Product Profile: Almonds

HS CODES: 080211 and 080212

• The global almond market is expected to grow at a CAGR of 7.1% during 2019-2028.
• Growth is driven by increasing health consciousness, as well as rising popularity of products like almond milk, almond butter, etc.
• US is the top exporter of almonds globally, while India is the leading importer in value terms.
• The almond snack market in India is projected to reach a size of Rs 1 billion by 2024.

08 Product Profile-Almonds Story

World almond consumption has burgeoned by 10% each year over the last five years and we are seeing significant development in demand across both developing and developed markets.

In the US alone, almond consumption has surged at a CAGR of 7.5% over the same period and we observe strong indicators that sustained growth will continue in developing markets such as India and China. This robust growth is primarily led by a rising demand for healthier foods worldwide.

Consequently, the industry is seeing new opportunities in terms of products, methods of use and application. These include the use of almonds in almond butter, salad toppings, almond milk, confectionery fillings as well as health and energy bars amongst others products.

As the developing world is getting inclined towards more protein-rich diets, almonds are becoming less of a luxury and more of a necessity. In an analogous way in developed markets, almonds are now a preferred choice as a healthy snack as more and more studies validate its health and nutritional benefits. This is also seen as a growing desire to counter common lifestyle issues such as heart disease, high cholesterol, weight gain and diabetes in the present milieu.

The US is the leading producer and exporter of almonds globally. California accounts for 80% of global almond production, out of which 33% is consumed by US and Canada.


Source: ITC Trade Map

Top exporters and importers of almonds globally

Exporters Exported value in 2018, US$ million Importers Imported value in 2018, US$ million
World 6,470.326 World 6,408.531
United States of America 4,368.467 India 816.731
Spain 692.623 Germany 627.404
Australia 407.472 Spain 558.763
Hong Kong, China 222.532 Hong Kong, China 373.084
Germany 132.72 Viet Nam 359.664
Netherlands 126.71 Italy 311.336
Italy 108.99 France 290.668
Turkey 76.923 Japan 252.865

Source: ITC Trade Map

Source: ITC Trade Map

India – the world’s largest importer of almonds

The growing health consciousness of Indian consumers and their rising purchasing power only augurs well for almond consumption in India. Almonds are consumed not only as a raw whole product or salted, but are also commonly used in several Indian sweets as well as in the popular “badam milk”. It is now also finding a lot of application in health drinks, biscuits and ice cream.

Breakfast cereals, chocolates, biscuits and ice creams are also increasingly using almonds. India is also set to see rise in imports of some derivative products of almonds like almond milk, flour and butter.

The almond snack market is forecasted to become a Rs 1 billion industry in India by 2024. Promoting almonds as a healthy snack will help boost sales. Application of monopsony power by large intermediaries in agricultural markets can be particularly harmful in poor countries where farmers often live close to the poverty line.

But in India, where almonds are cultivated at an extremely miniscule level, there is no need to be concerned. In fact, India has an upper edge in terms of bargaining power and designing import policies for almonds.

US is the top source market for India’s almond imports in value terms. During April-January, 2018-19, almond imports (fresh or dried in shell) from the US reached US$ 556.58 million. It was followed by Australia (US$ 101.83 million) and Hong Kong (US$ 25.65 million).  

Recently, Indian authorities have announced that they will delay imposing tariff hikes on US products, signalling a safe play. But over time, India should look forward to diversifying its almond imports as demand grows further and leverage its monopsony power as a major buyer.

0 0 vote
Article Rating

Inline Feedbacks
View all comments

Subscribe To Newsletter

Get to know of latest happening in TPCI & in the world of trade and commerce