Growing Popularity of Veganism is Driving Global Nut Demand

Nut Market Overview

The world nut market is expected to reach a value of USD 92.4 billion by 2030, up from USD 66.6 billion in 2022, growing at a compound annual growth rate (CAGR) of 4.2% from 2022 to 2030. A significant increase in global demand for nuts in the near term is due to the fact that consumers are becoming more health conscious, and the popularity of veganism is growing.

Global nut market growth is driven by several factors:

1) Increasing health consciousness among consumers: Nuts are a rich source of vitamins, minerals, and antioxidants, and have been linked with numerous health benefits, such as improved heart health, reduced risk of cancer, and better cognitive function. Consumers are becoming increasingly aware of the health benefits of nuts and this is driving demand for nuts as a healthy snack option.

2) Rising disposable incomes: As incomes rise, especially in emerging markets, consumers are able to spend more on premium snacks like nuts. This growth is driven by rising disposable incomes, which has led to an increase in the demand for premium and healthy snacks.

3) Growing popularity of plant-based diets: More people are adopting plant-based diets for health and environmental reasons, and this is increasing demand for products like nuts that are seen as more environmentally friendly than animal-based products. Nuts are an excellent source of plant-based protein and offer a variety of other nutrients that make them a healthy option for vegans and vegetarians.

4) Increasing demand from the food and beverage industry: The food and beverage industry is using more nuts in its products due to the growing popularity of plant-based diets and the trend for healthy snacking.

5) Finally, the growing number of countries with a taste for nuts is also driving the nut industry forward. As more and more people around the world develop a taste for these nutritious snacks, the demand for nuts is likely to continue to grow.

The players in the global nut market are Mars Inc., The Hershey Company, Mondelez International, Ferrero Rocher, Lindt & Sprüngli, Nestlé, See's Candies, Ghirardelli Chocolate Company, Godiva Chocolatier, TCHO Ventures LLC., Rocky Mountain Chocolate Factory Inc., Ashers Chocolates Ltd., Archer Daniels Midland Company, B&G Foods, Inc., Cargill, Inc., Diamond Foods, Inc., General Mills, Inc., Ingredion Incorporated, Kellogg Company, Kraft Heinz Company, Inc., Nestle SA, Tyson Foods.

Nut industry challenges

The global nut industry is facing a number of challenges. One challenge is the increasing cost of raw materials. This is due to the fact that many nuts, such as almonds and cashews, are grown in developing countries where labor costs are relatively low. However, as these countries develop and their citizens' incomes rise, the cost of raw materials will also increase.

Another challenge facing the nut industry is increased competition from other snack food manufacturers. As health-conscious consumers become more aware of the nutritional benefits of nuts, they are increasingly incorporating them into their diets. This has led to increased competition from companies that manufacture other types of snacks, such as granola bars and fruit snacks.

Finally, the nut industry is also facing challenges posed by changing consumer tastes. As consumers become more adventurous in their food choices, they are increasingly seeking out new and exotic flavors of nuts. This trend presents both opportunities and challenges for nut companies, as they must continually innovate to keep up with consumer demand.

Most popular nuts globally

There are a few contenders for the title of most popular nut globally, but it is generally agreed that the top three are peanuts, almonds, and pistachios. Other nuts that are consumed on a smaller scale include cashews, hazelnuts, macadamia nuts, and pecans.

Peanuts are native to South America but they are by far the most widely cultivated and consumed nut in the world, with China being the largest producer. Peanuts are used in a variety of dishes, including peanut butter and jelly sandwiches, stir-fries, and desserts.

Almonds are the second most popular type of nut in the world. They originated in Central Asia but are now grown extensively in California. Almonds are often used as a topping on salads or baked goods. They can also be made into almond milk or used to make almond butter. The United States is the leading producer, followed by Spain.

Pistachios are native to Iran and Turkey but are now grown in many other countries as well. Pistachios are often eaten as a snack food or used as a garnish on desserts or savory dishes.

While all three of these nuts are popular globally, there are some regional preferences. For example, in Europe and North America, peanuts are more popular than almonds or cashews. In Asia, however, almonds and cashews are more popular than peanuts. And in Africa and South America, all three nuts are equally popular.

So what makes these nuts so popular? Peanuts are relatively inexpensive and have a long shelf life. They're also versatile - they can be used in sweet or savory dishes, or simply eaten on their own as a snack. Almonds are high in protein and fiber, and low in calories. They're also a good source of healthy fats and vitamins E and B2. Cashews are lower in fat than other nuts, and they have a milder flavor that is often preferred in sweet dishes.

Organic nut farming

Organic nut farming is a rapidly growing sector of the global nut industry. The demand for organic nuts has been rising steadily in recent years, driven by consumer concerns about the health and environmental impact of conventional nut farming practices.

Organic nut farmers use a variety of sustainable production methods to minimize the impact of their operations on the environment. These methods include using organic fertilizers, minimizing pesticide and herbicide use, and selecting crop varieties that are adapted to local conditions.

The organic nut market is still relatively small compared to the overall nut market, but it is growing rapidly. There are a number of challenges facing the growth of the organic nut market, including volatile prices for raw materials, a limited supply of certified organic land, and strict regulations governing organic production. However, the long-term outlook for the sector remains positive as consumers continue to seek out products that are produced sustainably and with minimal environmental impact.

Source: IndexBox Market Intelligence Platform