Several leading fast moving consumer goods (FMCG) companies are strengthening their foothold in the branded spices and condiments market, valued at Rs 25,000 crore. This shift is driven by the increasing transition from unorganized to organized markets, especially in categories like spices and masala, as consumers seek convenient cooking aids. Read More Business News on our website.
FMCG Firms Focusing to Mark New Growth In Revenue
Dhanraj Bhagat – a partner at Grant Thornton India, highlights that changing lifestyles and the desire for trusted spice brands are propelling larger companies to expand nationally, complementing the strong regional presence of local brands. Spices are an essential part of Indian cuisine, making this category crucial for bigger players.
The remaining 64% of the market remains unorganized, with loose spices being sold directly to consumers. In contrast, the branded segment is growing at an impressive 25% compounded annual growth rate (CAGR), expected to exceed Rs 50,000 crore in the coming years. Factors driving this growth include rapid urbanization, higher disposable incomes, and the time constraints that lead to increased demand for convenient cooking options at home.
Branded spices and condiments are becoming increasingly popular among time-constrained individuals, prompting larger FMCG companies to introduce various variants tailored to different cuisines to meet this demand. G Chokkalingam, founder and MD of Equinomics Research, emphasizes that the essential nature of spices and the country’s large population make this category an exciting growth opportunity for FMCG companies.
Recently, there have been reports of Wipro Consumer Care and Tata Consumer considering acquiring a 51% stake in Chennai-based Aachi Masala for Rs 1,000 crore. Such acquisitions are significant for these companies, given their efforts to expand their presence in the southern market. For instance, earlier, Dabur acquired Badshah Masala for Rs 587 crore.
Wipro Consumer Care’s expansion in the south includes acquiring two Kerala based brands – Nirapara and Brahmins, both dealing in packaged spices. Tata Consumer aims to grow its presence in the southern spices market by launching region-specific products targeting regional consumers under its Tata Sampann brand.
Overall, the branded spices and condiments market holds promising prospects due to its importance in Indian cuisine, population dynamics, and the need for convenient cooking solutions. As FMCG companies continue to invest and expand in this segment, the market is poised for significant growth in the coming years.