Sat. Jun 25th, 2022

Here is an article on how to start spice business: To achieve a delicious tasting meal you need some spicing. That is why the spice business is lucrative, fun, good to establish. Business owners need to have passion, schedule sales and blend.

Try to determine which aspect of the business to invest hard earned funds. Things to consider are business license, product, and equipment. Work closely with distributors, learn the trade and offer a variety of products.

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spice business
spice business

Top Producers

India is the top producer of spice in the world. Other are Nepal, Sri Lanka, Ethiopia, and Colombia. More include Iran, Turkey, Bangladesh, and China.

Indian Spice Market

India spice market is the largest in the world. Local consumption including exports account for huge sales of the product. Spices exported from India are fennel, nutmeg, ajwain and celery. Others are garlic, tamarind, clove, cumin, chilli.

Common Spice Mix

Classification include culinary herbs or spices. They are obtained from fruits, barks, seeds, arils. Common spice mix are Hawaij, chilli powder, curry powder, Cajun.

Others are garam, jerk spice, bumbu, berbere, advieh, baharat. More include cinnamon, cayenne pepper, nutmeg, black pepper, fennel. We have pumpkin pie spice, vegeta, masala, mace.

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Common Spice Mix

  • Hawaij
  • chilli powder
  • curry powder
  • Cajun
  • Garam
  • jerk spice
  • bumbu
  • berbere
  • advieh
  • baharat
  • pumpkin pie spice
  • vegeta
  • masala
  • mace


  • Cinnamon
  • cayenne pepper
  • nutmeg
  • black pepper
  • fennel

Steps to Start a Spice Business

Steps to start a spice business are writing a business plan, securing startup funds. Others are business registration, forming a legal entity, tax registration. More include sourcing the products, equipment purchase.

The next step is to opening a company account, hiring the right staff. Try to obtain necessary permit, licensing, develop a brand name, develop a marketing strategy.

  • writing a business plan
  • securing startup funds
  • business registration
  • forming a legal entity
  • tax registration
  • source products
  • equipment purchase
  • open a company account
  • hiring staff
  • obtain necessary permit
  • licensing
  • develop a brand name
  • develop a marketing strategy

Write a Spice Business Plan

The first step to establishing any business is a plan. The plan should cover startup cost, location sourcing, and profit/loss. Hire a professional to write the plan then conduct a market survey, feasibility study.

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Business Startup

There are three ways to establish a spice business. The entrepreneur can build the business from scratch, leverage on a franchise or acquisition. Acquiring an established business is a fast-track way to jump straight in.

  1. Acquire an established business: Before buying a business study the financials, customer base, challenges. Find out why the owner is selling and competitors.
  2. Franchise: purchasing a franchise license is expensive but worth it. An established franchise will provide training and leverage on the brands name. Franchising reduces cost of advertisement and marketing.
  3. Startup: to establish from scratch the entrepreneur needs to learn all aspects of the business. Adequate funding, good location, business management, accounting and marketing


The amount of funding depends on the size of the operation. Cost implications are product sourcing, packaging, staff wages. Others are transportation, marketing, tax and local levies. Secure funds through target savings, loans, friends and family.

  • target savings
  • bank loans
  • friends and family
  • cooperatives
  • crowd funding


Product price is determined by market trends, product sourcing or packaging. Profit is estimated on margins, volume purchased. Expenses are marketing cost, salaries, equipment maintenance, and cost of utilities.


The process of production, handling or packaging is of utmost importance. Food is regulated by the health department, product packaging National drug and food administration.

Food establishment must pass a health and safety inspection before getting a license. A factory should have a certificate of occupancy or governor consent. There are zoning requirement, local government provisions, and business license.

Register the business as a limited liability company or sole proprietorship. A limited liability company provides cover, maintains a personal asset protection. Get a tax identification number, open a dedicated bank account for the company.

  1. health department license
  2. NAFDAC number
  3. certificate of occupancy or governor consent
  4. zoning requirement
  5. local government provisions
  6. business license
  7. tax identification number
  8. open a bank account for the company


Staff requirements is determined by the business model. A retailer can work on his own from home or storage facility. A storefront owner would require a location driver, sales person, cashier, cleaner. Others hire marketers who earn based on performance.

  • location driver
  • sales person
  • cashier
  • cleaner
  • hire marketers


Spice trade involves the production stage, wholesale and retail. A farmer produces the product sells to a wholesalers who in turn sell to retailers. Entire value chain are farmer-wholesaler-retailer-customer.

Reach foreign, domestic markets through online platforms, blogs, social media, e-commerce sites. Use online marketing channels to drive customer to the products.

Other ways are through television advertisement, radio, billboards, and flyers. Other strategy includes door to door or offering a wide range of products.

  • websites
  • blogs
  • social media
  • ecommerce sires
  • use internet marketing channels
  • television advertisement
  • radio
  • billboards
  • flyers
  • door to door

Final Word

Spices are highly perishable have limited shelf life and require fast sales. Prepare to compete against major brands with huge budgets. To succeed the entrepreneur should build relationship, sell only quality products.

They need to follow government regulation, acquire appropriate licensing. Blender should know their market preferences, study the competition, offer good prices. Leverage on Federal Government initiatives, connect with a mentor have a support network.

spice business in India

By Femi

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