New Delhi: For decades, the spice business in India was mostly represented by turmeric, chilli powder, coriander and garam masala packets on the supermarket shelves. But the industry is quietly changing today. Spice companies are no longer just selling the basics in the kitchen. Rather, they have been moving into higher-margin and more exportable premium seasoning blends, spice oils, oleoresins, and food ingredients and ready-to-cook products.
The number indicates the magnitude of the change. India is the top producer, consumer and exporter of spices accounting for about 75 per cent of the 109 spice varieties recognised by the International Standardization Organization (ISO). In FY2024-25, India is projected to record its highest-ever spice exports valued at USD 4.7 billion, with demand from export destinations such as the US, UAE, Bangladesh, China and Europe fueling its growth. Meanwhile, industry estimates by research firms like IMARC Group, Mordor Intelligence and Expert Market Research peg the value of the Indian spice market at ₹90,000 crore to ₹1 lakh crore and the sector is estimated to be valued at USD 8-9 billion by 2025 with the CAGR of the market expected to be around 8-10% in the coming five years.
What is notable is that the growth is not just in traditional spice powders.
Purchasing ready to cook seasoning mixes for dishes like biryani, butter chicken, pav bhaji, chole and regional curries is becoming a popular option among consumers. Convenient for time-crunched urban families and young working professionals, these products bring a consistent taste and save time. With dual income families growing in number and convenience being the key, businesses are putting a lot of effort into creating customised seasoning blends instead of generic masalas.
Meanwhile, the food processing sector is generating new demand for spice oils and oleoresins in India. These spice extracts are more potent than normal spice powders and are used by packaged food manufacturers, beverage companies, pharmaceutical companies and cosmetics manufacturers due to their consistent flavour, extended shelf life and easier industrial processing. These value added products are generally more profitable than raw and ground spices to the spice manufacturers and hence, they are an emerging business segment.
One of the other big factors that are changing the industry is the speedy commerce. The grocery delivery platforms have revolutionized grocery shopping like Blinkit, Zepto, Swiggy Instamart and BigBasket. Many homes don’t keep a large supply of spices and order them when they are needed, rather than once a month. It has spurred companies to create smaller packages, upscale versions and unique flavour combinations that are more likely to be found online and bought on impulse.
Competition is changing, too. Although the unorganised sector still holds a significant part of India’s spice market, the organised brands are gradually gaining ground by emphasising on food safety, hygienic processing, quality assurance and transparency in sourcing. With consumers becoming more aware of the issue of adulteration and product quality, the demand for trusted and branded products has further increased.
The opportunities are also new for direct-to-consumer (D2C) spice brands. Many are developing their identity around farm sourcing, single origin spices, chemical-free processing, regional flavours and premium packaging. These brands aren’t just going head-to-head on price — they’re leveraging digital channels to connect with consumers seeking authenticity and traceability.
Technology is becoming an equally important thing. Today’s spice processors also employ automated cleaning, grinding, sterilisation and packing equipment to ensure uniformity and ensure global quality standards are being met. Digital traceability and laboratory testing are also assisting Indian exporters to meet the increasingly strict international food safety laws.
The opportunity is still great on the international level. The global spice and seasonings market is projected to reach a value of over USD 25 billion and is expected to grow as demand for processed foods and convenience foods and natural ingredients increases. This is an opportunity for Indian companies to shift from raw spices export to processing spices and create higher value businesses around processed spices, seasoning solutions and branded products.
In the future, the Indian spice market looks bright for further expansion. The future of the sector will not be about selling more masala, but about developing new value-added products which appeal to the changing lifestyle and global food manufacturing requirements. Such a transition is slowly redefining one of the oldest agriculture sectors in India into a food processing industry with better margins, increased export potential and long-term growth prospects.
