INDIA SPICES MARKET ANALYSIS

Market Challenges And Opportunities

Covid-19 Impact on India Spice Market

• The lockdowns and restrictions on movement imposed to control the spread of COVID-19 have disrupted the supply chain of spices in India. Farmers have faced difficulties in transporting their produce to markets, and traders have faced challenges in procuring and distributing spices.
• The hospitality industry, which is a major consumer of spices, has been severely impacted by the pandemic. With hotels and restaurants closed or operating at reduced capacity, the demand for spices has decreased significantly. India is a major exporter of spices, but the pandemic has led to challenges in exporting due to restrictions on movement and trade. This has impacted the revenue of spice exporters in India.

India Spices Market: Restraints

• Intense competition in the market and fluctuating prices of the raw material for the spices: Intense competition in the market and fluctuating prices of the raw material for the spices are expected to curb the market growth of the spices over the forecast. Such factors are expected to result in constant pressure on the profit margin of the manufacturer In 2021, the spice industry in India faced intense competition from imported spices, particularly from countries such as Vietnam and Indonesia. This competition led to a decrease in the prices of some spices, such as cardamom, and impacted the profitability of Indian spice companies.
• Counterbalance: The price fluctuation of the spices can be counterbalanced by considering certain factors such as the area where the spice is grown, whether it is locally or far away, rarity of the spice, geographical restrictions, whether the spice is seasonal, and if climatic conditions are needed to be maintained. This factor needed to be ensured to maintain price fluctuations.
• Possibility of causing hemorrhoids and digestive problems after consumption of spices: Spices can cause hemorrhoids and digestive problems such as gastritis, among others, when consumed in large quantities. Moreover, they are not recommendable for children and the geriatric population by health professionals, as spices can cause digestive issues in them like Irritation, Acid reflux. Hence, these factors are expected to hamper the growth of spices.
• Counterbalance: The adverse effects of certain spices can be minimized by balancing it with an acid that can help neutralize the molecule’s activity.

India Spices Market Opportunities

• Increasing expansion in the food processing industry: Increasing growth in the food processing industry is expected to create a lucrative opportunity for market growth. Spices are widely used in ready meals, instant foods, soups, snack mixes, and others. Processed foods are demanded across the country as they are easily available and reduce cooking time. Thus, this factor is expected to boost market growth over the forecast period.

• Increased demand for organic spices: The rising demand for organic spices is expected to propel market growth in the country. Many companies are focusing on marketing organic spices as consumers are preferring products that do not have harmful chemicals and preservatives. For instance, in April 2021, Chef Prateek Sadhu of India launched a spice brand named Paushtik, which contains organic spices from certified organic farms. The brand has its manufacturing unit in Pune, India.