marketing of spices

Research Expo Intenational Multidisciplinary Research Journal Available online at www.researchjournals. in Volume II, Issue I March 2012 ISSN : 2250 - 1630

Copyright 2012. Falgun A. Kaneriya. This is an open access refereed article distributed under the Creative Common Attribution License which permits unrestricted use, distribution and reproduction in any medium,

provided the original work is properly cited.

Marketing of Spices

Falgun A. Kaneriya

Research Scholar

Singhania University

Pacheri Bari

Dist. Jhunjhunu - 333515

Rajasthan (India)

Introduction

India is the land of spices. As the country is blessed with a wide range of agroclimatic conditions from tropical to temperate zones, coastal plains to high altitudes and semi-arid to highly humid evergreen forests, it is in an

advantageous position to produce a number of spices. As per the terminology on spices prepared by the

Bureau of Indian Standards, there are sixty-three spices produced in India.Today, India has a unique position

in the global spice scenario as the largest producer, consumer and exporter of spices and spice products.

Contents

Pepper

Cardamom

Chillies Ginger

Turmeric

Garlic Coriander

Celery

Clove Cumin

Fennel

Fenugreek

Nutmeg and Mace Saffron

Research Paper

Abstract

India is the land of spices. As the country is blessed with a wide range of agro climatic conditions from

tropical to temperate zones, coastal plains to high altitudes and semi-arid to highly humid evergreen forests, it is in an advantageous position to produce a number of spices. As per the terminology on spices

prepared by the Bureau of Indian Standards, there are sixty-three spices produced in India.

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Research Expo International Multidisciplinary Research Journal ISSN : 2250 -1630

Volume - II , Issue - I March - 2012

Effects on economy

The spices market has not been severely affected by economic conditions. In fact, many categories of spices are considered recession-proof or counter-cyclical because the sales tend to rise in a sluggish economy. In a tardy economy, at-home consumption of food generally rises, with people trying to save money by avoiding

costlier trips to restaurants, and cutting down on the consumption of ready meals. Europe, and some Asian

countries continue to be the global centers for the production and processing of spices and culinary herbs.

Some countries lead in the production of specific spices, such as India for cloves, China for ginger, Vietnam for pepper, and Indonesia for nutmeg and cinnamon. In the culinary herbs market, India is among the leading

producers and exporters of raw herbs to the US, and European Union. Spices and its derivative products are

used in food preservation, food flavoring, aromatherapy, beverages, personal hygiene products, industrial

chemicals, pharmaceuticals, and feeds.

Demand for spices and herbs is growing due to increased consumer consumption, usage in the manufacture

of various flavors and flavor ingredients, as well as increase in demand for ethnic foods. The United States

represents the largest market for spices and seasonings worldwide, as stated by the new market research report on Spices and Seasonings. Spice consumption in the US is increasing rapidly as more and more spices such

as Thai, Indian, Mexican, and Korean dishes are increasingly becoming popular with American consumers.

Europe constitutes the second largest market for spices and seasonings worldwide. Asia-Pacific is projected

to emerge as the fastest growing market for spices and seasonings worldwide, registering a CAGR of 3.15% during the analysis period. The spices and herbs market is broadly divided into Catering, Industrial, and

Retail. Industrial market is the largest user of spices and herbs in which food processing and meat industry

constitute the major users.

India is the worlds largest producer and exporter of spices. With plantations spreading over 3 million hectares across the length and breadth of the country, India exports around 180 kinds of spices to nearly 150 countries

worldwide. India is shifting from being merely a supplier of bulk spice commodity to being an exporter of

the processed and finished product. Already possessing the required raw materials, technological expertise,

and infrastructural facility for daily extracting, grinding, and sterilizing of seven thousand tons of spices, India

is slated to emerge as a major processing center for spices and flavors in the near future.

The growing interest towards the use of organic food and beverages is fast catching up. Certified Organic

spices, which are grown without the use of pesticides, herbicides, and dangerous fumigants, have made entry

into retail outlets worldwide. However, the mainstream retail market for organic herbs and spices is still in a nascent stage. Reduced prices and increased supply could offer significant growth prospects for organic

spices, which is expected to build up market share comparable to other organic food products.

Major players profiled in the report include Ajinomoto Co. Inc., Ariake Japan Company Limited, Bart Spices

Ltd., British Pepper & Spice Co. Ltd., B&G Foods Inc., CaJohns Fiery Foods, Char Crust Inc., Frontier

Natural Products Co-op., Golden West Specialty Foods Inc., Goya Foods Inc., Griffith Laboratories Worldwide Inc., Italpepe Srl, Kraft Foods Inc., Lawrys, McCormick & Co., Inc., Mehran Spice & Food Industries, Newly Weds Foods Inc., Old World Spices & Seasonings, Tone Brothers Inc., Vanns Spices Ltd.,

Victoria Gourmet Inc., Williams Foods Inc., Xcell International Corp., among others.

The research report titled Spices and Seasonings: A Global Strategic Business Report announced by Global Industry Analysts Inc., provides a comprehensive review of the spices and seasonings markets, impact of the

recession on the market, current market trends, key growth drivers, recent product introductions, recent

industry activity, and profiles of major/niche global as well as regional market participants. The report

provides annual sales estimates and projections for spices and seasonings market for the years 2007 through 2015 for the following geographic markets - US, Canada, Japan, Europe, Asia-Pacific, Middle East, and Latin

America. In addition, key product segments analyzed include Dehydrated Onion/Garlic, Mustard Seed, Red

Pepper (except Paprika), Sesame Seed, Black Pepper, Paprika, Cinnamon, Cumin Seed, White Pepper,

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Oregano, Poppy Seed, and Ginger. Also, a seven-year (2000-2006) historic analysis is provided for additional

perspective.

About Global Industry Analysts, Inc.

Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the worlds largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each

year. Additionally, the company also offers thousands of smaller research products including company

reports, market trend reports, and industry reports encompassing all major industries worldwide.

Indian Spices Market India is famous for its spices that are widely used in industries like pharmaceutical, neutraceuticals,

perfumery, toiletry and cosmetics. Indian spices are one of the major suppliers of pepper to a large number

of countries.

Growth in Spices Market The Indian spice market has shown remarkable growth in spice and culinary herbs exports. Indian spices

manufacturers are making substantial efforts to improve the quality of spices backed up by technological advancement in order to tap the international market. Advanced technologies such as carbon dioxide

extraction, cryogrinding, encapsulation of spice oil is being undertaken to ensure high quality of spices and

their derivatives.

Market for Spice oils and Oleoresins India is also leading in the field of spice derivatives, meeting almost 70% of the total demand of spice oils and oleoresins. The country is providing value added products and thus achieved a repute in the international

community. With a focus on strong R&D, the Indian Manufacturers are developing new products,

implementing organic method of production for providing organic spices and herbs, which command a 10-

30% premium.

Spice Export Figures

India is one of the major Asian production and trading centre of spices, its derivatives and also culinary herbs. India's spice exports account for about 39% of the total exports in terms of volume and around 22% in terms

of exports value. India meets almost 65% of the global demand for derivatives like spice oils and oleoresins.

Major Spices Market Exported

Chillies 33%

Seed spices 22%

Turmeric 14%

Spice Oils and oleoresins 7%

Pepper 7%

Cardamom 1.1%

Ginger 2.7%

Fennel 1.1%

Fenugreek 1.2%

Tamarind 0.9%

Nutmeg and Mace 1.0%

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Tags:- Global Spices, Indian Spices Exporters, Indian Spices Manufacturers, Market Of Indian Spices, Spice

Export, Spices In Bulk, Spices Market

Scope to export organic spices

WITH the lifestyle and food habits in Europe and the US showing a definite tilt towards natural and organic food products, there is a bright scope for the Indian spice exporters to ship organic spices to these lucrative

markets.

The Spices Board utilized the platform of the Health Ingredients Europe 2000 exhibition and conference held

in Frankfurt last week to convey the message to the importers all over the world that India could supply a

number of organic spices.

A trend has set in of late whereby the importers ask for a clarification if the spice is organic or non-organic.

This term `non-organic' has now come to refer to the traditional spices.

At the Frankfurt meet, Mrs M. R. Usha, Deputy Director of Spices Board, who led a delegation of exporters,

launched some products such as organic dehydrated rosemary, thyme, oregano and scented basil clove as also

the extracts of organic rosemary, thyme and oregano. She said these products were intensively tested at the Regional Research Laboratory in Thiruvananthapuram and claimed that they carried a high level of medicinal

and culinary use.

``We have got confirmed orders for such products in Europe and that is why we are launching them here now.

These are manufactured using the latest technologies. They retain their colour and have a high oil content.

They are better than the ones available in the market from other sources. Also, our products are cheaper than

all others'', she told Business Line.

A number of importers, who visited the Spices Board stall, asked for organic herbs and spices. It is clear that

the importers are convinced that India has the capacity to supply quality organic spices.

``There has been a visible change in the order of demand for our products this time. The highest enquiry was

for organic herbs, followed by organic spices, dehydrated products, spice oils and oleoresins and only the

last, for the non-organic wholesome sp ices'', Mrs Usha said.

Ms Usha told the importers that India could supply a wide variety of such spices such as organic black and white pepper, cardamom, nutmeg, clove, mace, ginger, turmeric, vanilla and seed spices in large volume.

``But, what could greatly help is the recei pt of firm orders in advance so that the farmers could plan their

production strategy and deliver the organic spices on time'', she said.

Mrs Usha said the Board would attach necessary importance to introducing a new logo for organic spices and

also help in rapid certification if needed be through the international agencies.

The Spices Board is working closely with the Germany-based International Federation of Organic

Agricultural Movement (IFOAM) to train inspectors for the certification process. Also, it has utilised the

expertise of IFOAM in preparing a detailed document on the production of organic spices.

``Already, most organic products fetch double the normal prices. In some cases like vanilla which have a

great culinary and medicinal usage, we have a strong demand, but supplies do not match. Also, right now, no one is known to produce organic chilli, w hile the volume of organic turmeric available is low. There is a

ready order for organic pepper'', said Mr N. Venkatesh, a Chennai-based exporter of spices and herbs who

conducted a survey on food preferences in Europe and confirmed the tilt towards orga nic products.

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Mr. Tsewang Topden, Consulate General of India in Frankfurt, said a rising trend was visible in India's export

of spices to Germany. ``In the first five months of 2000, around two million kg of spices worth Deutsche Mark (DM) 14 million were exported to Germany from India, against 1.5 mkg worth DM 8 million last year'',

he said.

``The forecast is that between now and 2006, there would be a five-fold increase in the organic food market

all over the world. That is why we devoted a special pavilion for organic products with a participation of 50

exporters at the fair. Also, there w as a special session on organic products at the conference held in tandem'',

said Mr Gordon Payne, General Manager of Miller Freeman, organizers of the meet.

Conclusion

From above study, we can conclude that Indian spices market is already developed and developing. There are so many opportunities and scopes to develop spices market in abroad also. At last I must say that if we want

to increase our spices market in abroad, the people who are working in the area of spices, have to jump in the

foreign market.

Please Cite this article :

Kaneriya, Falgun A. Marketing of Spices. Research Expo International Research

Journal 2.1 (2012) : 73 - 77 < www.researchjournals.in>.

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marketing of spices

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