India Peanut Market Overview, 2030

India's peanut industry ranks among the largest worldwide, with production predominantly found in Gujarat, Andhra Pradesh, Tamil Nadu, and Rajasthan. Here, groundnuts significantly contribute to both rural economies and agro-industrial processes. The crop serves a dual-purpose functioning as an essential oilseed and a trade product, which highlights its economic importance. A large portion of the domestic yield is processed into groundnut oil, valued for its mild taste, high smoke point, and reliability in deep-frying, thus becoming a kitchen essential and widely used in foodservice. The extraction of oil also produces peanut meal, a protein-rich feed for livestock and poultry, thus enhancing its value. Regarding exports, India sends both raw and blanched kernels to regions like Southeast Asia, the Middle East, and Europe, differentiating quality based on size, type Virginia, Spanish, Runner, and compliance with FSSAI and specific importing country regulations. This export activity not only generates foreign currency but also creates numerous rural jobs in shelling, grading, and processing plants. The sector's connection with fast‑moving consumer goods FMCG innovation is on the rise; high-end snack brands use roasted, flavored, and coated peanuts in smaller packages, while confectioners and bakers include them in items like bars, biscuits, and sweets. Cold-pressed and organic groundnut oils are becoming more popular in urban markets, aligning with health-conscious consumer behaviors. Government programs focused on minimum support prices, irrigation, and enhancing seed quality bolster farmer livelihoods, while compliance with phytosanitary regulations and traceability measures strengthens export competitiveness. Seasonal variations in monsoon and fluctuations in global prices continue to pose significant risks, affecting farm-gate prices and processing profits. India’s peanut sector illustrates a multi‑channel value network bridging farms, oil mills, export locations, and FMCG outlets where traditional applications and contemporary product developments thrive reinforcing its position as a critical component of rural economies and a flexible entity in global agricultural trade.

According to the research report, ""India Peanut Market Overview, 2030,"" published by Bonafide Research, the India Peanut market is anticipated to grow at more than 6.07% CAGR from 2025 to 2030. India's peanut market is experiencing strong growth across various channels, fueled by its significance as both a key oilseed crop and a flexible component in the snack and candy industries. The majority of production occurs in Gujarat, Andhra Pradesh, Tamil Nadu, and Rajasthan, with seasonal yields heavily dependent on the outcomes of the monsoon. Within the oilseed sector, groundnuts are processed into edible oil valued for its neutral taste and high smoke point, while the resulting peanut meal is utilized in livestock feed. The Food Safety and Standards Authority of India FSSAI enforces processing regulations, requiring limits on aflatoxin, hygiene standards, and clear labeling for both domestic sales and exports. Quality distinction is enhanced by the AGMARK grading system, which categorizes kernels based on factors like size, moisture level, and visual appeal, thus facilitating transparent trading and price setting. In the snack processing area, high-quality roasted, flavored, and coated peanuts are becoming popular in urban fast-moving consumer goods FMCG markets, while traditional salted and spiced varieties continue to be essential in local markets. Smaller packaging options target impulse buys, and innovative products like chocolate-coated or masala-flavored peanuts are broadening consumer interest. On the export side, India is a top supplier of raw, blanched, and roasted peanuts to Southeast Asia, the Middle East, and Europe, with the Agricultural and Processed Food Products Export Development Authority APEDA overseeing compliance. Exporters are required to adhere to phytosanitary regulations of the importing country, ensure traceability, and obtain registration with APEDA, often adopting HACCP or ISO standards to improve market access.

India peanuts market by product type is divided into Raw Peanuts and Processed Peanuts stands out as a top global producer of peanuts, with significant farming occurring in states like Gujarat, Andhra Pradesh, Tamil Nadu, and Karnataka. The nation's raw peanut sector features substantial domestic yields that meet both local demand and processing requirements. Agricultural methods differ by location, with Gujarat and Andhra Pradesh leading in high-quality kernels intended for food processing and export. The Food Safety and Standards Authority of India FSSAI oversees domestic production, ensuring adherence to quality, sanitation, pesticide levels, and labeling mandates. Following FSSAI guidelines is vital, as peanuts are commonly consumed in their raw, roasted, and processed forms and must comply with allergen labeling and contaminant standards for consumer protection. After harvesting, raw peanuts enter various processing pathways to produce value-added goods. One key use is in roasted snacks, where peanuts are cleaned, roasted, and occasionally seasoned for retail. These snacks are offered in small packages for city dwellers or in larger quantities for institutions. They are also essential in both traditional and modern recipes, including chutneys, sauces, and spreads, utilizing peanuts’ inherent taste and texture. Lastly, peanuts are refined into cooking oils, which are widely used in food preparation, frying, and some industrial functions. This processing turns raw kernels into products ready for consumers while optimizing resource use and reducing waste. Indian raw peanut sector is divided into two linked phases extensive domestic production monitored by FSSAI and subsequent processing into roasted snacks, chutneys, and peanut oils. This division highlights India's dual role as both producer and processor, showcasing quality management, varied uses, and effective use of peanut harvests for local and global markets.

In India, peanuts market by applications is divided into Food & Beverages, Animal Feed and Industrial Peanut Oil for Biofuel, Cosmetics emphasizing both cultural importance and economic worth. Their primary use lies within the F&B sector, where they are enjoyed in numerous ways. Roasted and flavored peanuts are favorites as snacks, available in small packages or in larger quantities for street vendors and catering services. They play a vital role in traditional Indian dishes, appearing in curries, chutneys, and sauces, as well as sweets like laddoos, chikki, and halwa. These uses demonstrate the significance of peanuts in everyday meals and festive cooking, while also fueling demand in retail and food service sectors. All applications in the F&B industry comply with the regulations set by the Food Safety and Standards Authority of India FSSAI, which ensures quality and safety measures are met to safeguard consumers and guarantee correct labeling. In terms of human food, peanut meal, the leftover product after extracting oil, is an essential ingredient in animal feed. High in protein, it is frequently included in feeds for livestock and poultry, promoting sustainable use of by-products from peanut processing. This aspect enhances the crop's value while encouraging efficient resource use and sustainable agriculture. Peanut oil is another key use, applicable in both cooking and industrial settings. It is favored in cooking for its taste, high smoke point, and health benefits. In industrial applications, it is utilized for biofuel production, serving as a renewable energy source. The production and sale of peanut oil in India follow the standards set by the Bureau of Indian Standards BIS, ensuring quality, purity, and safety for both food and non-food purposes. Peanut applications in India are categorized into F&B, animal feed, and oil, with each segment utilizing the crop's beneficial attributes, complying with regulatory requirements, and maximizing both economic and nutritional advantages.

In India, the peanuts market by distribution channel is divided into B2C business-to-consumer and B2B business-to-business methods, each catering to different market sections while following regulations like FSSAI and APEDA. The B2C part mainly relies on retail sales through traditional kirana shops, supermarkets, hypermarkets, and more recently, modern convenience stores. Kirana stores continue to be prominent, especially in smaller cities and rural communities, by providing loose or small-pack peanuts for families. Meanwhile, modern retail options and organized supermarkets serve urban shoppers with branded, packaged, and enhanced peanut products, such as roasted snacks, flavored nuts, peanut butter, and chutneys. Packaging ranges from single servings to family-sized options, reflecting various consumption habits, while online shopping platforms are becoming more significant for offering convenience, access to exclusive products, and home delivery. The B2C distribution follows FSSAI guidelines to maintain food safety, proper labeling, and traceability, protecting consumers and building trust in peanut products. The B2B side focuses on large buyers like food manufacturers, candy makers, restaurants, caterers, and exporters. Processors buy raw or partly processed peanuts in bulk to create roasted snacks, oils, sweets, and other products. Exporters depend on APEDA certification to meet international quality and safety requirements, while FSSAI ensures compliance with domestic regulations. Distributors and wholesalers manage the distribution of peanuts from growing areas in Gujarat, Andhra Pradesh, and elsewhere to factories and larger buyers, ensuring timely delivery, quality upkeep, and steady supply. India's peanut distribution system features two main channels B2C retail encompassing kirana, modern shops, and e-commerce enhances consumer access and convenience, while B2B wholesalers and processors support industrial, foodservice, and export markets. Both channels function under strict regulatory supervision, assuring quality, safety, and traceability throughout the supply chain.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Peanut Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• Raw Peanuts
• Processed Peanuts

By applications
• Food & Beverages
• Animal Feed
• Industrial (Peanut Oil for Biofuel, Cosmetics)

By Distribution Channel
• B2C
• B2B Show more