha Masale without worrying about the expiration date and wastage.”
The group has strong expansion plans to grow from just the north Indian market to western and southern India as well. “The journey of Pansari Group from a northern India brand to a thriving presence in the western and southern markets has been very satisfying. While our expansion into these territories began just last year, the dedication and strategic approach of our team has already yielded promising results. Our narrative of success persists as we gear up to launch another state-of-the-art manufacturing facility in Delhi, showcasing an impressive capacity of 500 metric tonnes per month. As we set our sights on the future, our motto of Sehat Aapki Vaada Hamara is the driving force behind our pursuit to provide the best for our consumers at the best available price range," said Agarwal.
“The priorities over the next few years are building the brand portfolio with expansion and extension of existing and newer categories aimed at addressing the regional local preferences of the evolving consumers” - Sandeep Ghosh, Business Head, DS Spiceco
“Our aesthetically pleasing packs are not only visually appealing but also designed for reusability. This meticulous approach prevents the introduction of air into the packaging, thus contributing to the overall preservation of spice quality and longevity” - Paras Budhiraja, Co-founder, Orika Spices
