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The dry fruits industry is on cusp of reinvention
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Tuesday, 17 February, 2026, 13 : 00 PM [IST]
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D P Jhawar
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For decades, dry fruits have hugely been bought the same way—loosely sold from jars at grocery stores, weighed and carried home in thin covers. Till date a muted transformation is ongoing. Packed, brand tagged dry fruits are paving a meaningful niche, positioning itself not just as products but as ‘lifestyle’ products. With health-conscious urban population embracing packaged food formats and e-commerce platforms intervening traditional distribution, the dry fruits category is a hit. The big question: can branded players unlock the Rs 50,000-crore unorganised pie that still dominates the market?
Market Size & Growth Trajectory
The Indian dry fruits market has reached heights in the recent past. In 2024, it was approximately US$9.3 billion (Rs 77,000 crore) and is expected to grow steadily at 6.5% CAGR to US$12.7 billion by 2029—nearly Rs 1.05 lakh crore. Other industry expectations which include dry fruits and nuts combined, suggest an ambitious trajectory, touching Rs 1.7 trillion (˜US $20.5 billion) by 2028. While impressive, this growth story has a proviso: almost 70% of sales still occur in the loose, unbranded, and often quality-inconsistent segment. It is within this gap that branded players are looking for their opportunity.
From Loose to Label: Organised vs. Unorganised
The move from loose to labelled structure is not unique to dry fruits—it is similar what we’ve seen in staples like atta, edible oil, and even dairy over the past couple of decades. GST redress, rising hygiene awareness, and the expansion of modern trade is steadily inclined towards consumer preference and towards packaged goods. Today, labelled dry fruits on shelves of supermarkets and e-commerce platforms assure not just convenience but also certitude traceability, food safety, and consistency.
However, the conventional model is deeply ingrained. Local stores remain the spine of Indian retail, particularly in Tier 2–4 cities. Price elasticity, legacy buying habits, and availability still make loose sales the default choice for millions of households. Overcoming this cultural and economic inertia is one of the sector’s main challenges.
Consumer Trends Driving Premiumisation
Awareness and understanding of health through readily available information on social media platforms, health portals and magazines is making the younger lot a lot more aware about immunity, fitness diets and healthy eating habits. For ages Ayurveda and traditional Indian food habits have appreciated dry fruits and revered them as super foods, modern studies are reclaiming the same. Branded structures are tapping this move with new recipes which goes way beyond plain almonds or cashews. Value-added offerings roasted and flavoured nuts, fortified packs, and single-serve packs are placing dry fruits as a regular snack rather than just ingredients. The upswing of gifting culture during festivals and wedding is further powering demand for premium, attractively packaged products that can substitute or complement traditional
sweets.
For millennials and Gen Z, packaged dry fruits also carry a status quo along with broader consumption of imported chocolates, energy bars, and health supplements which also reaffirms their unwavering effort towards better lifestyle and health awareness.
E-Commerce & Omni channel Reach
E-commerce has risen as the equaliser in the dry fruits market. Platforms such as Amazon, Flipkart, Big Basket, Zepto, Blinkit and Instamart are driving infiltration into Tier-2 and Tier-3 towns, places where labelled options might otherwise be inaccessible. E-commerce, with its promise of 10–30 minutes delivery, is positioning packaged dry fruits as spontaneous snacks, while modern retail provides visibility and certifications that assure quality. Direct-to-consumer (D2C) options, often supported by aggressive digital marketing, are also aiding brands to tell their stories more compellingly spotlighting hygiene and unique structures that loose markets cannot offer.
Innovation & Packaging Differentiation
The most remarkable transformation for labelled dry fruits is their packaging. Consumers are ready to pay for experience, convenience and hygiene. Ever evolving technologies like vacuum sealing, recycled pouches and nitrogen flushing are grabbing customer’s attention. Another significant part is alteration. Alternating plain dry fruits with flavours, varieties, catering to diverse customers based on their fitness or health requirements, brands are carving a path that labels dry fruits as categorised lifestyle products. Today, dry fruits are no longer a garnishing ingredient to special recipes rather they are incorporated in breakfast, baked goods, snacks, protein bars and health supplements. These additions are making theproducts more relevant to the consumers.
Competitive & Supply Landscape
The dry fruit narrative of India is directly linked to its import dependency. Key supply sources like the U.S., Middle East, Turkey and Ghana control nearly 80% of the consumption. Imports of US$2.85 billion was recorded in 2023. Infrastructure gaps. climatic limitations and farming challenges confines our production to as low as 50,000–60,000 metric tonnes annually. This weakness exhibits the vulnerability of branded players to unstable import duties, currency oscillation and global supply disruptions. Hence the significance of building resilience in supply chains, strategic sourcing and backward integration is increasing.
Challenges & Disruption Levers
The way to branded disruption has several twists and turns. Challenges like:
1. Low consumer consciousness about the long-term health value, hygiene and
traceability. Storytelling campaigns, certifications, and visible trust markers can be the driving force.
2. High price sensitivity, with loose dry fruits often cheaper by 15–30%. Smaller SKUs, combo packs, and a strong value-for-health narrative can act as catalyst,
3. Dominance of Kirana stores in Tier-2 and Tier-4 towns. Omnichannel expansion through modern trade, D2C, and quick commerce are important to change the narrative.
4. Fragmented supply chains that impact consistency. Tech-led sourcing, quality control systems, and partnerships with growers can bridge the gap.
5. Heavy import dependency, especially for almonds and pistachios. Promoting Indian-grown varieties with an “origin-first” positioning can be a disruption tool.
6. Weak regulation enforcement in loose formats. Compliance, batch testing, and transparent labelling to differentiate.
7. Limited differentiation in traditional markets. Flavoured mixes, protein trails, and convenience-led packs are the small steps that can make a huge difference.
Each of these tools, when used strategically can disrupt the unorganised marketplace and help labelled players to emerge as the OGs.
Why Now & What’s at Stake
The convergence of growing urbanisation, increasing disposable incomes, e-commerce platforms, and evolving healthy snacking behaviour makes the timing apt for disruption.
Consumers are looking for alternatives that provide both health and convenience, and packaged dry fruits are efficiently equipped for it. What’s at stake is equally important: the unorganised section which is worth over Rs 50,000–Rs 60,000 crore, is the largest share up for acquisition. Branded players that can balance scale with narrative, cost with perception, and hygiene with modern techniques can change not just a segment but consumer behaviour itself.
The dry fruits industry is on the cusp of a reinvention much like the transformation of staples into brands in the past. The Rs5000-crore question isn’t just about market share it’s about whether India’s consumption story can evolve from legacy buying habits into modern, branded, and health-driven choices. And the answer, increasingly, seems to be positive.
(The author is co-founder and CEO, Proventus Agrocom Ltd)
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