Wondering how to start a spice business in India? Now is the perfect time to do so. Spices are the soul of not just Indian cuisine. It is widely used in many dishes in other cultures, and the spice business is a huge opportunities globally.
India is considered the Spice Bowl of the World and is home to spices that are valued for their taste, aroma, texture and medicinal value.
According to the India Brand Equity Foundation (IBEF), India is the largest consumer, producer, and exporter of spices across the globe, with 75 of the 109 varieties recognized by the ISO (International Organization for Standardization). This is a sign that entrepreneurs can find their footing in this vast masala and spice business online.
Spices worth USD 3.62 billion were exported in fiscal year 2020 alone.
Even if you don’t want to invest huge capital in making a physical shop or hiring a chain of employees for a full-fledged business, you can start small by selling your spice and masala online. This is a must even for physical masala sellers, since people will look for spices and masala online, and you will benefit if your website tops the list.
This article will cover a detailed guide to the ins-and-outs of how to start a spice and masala business online in India.
What are spices and how are spices sold in India?
One of the main drivers of India's economy is the spice trade. In FY 2023–24, the export of spices and spice products hit a record high, reaching USD 4.46 billion. This number is expected to grow in the years to come, providing an opportunity for startups to enter this sector.
It's highly advisable to go online with your spice and masala business and just start, even if you have a low budget. According to projections, the worldwide market for spices and seasonings would reach 29.57 billion USD by 2032, up from 20.19 billion USD in 2024.
The emergence of online platforms and e-commerce has made it feasible to launch a spice business from home. A growing number of business owners are recognizing the potential of internet marketing to grow their clientele and start a profitable business.
Step-by-step guide to starting a spice business
The road to becoming a successful business owner has more bumps and curves than you can imagine. If you’re wondering about hot new business ideas that could be the next big thing, start with homework and research of the industry.
Things get much easier when you have the know-how of business operations and a well-defined game plan.
Here are the nine steps you can follow to build a spice business in India from scratch.
1. Understanding spices and spice products
As an aspiring spice business owner, the first step is to understand the types of spices and spice-related products. Someone with a fascination for building a spice business, but do not know much about the product and its process may find it hard to run the business.
A number of Indian cuisines rely on a core of essential spices, including turmeric, coriander, mustard seeds, cumin, asafoetida, fenugreek, cloves, cardamom and many more.
In general, spice products can be categorized into three types - whole spice, spice powder, and recipe-specific spices.
- Whole spices: Cloves, chili, cumin, cinnamon, mustard, poppy, saffron, turmeric, bay leaf, coriander and thyme are among the well-known ones.
- Spice powder: Pepper powder, cardamom powder, chili powder, ginger powder, turmeric powder, fennel powder, tamarind powder, coriander powder and fenugreek powder are the common ones.
- Recipe-specific spices: Curry masala, meat masala, fish curry masala, sambar, rasam, and instant pickles are widely used.
To start a masala business in India, do the market research to know what types of spices you want to sell online. Do you want to sell dry spices, organic spices, raw spices, highly graded masala mixes, whole spices or just blended masala?
Understanding the buying habits of your likely customers will help you decide the category of spices you want to deal with. Additionally, you can also consider including organic spices.
Gain some understanding of the spice production and their availability, and decide whether it suits you to start a niche-specific masala brand or enter the market with all sorts of masala products. You can find unfilled needs in the industry and opportunities to develop the perfect spice mixes.
2. Lay out a written roadmap by creating a business plan
Once you decide the category of spices, the next step is to create a business plan. Before starting a spice business, you need to have a roadmap not only in your mind, but also on paper.
Writing a business plan is a crucial task as you start the spice business. Having one in place will help you:
- Lay out business goals
- Track progress
- Decide whether you are on the right path
- Make wise decisions
- Avoid mistakes
- Apply for grants or loans
A business plan defines the goals and desired outcomes for your business. It’ll also help you recognize the major milestones needed to reach them.
Here are a few key elements that your spice business plan should include:
- Market analysis
- Competitive analysis
- Marketing plan
- Social media strategy
- Sales strategy
- Financial projections
Make sure you include your objectives, intended market, marketing strategy, and financial forecasts in a thorough business plan. Planning ahead and doing your research will better prepare you for success.
3. Create a business budget
As part of your business plan, it is important to lay out costs required to get a spice business up and running. A business budget plan usually includes two types of costs — fixed capital cost and working capital cost.
- Fixed capital cost: This includes cost of purchasing machinery, licensing, registrations, and buildings.
- Working capital cost: These vary depending on the amount and types of spices you want to produce.
For example, working capital costs for a spice business can include the cost of:
- Raw materials
- Staff
- Marketing
- Distribution
- Tax liabilities
Estimate the costs of equipment, materials, packaging, and marketing to get a sense of the overall budget. As an entrepreneur trying to make a name for yourself in the Indian spice market, you need to strike a balance between being competitive and making a profit with your pricing strategy.
There are also government subsidy schemes to help you get your business off the ground. Here are some of the more popular ones:
- National Horticulture Board (NHB)
- National Horticulture Mission (NHM)
- Small Farmer Agri-Business Consortium (SFAC) Assistance
- Agricultural and Processed Food Products Export Development Authority (APEDA) Assistance
- Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS)
- Venture Capital by Small Farmer Agri-Business Consortium (SFAC)
How much does it cost to start a spice business in India?
After you've decided on a company size, you're probably wondering how much it will cost to launch your spice and masala venture.
A possible cost breakdown for starting a spice business in India depends heavily on your operation size. If you are a small-scale business, the minimum cost can start from ₹1 lakh and can go up to ₹5 lakh. For a medium-scale business, the minimum cost can be ₹5 lakhs, with the maximum going up to ₹15 lakhs. To start a large-scale business operation, the cost can go beyond ₹15 lakhs.
Having a budget in place will help you get a better idea of whether you need to apply for government subsidies related to your business needs.
Related: How to create a go-to-market plan
4. Set up efficient internal processes and systems
As long as your internal processes and operating systems are not functioning efficiently, you can never build a great business. Especially in an industry where competition is cutthroat and you need to stay ahead in order to sell spices, it’s important to develop strategies for working efficiently.
To make sure everything is running smoothly at your masala company, create precise standard operating procedures (SOPs) and share them with the team.
Use software like Microsoft 365 to keep track of orders, manage inventory, and simplify operations. M365 provides a lot of functionality, such as email, spreadsheet management, and word processing.
As entrepreneurs, you can also benefit from GoDaddy to expand your customer base and streamline your business operations.
5. Registration and licensing
Running a spice business in India requires you to have business registration and multiple licenses from government bodies.
Depending on the business model, you may want to choose from different company formations such as private limited company, one person company, limited liability partnership, partnership firm, and sole proprietor.
Obtaining a license from the Food Safety and Standard Authority of India (FSSAI) is compulsory for every food item in India.
As your business falls under the food industry, it should align with government guidelines. Here are some legal requirements and registrations you need to start a spice business:
- Trade License: To run your company lawfully, you must first get a trade license from the relevant municipal authorities in your area. Obtaining a trade license from local authorities is mandatory for commencing your business.
- MSME registration: Having the MSME registration is vital in availing different schemes from the central or state governments.
- Spice Board Registration: Anyone involved in the export of spices, whether as a producer or merchant, must own a valid Certificate of Registration from the Spices Board. It is a separate entity whose job it is to create and market Indian spice commodities for export.
- Goods and Services Tax (GST) Registration: Every company doing business in India must register for GST. Getting a GST registration will establish the business as a legal supplier of spices and help in tax accounting.
- FSSAI License: To guarantee quality and cleanliness, you will require a license from the Food Safety and Standards Authority of India (FSSAI), since spices are considered food items.
- The Importer -Exporter Code (IEC): Any company engaging in exports or imports must have an Importer-Exporter Code (IEC), a crucial piece of company identification. The Directorate General of Foreign Trade issues IECs to business owners who want to export spices.
You may also need other licenses, subject to the federal law of the state where you will be running the business from.
6. Understand health and safety regulations
People add spices to their meals, so you can only imagine the attention required to ensure their quality. Following best practices to avoid legal trouble and complying with food safety rules are of the utmost importance.
Always comply with the Food Safety and Standards Act of 2006 and use high-quality raw materials for your products. Hence, packaging and processing the spices meticulously is the most important thing in this business.
Apart from taking proper care of hygiene, one thing not to forget is labeling your products. Simply said, if you don't state on the packaging that you are offering high-quality spices, how can your customers know?
All components, nutritional information, and expiry dates must be clearly labeled in accordance with FSSAI regulations.
The benefit is that as long as you guarantee the quality and cleanliness of your spice brand, customers will continue to buy it.
7. Procuring the machinery & sourcing high quality ingredients
Based on the products you plan to offer, you will need to procure the right machinery.
Even if you are a small masala business operating from your home or a small factory space, you need to install some basic machinery. A blender for blending, a sieving machine for consistent texture, and a spice grinder or pulverizer for grinding are essential pieces of equipment. For reliable packing, you'll need a digital scale for weighing and a sealing machine. These compact tools are perfect for home-based manufacturing on a regular basis.
At this stage, identify the types of machinery that your business needs. Some of the most common tools used in a spice business include:
- Spice grinder
- Disintegrator
- Packaging machine
- Pouch sealing machine
- Pulverizer
- Weighing machine
Investing in the right tools early on will help your business run smoothly and more efficiently in the long run.
Once you have the machinery ready, it’s time to locate a source of raw materials. These materials could include:
- Unground spices
- Pouches for packaging consumables
- Corrugated cartons for bulk packaging
Source your ingredients from places where you can find organic certification. Reach out to wholesalers you know for sure provide high-quality ingredients. Don’t rely on trial and error, because the raw materials you choose will eventually shape your brand image. Before selecting a vendor or wholesaler, do some research and read reviews.
Steps in manufacturing spices
The key steps involved in manufacturing of the spices are:
- Cleaning: The process starts with cleaning whole spices manually and removing impurities like dust, dirt, and stone.
- Drying: During this phase, you’ll have to dry the spices. Lack of proper cleaning may lead to the growth of bacteria.
- Roasting: The dried spices are roasted for flavor, aroma, and color.
- Grinding: At this stage, the spices are ground using the pulverizer machine.
- Sieving: This step ensures that the spice powder comes with a uniform mesh size.
Using good-quality raw materials and understanding the steps involved in manufacturing will help equip your business for success in the future.
Related: What it means to have a “green” business
8. Naming the business
Finding the right name is crucial to the success of any business and the spice industry is no different. A business name should not only be good but also resonate with your brand.
A clear and powerful name helps create a distinguished presence in the market.
Look for easy-to-spell names that are catchy and can be easily remembered. The benefits of the right brand name extend to helping in sales and marketing.
A few tips to remember:
- Avoid choosing a company name that is lengthy, hard to spell, or both. Stay away from complicated names and choose simple terms like "spice" and "Desi" that your customers will have no trouble remembering.
- Be distinctive. Make sure your name is unique and not too similar to competitors’, as it could lead to confusion among potential buyers.
- For trademark purposes, it is not advisable to use a generic or geographically specific business name, such as "Best Spices" or "Rajasthan Masala."
- The name of the company goes beyond just being written on the packaging. It helps in the creation of a professional, custom email address that upholds your business identity in all of your messages. Customers are more likely to remember you if your branding is consistent.
After the name is finalized, the next step is to check for the same or similar domain name and register it immediately.
The domain name is the address that users will use to access your website. If you need help deciding on a domain name for your masala company, GoDaddy Airo can give you multiple choices.
Not many online sellers are aware of this, but search engines include a domain name as one of their ranking elements. This means that having a memorable and catchy domain name may also improve your SEO (search engine optimization).
Related: 10 tips for choosing the perfect domain name
9. Build a website for your spices business
Creating a stunning online storefront for your masala business does not require the services of a professional designer. With tools like GoDaddy Airo, no coding experience is necessary, and you can create the website in less than an hour.
Write about your business
Start by writing a short description that conveys your idea of how you want to design your business website.
After logging into GoDaddy, you are asked to provide a brief description of your company. For example: “I want to make an e-commerce website for a masala and spice business in India.”
GoDaddy Airo instantly creates a draft website with elements including the homepage, product listings, and store setup based on the input you provide.
Choose website layout & theme
Once the draft is generated, users are sent to the site editor. Specifically, Airo recommends completely customizable, minimalist themes that are also mobile-friendly. A "Shop Now" button, an eye-catching headline, and an image placeholder are all pre-installed on the site.
With just a little drag-and-drop editing, you can customize the position of sections, colors, and fonts.
Add a logo and hero image
Then, you can make a logo for your business with the help of GoDaddy Airo. Use their AI logo generator or submit your own.
Next, replace the current banner image (often referred to as the "hero" image) with a high-quality photograph of your product; here, it is a carton of Spicemasalaindia's Meat Masala.
Consider revising your slogan/tagline to something like: “Authentic Indian Spices Online Store – Discover Premium Masalas.”
Add your products to the online store
Choose "Add Product" in the "Store" tab and complete the following;
- Product Name (e.g., Meat Masala)
- Price (e.g., ₹90 or a discounted ₹85)
- Product Image (upload a front-facing packet photo)
- Product Category and SKU (optional)
- Add a short, appealing product description.
After that, confirm that the visibility toggle is turned on.
Define where you serve customers
According to your spice business's needs, GoDaddy allows you to choose a target market area. To assist Google in understanding your consumer base better, just enter the area (e.g., Noida, Uttar Pradesh).
Optimize your site for SEO
Based on your product, GoDaddy Airo will automatically offer keywords that Google recommends. Pick two or three keywords, such as: ‘meat masala’, ‘mutton masala’ and ‘meat masala powder’.
If you want your pages to rank higher in search results, Airo will include these keywords into the titles and descriptions of your pages.
Preview & publish your website
To check your site's appearance on desktop and mobile devices, click Preview after the store and homepage are complete.
When you're satisfied with the final look, click the Publish button. Now the world is ready to buy from your masala and spice company website.
Boost sales with built-in marketing tools
Take advantage of GoDaddy's integrated marketing tools, such as Google and Facebook Ads, after your site becomes live. It also includes features like social media posts and email marketing to customers.
This will make sure that your spice company looks amazing and also attracts customers.
Your own spice store is ready
After completing each of these stages, your website (such as SpicemasalaIndia.com) will have a beautiful homepage, an online store with real products, mobile optimization, SEO and marketing integration, and a payment-ready checkout.
Note: You do not need technical knowledge to create a website, as it is all powered by AI.
10. Use branding to connect with your audience
When it comes to branding a spice business, you may want to begin by sharing your brand story.
This could include a number of things, like:
- Sharing the story on how you started the business
- Where you get your ingredients
- Your manufacturing process
- Creating a visual brand identity, picking a set of colors and fonts and also by using a logo maker and trying a bunch of logo variants until you find one that resonates with what you’re building. This visual identity you can use on your website, social channels and packaging as well
Consider them to be your unique selling points which will ultimately set your spice business apart from other similar businesses.
A great way to get the word out is to build a WordPress website through GoDaddy. You can share your brand story and sell your products directly to businesses or consumers.
11. Finding the first customers
Finding your first customers (also known as lead generation) can feel like a daunting task. But when you do it right, these early customers share the goodness of your products with their network, family and peers.
The marketing strategies you can use to find the initial consumers are:
- Social media posts on Facebook, Instagram, Twitter and WhatsApp. You can also keep all your social channels in one place with the free link in bio, this way you allow your audience to contact you on the social media channel they prefer.
- Television ads
- Vocal for local marketing campaigns
- Pay-per-click advertising on Google
- Email marketing
- Print advertising
- Blogging
- Radio ads
- Tying up with local Kirana shops
- Registering on B2B websites including Alibaba, Indiamart and Udaan
- Selling on marketplaces such as Amazon
- Create an eCommerce website and sell online directly to customers
To get a pulse on your customers, try collaborating with local megastores. You can also distribute free samples and spread the word by networking with other businesses, too.
How to start a spice business: in closing
Starting a spice business in India can be profitable because ready-to-eat spices are immensely popular among consumers around the world. From a consumer’s viewpoint, pre-blended packages offer consistent food flavors and are convenient to use. Online masala and spice businesses in India require a lot more preparation at the beginning of the launch and constant promotion to make the website popular and profitable. The good news is, you can capitalize on the growing demand for Indian spices that caters to a wider demographic by following the above steps.
GoDaddy Airo offers domain registration, easy website construction, and hands-on marketing services to help masala and spice company owners launch their venture.
If you want to establish a credible presence on the web, first design a website with the help of Airo and GoDaddy's Website Builder. Take advantage of Microsoft 365 (M365) to streamline your company operations.
Don't hesitate to use these resources to your advantage so you can concentrate on making great spice goods, expanding your business, and satisfying your customers.
Editor's Note: This article was first published on July 30, 2021 and updated on Sept 2, 2025. It also contains content written by Priyanka Desai.
