Decoding the Indian spice market | Shift from unbranded to branded spices won't be quick
The fragmented Indian spice industry is worth Rs 80,000 crore and the branded market is valued at Rs 30,000 crore and estimated to grow at an annual pace of 10-15 percent.Amid reports that Hindustan Unilever Ltd (HUL) is in talks to buy a stake in spice maker Mahashian Di Hatti Private Limited, popularly known as MDH, some experts are betting on periodic bouts of consolidation in the Indian spice market.
''In the last two years, multiple transactions have happened in the spice market. Due to COVID-19, consumer behaviour has also changed as experimentation in terms of cooking has increased,'' said Abneesh Roy, executive director of institutional Equities at Edelweiss Securities, said in an exclusive interview with CNBC-TV18.
Given its national presence, MDH could be valued at between Rs 10,000-5,000 crore, Mint reported on March 22, citing people familiar with the development.
Products sold by MDH include ground spices like black pepper, red chilli, cumin, dhania and coriander and turmeric powders; it also sells blended spices like biryani and chicken masalas and curry powder.
Frequently Asked Questions
The Indian spice market is currently valued at approximately Rs 80,000 crore and is experiencing significant growth driven by increasing demand for high-quality spices.
One of the significant trends in the Indian spice market is the shift towards branded spices. Consumers now prioritize quality, packaging, and authenticity, leading to the rise of branded spice companies.
Branded spices are preferred in the Indian spice market due to their consistent quality, hygiene, and trustworthiness. Brands often offer value-added options, such as pre-mixed blends and organic variants, catering to evolving consumer preferences.
Mergers and acquisitions are shaping the Indian spice market, with major players like Hindustan Unilever reportedly engaging in talks with established spice brands such as MDH. These collaborations aim to expand market reach and product offerings.
At Tropical Exotics, we understand the dynamics of the Indian spice market and offer premium, high-quality spices that meet the needs of modern consumers. Explore our collection to experience the finest spices curated for your culinary needs.
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