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Nuts in India

India nuts market: 8% volume decline witnessed in 2012

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2014-02-24 12:26:03 - Nuts in India - a new market research report on

The volume decline of 8% in the India nuts market in 2012 was a poorer performance than the 2% CAGR decline of the review period. The drop in 2012 was mainly driven by falling production, subsequently resulting in spiralling prices and a fall in demand.

Peanuts was the worst performer in 2012, posting a total volume decline of 26%, with the category bearing the brunt of lower production as a result of insufficient rainfall and delayed planting. Rainfall in the state of Gujarat, which accounted for more than 40% of India´s peanut production in 2011, was significantly lower than normal in 2012. This adversely impacted supply in the wholesale market in southwest Gujarat´s Saurashtra region (the major producer of peanuts), with



prices jumping by 74% in 2012 compared to 2011.

Nuts is expected to post a total volume CAGR of 5% over the forecast period, with sales set to approach 17 million tonnes by 2017. This forecast growth figure is significantly lower than the 10% CAGR predicted in last year´s edition. The reason for this is continuing inflationary pressure which has resulted in consumers reducing their spending. As nuts are not considered a staple part of the Indian diet, consumers are willing to reduce their consumption. The government has also announced certain tough economic measures such as a hike in fuel prices. These measures could result in inflation continuing to remaining high over the forecast period.

Key Headlines

- In 2012 total volume sales of nuts decline by 8% to 13 million tonnes
- Peanuts register a total volume drop of 26% due to a decline in production and spiralling prices
- Coconuts are the best performing products in 2012 with total volume growth of 10%
- Nuts anticipated a total volume CAGR of 4% over the forecast period

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