Peanuts Market Trend
Category Intelligence on Peanuts covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Global Market Outlook on Peanuts
- The global edible nuts market accounted for $88.8 billion in 2020 and is expected to reach around $103.1 billion by 2027, at a CAGR of around 2.2 percent between 2020 and 2027.
- Favorable weather conditions during 2016/2017 and the demand growing at a CAGR of 8–10% over the last five years drove a positive outlook for the edible nuts segment
- Approximately 20–25% of the nuts are sold as ingredients to the food industries, used primarily in bakery, confectionery, flavored drinks, breakfast cereals, snacks, butter & spreads, dairy products, etc., while the rest goes into direct consumption or oil extraction.
- Expanding global trade of edible nuts has led to an increase in investments in processing machines and packaging techniques by suppliers, in order to meet the growing demand and global standards expected by the leading buyers
- The U.S. drives the global edible nuts market with majority stake in the export of high-volume, low-value nuts, such as peanuts and high-value, low-volume nuts, such as almonds, pistachios, etc.
- Australia is the second largest destination for treenuts in the global market. In the recent years, the domestic output of major nuts, like macadamias, almonds, walnuts, chestnuts, pecans, pistachios, and hazelnuts increased by as much as 20 percent
- The U.S. is also observed as the largest destination for edible nuts, as it imports more than 10–15% of high-value nuts, such as cashew nuts, hazelnuts, etc.
- The EU demand for nuts and other natural products has been increasing with the increase in regulations against synthetic ingredients. The Middle East demand is primarily driven by cultural factors, like heritage of consuming nuts and demand increase during the festive season
Market Drivers and Constraints
Rising health & wellness awareness
• Increasing per capita consumption of various nuts is an indicator of the increasing demand
• Significant promotions by the industry is also helping the consumers to understand the health benefits and various applications
• Increasing disposable income and convenience factor also favor the industry growth Increasing application in the food and beverage industry
• Increasing adherence toward traceability and food safety of the nuts sourced are encouraging, especially for the products sourced from developing countries
• Sustainability and focus on carbon footprint are seen as the supply assurance strategies by consumers
• Development of new varieties with high-yield potential and drought/disease/pest resistance are the key factors in the growth of the edible nuts market
Climate change and weather volatility
• Unpredictable weather and the evolving climate are the major factors that decide the supply availability each year, irrespective of the increasing demand
Limitation on arable land
• Rapid urbanization is restricting the availability of land for cultivation and various government policies, in terms of land utilization, are magnifying this trend
High cost of production
• The processing of nuts is a complex process, which influences the net cost of the products. Thereby, the high costs of nuts could prevail as an hindrance to the growth of global market