Dry fruits have always held a special status in every household irrespective of the seasons or occasions. In earlier times, they were brought in or rather gifted only during Diwali or other festivals. However, today, dry fruits have become a staple in every home. With the rising awareness of the health benefits of dry fruits, every household now stocks dry fruits regularly, especially for children.
So, how to start a dry fruit business? What are the different dry fruits business ideas, and is the dry fruit business profitable? Let’s find out.
Demand for Dry Fruits and Nuts
Until recently, dry fruits were just sold seasonally in special shops from select wholesalers and retailers. With the growing health awareness and its usage in baking, confectionery, dairy products, dry fruits have become a staple food item in every household. With the internet and its widespread use, it has now become a practical business proposition.
Dry fruits are created with extreme drying methods to reduce the water content in fruits. Cashews, walnuts, almonds, raisins, and dried figs are some of the most popular dry fruits that can be stored without refrigeration. They can be included in a variety of dishes and are recommended in daily diets.
Benefits of Dehydrated Fruits
All the listed dried fruits here are rich in fibre and antioxidants. They need to be consumed in moderation and as directed by a nutritionist. All these dried fruits provide our body with good nutrition and antioxidants and are proven to reduce the risks of several diseases.
Benefits of Nuts
The nuts listed below are widely used in a number of recipes. They are also used as a snack in a trail mix or baking and sweets. They have a lot of amazing health benefits and are now recommended by doctors to be consumed daily.
- Almonds: Contain healthy fats, protein, magnesium, and Vitamin E. They can regulate blood sugar, control cholesterol, and reduce blood pressure.
- Cashews: Contain fibre, healthy fats, and plant protein. They are extremely beneficial for brain health, bone health, and immunity.
- Walnuts: Contain healthy fats, copper, magnesium, and essential nutrients. They promote a healthy gut and reduce the risk of some types of cancer, diabetes 2, and weight gain.
- Dates: Contain antioxidants and fibre. They are excellent in promoting brain health, curbing sugar cravings, and providing essential fibre to the body.
How to Start a Dry Fruit Business?
With a promising market potential, here is a lucrative business opportunity that you can grab. In this section, let’s look at how you can start a dry fruits business in India.
The dry fruits business in India is highly profitable. This is due to a large network of wholesalers and an enormous distribution channel across India.
There are various dry fruits business ideas that can be lucrative business propositions:
- Dry fruits packaging business
- Dry fruit packing business
- Dry fruits wholesale business
- Dry fruits retail business
- Dry fruits online business
Basic Requirements to Start A Dry Fruits Business
1. Laws and Approvals
A business selling food products is regulated by the FDA. The state and local government rules will also apply. Also, depending on whether you plan to sell wholesale, retail, or online, different laws will be applied. Ensure you study all these laws well before working on a business plan.
You need to apply for the following licenses to start a dry fruits business:
- GST registration
- MSME registration
- Trade license
- FSSAI registration and certificate
- IEC registration
3. Business Plan
Once the legal requirements are sorted, create a comprehensive business plan. Do your research and ensure you cover all the areas for a business plan that covers target consumers, marketing strategies, and distribution plans.
The target consumers for dry fruits can include:
- Sweet shops
- Milkshake outlets
- Baking industry
- Online grocery stores
- Local grocery stores
- Catering services
Dry fruit rates per weight unit across the world are quite high. If you plan to start a dry fruits business, it’s important to invest well and ensure it reaches the consumers in a way that generates organic demand.
- Sourcing: Select high-quality dry fruits, as these will be consumed on a large scale. Maintain good communication with the retailer to get good quality dry fruits.
- Packaging and transporting costs: Selling locally or online, packaging and distribution are almost as important as the product itself. Dry fruits don’t need refrigeration, but they need to be transported through well-maintained avenues to ensure the consumer gets them with all the goodness intact.
- Marketing and promotion: While there are tons of competitive distributors of dry fruits, what can set you apart is the promotion and sales strategy you adopt. Social media, advertising, banners, TV, offers, discounts, Google listings, etc., are all effective channels to promote your brand.
- Storage and distribution: Invest in a hygienic storage place or a kitchen to handle the packages for processing and shipping. Sell them in aluminium, cardboard or wooden packaging to avoid contamination.
5. Quality Control
When it comes to a food product business, quality control is more important than the food itself.
Do the following checks first to ensure the quality of the dry fruits is good:
- Foul smell
- Expiry date
Storage and packaging are very important and need to be maintained at high quality. The storage place needs to be hygienic and regularly maintained. Packaging is a key aspect when distributing dry fruits. Invest in good packaging to deal with any mishaps or contamination.
Scope of the Dry Fruits Business
Dry fruits have replaced fried and baked snacks during travel to maintain sugar levels among people. With the ancient knowledge of dry fruits now available to common people, there is a rising demand for them in every household.
The dry fruits business in India is not a seasonal affair anymore where the demands are high only a few months in a year. This is a business that will assure longevity if established well with high quality and easy access.
As per the Market Publishers report, it is predicted that the Indian Market that currently stands at Rs 15,000 crore will double up by 2021 to a whopping Rs 30,000 crore.
Profit Margins of the Dry Fruits Business
With a basic investment in the resources as discussed above, the profit margins for the dry fruits business in India are as good as 5-10% annually. Depending on the channel one selects, i.e., online or retail, the profit margins can vary. However, at a minimum investment of ₹2-3 lakhs, the margins can be quite high. During festive seasons, with offers and promotions in place, sales raise the margins by 25-30%.
All across the world, there is a rising demand for dry fruits due to general health awareness. The benefits of dry fruits and nuts are big, and they are becoming must-have food items in every house. With a proposition such as this and using the right tools to market, the dry fruits business can be a lucrative one with profits rising consistently. You can enjoy the benefits of selling these exotic foods knowing that you’re also serving for a good cause.
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Q. Which are the most popular dry fruits that are consumed worldwide?
Ans. Almonds, cashews, walnuts, raisins, and dates are widely consumed across the world.
Q. Where are dry fruits produced?
Ans. Saudi Arabia, Iran, Turkey, and the United States are the leading producers of dry fruits.
Q. What are the prospects for the dry fruit market in India?
Ans. Indian dry fruit market stands at Rs. 15,000 crore, which is approximately 450,000 tons of dry fruit. This is due to rising health awareness among consumers of the health benefits of dry fruits.
Q. What are the FSSAI standards for dry fruits?
- According to Food Safety and Standards Amendment Regulation, all dried fruits and nuts are processed foods.
- Dry fruits cannot contain any water and must be sold in wooden/cardboard or aluminium containers to prevent contamination.
Q. What are some important tips before starting a dry fruits business?
Ans. Always check the competitors to understand their strategies and also approach a proficient in this field. This will ensure that you are well informed and prepared.
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