Indian consumers may shift to packaged spices, seasonings

Around 28% of younger millennials plan to switch to single spices and 35% to masala mixes.

Around 22% of Indians that are currently buying unpackaged single spices, and 27% for masala mixed or a blend of spices are intending to switch to packaged products in the next 12 months.

In a report, the drivers for the shift to packaged spices are convenience, competitive price, and rapid urbanisation.

The Indian spice market is currently led by the unorganised sector, with 56% of the consumers buying unpackaged single spices, and 44% unpackaged masala mixes.

Tulsi Joshi, senior Food & Drink Analyst at Mintel Reports India said the intent to shift to packaged goods is observed the most amongst the younger millennials aged between 26 to 32, with 28% saying they plan to do so with unpacked single spices, and 35% for masala mixes.

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However, Joshi said there are some who plan to do otherwise and switch to an unpackaged format.

“This means brands will have to divide and conquer the spices and masala mixes market, i.e. prioritise, retain, upgrade or nudge the consumers according to their current purchase and future intent,” Joshi said.

“For example, brands can play up on value-for-money proposition to retain the price-conscious consumers who intend to switch from packaged to unpackaged format while upgrading the loyal packaged consumers with organic/all-natural spices and masala mixes,” she added.