Spice Up Your Business Skills with a Spice Distribution Business

Nikita Arya
Nikita Arya Sep 11 2019 - 3 min read
Spice Up Your Business Skills with a Spice Distribution Business
Being a huge producer of spices, the Indian spice supply chain provides lucrative opportunities for distributors and retailers worldwide.

Did you know spices were as valuable as gold in the middle ages? Spices were valued for their so-called ‘ability to preserve meat’, were considered of medicinal value and were treasured because of the premium flavours they used to add in medieval cuisine. With the passage of time, the influence of myth, medicinal value and medieval tastes created a market for the world’s first globally traded product, which is spice.

Spices bear the responsibility of adding vibrant flavours and taste in the dishes. India, being a land of spices, manufactures the 75% of the 109 spices listed by the International Organisation for Standardization (ISO) and accounts for half of the global trading in spices, marking its dominance in the global spice market. Being such a huge producer of spices, the distribution chain of spices provides lucrative opportunities for distributors and retailers worldwide. A spice distribution business can be a profitable business opportunity for those who are looking for distributorship opportunities in India.

Evergreen Spice Market in India

As per reports, India has the largest domestic market for spices in the world. India is known as the home of spices and produces a wide variety of spices like black pepper, cardamom, ginger, garlic, turmeric, chilli and a large variety of tree and seed spices. In India, spices usually were grown in small holdings since always, and with organic farming gaining prominence in the recent times, the production of spices has increased multi fold.  

Even with the changing trends in the global food consumption, the market for spices in India does not get that much affected. For instance, as the trend for healthy food is taking the world by storm, consumers prefer healthy food with natural flavours and medicinal values, which comes from natural spices. As one of the largest producers and exporters of spices, the Indian spice market remains evergreen and a perfect business option to invest in.

Lucrative Distributorship Opportunities

With a production of spices at such a big level, the distribution chain becomes more relevant. There are several players who are involved in the spice distribution, such as manufacturer, wholesalers and retailers. The farmers themselves sell the products to the end consumers in some local markets while some sell them to intermediaries such as wholesalers and retailers. Wholesalers sell to retailers, both traditional and organised retailers and to customers, who buy in large quantities. The whole sale market is a vital link in the spice supply chain. In a wholesale distribution system, the spices are sold to retailers and consumers in wholesale; hence it is a lucrative business opportunity as the margins can be obtained by both end-consumers and retailers.

As per sources, a spice distributorship can be owned in an initial investment of just Rs 1 lakh for an area of 100 sq ft. With a higher return on investment, a spice distributorship serves as a lucrative business opportunity.



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