Spice market set for major growth, driving FMCG transformation

The Indian spice market, valued at ₹1.8 trillion, is projected to grow 2.6 times over the next eight years, driven by strong consumer demand. This expansion will significantly impact the FMCG sector, with spices playing a key role in India’s economy.

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The Indian spice market, currently valued at around ₹1.8 trillion, is poised for a significant growth phase that could reshape the entire FMCG ecosystem. According to a study by the All India Consumer Products Distributors Federation (AICPDF) on spice trade, “projections indicate that the market could grow 2.6 times over the next eight years, driven by strong double-digit growth.” This expansion is expected to deeply impact the FMCG sector, solidifying spices as a key component of India’s economy.

The growing market serves a diverse consumer base, including households, HoReCa (Hotels, Restaurants, and Catering), and institutional buyers. The anticipated growth emphasizes the essential role spices play, not only in daily life but also within the larger economic framework. With an estimated 50 crore households in India, the market translates into an average expenditure of ₹3,600 per household, showcasing the importance of spices in the Indian consumer basket.

The variety in the spice trade ensures broad consumer engagement across multiple segments. Dhairyashil Patil, national president of AICPDF, and Dr. P M Ganeshram, chief patron of AICPDF, stressed the importance of these findings. AICPDF pointed out that the market’s growth potential highlights increasing consumer demand and demonstrates the resilience of the FMCG ecosystem.

“The projected growth of the spice market is a clear indicator that it will continue to be a major driver of economic activity in the coming years,” AICPDF noted. The organization also urged stakeholders across the supply chain to prepare for this rising demand by focusing on quality and sustainability. As the market evolves, farmers, distributors, and retailers must align their strategies to capitalize on the opportunities presented by this dynamic and rapidly expanding market.