If I have to do some loud thinking then what comes to my mind first is something like this;
1. Selling individual primary spices like Ref Chilli, Coriander, Turmeric to HH is becoming increasingly No-No for new spice businesses.
2. Average HH consumption of these spices is very low like about Rs 100-200 per month on Primary Spices. Competing for this small buying basket with many giant’s, well established brands, local grocery, adulterated etc is not possible for new spices businesses.
3. HORECA also has small proportion of their over all costs of food ingredients - on primary spices. But their buying behavior like number of check boxes that they have and payment terms offered by them are not at all conducive to any flourishing spices business for new companies.
4. Most B2B like Namkins and similar trades have their own well entrenched long term relationships with Mandi Traders and have been known to getting good deals.
5. Street Food vendors and the like are emerging as important consumption segments but there are no distribution channels to reach out to them and conventional channels are steeped in many malpractice that can-not be by-passed to build a high quality products businesses with them.
This is not a market analysis. It is like defining the boundary conditions within which a successful New Age Spice Business must operate.
This is a much more strategic exercise. Instead of asking "How do we sell spices?" we are asking "What kind of spice business is still worth building?"
I am listing all the concerns to sharpen our thinking…
1. Primary spices have become commodity products. Brand loyalty is weak, price competition is intense, and differentiation is difficult.
2. The household spice wallet is too small. Even if a family spends ₹150-250 per month on primary spices, the customer acquisition cost, distribution cost and retailer margins make the economics unattractive for a new entrant.
3. HORECA values reliability more than premium quality. Their spice cost is often less than 1% of sales, so changing suppliers rarely becomes a management priority unless there is a serious quality issue or clear operational advantage.
4. Industrial buyers already have efficient sourcing ecosystems. Namkeen manufacturers, snack companies and food processors have long-standing relationships with traders, commission agents and bulk suppliers. Winning them on price alone is almost impossible.
5. The largest emerging consumption segments remain structurally inaccessible. Street vendors, small eateries, cloud kitchens and canteens consume significant quantities but lack efficient distribution channels. Existing wholesale systems often reward low prices rather than consistent quality.
6. Consumers no longer buy ingredients; they buy convenience, confidence and outcomes.
7.There is almost no switching pain between turmeric brands. Unless the customer experiences a dramatic difference, there is little reason to change.
8. Traditional retail distribution is becoming a strategic disadvantage for new brands. Too many intermediaries dilute both margins and customer relationships.
9. The future lies in solving cooking problems rather than selling spice powders. People want better dal, better sabzi, better fish curry, better biryani—not merely better turmeric.
10. Quality must create an experience that is immediately noticeable. If cryogenic grinding, superior sourcing or residue-free spices cannot be tasted or felt in the first use, customers will not pay a premium.
11. The real competition is no longer another spice company. It is the customer's existing cooking habit.
I also think there is one boundary condition that will become the foundation for our entire strategy:
The New Age Spice Business should not define itself as a spice company. It should define itself as a company that improves everyday cooking. Spices are only one of the ingredients used to achieve that outcome.
Team Hello Kisan
