India Fruit Market Outlook to 2030

India Fruit Market Overview

• The India Fruit Market has experienced notable growth, reaching a valuation of USD 65 billion by production value in 2023. This growth driven primarily by increasing consumer awareness about healthy eating and the rising disposable income among urban populations.
• The Indian fruit market is highly fragmented with several key players operating at various levels. Some of the major players include Reliance Fresh, BigBasket, Mother Dairy, Adani Agri Fresh, Horticulture Produce Management Institute (HPMI). These players have significant influence over market trends and consumer preferences through their extensive, distribution networks and product offerings.
• Cities like Mumbai, Delhi, and Bangalore dominate the fruit market in India due to their large urban populations and higher purchasing power. Mumbai, for example, has a well-established network of fruit vendors and supermarkets, catering to the diverse preferences of its residents.
• In May 2023, Mother Dairy announced its entry into the organic food segment by launching a new line of organic fruits under the 'Safal Organic' brand. This includes organic apples, bananas, and mangoes, aimed at meeting the increasing demand for organic produce among health-conscious consumers.

India Fruit Market Segmentation

• By Product type: The Indian fruit market is segmented by product type into fresh fruits, processed fruits, and dried fruits. In 2023, fresh fruits dominate this segment, driven by their essential role in daily diets and their preference for consumption in their natural form. Popular fresh fruits include mangoes, bananas, and apples, which are widely available across the country.

• By Distribution Channel: The market is segmented into supermarkets and hypermarkets, convenience stores, online platforms, and traditional retail. Supermarkets and hypermarkets hold the largest market share due to their wide range of fruit offerings and convenience. The growing trend of online grocery shopping is also gaining traction, providing consumers with easy access to fresh fruits.

• By Region: The cloud-based contact center market in India is segmented into North, South, East, and West India. In 2023, North India leads in market share, primarily due to its significant production of fruits like apples and oranges, along with well-established distribution networks. This agricultural output supports the operations of agribusinesses and food processing companies that rely on efficient customer service and support.

India Fruit Market Competitive Landscape

•  Freshtrop Fruits Ltd.: In June 2023, Freshtrop Fruits Ltd. invested INR 50 crores in expanding its cold storage facilities across Maharashtra. This expansion is aimed at improving the shelf life of fruits and reducing post-harvest losses. The company expects this move to enhance its export capabilities, meeting the growing international demand for Indian fruits.
• Mother Dairy: In recent news, Mother Dairy has announced plans to invest Rs 750 crore to enhance its processing capabilities for milk, fruits, and vegetables. This investment includes Rs 650 crore for establishing two new processing plants and an additional Rs 100 crore to expand existing facilities.

India Fruit Industry Analysis

 India Fruit Market Growth drivers

• Health Trends: The growing emphasis on healthy eating is driving consumers toward fruit-based products, including juices and snacks, and increasing demand for processed fruit items. Millennials, in particular, are interested in the origins of their food and seek new culinary experiences, fueling the demand for exotic fruit-based products.
• Technological Advancements: Innovations in farming techniques, such as precision agriculture and the use of drones for monitoring crop health, are enhancing productivity and quality in the fruit market. Drone technology is increasingly being utilized in agriculture, with estimates suggesting that over 3,000 drones are currently in use, will rise to 7,000 by FY25.
• Rising Export Demand: The demand for Indian fruits in international markets is on the rise, driven by their unique flavors and nutritional benefits. The value of fresh fruit exports from India amounted to nearly 863.7 million U.S. dollars in fiscal year 2023.

India Fruit Market Challenges

• Post-harvest Losses: Significant post-harvest losses due to inadequate storage facilities and inefficient supply chains affect market profitability. The lack of proper cold storage and transportation infrastructure exacerbates this issue, reducing the shelf life and quality of fruits, ultimately impacting the income of farmers.
• Pest and Disease Management: The limited availability of effective and affordable pest control measures and the increasing resistance of pests to conventional pesticides pose a substantial challenge to the fruit industry, affecting both productivity and profitability. Pest damage can lead to yield losses of 30-40% in some fruit varieties, severely impacting farmers' profitability.

India Fruit Market Government Initiatives

• Pradhan Mantri Krishi Sinchai Yojana (PMKSY): PMKSY aims to promote organic farming in India. The scheme provides financial assistance to farmers for adopting organic farming practices. This initiative promotes the adoption of micro-irrigation systems like drip and sprinkler irrigation to improve water use efficiency and achieve "More Crop Per Drop". In 2023, the Cabinet Committee on Economic Affairs (CCEA) approved the inclusion of the Jamrani Dam Multipurpose Project in Uttarakhand under the Pradhan Mantri Krishi Sinchayee Yojana-Accelerated Irrigation Benefit Programme (PMKSY-AIBP)
• Operation Greens: Launched in 2018, Operation Greens aims to stabilize the supply of TOP (Tomato, Onion, Potato) crops, which indirectly supports the fruit market by ensuring better infrastructure, has allocated INR 500 crores for the development of value chain projects, including cold storage and transportation facilities. In June 2020 the Ministry of Food Processing Industries (MoFPI) extended the Operation Greens Scheme from Tomato, Onion and Potato (TOP) to all fruits & vegetables (TOTAL).

India Fruit Market Outlook

By 2028, the Indian fruit will grow steadily, driven by increasing health awareness, technological advancements, and supportive government policies. The rise in disposable incomes and changing dietary habits will further boost market demand.

Future Market Trends

• Expansion of Precision Agriculture: By 2028, the adoption of precision agriculture techniques is expected to increase significantly. Technologies such as drone-based monitoring, automated irrigation systems, and AI-driven crop management will help farmers optimize their yields and reduce waste.
• Growth of Urban Farming: By 2028, urban farming will gain traction as a solution to meet the rising demand for fresh fruits in cities. Initiatives like rooftop gardens and vertical farming in metropolitan areas will provide locally-grown, pesticide-free fruits to urban consumers. According to the Ministry of Urban Development, urban farming projects in cities like Delhi and Mumbai will increase fruit production, reducing the dependency on rural supply chains.