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The Makhana Makeover: Reinvention of India’s Ancient Snack

  •  3 min read
  •  1,020
  • 1d ago
The Makhana Makeover: Reinvention of India’s Ancient Snack

What’s light, crunchy, and quietly turning into India’s next big snack export?

The answer is Makhana.

Makhana, or fox nuts, isn’t new. Your grandparents probably still eat it during fasts.

It was always around, just never taken seriously, but that’s changing fast now.

And leading this surge is a single state - Bihar.

Nearly 85% of India’s Makhana is grown here. Not Punjab, not Maharashtra, but Bihar.

A region often in the news for the wrong reasons is now feeding 80% of global demand for a niche superfood that checks all the boxes for the wellness-obsessed.

The Indian market alone is pushing ₹100 billion, driven by a growing appetite for cleaner labels, quick bites, and snacks that don’t come with calorie guilt.

Globally, it’s in high demand and international prices can reach up to ₹13,000/kg.

The fox nut market hit $44.4 billion in 2023 and is growing at nearly 12% CAGR till 2030.

Exports are climbing at 25% annually, with India shipping Makhana to countries like China, Korea, Thailand, Europe, and the U.S.

The flavoured Makhana snack market is expanding fast, growing at a whopping 30% CAGR.

Health no longer means boring, and brands are racing to add masala, mint, cheese, and everything in between to make the snack mainstream.

But what’s fuelling this frenzy for fox nuts?

Blame it on the lifestyle - rising diabetes, heart issues, and everything in between.

Over 77 million Indians are now diabetic.

Urban fatigue, desk jobs, late dinners - it’s a recipe for chronic conditions.

Makhana fits that bill. It's low-calorie, rich in antioxidants, easy on the gut, and carries that elusive “crunch” people crave.

Urban households are catching on. Over 40% now reach for healthier alternatives, and Makhana is increasingly their go-to.

The government’s not sleeping on this either.

Under the ODOP (One District One Product) scheme, Makhana has been prioritised in Bihar, with farmers and processors getting funding and training.

Mithila Makhana even bagged a GI tag - a stamp that links a product to its unique origin.

Think of it as a passport for authenticity.

And in the latest Budget, a ₹1,000 crore Makhana Board was announced to formalise production, improve processing, and push global branding.

But the road from pond to packet isn’t smooth.

Only 2% of Makhana seeds currently meet global export standards.

It’s labour-heavy, water-intensive work. Daily wages average around ₹350, and water scarcity in key growing regions makes irrigation costly.

Farmers and processors are still figuring out how to scale without breaking the supply chain.

That’s where innovation steps in.

The Sabour Makhana-1 variety - developed by scientists in Bihar - has already increased the edible seed ratio from 40% to 60%, making harvesting far more efficient.

Meanwhile, nearly 25% of total Makhana sales are now happening online - BigBasket, Amazon, Flipkart, you name it.

Makhana is no longer just a local staple. From Darbhanga to Dubai, it’s going global.

Startups are cashing in too. Brands like Mr. Makhana, Shakti Sudha, and Farmley have gone from kitchen-scale to crores.

Farmley raised $6.7 million to expand operations.

Shakti Sudha was chasing a ₹1,000 crore revenue target by 2024.

Makhana reportedly clocks ₹50-60 lakh in monthly revenue - not bad for a snack that was once just a Navratri snack.

And this is still just the beginning.

India wants to ramp up value-added food exports by 40% over the next 3-4 years.

At home, the Makhana market is projected to hit ₹254.3 billion by 2032, growing at a steady 10.89% CAGR.

And, as long as people keep chasing clean eating, fox nuts won’t be leaving the shelves anytime soon.

Who knew Bihar’s water lilies were sitting on a billion-rupee bite?

This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.

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