Inside India’s kitchens: What the masala market reveals about consumers

India's kitchens, a reflection of flavour and tradition, are revealing significant shifts in the consumer landscape. At the heart of this food heritage lies the humble spice, or 'masala', a sector undergoing rapid transformation. Far from being mere condiments, spices are deeply embedded in cultural practices, shaping meals from daily sustenance to festive feasts.

Their market dynamics provide profound insights into shifting consumer behaviours, the growing influence of packaging innovation, and the evolving retail landscape within the broader Fast-Moving Consumer Goods (FMCG) sector.

The masala market: A spicy surge driven by new demands

The Indian spice market is currently experiencing a remarkable boom in both sales volume and value, demonstrating a growth rate significantly outpacing its overall compound annual growth rate (CAGR). 

This robust expansion is fuelled by several key consumer insights that reflect a more discerning, modern Indian household. Driven by increasing awareness regarding hygiene, quality, and adulteration, consumers are rapidly migrating from loose spices to branded, packaged formats. 

This shift is not merely a preference but a conscious choice towards reliability. Younger millennials, in particular, are spearheading this shift, seeking the trust, authenticity, and consistent quality that only packaged spices can consistently provide. 

The recent global scrutiny and even international bans on certain Indian spice brands due to contaminant concerns further underscore the consumer's heightened demand for verifiable quality, purity, and traceability, reinforcing the appeal of established brands.

Beyond purity, convenience plays a significant role. Hectic urban lifestyles and a pervasive desire for quicker meal preparation are boosting demand for pre-blended masalas and ready-to-use spice pastes. 

These products simplify complex recipes, allowing consumers to enjoy traditional flavours without requiring extensive preparation. Furthermore, the modern Indian palate is becoming increasingly adventurous. 

While rooted in cherished family recipes, there's a growing tendency to experiment with diverse flavours and global cuisines. 

This trend fuels demand not just for a wider variety of individual spices but also for innovative, ready-to-use blended masalas that cater to this expanded taste profile, from Mexican seasoning to Italian herb mixes, integrated seamlessly into Indian cooking.

Packaging: The silent salesperson and a sustainability imperative

In the highly competitive and growing FMCG landscape, packaging, especially for staples like masalas, has transcended its traditional role of mere containment. It's now a critical touchpoint influencing purchasing decisions, fostering brand loyalty, and actively addressing pressing environmental concerns.

Innovative packaging serves as a powerful differentiator on crowded retail shelves. Eye-catching designs, often incorporating vibrant colours and traditional motifs that resonate with India's rich cultural tapestry, grab attention. 

More importantly, clear information on ingredients, origin, and certifications builds invaluable trust, empowering consumers to make informed choices that align with their values and dietary needs.

Functionality is equally paramount. Resealable pouches ensure freshness and prevent spoilage, which is critical for spices that lose potency over time. Single-serve sachets cater to convenience and portion control, reducing waste.

Microwaveable containers, though less common for spices, highlight the broader trend towards ready-to-use formats. Packaging that preserves freshness and prevents contamination directly addresses hygiene concerns associated with loose spices, offering a sealed, tamper-proof assurance to the consumer. 

Moreover, environmental consciousness is no longer a niche concern; it's a mainstream driver of consumer preference. Recyclability and reusability are key factors, increasingly influencing purchasing decisions. 

This shift is strongly supported by government initiatives such as the Plastic Waste Management Rules and the Extended Producer Responsibility (EPR) framework, which push manufacturers towards more sustainable packaging solutions. 

The prohibition of single-use plastics is further accelerating the adoption of alternative, eco-friendly materials, forcing brands to innovate rapidly in this space.

The evolving retail landscape: Innovation at every touchpoint

The perspective on innovation has undergone a significant transformation, shifting from being solely brand-centric to profoundly consumer-centric. The pervasive influence of digital media has empowered buyers immensely, making them more aware of global innovations and setting higher expectations for their shopping experiences. 

Consequently, retailers have had to innovate far beyond traditional brick-and-mortar outlets, integrating technological advancements into the very fabric of retailing itself. 

With the pervasive influence of social media and e-commerce, customers are increasingly critical of physical retail spaces. They no longer simply seek products; they demand an experience. 

Therefore, factors such as superior customer service, flexibility of choices, and the sheer convenience of shopping have taken precedence over mere product innovation. 

This is precisely where innovation must play a key role today, transforming and improving the entire retail experience to meet modern consumer demands.

Amidst this digital revolution, FMCG brands are increasingly recognising the enduring value of kirana stores. They are actively investing in digitising kirana operations through dedicated retail apps that enable kirana owners to seamlessly access product catalogues, place orders, and track deliveries.

This integration streamlines the supply chain and enhances efficiency for both parties. Furthermore, personalised engagement and loyalty programs are being rolled out to foster deeper ties, ensuring kiranas remain aligned with brand goals in an increasingly digital economy.

As Avelino Oliveira, VP and GM at Schreiber Foods, aptly notes, "Kiranas will continue to operate as usual, as brands will protect their control on the network." This highlights the strategic importance brands place on these extensive, deeply rooted retail networks.

The next wave: Balancing tradition with transformation

India’s FMCG sector is undergoing a profound yet progressive transformation. While opportunities abound, success hinges on navigating complexity, embracing digital transformation, and nurturing critical relationships with consumers, retailers, and partners.

The future of Indian FMCG staples is exceptionally bright, brimming with potential for those who understand these nuanced consumer insights and translate them into truly innovative solutions across product, packaging, and the entire retail experience, ultimately enriching the lives of millions.

(Our guest author, Akash Agarwalla, is the Co-founder of ZOFF Foods, a well-known Indian D2C spice brand that offers spices, dry fruits, and whole foods.)