The fox nuts market is expected to grow at a compound annual growth rate of 7.02% over the forecast period to reach a market size of US$177.706 million in 2025 from US$118.280 million in 2019. Fox nut (Makhana), also known as Gorgon Nut, grows in India, Korea, Japan and Russia. Its market is expected to grow at a decent rate in the next 7-8 owing to the increasing demand of fox nuts among the health-conscious consumers and launching of various new products. The rising popularity of fox nuts among all age groups, changing lifestyle, and unique varieties of snack products will boost the market growth in the coming years. Fox nuts comes from the lotus seeds. The manufacturing process of fox nuts is done in 4 chronological stages which includes the collection of the seeds, cleaning and storage, gradation process and then getting the final product i.e. the white puff fox nuts. According to the Indian Journal of Traditional Knowledge, the seeds are highly nutritious and edible after being processed. Health benefits and uses of fox nuts is resulting in more vigorous growth of fox nut market round the globe. The awareness among the young generation and fitness enthusiasts has resulted in high increment in the customer base which in turn is attracting many private players into this market driving it to become highly competitive in the upcoming years. The cost of the raw materials for developing synthetic paper products has been variable and fluctuating, thus, impacting the margins of the synthetic paper manufacturers. Geographically, the fox nuts market is segmented as North America, South America, Europe, Middle East and Africa, and Asia-Pacific. Among all, Asia Pacific region remains the biggest market as well as the biggest producer for fox nuts. It is estimated to grow with a decent rate during the years 2020-2025.
The expenditure on nutritious food products and healthy snacks is rapidly increasing with growing per capita income and urbanization. With a growing number of consumers and new launched varieties, fox nuts are among one of the most popular healthy snacks. For instance, roasted and popped, sometimes also called as the next popcorn, are highly demanded and owe to the overall growth of fox nuts market.
Furthermore, fox nuts are a rich source of iron, carbohydrates, magnesium, zinc, phosphorus, fiber, protein, and potassium which attracts the health-conscious consumers to buy it on a regular basis and replace other snacks with it. Snacks that are marketed specifically for their health benefits are believed to register a higher growth rate in the market as consumers are seeking natural, fresh and healthy snacks.
With a geographical point of view, North America, Europe and the Asia Pacific region are among the established markets for fox nuts, whereas the major production clusters for the same are located in Japan, Russia, South Korea and India. Among all, India remains the prime exporter and the prime market for fox nuts owing to the growing production clusters in Bihar and Uttar Pradesh and government incentives.
The COVID-19 and the following global lockdown led to high demand for household staples in the initial phase in the consumer food and beverage industry. Healthy foods with longer shelf life were one of the most demanded goods.
However, in the current scenario, most companies are faced with low consumption and supply chain challenges. These companies are focusing more on altering their supply chain methods in order to establish a significant online presence and operate with D2C distribution channels.
Fox nuts (Euryale ferox) are usually grown in stagnant perennial water bodies like swamps, ponds, ditches and land depressions. For the past few years, it is also being cultivated in the land system. India is the only country where it is cultivated as a crop especially in the state of Bihar. According to a report by Indian National Agricultural Research System, Bihar produces more than 85% of the total fox nuts production of India and in the recent years prices of fox nuts have increased due to its increased demand in foreign as well as domestic markets.
According to the same study, the cost of processing per Kg of fox nut seed if Rs. 7.33 while the cost of processing per Kg of fox nut pop is 20.95. There are several channels of distribution and marketing which still needs to be improved and can result in a more expanded market of fox nuts both domestically and internationally.