Bulk vs. Packaged Conundrum

How to get the most out of dried fruits and nuts in the produce department.

From peanuts and walnuts to dates and raisins, dried fruits and nuts are snacking favorites, offering a healthy alternative to processed products. But how can retailers take advantage of growing shopper interest in the category, and should they be focusing their attention on bulk or packaged sales?

While analyst estimates vary on the size of the market and its rate of growth, most agree that it is growing, although some segments are growing faster than others. According to Cognitive Market Research, the U.S. accounts for around 28% of the global dried fruit and nut market, citing almost $15 billion of annual sales.

Others are more conservative in their estimates. Statista says the market is experiencing “negligible growth,” influenced by shifting consumer preferences, and competition from processed snacks.

One segment of the category that has shown strong resilience over the past 12 months is peanuts, according to Dena Malsom, vice president of marketing and communications at the Atlanta, GA-headquartered National Peanut Board. Peanuts as a stand-alone category reached $1.2 billion with 1.5% growth, she says, outperforming the overall nuts category, which declined 0.1%.

“Peanuts are showing rising repeat purchases, loyalty and lead in volume of peanuts as America’s favorite nut, according to 2025 Nielsen Consumer NIQ data,” says Malsom. “In 2025, Americans consumed an average of 7.1 pounds of peanuts per capita. Looking ahead, the forecast for peanut consumption remains steady in 2026.”

FINDING THE RIGHT MIX

Based in Orange, CT, Aurora Products is famed for supplying a wide range of natural and organic nuts, as well as dried fruit snack packs — a range that recently expanded to include seasoned dried fruit, including curry lime mango and pineapples, plus sugar-free, high-protein trail mixes.

Founder and President Stephanie Blackwell says when comparing margins as a vendor, it is clear retail packs make more money than bulk, given that they are a value-added item, even including packaging, promotions and brand identity in the price.

“Bulk bins are becoming less popular ever since COVID,” she says. “Many stores offer bulk, yet have pre-packed containers below the bulk bins that are packed in the store in order to offer the consumer a product that is protected from tampering.”

“Bulk bins are becoming less popular ever since COVID. Many stores offer bulk, yet have pre-packed containers below the bulk bins that are packed in the store in order to offer the consumer a product that is protected from tampering.”
— Stephanie Blackwell, Aurora Products, Orange, CT

At the same time, Blackwell says single-serve packs in a bag or box are definitely a growing SKU.

Joseph Setton, executive vice president of Terra Bella, CA, Setton Farms Pistachio, sees less difference in shopper segments than shopper intent when it comes to bulk versus packaged pistachios.

“Bulk pistachios are generally going to be the items that move quickly and can stay fresh,” he explains. “Bulk shoppers are usually using kernels for culinary purposes or in-shell for the value. Consumers will reach for packaged pistachios and the wider variety of unique flavors offered on shelf.”

Diana Salsa, vice president of marketing for Wonderful Pistachios, Los Angeles, CA, also sees a clear distinction in how shoppers approach pistachios. While bulk buyers tend to be value-driven households, avid home cooks or even restaurants, packaged shoppers skew more toward convenience-led who rely on trusted brands for convenient, healthy snacks.

“As snacking continues to supplement traditional meals, branded packaged pistachios are increasingly where the category’s growth and storytelling live and where we focus our sales and marketing strategies,” she says.

“Today’s consumers are snacking with purpose. They’re seeking convenient options to fuel their busy lifestyles that also offer functional benefits.”
— Chris Fitzgerald, National Peanut Board, Atlanta, GA

Tess Mercado, founder and president of Nutridge Farms in Palm Desert, CA, views bulk and packaged formats as serving distinctly different shopper mindsets.

While bulk attracts value-driven shoppers focused on price, larger households, and shoppers who enjoy customizing quantities, packaged appeals to time-pressed shoppers seeking convenience, parents packing lunches, and health-focused consumers who value clear labeling and portion guidance. Packaged, Mercado says, also resonates with premium snack shoppers looking for consistency, food safety assurance, and strong brand cues.

Another clear difference can be seen in margins. Although bulk can be an effective volume driver, Mercado says packaged offers stronger margin control, better shrink management, and greater opportunity for differentiation. It also delivers more stable profitability and clearer shopper communication, she adds.

MERCHANDISING TIPS

For effective in-store merchandising, Blackwell recommends displaying dried fruits and nuts at eye level, “not below the bananas or apples where nobody can find them. Too many brands displayed in the store make it confusing to the consumer to find what they are looking for.”

For maximum impact, she also suggests displaying all nuts and all dried fruits together in the produce department instead of scattered throughout the store.

Looking beyond traditional bulk bins, Salsa says point-of-sale (POS) displays offer a powerful merchandising opportunity for driving nut sales. “Wonderful Pistachios POS displays are proven to drive 2x sales velocities compared to retailers who don’t use them,” she says. “These displays catch shoppers’ attention at key decision-making moments, creating an opportunity for an impulse purchase.”

To avoid visual distractions in the produce area, Setton Farms focuses on clean, sharp graphics, and health callouts to catch the consumer’s eye. To make the most of this, Setton suggests creating displays around holidays and events.

Mercado at Nutridge recommends merchandising strategies that emphasize education, usage inspiration, and multiple pack sizes, including both portion-controlled packs for impulse purchases and resealable multi-serve packs for pantry stocking. Display-ready packaging and secondary placements, such as small produce endcaps or tables, can further increase visibility and velocity, she says.

Malsom recommends capitalizing on high-impact seasonal moments, including the traditional surges in peanut sales that accompany the peak summer travel season, baseball games, and back-to-school shopping. “Brands and retailers who strategically leverage these windows with compelling promotions and prominent display placements can capture significant incremental sales,” she says.

At the same time, Malsom believes retailers can take advantage of peanuts’ “compelling sustainability narrative” as a zero-waste plant, which enriches soil, requires less water than tree nuts, and are predominantly family-farmed in the U.S. She suggests making use of signage to communicate these environmental benefits.

Dried fruits and nuts have plenty of cross-merchandising potential waiting to be realized. Setton recommends stocking pistachios close to beer and soda for convenient game-day purchases. Taking advantage of its use as an ingredient, he also advises placing pistachio kernels near fresh basil and Parmesan, as together they form the basis of fresh pesto.

Malsom suggests positioning peanuts near complementary items, like fresh produce for Asian-inspired dishes, salad ingredients, and other healthy snacking options. Similarly, Blackwell recommends placement in the cheese department to encourage complementary purchases.

Mercado, meanwhile, recommends cross-merchandising with salad ingredients, fresh cut fruit, and specialty cheese to further reinforce usage ideas and drive incremental sales.

THE HEALTH ANGLE

While convenience has always been a large factor in snack nut purchases, Setton believes nutrition and health benefits are rapidly becoming just as important to consumers. Shoppers, he says, are looking for snacks that offer health benefits while also tasting great.

One such example are pistachios, which contain all nine essential amino acids the body cannot produce on its own, as well as antioxidants, and lutein for eye health. Setton suggests retailers use in-store signage to inform customers.

“Nutrition remains a primary entry point, particularly in produce departments where shoppers are already in a health-forward mindset,” says Mercado. “Clean, recognizable ingredients and perceived ‘better-for-you indulgence’ are especially compelling.”

At the same time, she says convenience continues to fuel growth, especially in resealable and single-serve formats.

Nutrition, convenience, and portion control are all central to how consumers make their purchasing decisions, according to Salsa at Wonderful Pistachios, who says shoppers are seeking quality, healthier snacks with nutritional value.