Daybreak India’s FMCG leaders are in a heated race for your spice cabinet
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Oct 1, 2025 The podcast dives into the fierce competition among FMCG giants for a slice of the lucrative spice market in India. Following 2020, companies like ITC and Tata are paying top dollar for spice brands, spurred by soaring margins. Orkla’s strategic moves and recent IPO signal a pivotal moment in the spice wars. However, the market faces challenges, including regional tastes, brand loyalty, and issues of adulteration. Discover how the shift from unorganized to packaged spices is reshaping consumer habits and the industry landscape.
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Spices Are Margin Powerhouses
- Spices offer much higher gross margins than many FMCG staples, with pure spices at ~30–35% and blends up to ~60%.
- This margin gap explains the recent scramble by large FMCG firms to buy spice brands and boost profits.
Orkla's MTR Bet Paid Off
- Orkla's Indian unit bought MTR's packaged food division and Eastern Condiments, turning MTR into a major revenue driver.
- In FY25 MTR reported nearly ₹2,400 crore and spices now generate 60% of Orkla India's revenue.
Regional Tastes Fragment The Market
- The spice market is extremely fragmented with strong regional brands catering to local tastes, making national standardisation hard.
- Around 2,000 brands compete for over half the market, so scale requires regional strategies or acquisitions.