Indian spice industry drives 40% of global output

Indian spice industry drives 40% of global output

Author : Ifra Dilshad

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May 9, 2025

India, the world’s largest producer, consumer, and exporter of spices, contributes over 40% to global output. The Indian spice industry is projected to more than double by 2033, driven by rising demand in food and beverages, medicinal applications, and product innovation. With record-high exports of US$ 4.46 billion in 2023–24, India remains a global spice leader, though challenges like low value addition, rising costs, and climate risks persist.


Global Leadership

India, the world’s largest producer, consumer, and exporter of spices, contributes over 40% to global output. The sector is set to more than double by 2033, driven by rising F&B demand, medicinal use, and innovation. With record-high exports of US$ 4.46 billion in 2023–24, India remains a global spice leader, though challenges like low value addition, rising costs, and climate risks persist.

India, famously known as the ‘Land of Spices,’ has long justified its leadership in the global spice market through its centuries-old spice trade that once drew travelers and traders from across the world. With a deep-rooted agricultural heritage and a climate ideal for cultivating a wide variety of spices, India has consistently maintained a dominant position as the world’s largest producer, consumer, and exporter of spices. Contributing over 40% to global spice production, Indian spices not only shape international markets but also play an integral role in the country’s rich and diverse culinary traditions.

Market Growth

The Indian spices market was valued at INR 2,00,643.7 Crores in 2024 and is expected to more than double to INR 5,13,253.9 Crores by 2033, growing at a strong CAGR of 10.56% between 2025 and 2033. This growth is fuelled by rising demand from the food and beverage sector, wider use of spices in medicinal applications, ongoing government support, a shift towards sustainable sourcing, and continued innovation in blends and formulations.

Spice Production in India

Spice production in India has steadily grown in recent years. In 2022–23, production reached 11.14 million tonnes, up slightly from 11.12 million tonnes the year before. India grows around 75 of the 109 spice varieties listed by the International Organization for Standardization (ISO). Key contributors include chilli, turmeric, ginger, coriander, and cumin—together accounting for 76% of total output.

Leading spice-producing states include Madhya Pradesh, Rajasthan, Gujarat, Andhra Pradesh, Telangana, Karnataka, Maharashtra, Assam, Odisha, Uttar Pradesh, West Bengal, Tamil Nadu, and Kerala.

Export of Indian spices

India’s spice exports hit a record-high value of US$ 4.46 billion in 2023–24. The country exports a diverse range of products—from whole spices like pepper, cardamom, and turmeric to high-value derivatives such as spice oils, oleoresins, and curry powder. Chilli remained the top export item, followed by spice oils and oleoresins, mint products, cumin, and turmeric.

Indian spices continue to enjoy robust demand across key global markets, including the United States, Germany, the Netherlands, the UAE, and Japan.

Key Players of the Industry

  1. Companies like Shri Sagas Connect Pvt. Ltd.
  2. Nik May Exports LLP
  3. VNS Food LLP

are instrumental in sustaining India’s strong position in the global spice economy.

Challenges facing the Indian spice industry

  1. Low Value-Added Exports: India still exports a large volume of raw spices rather than processed products. To achieve the US$ 10 billion export goal by 2030, the share of value-added products must rise from 48% to 70%.
  2. High Production Costs: Outdated agricultural practices, inefficient processing, and excessive pesticide use have driven up costs. Improving productivity and modernising processing is essential to remain competitive.
  3. Limited Global Market Penetration: Countries like Vietnam, Indonesia, and China are expanding their footprint in global spice markets. New competition is also emerging from African nations entering spice cultivation.
  4. Quality and Safety Standards: Global regulations on pesticide residues and contamination are strict. Indian farmers and processors need greater training in pest management, hygiene, and sustainability to meet these standards.
  5. Impact of Climate Change: Spice crops are highly sensitive to weather patterns. Erratic monsoons and rising temperatures threaten yields and quality, making climate-resilient crop varieties a necessity.

Opportunities in the Indian Spice Industry

  • Rising popularity of packaged spices and seasonings, especially among health-conscious millennials aged 26–32, is driving demand for premium and innovative spice blends in domestic and global markets.
  • Consumers are increasingly seeking ethnic and exotic flavours, boosting exports of spices like turmeric, cumin, and cardamom in Western countries influenced by Indian, Middle Eastern, and Southeast Asian cuisines.
  • Health and wellness trends are creating opportunities to position spices like turmeric and cinnamon as functional foods, thanks to their anti-inflammatory and blood sugar-regulating properties.
  • Growing preference for organic and sustainably sourced spices offers an edge to exporters with Organic or Fair Trade certifications, while also appealing to environmentally conscious buyers.
  • Technological advancements in processing and packaging are helping manufacturers enhance shelf life, flavour retention, and product safety—key to meeting strict international quality standards.

Read More:

  1. Sugar free growth: Rising artificial sweetener market
  2. Smooth surge: Unpacking the nitro-infused beverage boom
  3. The Evolving Landscape of India’s Fertilizer Industry

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