India’s Spices in Global Market

Why in News?

World Spice Organization (WSO) recently said that India’s share in the global seasoning market was pegged at $14 billion in 2024 (0.7%), regardless of being the largest producer and exporter of spices.

• India spices market size reached INR 2, 00,643.7 Crores in 2024.

• The India Spices Market is witnessing significant expansion, fueled by a growing culinary culture, increased consumer interest in health benefits, and the rise of e-commerce platforms.
• Traditional spice-growing States as well as the North Eastern region, Odisha and Jharkhand were emerging as sizable producers of various spices.
• Major spice-growing states in India

• India has 15 different agro-climatic zones and this helps us grow a wide variety of spices, almost in all states.
• Exporting Countries - The spice sector’s exports span across regions including China, Bangladesh, Sri Lanka, the USA, the UK, the Middle East, Thailand and Germany.
• According to the India Brand Equity Foundation (IBF), chilli, turmeric, cumin, ginger and coriander constitute approximately 76% of India’s total spice exports.
• India currently exports 1.5 million tonnes of spices of all kinds worth $4.5 billion, commanding a quarter of the global spice market valued at $20 billion.
• Some 85% of the spices grown in India are consumed domestically, currently does not grow enough spices for exports.
• Need for Value addition - Currently only 48% of India’s spice exports are valued-added products while the remaining bulk hits the markets as culinary whole spices.
• To achieve the Spices Board of India’s export target of $10 billion by 2030, the country’s share in value-added spices should rise up to 70%.
• Investigating the medicinal and nutraceutical potential of spices was also crucial for the Indian spice industry.
• China’s share in the global market is 12%, and the U.S.A.’s share in the worldwide market is 11%, whereas India is pegged only at a paltry (minuscule) 0.7%.
• Although India leads the world in spice production, Vietnam, Indonesia, Brazil and China are also active players in the global spice markets. Africa entered spice production in recent years.

Reference

The Hindu | Spice Market in India