India Nutmeg & Mace Market

Market/ Product Overview

Nutmeg and mace find extensive use across various industries in India. The food and beverage industry is the largest consumer, utilizing these spices for flavoring and preserving a wide range of products. In the pharmaceutical industry, nutmeg and mace are valued for their medicinal properties and are used in the formulation of traditional and modern medicines. The personal care industry also incorporates these spices in products like toothpaste, soaps, and perfumes due to their aromatic and therapeutic qualities.

Significance of India in Global Nutmeg & Mace Supply Chain

India plays a crucial role in the global nutmeg and mace supply chain, being one of the top producers and exporters of these spices. India's significant contribution is driven by its ability to produce large volumes at competitive prices, catering to both domestic and international markets. Additionally, India's extensive network of spice traders and exporters, coupled with government support for the spice industry, ensures a steady and reliable supply to global markets, solidifying its importance in the nutmeg and mace trade. Its contribution is vital in meeting the global demand, particularly in countries like the USA, the UAE, and Europe, where Indian nutmeg and mace are highly valued for their quality.

India Nutmeg & Mace Supply & Demand Trend

India's production of nutmeg and mace has seen a consistent upward trend, driven by favorable agricultural practices and government support. The demand, both domestic and international, has also been on the rise, fueled by the growing use of these spices in food processing, traditional medicine, and the cosmetics industry. The market is expected to continue its growth momentum, with increased production and demand through 2030.

Covid-19 has a significant impact on the production and export of nutmeg and mace in India. Because to the COVID-19 limits, India's nutmeg (green) production fell 3.8 percent in 2020 (financial year) compared to 2019. In the 2020 financial year, India's retail and commercial consumption of nutmeg (whole and ground form) decreased, but the quantity processed for nutmeg oil and oleoresin extraction soared. Nutmeg (dry) prices remained stable in 2019-2020 due to increased stocks (ending).

Nutmeg & Mace Industry: Supply/Value Chain Bottlenecks/Challenges

The supply chain for nutmeg and mace in India is hindered by several bottlenecks. One of the primary challenges is the fragmented nature of the production process, where a large number of small-scale farmers with limited resources dominate the industry. This fragmentation often leads to inefficiencies in production and difficulties in maintaining consistent quality standards. Additionally, the lack of adequate storage facilities exacerbates post-harvest losses, reducing the overall marketable yield. The transportation infrastructure also poses a challenge, especially in remote growing regions, leading to delays and increased costs. Furthermore, the absence of robust market linkages between farmers, processors, and exporters limits the potential for value addition and hinders the industry's competitiveness on the global stage.

India Nutmeg & Mace Market Segmentation

India nutmeg & mace market is segmented by product type, form, end-use application, and distribution channel.

By Type: The India nutmeg and mace market is dominated by dry nutmeg, which accounts for the majority of production, consumption, and trade value. In 2023–24, dry nutmeg represented **% of India’s combined nutmeg and mace export value, supported by strong demand from food processing, spice blending, and retail segments. Its longer shelf life and broad culinary applications make it the preferred traded form. Mace, while accounting for a smaller share of total volumes, commands significantly higher unit prices due to its limited availability and specialized end uses. Demand for mace remains concentrated in premium food formulations, flavoring applications, and pharmaceutical preparations, with its value share estimated at around 5–10% of total market revenues during 2024.

By Form: Whole nutmeg and mace continue to dominate the market, particularly in export-oriented trade. In 2023, more than two-thirds of India’s nutmeg shipments were in whole form, as international buyers prefer grinding or processing at the destination to preserve essential oils and aroma. Whole products also offer superior shelf stability, reducing quality degradation during long-distance transport. However, the processed segment, which includes powdered, crushed, and blended nutmeg and mace, has shown faster growth in the domestic market during 2023–24. Rising consumption of packaged foods, spice mixes, and ready-to-use ingredients has increased demand for processed forms, especially from urban households and institutional buyers, contributing an estimated 30–35% of domestic market value in 2024.

By Application: Retail sales account for a stable share of the market, supported by household consumption and the expansion of branded spice offerings through supermarkets and online platforms. In 2024, retail applications were estimated to represent roughly one-third of domestic nutmeg and mace consumption by value. Food and industrial use forms the largest application segment, driven by bakery, confectionery, beverage, meat processing, and flavor manufacturing industries. Industrial demand has strengthened in line with India’s expanding processed food sector, which recorded steady growth during 2023–24. The processed products segment, including spice blends, oleoresins, and extracts, is emerging as a high-growth application area, as manufacturers increasingly shift toward standardized, high-purity inputs to meet export and quality compliance requirements.

India Nutmeg & Mace Trade (Export & Import) Trend

India's nutmeg and mace export market has shown robust growth, with significant shipments to key markets such as the Middle East, Europe, and North America. The country's competitive pricing and high-quality standards have made it a preferred supplier globally. On the import side, India sources some nutmeg and mace to meet domestic demand, particularly during periods of lower domestic production. The balance of trade remains favorable, with exports far exceeding imports, contributing positively to the country's spice export revenues.

In 2023/24, nutmeg and mace exports made up 0.33 percent by volume and 0.78 percent by value (in INR terms) of India's total spice and spice product exports.

In 2023/24, India exported 5.14 thousand tonnes of nutmeg and mace for USD 34.63 million (in which around 94 percent is nutmeg & 6 percent is mace by value). UAE was the largest importer and accounted for 49% share in India’s total exports of nutmeg and mace in 2023/24, followed by Vietnam, Iraq, and Brazil. Top 10 countries import cumulatively accounted for a share of around 85% (by volume) in India’s exports of total nutmeg and mace in 2023/2024. Whole nutmeg and mace (neither crushed nor grounded) exports accounted for 78% in 2023-2024.

In the fiscal year 2023/24, India imported 2.57 thousand tonnes of nutmeg and mace. Indonesia and Sri Lanka account for the majority of import origin for India. India imports mace mostly to meet domestic demand when domestic output is insufficient. Nutmeg and mace imports, on the other hand, are mostly intended for re-export by Indian traders.

Influence of India in Global Nutmeg & Mace Price

India holds moderate price-setting power in the global nutmeg and mace market due to its significant production volumes. However, this power is often diluted by global market forces, including competition from other producing countries and fluctuating demand. Nonetheless, India's emphasis on quality and organic production gives it a competitive edge in premium markets. India's active involvement in international spice trade agreements, coupled with its strategic initiatives to boost production and export capacities, provides the country with a significant competitive advantage.

The chart given below illustrates the monthly average price trends of India Nutmeg (without shell) over multiple years, with a focus on recent trends. 2023-24 price trend shows relatively stable prices fluctuating around INR 400-450 per kg, while the 2024-25 prices shows significant upward trend, reaching INR 615/kg by March. Compared to previous years, the latest price surge suggests rising demand, supply constraints, or other market dynamics affecting nutmeg prices. The increase from INR 279.23 (July low in past years) to INR 615/kg in 2024-25 highlights a strong bullish trend.

Future Outlook

The future of the nutmeg and mace market in India looks promising, with projections indicating sustained growth up to 2030. The increasing global demand for natural and organic products is expected to drive higher export volumes, while domestic demand will also rise due to the expanding food processing and pharmaceutical industries. To capitalize on these opportunities, India will need to address existing challenges in the supply chain, improve infrastructure, and continue enhancing its cultivation practices. The adoption of modern agricultural techniques and expansion into new markets will further solidify India's position as a leading player in the global nutmeg and mace industry.