Dry Fruits Market to Reach Valuation of USD 7.7 Billion by 2028 - Increasing Demand of Nutritious Snacks Drives the Dry Fruits Market Growth

Vantage Market Research

May 17, 2022

From the period of 2022 to 2028, the Global Dry Fruits Market is expected to reach USD 7.7 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 3.9%.

Because of ongoing changes in consumption habits, such as the growing popularity of healthy and nutritious snacks, the snacking industry is experiencing significant growth globally. The convenience food industry's need for dried nuts and fruits is expected to be driven by the increasing trend among consumers to choose convenient and indulgent snack options to meet their daily nutritional demands. In addition, rising investments in research & development of unique snacks made from a variety of dried fruits are expected to propel market expansion in the coming years. Various international organizations are working to improve drying and processing technologies in order to improve food safety and quality control by progressively shifting away from sun-drying procedures and toward more refined techniques like freeze-drying. The market is likely to increase further due to strong demand for freeze-dried fruits from the baking and breakfast cereal industries.

Key Highlights from the Report

  • On the basis of type, the market is segmented into table dates, dried grapes, dried figs, dried apricots, prunes and dried cranberries. Dried grapes are one of the most popular dried nuts and fruits, with the biggest market share in 2021 due to their widespread use in a variety of healthful snacks. The demand for table dates is also being driven by a growing interest in healthy snacking and creative bakery and confectionery items that use table dates as a sugar substitute.

  • On the basis of Applications, the market is divided into Bakery, Confectionaries, Breakfast Cereal, Snacks, and Others. Among the other sectors, snacks are the fastest-growing segment with the highest Compound Annual Growth Rate (CAGR). The rise in popularity of healthy snacking to maintain overall health and wellness is credited with the strong growth. Young adults are increasingly more interested in nutrient-dense foods like cereal bars and breakfast cereals with dehydrated fruits and dry nut and fruit mix packages. Over the projected period, the increasing trend of clean-label and naturally derived food items is expected to fuel market growth.

  • Asia Pacific is the fastest regional segment in terms of growth. Due to the flexible income alternatives available to locals in the region, it is the fastest-growing region for this sector. Customers' increasing capacity to afford healthy food, as well as improved awareness of the nutritional benefits of dried fruits, has increased demand among millennials. China, India, and Vietnam, all of which are undergoing significant economic expansion, have the highest market growth rates.

Market Dynamics:

Consumer Interest in Minimally Processed Ready-to-Eat Food Products is Growing, Helping to Drive Market Growth

In developed markets, the growing appeal of natural and minimally processed organic food items is driving the business further. North American and European consumers are increasingly demanding small-sized mixed dried nuts and fruits packs, snack bars and breakfast bars infused with whole or minimally processed dried nuts and fruits, and breakfast cereals like muesli and granola that use organic dehydrated fruits as key ingredients. In comparison to ordinary dried nuts and fruit, organic and clean-label dried nuts and fruit are thought to be safer. Dry fruit snacks that are ready to eat are becoming increasingly popular since they are convenient to carry and meet daily nutritional requirements.

Growing Food Safety Concerns and High Costs are Impeding Market Expansion

Consumer worries about food safety have had a significant impact on the dried nuts and fruits business. The expansion of dried fruit exports has raised the need for businesses to engage in food safety compliance. Due to the presence of mycotoxin, a prevalent contaminant in dried fruits, several developed countries have implemented additional processes for imports from developing countries. Furthermore, consumers in Europe, North America, and Asia Pacific are becoming increasingly concerned about ethical behaviors in global food value chains. Consumer demand for ethically produced, sustainable, and clean label dehydrated fruits has compelled producers to invest in processing and producing creative products. The high cost of growing and processing dried fruits also limits market expansion.