Berries Market Outlook
India
August 2022
Introduction
The horticulture sector in India plays a huge role in the country's agricultural GDP, accounting for 33% of
the total cropped area. The second-largest producer of fruits and vegetables in the world, Indian
horticulture sector has enormous export potential. Given the most diverse climatic conditions, India, has
distinction of being the world’s 2nd largest producer of fruits with 46 million tons produced per year.
India has emerged as one of the largest consumer markets in the world, due to its prospering urban class
and an enhanced exposure to the cultures of different countries. A rising demography of health-
conscious people has gradually inclined towards fruits and vegetables, both local and exotic variety.
The exotic fruit market which has USD 375 Million size also brings with it a plethora of opportunities. It is
estimated that 350,000 MT of fruit is imported into India on a year-on-year basis. India's annual import
of exotic fruits is gradually growing over the years.
India’s fresh fruit imports hit record levels in the 2021 calendar year, doubling to 721,493 MT, up from
359,716 MT in 2020, according to Fresh Intelligence analysis of data from the Indian Ministry of
Commerce. Blueberries specially recorded strong growth in 2021. Blueberry imports jumped to 345 MT
from just 43 MT in 2020, according to Fresh Intelligence analysis.
The exotic produce is priced higher and commands a premium of 50% or more over local fruits. Thus,
having such a surplus market, it becomes even more beneficial for the farmers growing exotic fruits. The
rising demand has certainly increased the overall production profit.
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Indian Market Overview
• Consumer spending in India will return to growth in 2022 post the pandemic-led contraction, expanding by as much as 7%.
• The Government of India has allowed 100% FDI in marketing of food products and in food product E-commerce under the automatic route.
• INI Farms, India’s leading grower of blueberry has partnered with The Munger Farms of USA for growing blues within India in Maharashtra state.
• The Strawberry from Maharashtra state accounts for almost 85% of overall India’s production volume. It is also home to major production location for
Raspberry & Blackberry.
• As reported by Food and Agriculture Organization (FAO) of the United Nations, India is the second largest producer of Fruits, as well as Vegetables, in the
world in the year 2020 and earliest estimates of 2021/2022.
• Global berries market attained a value of about USD 826.36 billion in 2020. The market is further expected to grow in the forecast period of 2021-2026 at
a CAGR of 6.8% to reach approximately USD 1205.33 billion by 2026.
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India- Sectoral Introduction
Agriculture sector facts
• Advantage of growing all types of fruits.
• 2nd largest producer of fresh fruits globally.
• Rainfall accounts for 2/3rd source of water.
• Bestowed with Tropical, Subtropical & temperate climate.
• Largest irrigable land area in the world due to large network of rivers.
• Increasing trend of use of Micro Irrigation with efficient water management technology.
• Second largest arable land globally with area of 161 million hectares. (54% of total land).
• India has the second-largest arable land resources in the world. With 20 agri-climatic
regions, all 15 major climates in the world exist in India. The country also possesses 46 of
the 60 soil types in the world.
Statistics
Population- 1,554 billion
Currency- Indian Rupee (USD~INR= 79.50)
GDP- $3,173.40 Billion (2021)
GDP Per Capita- $1,961.42 (2021)
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The supply Chain Map of Exotic Fresh Fruits
Source: Government of India (Department report)
Cold Storage distribution by State Fresh fruits supply chain map
Farmer
Uttar Pradesh West Bengal Gujrat Punjab • The cold chain industry in India is
Andhra Prd. Bihar Others expected to grow at a buoyant
rate of 13-15 % and reach a total
Local Agent Local Agent valuation of over US$6.6 billion
by 2022.
• As many as 109 projects out of
20% Trader the 298 government-approved
cold chain projects worth more
than US$1.14 billion are already
40% operating in the country.
4% Mandi Mandi B2B
• Currently, 95% of the cold
4%
storages are owned by the
private sector, 3% by
6% Wholesaler
cooperatives and the remaining
2% by the public sector
10% undertakings (Balmer Lawrie &
16%
Retailer Co Ltd, Container corporation of
India)
Consumer
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Buyers Behavior and Decision Channels
Source: AVALON Consulting
Market Share by Buyers Choice Buying Preference
Modern Trade Outlets Local F&V markets Quality Freshness Taste
Standalone Nearby Stores Hand-pulled cart vendors Availability Price
Online Farmer's Market
6%
10% • MTO’s by Reliance Industries,
9% Aditya Birla Group or Adani can
30% source directly from farms, and
10% have footprint on pan India
35% basis.
13%
• Rising awareness for freshness
and quality has driven Indian
consumer to opt for fresh berries
18% on these aspects as most sought
after.
• Regional dominance by MTO’s in
18% Tier 1 cities is well spread due to
24% brand name. But international
27% entrants have higher perceived
value.
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Retail Price Outlook
(E-commerce Channels)
Source: ITC Trade Map
Retail Price- E-commerce (USD/100 grm)
Raspberry Blackberry Blueberry Strawberry
6.99 6.99
7.00
6.00
5.00
4.00 3.28 3.19
2.72
3.00 2.25 2.35 2.24
1.85 2.04 1.84
2.00 1.00
1.00
-
Big Basket Frut.Shop Spotless Fruits
• The prices between players vary significantly due to availability and supply chain issues, also dominated by local supply glitches due to weather concerns.
• The average retail selling price in India as compared to the UAE is almost 40% above. This is through e-commerce stores. While brick & mortar will attracts
more revenues.
• The other retailers owned by large capital companies like Adani, Aditya Birla Group, Reliance Industries also own significant share and control prices as
majority imports are channelised by these players.
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Berries Production Plan
Source: FAO, Various others
Market Potential for Berries Proposed Production Plan
Proposed Production Domestic Consumption Area (Ha) Production (MT)
13,519
14,000 1,200
1,022
12,000 1,000
10,000 800
8,000
600
6,000 360 360
400 300
4,000 2,645
142
720 1,022 200
2,000 300 18 20 20
- -
Black & Rasp Berries Blueberry Strawberry Blueberry Blackberry Raspberry Strawberry
• Proposed production of blueberries stands at almost 40% from domestic consumption.
• The strawberry production is scattered to almost all states of India, so proposed production volumes are kept considering competition and potential price wars at certain
instances of the year.
• Raspberry and Blackberry attract higher prices as it lacks domestic production. The gap between supply and demand is significant thus pushing prices even on e-commerce
channels are too high.
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Competition & Supply Chain Landscape
Founded- 2020 About us-
Headquartered- India Otipy believes in helping farmers by providing their fresh produce directly to the consumers. India’s fastest delivery app,
Founder & CEO- Arun Khurana which delivers directly from farm to fork in 12 hours only. Unique community group buying model and help more than
Funding- USD 42.4 million 10,000 resellers (community leaders) across Delhi NCR. We encourage women empowerment and motivate them to join
Otipy to become financially independent, 70% of resellers are women.
Founded- 2009 About us-
Headquartered- India Being the largest exporter of pomegranates and bananas to stepping into the domestic retail market. We work with the
Founder- Pankaj & Purnima farmers from the time they plant the seed. Our fruits meet international safety standards at every stage of growing,
Khandelwal sourcing, packaging, and delivery. We've worked with farmers and innovated farming and delivery techniques for better
Funding- USD 14 million shelf life and traceability while meeting the most stringent safety norms.
About us-
Founded- 2009
Ninjacart is India's largest fresh produce supply chain company that is solving one of the toughest problems in the
Headquartered- India
world through technology. We connect producers of food directly with retailers, restaurants, and service providers using
Founder- 7 Individuals
in-house applications that drive end to end operations. Currently, our Supply Chain is equipped to move 1,400 tones of
Funding- USD 367.1 million
perishables from farms to businesses, every day, in less than 12 hours.
About us-
Founded- 2021 Farm2fam grows and delivers a variety of farm-fresh products like blueberries, mulberries, raspberries, pineapple,
Headquartered- India passion fruit, rambutan, avocado, peeled jackfruit, kiwis, and dates. Farm2Fam uses non-GMO seeds only, the greens
Founder- Ms. Keya Slot are grown without any pesticides or herbicides, the produce is delivered fresh at the customer’s doorstep.
Funding- Insignificant
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Summary
• India is the 2nd largest producer of fresh fruits globally after China.
• Almost 85% of strawberries are grown in Mahabaleshwar region of Maharashtra state.
• Almost 70% of exports and 65% of imports is reflected by Raspberries & Blackberries and Cherry,
respectively.
• Out of the total 39 mega food parks that were sanctioned, 22 mega food parks are operational, as of
November 2021.
• The Government of India has allowed 100% FDI in marketing of food products and in food product E-
commerce under the automatic route.
• INI Farms, India's leading firm has entered JV with Munger Farms, who are worlds largest independent
blueberry growers from USA to create global value chain for blueberry in India.
• The Agriculture Export Policy, 2018 was approved by the Government of India in December 2018. The
new policy aimed to increase India’s agricultural export to US$ 60 billion by 2022 and US$ 100 billion in
the next few years with a stable trade policy regime.
• The Indian government has initiated Digital Agriculture Mission for 2021-25 for agriculture projects based
on new technologies such as artificial intelligence, block chain, remote sensing and GIS technology,
drones, robots and others.
• Just over 58% of exports for fresh fruits is contributed by Bangladesh, Nepal, and the UAE. Out of which
the UAE’s share is close to 15% in 2021. Within the top 7 export destinations Oman and Saudi Arabis
takes 6th and 7th spot, respectively.
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Thank You
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