In an engaging conversation with Ms. Pamela Graviet, Vice President of Integrated Marketing at the California Walnut Board & Commission, ‘PFIonline‘ gained valuable insights into the growing role of California walnuts in India. Ms. Graviet discussed global market trends, the impact of tariff removal, and the evolving strategies that California Walnuts are implementing to meet the needs of Indian consumers. Here’s a closer look at the key takeaways from the session.
Global Market Trends and Post-Covid Recovery
According to Ms. Graviet, the walnut market has witnessed significant changes since the pandemic. “Post-Covid, there was an oversupply of walnuts as demand reduced slightly,” she noted. However, as global economies recover, consumer demand has rebounded, especially for healthier food options. The increasing preference for plant-based products, clean label foods, and protein-rich snacks has fueled walnut consumption globally. Consumers are now more aware of where their food comes from and are eager to explore new flavors, adding walnuts to their diets for both nutrition and variety.
Impact of Tariff Removal in India
The removal of retaliatory tariffs in India has positively influenced market dynamics for California walnuts, but as Ms. Graviet explained, the core market strategy remained unchanged. Indian consumers’ growing interest in nuts and dried fruits, particularly walnuts, continues to drive demand. She highlighted walnuts’ rich nutrient profile, particularly their high content of plant-based omega-3 ALA, making them an ideal option for India’s large vegetarian population. “With the removal of the 20% tariff, high-quality California walnuts are now more accessible, benefiting consumers by creating a level playing field in terms of availability,” she said.
Growth Trends and Challenges in India
Ms. Graviet emphasized that the Indian market has shown tremendous growth in walnut consumption over the past decade, largely driven by increased awareness of their health benefits. “Walnuts have been recognized as an immunity-boosting food by the FSSAI, and we expect consumption to grow as more people become aware of the benefits,” she explained. However, high import tariffs still pose a challenge. Despite this, California Walnuts remains optimistic, given that studies also show walnuts help with sleep quality and infertility, further boosting their appeal to health-conscious consumers in India.
Tailored Strategies for the Indian Market
California Walnuts has developed specific strategies to tap into the diverse tastes and preferences of Indian consumers. “Walnuts are often overlooked as a versatile ingredient,” Ms. Graviet pointed out. The focus is on educating food manufacturers about the potential of walnuts in various products, including snacks, fresh and frozen foods, and even Indian dishes. She also mentioned the rising popularity of flavored walnuts—sweet, savory, and spicy—across several countries, which could be an exciting innovation for the Indian snack market. Additionally, walnuts’ ability to serve as a plant-based meat alternative positions them as a key ingredient in future Indian food trends.
Adapting to Supply Chain Changes Amid Production Reductions
While the 2024 California walnut crop is forecasted to decrease by 19% compared to 2023, Ms. Graviet reassured that the supply chain remains robust. The expected reduction aligns with past production levels, and with favorable weather conditions, the harvest is set to maintain California’s high-quality walnut standards. “The industry’s acreage profile, with over half the orchards being less than 15 years old, ensures a solid production base for the future,” she explained. This long-term outlook reflects California Walnuts’ confidence in meeting market demand without significant disruption.
Looking Ahead
California Walnuts remains committed to expanding its footprint in India by focusing on consumer education, innovative product offerings, and strategic collaborations with local food manufacturers. As Indian consumers continue to seek out healthier and more diverse food options, California Walnuts is well-positioned to meet their needs and play a key role in the market’s growth.
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