The fox nuts market is expected to grow at a compound annual growth rate of 6.37% over the forecast period to reach a market size of US$197.515 million in 2027, up from US$128.184 million in 2020.
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 for fox nuts among health-conscious consumers and the launching of various new products. The rising popularity of fox nuts among all age groups, changing lifestyles, and unique varieties of snack products will boost the market growth in the coming years. Fox nuts come from lotus seeds. The manufacturing process of fox nuts is done in 4 chronological stages, which include 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 are resulting in more vigorous growth of the fox nut market around the globe. The awareness among the younger generation and fitness enthusiasts has resulted in a 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 nut market is segmented into North America, South America, Europe, the Middle East and Africa, and Asia-Pacific. Among all, the Asia Pacific region remains the biggest market as well as the biggest producer of fox nuts. It is estimated to grow at a decent rate during the years 2020-2027.
The market's growth is being driven by new varieties and healthy snack trends. The expenditure on nutritious food products and healthy snacks is rapidly increasing with per capita income and urbanization. With a growing number of consumers and newly launched varieties, fox nuts are among the most popular healthy snacks. For instance, roasted and popped, sometimes also called the next popcorn, are highly demanded due to the overall growth of the fox nut market.
Furthermore, fox nuts are a rich source of iron, carbohydrates, magnesium, zinc, phosphorus, fibre, protein, and potassium, which attracts health-conscious consumers to buy them regularly and replace other snacks with them. 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.
From 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.
Key Developments in the Market:
In February 2021, Too Yumm!, India's favourite snacking brand from Guiltfree Industries, the RP-Sanjiv Goenka Group' FMCG Division, awarded Kinnect its digital media mandate. A multi-agency pitch was used to win the account. Through this collaboration, Too Yumm! intends to capitalize on digital to expand and promote its brand presence. Kinnect is set to manage the brand's social media marketing, influencer outreach requirements, and online reputation management, to strengthen this growth and elevate consumer affinity. Kinnect will also be in charge of developing and delivering a solid strategy for executing campaigns across digital channels. Too Yumm! employed Virat Kohli as its brand ambassador and expanded its range of offerings such as Fox Nuts, Veggie Stix, Multigrain Chips, and many other products.
Many popular snack brands like Mithali Naturals, AAA Gourmet Foods, and others offer foxnuts in multiple flavours and are planning to launch new flavours as well, owing to fox nuts' appealing nutritional parameters.
In the consumer food and beverage industry, the COVID-19 and the following global lockdown led to high demand for household staples in the initial phase. Healthy foods with a longer shelf life were one of the most requested 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 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 has also been 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 the Indian National Agricultural Research System, Bihar produces more than 85% of the total fox nut production in India, and in 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 is 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 need to be improved and can result in a more expanded market of fox nuts both domestically and internationally.
Frequently Asked Questions (FAQs)
Q1. What will be the fox nuts market size by 2027?
A1. The fox nuts market is expected to reach a total market size of US$197.515 million by 2027.
Q2. What are the growth prospects for the fox nuts market?
A2. The global fox nuts market is expected to grow at a CAGR of 6.37% during the forecast period.
Q3. What is the size of the global fox nuts market?
A3. Fox Nuts Market was valued at US$128.184 million in 2020.
Q4. What factors are anticipated to drive the fox nuts market growth?
A4. The rising popularity of fox nuts among all age groups, changing lifestyles, and unique varieties of snack products will boost the market growth in the coming years.
Q5. Which region holds the largest market share in the fox nuts market?
A5. Asia Pacific region holds the largest share in the fox nuts market.
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