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    Spice market projected to cross Rs 1 lakh crore by 2025 with branded players clocking 15% growth

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    Spice market projected to cross Rs 1 lakh crore by 2025 with branded players clocking 15% growth

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    India has a strong love for spicy, masala-rich meals, making this an extremely attractive market. According to Avendus Capital the spice market in India was pegged at Rs 67,500 crore as of 2020 and is expected to cross Rs 1 lakh crore by 2025. Within this, the organised market accounted for Rs 24,000 crore or 24 percent of the total share in the year 2020. This is expected to touch Rs 50,000 crore or 50 percent of the market share by 2025. To decode the spice market opportunity, CNBC-TV18 spoke to Ganesh Sundararaman of ITC; Abha Agarwal of Avendus Capital and Sunay Bhasin of MTR Foods.

    According to history those who controlled the spices could divert the flow of wealth around the world! And that continues to hold true even today! From one of the largest traders back in the day to the top consumption market in the world now, India’s spice story continues to play out.
    India has a strong love for spicy, masala-rich meals, making this an extremely attractive market. According to Avendus Capital the spice market in India was pegged at Rs 67,500 crore as of 2020 and is expected to cross Rs 1 lakh crore by 2025.
    Within this, the organised market accounted for Rs 24,000 crore or 24 percent of the total share in the year 2020. This is expected to touch Rs 50,000 crore or 50 percent of the market share by 2025.
    The organized spice market is split into two – one, the straight spices which are jeera, clove, cumin etc, and two, the blended spices like biryani masala, pav bhaji masala etc. In 2020, the straight spices accounted for 76 percent of the organised market, and blended the remaining 24 percent.
    However the blended spice market is growing fast. Come 2025, blended spices are expected to dominate the branded market with 65 percent share.
    Now, why is this good news for players in the market? That's because blended spices command higher margins, the realisations are 3-3.5 times higher and gross margins jump from 33-35 percent to 48-50 percent.
    To decode the spice market opportunity, CNBC-TV18 spoke to Ganesh Sundararaman, Chief Executive of Strategic Business Unit at ITC; Abha Agarwal, Executive Director and Co-Head of Consumer, Financial Institutions Group and Business Services at Avendus Capital and Sunay Bhasin, Chief Commercial Officer at MTR Foods.
    Watch video for more.
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