India Dried Foods Market Outlook to 2028

India Dried Foods Market Overview

The India dried food market has experienced notable growth, this is reflected by Global Dried Foods market reaching a valuation of USD 42 Bn in 2023. This growth is driven by increasing consumer demand for convenient and long-lasting food options, rising health awareness, and the expanding retail sector.

The market is characterized by the presence of several key players, including ITC Limited, Haldiram's, MTR Foods, Bikaji Foods International Ltd. & Mother’s Recipe. These companies are at the forefront of product innovation, quality, and distribution networks, significantly contributing to market growth.

In 2023, ITC Limited launched a new range of premium dried fruit products under the brand Farmland, aimed at health-conscious consumers. This launch was supported by a comprehensive marketing campaign and a focus on high-quality sourcing, positioning ITC as a key player in the premium dried foods segment.

India Dried Foods Current Market Analysis

Increasing awareness about the health benefits of dried foods, such as high nutritional value and natural ingredients, is driving market demand. Dried fruits, for instance, are rich in vitamins, minerals, and antioxidants.

The impact of these growth drivers is significant, as they lead to higher demand and greater market penetration. The shift towards healthier eating habits and the convenience offered by dried foods are encouraging both manufacturers and retailers to expand their product lines and improve distribution networks.

The Western region of India, particularly Maharashtra and Gujarat, dominates the dried foods market due to its robust supply chain infrastructure, higher consumer spending capacity, and strong presence of key market players. Maharashtra alone accounts for a significant share of the total market share, driven by its large urban population and extensive retail networks.

Market Segmentation

The India Dried Foods Market can be segmented based on several factors:

By Product Type: In the India Dried Foods Market Segmentation by Product Type, the market is segmented into Dried Foods, Dried Vegetables, Dried Meats & others. In 2023, Dried Foods reign as the most dominant sub-segment, holding a substantial market share due to their high nutritional value, versatility in use, and consumer preference for healthy snacking options.

By End User: In the India Dried Foods Market Segmentation by End User in 2023, the market is segmented into Retail Consumers, Food Services & Industrial. In 2023, the retail consumers emerge as the most dominant sub-segment, commanding a significant percentage of the market share because of their preference for convenient, healthy snacking options among households.

By Distribution Channel: In the 2023 India Dried Foods Market, the market is segmented into Supermarkets/Hypermarkets, Online Stores, Convenience Stores & Specialty Stores. In 2023, Supermarket/Hypermarket segment prevails due to extensive reach, variety, and consumer trust in quality and pricing. This variety caters to different dietary needs and preferences, attracting a wider customer base.

India Dried Foods Market Competitive Landscape

Company

Establishment Year

Headquarters

ITC Limited

1910

Kolkata, West Bengal

Haldiram's

1937

Nagpur, Maharashtra

MTR Foods

1924

Bengaluru, Karnataka

Bikaji Foods Intl.

1987

Bikaner, Rajasthan

Mother’s Recipe

1985

Pune, Maharashtra

ITC's Market Influence (2023): ITC's extensive distribution network and premium product offerings significantly influence market dynamics. Their strategic partnerships with leading retail chains and expansion into e-commerce platforms have enhanced product accessibility and consumer reach. In 2023, ITC products were available at 4.3 million retail stores in India, with 2 million stores under its direct distribution network, bolstering its market presence.

Haldiram's Organic Product Line (2023): In 2023, Haldiram's announced a new line of organic dried fruits, catering to the growing demand for organic and health-focused products. This new product line includes options such as organic almonds, cashews, and raisins, all sourced from certified organic farms. Haldiram's reported revenue of ₹9,215 crores in FY23, highlighting its market strength​.

MTR's Instant Dried Vegetable Mixes: MTR introduced a range of instant dried vegetable mixes, enhancing convenience for consumers seeking quick meal solutions. These mixes include popular Indian dishes like vegetable pulao, sambar, and upma, designed to retain their nutritional value and authentic flavors. In FY22, MTR Foods reported revenue of ₹980 crores, and the ready-to-cook and ready-to-eat category holds half of the market share reflecting its strong market position.

India Dried Foods Industry Analysis

India Dried Foods Market Growth Drivers:

Increasing Demand for Plant-Based Diets: The shift towards plant-based diets is significantly driving the demand for dried foods, particularly dried fruits, nuts, and seeds. As more consumers adopt vegetarian and vegan lifestyles, the consumption of plant-based snacks has surged. Out of 1.4 billion population in India, 24% of people identify as vegetarians and 9% as vegans.

Export Opportunities and Global Demand: The global demand for Indian dried foods, particularly dried fruits and spices, is on the rise, creating significant export opportunities. India is one of the top exporters of dry fruits globally, accounting for 22,451 shipments annually. The major dry fruit products exported from India include almonds, apricots, raisins, cashews, and other nuts.

Expansion of Retail and E-commerce Platforms: The growth of modern retail and e-commerce platforms has significantly enhanced the accessibility and availability of dried foods. India has over 900 million ecommerce users, according to IBEF. This expansion of sales channels is a key driver for the market, catering to the convenience and variety preferences of modern consumers.

India Dried Foods Market Challenges

Quality Control Issues: Maintaining consistent quality and safety standards is a critical challenge for the dried foods market. Variability in processing practices and the use of preservatives can lead to quality issues, deterring consumer trust. In 2022, nearly 20% of dried fruit products in India were found to have inconsistencies in quality and labeling, highlighting the need for stricter quality control measures​​. For example, batches of dried apricots were recalled due to contamination with unsafe levels of sulfites, affecting over 500 kilograms of product.

High Costs of Production: The production of high-quality dried foods involves significant costs, including the procurement of raw materials, processing, and packaging. These high production costs often result in higher retail prices, limiting the affordability and consumption of dried foods among price-sensitive consumers. In 2023, the average production cost for dried fruits in India increased by INR 500 per kg, leading to a retail price rise of INR 600 per kg for premium dried fruits like almonds and cashews​​.

India Dried Foods Market Government Initiatives

Pradhan Mantri Kisan SAMPADA Yojana (2017): The Pradhan Mantri Kisan SAMPADA Yojana aims to create modern infrastructure for food processing, including the dried foods sector. This initiative provides financial incentives and support for establishing food processing units and cold chain facilities.

Operation Greens (2018): Operation Greens focuses on stabilizing the supply of tomatoes, onions, and potatoes (TOP), reducing price volatility and ensuring steady raw material supply for dried vegetable production. The scheme, with an outlay of INR 500 crore, aims to double the income of farmers by promoting value addition and reducing wastage. The Ministry of Agriculture reported a 20% reduction in post-harvest losses for these crops in 2022, benefiting the dried foods market by ensuring consistent raw material availability.

National Horticulture Mission (NHM): The National Horticulture Mission promotes the cultivation of horticultural crops, including fruits and vegetables, supporting the dried foods industry. The mission has led to a 15% increase in horticultural production from 2018 to 2022, as per the Ministry of Agriculture.

India Dried Foods Future Market Outlook

The Indian dried foods market is projected to grow steadily due to increasing health awareness, rapid urbanization, and the expansion of the retail sector. These factors will boost demand for convenient, nutritious food options, supported by enhanced distribution networks and the growing availability of dried foods in supermarkets and online platforms.

Future Market Trends:

Innovations in Packaging: Advancements in packaging technologies will significantly impact the dried foods market. The adoption of biodegradable and resealable packaging solutions will become increasingly popular, driven by environmental concerns and consumer demand for convenience. These innovations will help reduce plastic waste and enhance product shelf life, appealing to eco-conscious consumers.

Expansion of Product Portfolios: Manufacturers will continuously expand their product portfolios to cater to diverse consumer preferences. The introduction of exotic dried fruits, mixed nuts, and dried vegetable snacks will broaden the market scope. This trend towards diversification will drive market growth and attract a wider consumer base, as companies aim to meet the evolving tastes and dietary needs of consumers.
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