Daybreak FMCG giants are caught in a spice war
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Jul 22, 2025 India's packaged-food giants are diving headfirst into the spice market, transforming a previously overlooked category. Big players like ITC and Tata are on a purchasing spree, driven by the high profit margins spices offer. However, the race to dominance comes with challenges, including regional competition and the threat of adulteration. This surge has sparked what insiders are dubbing the 'great spice wars,' marking a new chapter in the food industry as these giants battle it out for supremacy in the kitchen.
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High Margins Drive Spice Boom
- Spices offer some of the highest profit margins in FMCG, with pure spices at 30-35% and blended spices up to 60%.
- This profitability has motivated FMCG giants to aggressively acquire spice brands since 2020.
Fragmented Market Dominated by Regionals
- The Indian spice market is highly fragmented with regional brands dominating specific territories.
- National brands must adapt to local tastes or acquire regional champions to grow.
MTR's Kerala Entry by Acquisition
- MTR failed four times to enter Kerala with its own brand but succeeded by acquiring Eastern Condiments.
- Acquisition allows FMCG companies to tap into loyal customer bases and local flavor expertise quickly.