Processed spices market heats up

Processed spices of different brands. Use of processed spices is increasing both in rural and urban areas.Photo: STAR

The country's processed spices market is heating up as big business houses battle to win shares in the booming market, which is growing by around 15 percent a year.
A leading conglomerate ACME is set to enter the market by year-end and another business group, ACI, has already made its debut. Square, Pran and Bd Foods are other major players.
“The market is growing since consumers are showing reluctance to go for traditional systems of processing spices. Use of processed spices is increasing both in rural and urban areas,” Mizanur Rahman Sinha, managing director of ACME, said.
Consumers' growing awareness about hygienic spices and busy urban life have led to rise in branded spices consumption.
The ACME will be the second entrant in the processed spices businesses this year. Earlier ACI Foods hit the market with its 'ACI Pure' brand in January.
Some companies also export spices to the Middle East, Europe and North America.
“We have already entered urban and semi urban areas with our products. A section of rural people are also showing interest in our spices,” said Obaidul Haque, head of Marketing for Square Consumer Products Ltd that pioneered in processing spices in Bangladesh.
Square, which entered the market with its Radhuni brand in 2001,now controls about 70 percent of about Tk 150-160 crore branded spices market, according to industry insiders.
“It's really a big market because our (Bangladeshi people) food habit is spices based. But the market is still dominated by non-branded ones,” the Square official said.
According to stakeholders, the yearly market of both brand and non-brand spices is around Tk 4,000 crore with 2,52,000 metric tons of spices are consumed every year.
The domination of non-branded spices, Obaidul said, will fall if new entrants come.
“We really welcome the new entrants. The market has not grown well. Any new entrant will help expand the overall branded spices market through campaign among consumers,” he said.
Bishwajit Roy, business manager of ACI Foods, also believed that entry of more companies will help expand the market.
“A market without competition is always bad. Entry of new players will improve quality as well as the size of the market,” said Bishwajit.
Sohel@thedailystar.net