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Sauces and condiments industry in India - Vision 2030
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Monday, 09 January, 2023, 15 : 00 PM [IST]
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Megha Poddar
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In the last few decades, the Indian sauces and condiments market has grown considerably. With an increase in demand for dishes that are more convenient to prepare and consume, manufacturers are considering to expand their product lines. However, there is still a shortage of good quality products like spices and condiments that have been produced traditionally in India. In this article, we'll explore how the Indian sauces and condiments industry is expected to grow over the next 10 years. We will also determine how this growth will be achieved by various factors such as demand from consumers who want convenience over time spent cooking at home, rising incomes, rising urbanisation rates, rising disposable incomes among millennials.
A Statistical Overview
The Indian sauces & condiments market is at US$25.85 billion in 2022 and is expected to grow at a CAGR of 7.34 per cent over the period from 2022 to 2027. In terms of volume, the sauces and condiments industry is expected to grow at a rate of 5.1 per cent in 2023, whereas it is projected to reach 13,120.6 mkg by 2027. The average sauces and condiments volume per person is said to be at 8.1 per cent in 2022.
The Market Definition
Sauces and condiments are supplementary ingredients that are used primarily during the process of food preparation. In the Indian context, the sauces & condiments segment primarily consists of spices and herbs, seasonings, sauces and ketchup.
Scope of the Sauces & Condiments Industry in India
Convenience is the most important driver of the sauces and condiments industry. In fact, convenience is a key driver for consumers as well.
The ease with which we can prepare food is one reason why Indians love to eat out; it helps them to save time and money, come out from their hectic lives as well. They also like to stay healthy by taking care of themselves by eating fresh fruits & vegetables at home instead of going out for takeaway meals every day! So when it comes to convenience food, Indian consumers are always on the lookout for brands that offer quick preparation options without compromising on taste or quality!
As the consumption of ethnic food rises, the demand for sauces and condiments also shoots up. India’s street food scene has been gaining popularity in recent years and its growth will continue to boost the industry. In fact, sauces and condiments are so popular in India that street vendors and restaurants alike often use them as an ingredient in their dishes. This makes sense because they go well with spicy foods such as Chinese cuisine or Indian cuisine. In the business context, the influx of people towards the street shops has increased after the contraction of the Covid-19 restrictions.
Vision 2030: The Way Forward
Indian sauces & condiments manufacturers operate mainly in retail and wholesale channels, but some large manufacturers have established their own distribution network as well as built-up facilities outside India. India has the potential to become a net exporting country as it is a major producer of chillies, ginger, garlic and turmeric.
Sauces and condiments are expected to be one of the fastest-growing markets in India for both domestic consumption as well as exports during this period. With an increasing demand for spicy sauces, ketchup is estimated to be one of the top five product categories that will drive growth in this segment over time.
International Point of View
India is a land of diversity which can be seen in the sustenance aspect as well. There are myriad cultural sauces and condiment bases that are prepared in traditional households which are unique to particular regions. Focusing on such exports will increase the production value due to augmented demand from foreign countries. Even though it may not be profitable at first instance but ultimately profits will come if the industry holds on long enough. Eventually, there'll be profits from exporting products to other countries because whoever buys them will pay a higher price than in our own country. Hence, indirectly boosting our national economy and directly influencing the spices and condiments secondarily through exports.
Moreover, many spices are grown in India like pepper, cardamom, ginger, turmeric and chilies, to name a few. India is a global leader in chilli production and the demand for ghost chilli, which is aboriginal to India, has shown a huge demand in recent years. Presently, Indian chillies are exported to neighbouring countries. Making India a world leader in exporting authentic varieties of chillies can be seen as a part of the plan for the next 10 years.
Domestic Point of View
India has been ranked as one of the largest producers in terms of production value for many years now. A further focus towards exporting these ingredients will help boost the spices and condiments industry on a large scale. This also does not mean that the steps that need to be taken are solely export-oriented. The domestic customers should take a step out of their comfort food zone and explore the diverse sauces and condiments that the nation celebrates in different corners of the land! With rising incomes and increasing urbanisation, people are looking for food that is convenient to prepare. They want healthy food that tastes good and they want it in a hurry. With the right sauces and condiments, customers will get what they want!
The sauces and condiments market as well is an extremely diverse segment of the food industry. There are many different types of sauces and condiments, each with its own unique taste profile. These include mayonnaise, ketchup, mustard, soy sauce, barbeque sauce, pickles and chutneys. The number of these products available in India has increased over the years due to changing tastes among the consumers who want variety in their meals without going all out on expensive ingredients or take up extra time cooking them at home every day.
Upcoming Important Events
The 14th edition of the World Spice Congress will be held from February 16 to 18, 2023, at CIDCO Exhibition and Convention Centre, Navi Mumbai, Maharashtra. It is hosted by Spices Board India, Ministry of Commerce and Industry. The theme is “Vision 2030: SPICES (Sustainability– Productivity – Innovation – Collaboration- Excellence and Safety). Over 50 countries will be present at the event and it is a great opportunity for the Indian sauces and condiments industry to make their corridor apparent for years to come. With India taking up the G-20 presidency as well as the expected deliberations with the G-20 member countries, the nation has an open road to solidify the trade ties with other countries as well as diversify the scope of India's sauces and condiments Industry.
Take Away
The global sauces and condiments industry is undergoing rapid transformation due to technological advancements, changing consumer habits and emerging markets like India where there is a growing appetite for premium products with added value. This has led many companies to look at opportunities outside their core business activities as well as diversify into new areas such as e-commerce or digital platforms. This offers access across geographies or consumer segments through which they can reach out directly without having any physical presence there.
The key factors fuelling growth include increasing consumption levels of sauces and condiments and other add-ons, rise in disposable income and rapid urbanisation. The growth of retail chains, organised retail sector and greater availability of international brands and so on have also contributed towards development. The exports are important for the industry because they help to increase the industry's contribution to GDP and employment, which in turn will help ensure that the sector grows at a faster rate than it otherwise would have done.
To sum it up, the sauces and condiments industry has the potential to thrive and be a global leader in all its aspects. The need is to increase the demand cap for sauces, marinades and other products that add flavour to food. If it proceeds with the right strategy, the Indian sauces & condiments market is expected to grow at a far better pace in the next decade compared to the last decade!
(The author is CEO and founder at White Light Food)
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