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From luxury to everyday snack: How India's dry fruit market is evolving
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Saturday, 03 May, 2025, 16 : 00 PM [IST]
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Gunjan Jain
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India has viewed dry fruits as highly luxurious for centuries, stirring intimately associated memories of festivities, family gatherings, and opulence. Families have always considered an amalgam of almonds, cashew nuts, pistachios, and raisins an integral part of celebrations, religious functions, and even gifting. To some extent, this perception is still relevant.
Though things are changing fundamentally, one thing that no one ever considered. The entire globe, it seems, is undergoing a massive shift in lifestyle, where dry fruits are now being considered not just a vital part of a nutritious diet, but as a vital component of integral health, permanently carving out a non-negotiable niche of being a go-to snack.
Drivers behind the Shift
The shift from being a seasonal luxury item to a regular everyday snack has been driven by a combination of strong factors that have changed consumer priorities and market access.
Healthy In-Between Snacking
One of the most notable drivers is the increasing wave of health and wellness, which is capturing the attention of people across India. An ever-growing urban and even semi-urban population is becoming more aware of the connections between diet and well-being. A sedentary lifestyle, combined with the rise in lifestyle diseases and easy access to health information through digital media, has led to a more proactive outlook on personal well-being. Changing lifestyle and health concerns are now enabling consumers to seek better alternatives to fried, sweet, and stuffed food items, as well as processed snacks. Dry fruits, due to their deep biological ‘make-up’, bursting with vitamins, minerals, fibre, antioxidants, and healthy fats, blend seamlessly into this story. They are being reintroduced and carefully marketed as more than just nutritious snacks; they are being branded as ‘superfoods’ that provide enduring energy, assist with digestion, and enhance general well-being.
Growing Middle Class
Additionally, the increasing disposable incomes of a larger section of the Indian demographic have made dry fruits easily accessible. What was once deemed a luxury for the elite is now affordable to a growing middle class. Reduced affordability increases consumption, allowing people to buy dry fruits regularly, rather than only during special occasions. This increase in consumers presents an opportunity for sustained market growth. Along with the socio-economic reasons, active awareness campaigns focused on the benefits of dry fruits have helped incorporate them into daily diets.
Status Symbol Amongst the Growing Middle Class
Beyond mere affordability, dry fruits hold a certain aspirational value for the growing middle class. While no longer exclusive to the wealthiest, the ability to regularly purchase and consume dry fruits signifies a move towards a more affluent and health-conscious lifestyle. Gifting dry fruits, while a long-standing tradition, has also evolved from an occasional luxury to a more common practice, further cementing their place as a symbol of well-being and prosperity amongst this expanding demographic.
Economic Viability/Affordability of Dry Fruits
While often perceived as expensive, a closer look at the economic viability reveals a shifting perspective. Comparing the cost and nutritional value of dry fruits to popular processed snacks highlights their increasing affordability and value proposition for daily consumption. For instance, a small packet of potato chips, typically ranging from 20-50 grams, might cost between ?10-?20, offering minimal nutritional benefit. In contrast, while a kilogram of almonds or cashews might seem significantly more expensive upfront, when broken down to a per-serving or per-gram cost for a typical snack portion (say, 20-30 grams), the price becomes more comparable to, and often justifiable against, processed alternatives, especially considering the higher nutritional density and health benefits offered by dry fruits. This changing economic perception, coupled with increased availability in smaller, convenient packs, makes dry fruits a more economically viable everyday snack choice for a larger population segment.
The Market Catalysts
Apart from the demand-side considerations, the market on the whole has also supported the dry fruits industry changes by improving market infrastructure and industry practices. The changeover from bulk sales in traditional markets to organised retail and later to e-commerce greatly enhanced convenience and accessibility for consumers. Shifting from traditional bulk purchases not only built consumer trust but also encouraged repeat purchases for everyday use. This expansion in the distribution network has increased geographic and psychological access of customers to dry fruits.
There have been numerous changes regarding the packaging of dry fruits, which have impacted the market greatly. Unlike in the past, dry fruits are no longer only sold loose or in gigantic packs. Nowadays, they can be found in diverse formats suited to the day-to-day consumer. For individuals who prefer snacking on the go, there are small, single-serving pouches. Regular consumers can go for re-sealable bags, which maintain freshness. With these changes, dry fruits are not only integrated seamlessly into modern retail environments but have also been repositioned alongside other convenient snack options.
Manufacturers and retailers are also investing in product diversification and value addition. Beyond selling raw nuts and raisins, the market now offers a plethora of options: flavoured nuts (roasted, salted, or spiced), trail mixes combining various dry fruits and seeds, dry fruit bars, and even dry fruit incorporated into other snack products. These innovations further position dry fruits within the wider snack category, competing directly with processed snacks and appealing to a broader palate. Moreover, improvements in supply chains and logistics have ensured that quality products are consistently available across different retail formats, further supporting the shift towards regular consumption.
Retail and Packaging
There have been numerous changes regarding the packaging of dry fruits, which have impacted the market greatly. Unlike in the past, dry fruits are no longer only sold loose or in gigantic packs. Nowadays, they can be found in diverse formats suited to the day-to-day consumer. For individuals who prefer snacking on the go, there are small, single-serving pouches. Regular consumers can go for re-sealable bags, which maintain freshness. With these changes, dry fruits are not only integrated seamlessly into modern retail environments but have also been repositioned alongside other convenient snack options.
The Numbers Tell the Story
The figures themselves vividly illustrate the impact of these drivers and enabling markets, portraying a market experiencing rapid growth and fundamental transformation. Industry estimates place the value of the dry fruit market in India at nearly USD 8754.89 million in 2023. This figure not only highlights the remarkable value the market has attained over the years but also, to some extent, demonstrates the accelerated growth that is currently being witnessed.
The projection remains optimistic, with a steady compound annual growth rate (CAGR) of 8.15% during the period of 2024–2032. This data indicates deeper reach and increased consumption as part of the routine diet than mere seasonal increases. This trend reflects an overall shift towards health-focused lifestyle choices and convenience for the core reasons driving consumer demand.
Perhaps the most compelling indicator of the shift towards everyday consumption is India's dry fruit consumption, which is projected to double in the next six years. It indicates a substantial change in behaviour among consumers who increasingly tend to integrate dry fruits into their routines, elevating their consumption to unprecedented levels.
To sum it up, there is an exciting opportunity within the evolving Indian dry fruit market. The shifting focus on health, changing lifestyles, increased income levels, and developments in retail, e-commerce, and packaging are transforming the perception of dry fruits everywhere. As such, they are no longer regarded as seasonal festivity items but rather as essential components of an everyday diet that is healthy and convenient.
With steady growth and continuous innovations in the market, the coming years will witness a gradual integration of dry fruits into the daily lives of consumers in India, thus reinforcing their status as a widely accepted super snack.
(The author is president at NDFC -I)
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