As corporates ‘go nuts’ with Diwali gifting, demand for dry fruits pick up

Corporate gifting and diversified uses have boosted the popularity of dry fruits and nuts this Diwali season after a healthy diet trend sparked by COVID-19 raised their consumption.

The COVID-19 period saw people eating more dry fruits and nuts as part of maintaining a healthy lifestyle. Most of the consumption still happens during winter months, but it is now more spread out through the year than before.

Since the market is mostly unorganised, it is difficult to get the exact figures. However, Rajmohan Pillai, chairman, Beta Group, which manufactures and markets packaged and processed food, says the market is expected to go up by 10 percent in 2023 from the current $2 billion.

With offices open and businesses back to normal, the demand for dry fruits and nuts for corporate gifting has increased.

Lockdowns and work from home during the pandemic had checked the gradual shift to dry fruits from sweets in corporate gifts. They are back in vogue with more takers for healthy eating and a rising number of aficionados for plant-based foods.

“Instead of the conventional mode of consumption, we are seeing a huge demand for packaged dry fruits and nuts for corporate gifting,” said Rajmohan Pillai, chairman, Beta Group, which manufactures and markets packaged and processed food.

Demand for raisins, dates rise

Traditionally, cashew and almonds are the best-sellers among dry fruits and nuts. Pistachios, walnut dates, raisins and figs are the other popular ones. The Indian dry fruit and nuts market is estimated to be around $2 billion.

Of late, raisins and dates have witnessed increased demand. Though raisins account for a small segment, its consumption has gone up by 40 percent, Pillai said.

Traders feel the diversified use has triggered this trend. “We are getting a lot of corporate orders for dates from new clients. This is for dates, used differently, like stuffed with nuts and other products etc., ‘’ said Vivekanand, marketing executive of Falcon Dates in Mumbai.

Consumption of dates, typically, increases during the Ramadan period in the country and its demand is strong in Uttar Pradesh, Bihar, southern Tamil Nadu and Kerala. ``But it is now a growing market,’’ Pillai said.

According to him, the use of dry fruits and nuts in snack foods, cakes and muffins have pushed up their requirement by reducing cost. “As more people are into exercise and healthy food, protein bars which use a variety of nuts and dry fruits are seeing increased sales,’’ Pillai pointed out.

Easing of logistics-related hassles hasn’t reflected much on the cost of dry fruits and nuts, most of which, except cashew, are imported. Last year, container shortage and lockdowns affected imports. Change in the government in Afghanistan with which India enjoys duty concession for import of dry fruits and nuts, too, had a temporary impact. As a result, the prices had gone up by 10-15 percent.

Indians munching more cashew

Indians munch more cashews than the rest of the world, with consumption running to 2-3 lakh tonnes. In case of cashew, as production in India is not sufficient to meet demand, sizable volumes of raw cashew are imported from Africa and East Asia for processing and distribution.

Raw cashew prices have declined by $200-250 to $1,350 per tonne in over a month.

This has been reflected on the wholesale price while its impact on retail prices may take more time --that too, if raw nut prices remain at the lower level, said Prakash Nair, vice-president of Vijayalakshmi Cashew Company, a leading manufacturer and exporter.

The retail prices hover around Rs 600-700 per kg.

``Wholesale prices of cashew have dropped by 10-15 percent, and it will take another 6 months for the MRP to reflect that. But traders are offering 20-30 percent discounts to overcome the liquidity problems in some markets,’’ Nair said.

Liquidity crunch a problem

Liquidity crunch seems to be a problem in certain markets. `` Prices are the same as last year but demand is yet to gain momentum, ‘’ said Kanwar Jeet Bajaj, a dry fruit trader in Delhi.

Overall, the dry fruits and nuts market is expected to expand by around 10 percent in the coming year. “Our per-capita consumption is still low with about 5 percent of the population consuming them once a week. If we can extend it to 6-7 percent, it will be a big achievement,’’ Pillai said, adding that innovative marketing efforts will bring about the change.