With regional demand widening and premiumisation gaining ground, brands are expanding portfolios, targeting deeper distribution and cleaner labels
The Indian condiments market is going through a transformational shift, led by factors like increasing urbanisation, rising disposable incomes, shifting food patterns, and growing desire for convenience foods. The demand for varied and spicy products, coupled with an explosion of health-aware consumers seeking natural and organic products, is giving condiments a bigger seat at the Indian table, with them no longer being a mere side note to meals.
Having reached USD 323.59 million in 2024, the Indian condiments market is expected to cross USD 475 million by 2033, clocking a compounded annual growth rate of around 4.4 per cent from 2025 to 2033, as per the data by imarc. With increased demand for international tastes and healthier condiments, the brands are reporting healthy growth in this space.
“Urban consumers are leading this change, with preferences being gourmet sauces, low-sugar products, and fusion tastes that appeal to contemporary lifestyles. There is also increased demand for convenience and clean-label products. We are seeing pent-up demand for similar products in tier three cities as well,” highlighted Griffith David, Founder and Chief Executive Officer (CEO), Habanero Foods.
Although the majority of purchases in the non-metros are more traditional and value-driven, urban consumers are more adventurous and willing to accept premium and niche condiment products. The rural customer’s awareness due to social media is also shooting up, but they go for more frequent purchases, but at smaller price points of Rs 10 or 20, unlike their urban counterparts who buy bigger packs of 100 or 200g, industry players added.
Traction For Premium, Organic Condiments
As today’s consumers are more in tune with what lands on their plates, they prioritise limited preservatives and a variety of exciting global flavours. The brands are seeing greater traction for premium, organic and health-conscious condiments, clearly due to growing awareness about food adulteration and impact on health, as the consumer is moving towards brands where the focus is on purity and quality.
“Premiumisation continues to be a key market driver, and Catch Salt and Spices is seeing sustained momentum in this space, for offerings that simplify cooking while enhancing flavour. All the segments in the Catch Salt and Spices division are seeing growth,” Sandeep Ghosh, Business Head, Catch Salt and Spices, DS Group, told BW Businessworld.
Brands noted that consumers are willing to spend a bit more if they are assured of the purity of the condiments. These brands are also focusing on increasing awareness of consumers through simple experiments done at home to identify if the spices are adulterated.
Gen Z’s Flavour Obsession
Millennials and Gen Z are a more globally minded bunch, and this, in turn, is redefining the condiment industry with their need for global flavours. Industry players are noticing a move toward adventurous and fusion flavours. As this cohort desires authenticity, good packaging, and transparency, which in turn encourages brands to think about more natural ingredients.
“This age group, by being active on social media, has helped raise awareness of adulteration in food and staples across the country. Thus playing a key role in creating an aware Indian customer and forcing brands to do better labelling and offering pure, unadulterated condiments to the Indian consumer,” noted Swati Shukla, Head– Food and Farms (Jivana), Godavari Biorefineries.
They are savvy users of technology, which makes social media an important place for discovery and engagement. Gen Z, in particular, is digitally native, highly informed, and seeks authenticity, convenience, and personalisation.
“Gen Z prioritises convenience, and they are always seeking solutions that make their lives easier and hence the Gourmet Gravies are very popular amongst them. Their purchasing behaviour is influenced as much by product functionality as by the experience around it,” Ghosh explained.
Bridging The Rural-urban Gap
As key players in the segment are seeing pent-up demand for similar products in the three-tier cities, the gap between urban and rural consumption is narrowing. Consumers are increasingly seeking variety, innovation, and value-added offerings in the non-metros as well. These shifts are visible on newer channels like modern retail, ecommerce, and quick commerce.
“Apart from urban, we have also noticed that there is a noticeable shift toward premiumisation among segments of rural consumers, also driven by rising aspirations, improved digital access, and the growing influence of ecommerce,” Ghosh noted.
David added that Habanero is responding to a growing appetite for sauces and dips that are not just tasty but also crafted with nourishing ingredients. The Founder and CEO of Habanero Foods stated that their selection caters to this booming market by blending global flavours with health-focused recipes.
Sales Uptick And Expansion Mode
As Catch Salt and Spices marked a significant leap in the packaged spice industry by informing its entry into the Rs 1,000 crore club in the financial year FY24, it now aims to bolster its presence, targeting a CAGR of approximately 30 per cent over the upcoming five years. Shukla shared that Jivana revenue is growing at a CAGR of more than 50 per cent for the past three years. They are looking to continue with the same momentum as the company grows deeper into the geographical areas they are in through expanded presence in general trade, modern trade and quick commerce and expand its presence to new states in the south.
“At Habanero, we are preparing an ambitious growth path. We aim to touch Rs 40 crore in revenue by 2025 to 26, scale to Rs 100 crores by 2028, and increase our stock-keeping unit (SKU) count to 50. We are also exploring expansion into untapped international markets, including Africa, Eastern Europe, and APAC,” David emphasised.
Giving impetus to their aggressive expansion plans through modern-format stores and ecommerce, including quick commerce platforms, brands are diversifying their vibrant portfolio by venturing into pastes, gourmet gravies, grinders, herbs, and pink rock salt, among other products. With urban experimentation, rural aspirations, and rising health awareness driving the growth of the segment, the sector is poised to stir up bold innovations, bridge taste divides, and unlock newer markets going ahead.
