India’s dry fruits and nuts market pivots to processing-led growth
India’s dry fruits trade is quietly transforming. What was once dominated by loose sales and wholesale mandis is increasingly giving way to branded, processed and compliance-driven products as health-conscious consumers and modern retail reshape demand.
India’s $8.5-billion dry fruits and nuts market is undergoing a structural transformation, moving away from its traditional dependence on loose and unprocessed trade towards value-added, branded and compliance-driven products.
Rising consumption, driven by changing dietary preferences, higher prosperity and growing health consciousness, has reinforced the need for a robust, compliant and value-driven dry fruits and nuts ecosystem.
"Processing is now emerging as the core growth driver across the dry fruits and nuts ecosystem, reshaping supply chains, retail formats and consumer behavior," said Nitin Sehgal, chief executive officer (CEO) of industry body Nuts and Dry Fruits Council (India).
“Over the last few years, a growing share of consumption has also shifted to processed offerings such as roasted and flavoured nuts, trail mixes and snack packs, nut and seed butters and spreads, chopped and sliced nuts for bakery and foodservice use, date-based packs and pastes, and convenience-oriented 'portion packs' targeted at modern retail and e-commerce channels," he added.
The development assumes significance given that India relies heavily on imports, which account for nearly 80% of the country’s $8.5 billion dry fruit market, according to Sehgal. India imports almonds, walnuts, pistachios, raisins and cashews mostly from the US, Saudi Arabia, Iran and the UAE.
While there is no single public metric tracking “processing volume" across all dry fruits and nuts categories, the surge in packaged and value-added segments offers the best proxy.
“For context, USDA’s (US department of Agriculture) India Tree Nuts Annual (2018) report noted only 8 - 10% retail sales were packaged at the time, and now it is around 25%-30%. Today, industry projections show how fast processing-led formats are scaling: India’s packaged nuts & seeds market is projected to reach around $4.96 billion by 2030," said Gunjan Vijay Jain, managing director and chief executive officer (CEO), VKC Nuts Pvt. Ltd. The company markets its product under Nutraj brand.
According to him, this reflects a clear shift from “commodity buying" to processing, packaging, food-safety systems, branding and value-addition across all categories.
Organized processors and brands are increasingly investing in modern facilities that meet food safety, traceability and quality standards, in line with the Food Safety and Standards Authority of India (FSSAI) regulations.
“Nowadays consumers are far more conscious about quality, hygiene, origin and nutritional information. This is pushing the demand and companies to adopt better processing practices and introduce new products," said Yash Gawdi, founder & CEO, Candor Foods Pvt Ltd.
According to doctors, the rising consumption of dry fruits and nuts reflects a broader shift. People are moving away from processed snacks toward whole foods. Dry fruits offer convenient, shelf-stable nutrition without added sugars or inflammatory seed oils. The trend signals positive dietary awareness, but context and quantity remain key.
“Dry fruits are nutrient-dense powerhouses that support metabolic health when consumed mindfully. Almonds and walnuts improve insulin sensitivity and help stabilize blood glucose levels—critical factors in preventing and reversing Type 2 diabetes," said Dr. Gagandeep Singh, founder of Redial Clinic, Delhi.
The growth of e-commerce and modern retail has further accelerated this transition. Online platforms and large retail chains prefer standardised, branded and compliant products, creating new opportunities for organised players while gradually reducing the dominance of traditional wholesale mandis.
“Premiumisation is also evident, with increasing demand for flavoured nuts, trail mixes, gift packs and portion-controlled packs catering to urban consumers," said Bola Rahul Kamath, Director, Bolas Agro (P) Ltd, one of the leading importers, processors and exporters of agricultural commodities such as cashew, almond and other dry fruits.
The Nuts and Dry Fruits Council (India) is also going to organize the third edition of MEWA India next year to position India as the centre of the world's nutritional economy.
As per the International Nuts and Dry Fruits Council's Nuts and Dried Fruits Statistical Yearbook 2024, dates form the largest consumption category in India at around 470,000 - 475,000 tonnes annually, reflecting their everyday use across households, foodservice and institutional channels. Raisins follow with an estimated 250,000 tonnes, supported by strong domestic production as well as demand from bakery and confectionery segments.
Among nuts, cashews remain the most consumed, with annual consumption estimated at around 250,000 tonnes, making India one of the world’s largest cashew-consuming markets. Almond consumption stands at approximately 138,000 tonnes, driven by gifting, daily nutrition and expanding packaged formats. Pistachio consumption is estimated at around 37,000 tonnes, while walnuts account for roughly 35,000 tonnes, both seeing gradual growth as they move beyond festive use into regular snacking and health-oriented diets.
“On imports, India will remain structurally import-led in almonds, walnuts and pistachios as consumption rises faster than domestic availability. USDA projects in 2025-26 imports at about 190,000 metric tonnes (MT) almonds, 75,000 MT walnuts and 55,000 MT pistachios. Cashew is also import-linked because India is a major processor with raw cashew imports expected at 1.3-1.4 million tonnes in 2025," Jain of VKC Nuts said.
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