Nut Products Market Growth Rate Overview:
A nut is a fruit composed of an inedible hard shell and a seed that is generally edible. Most nuts come from the pistils with inferior ovaries.
The growing inclination of consumers towards plant-based and gluten-free products coupled with increasing health awareness is expected to drive the global nut products market
Moreover, an increase in the demand for convenience foods, an increase in the popularity of nuts as a food additive, and an increase in the product launches, are some of the factors driving the growth of the global nut products market
The global nut products market valued USD 21,745.15 million in 2020 and is estimated to reach USD 34,851.15 million by 2028, growing at a CAGR of 5.97%.
Industry Dynamics:
Intake of nuts is related to reducing the chronic disorder risks and its products such as cashewnut, peanut hull, and coconut shell exhibit anti-bacterial property as well as food preserving feature. Furthermore, the beneficial effects of the nut product consumption on human health are attributed to presence of vegetable protein, fatty acids, minerals, phytosterols, fiber, vitamins, and phenolic in these products
Nut intake results in low formation of atherogenic LDL sub-fraction resulting in less occurrence of heart stroke in persons due to cholesterol reducing effect of nut or its products & presence of low proportion of saturated fats in nut products. As per NCBI study, intake of nut products provides benefits to the consumers against oxidative stress, vascular reactivity, inflammation, hypertension, metabolic syndrome, and visceral adiposity.
Rise in the use of food & beverages products with nut as ingredients will enlarge the scope of nut products industry over the prognostic period. Large-scale demand for nut products in bakery, processed foods, and confectionary has offered consumers with numerous options for healthy & tasty diet, thereby steering the business landscape
The rapid increase in the demand for ready-to-eat snack foods owing to the factors such as sedentary lifestyle, growing preference for convenience foods and growing inclination towards taste is estimated to enhance the growth of nut products market.
Industry Opportunities:
The robust growth and promising potential in plant-based dairy alternatives and meat analogs have opened up significant opportunities for nut product manufacturers. Key giants such as Olam International and Barry Callebaut have already intensified their efforts in catering to these attractive end-use avenues for gaining a cutting-edge advantage in the foreseeable future.
Nut-based butter, paste, fillings, and flour are increasingly utilized across applications, among which snacks, bars & cereals are the dominant ones. Nut flour and paste are also incorporated for the development of plant-based savory products. Almonds, hazelnuts, and walnuts are some of the key sources of raw materials, which are processed into semi-finished derivatives.
Impact of COVID-19
Lockdowns in different countries have disrupted the demand for nut products due to the lack of purchasing power, resulting from reduced income in most of the countries. The value chain of the nut products market has been affected negatively due to the disrupted distribution channels across the globe
Numerous countries worldwide are following social distancing mandated by government authorities to curb the transmission of the outbreak. As a result, both imports and exports in many countries have been either restricted or delayed since the outbreak. This poses a drawback for nut products suppliers
The outbreak of coronavirus has affected walnut production and caused disruptions in the export and import markets, distribution, packing, and supply chain logistics. The value addition activities were affected negatively as disrupted distribution channel tends to lower the end-products of walnuts in the market. The extended lockdown has hit consumption as well as demand in the Asia Pacific region which is the largest walnut consumer.
Regional Share Insights:
North America holds a leading position in the global market for nut products because of increased demand and consumption of nutmeals and the region's high disposable income.
Due to sustained consumer spending in the region, the food and beverage industry in North America is continuing to grow steadily. Consumers in U.S. and Canada are becoming more conscious of the ingredients used by manufacturers as their understanding of the importance of food in people's well-being grows. Furthermore, due to a preference for healthy meals, North American food and beverage firms have developed new portfolios, which has increased demand for nut products.
Germany is Europe's largest market for dried fruits and nuts, as well as a major destination for American almonds, walnuts, prunes and other items, due to its wealthiest consumers.
In the European Union, Germany is one of the most important cashew markets. The country's market accounts for around a quarter of European market demand, which continues to rise due to strong demand from the food and food processing industries. The regional market's advantageous exchange rates and regular prices are piquing the interest of both packers and consumers.
Competitive Landscape Analysis:
The global nut products market is highly fragmented with many players such as Puratos, Olam International, Barry Callebaut, Blue Diamond Growers, Besana, Lubeca, Mount Franklin Foods, Mandelin Almonds, ALMENDRAS LLOPIS S.A.U., Moll Marzipan GmbH, among others. The key players are adopting various key strategies such as product launches, collaborations, mergers & acquisitions which are contributing to the market globally.
Major players in the global nut products market are focused on launching new products to expand their product portfolio. For instance, in November 2020, La Morella Nuts launched its Mediterranean Nut Craft. With the expansion, the Mediterranean Nut Craft expert taps into the growing need for healthier indulgence and plant-based products around the world.
