Almond Flour Market

Market Overview

The Global Almond Flour Market size was valued at USD 1.24 billion in 2022 and is projected to reach USD 2.44 billion by 2031, with a CAGR of 7.8 % during the forecast period 2023–2031. 

Almond flour is a popular alternative to traditional wheat flour because it is low in carbohydrates, nutrient-dense, and slightly sweeter than wheat flour. Almond flour is an excellent source of nutrients, protein, vitamins, and minerals. Sweet almonds are ground into almond flour, which has multiple health benefits. Almond flour is gluten-free, high in calories, and a rich source of vitamin E, vitamin B, vitamin A, minerals, omega fatty acids, and protein, among others. Moreover, almond-derived products have numerous applications in the bakery, confectionery, and cosmetics industries.

Market Dynamics

What are the Driving Factors for The Global Almond Flour Market?

Increased demand for natural almond flour from various applications, including food & beverages, bakery & confectionery, and cosmetics, is expected to positively impact the utilization of natural almond flour ingredients. This factor is expected to significantly contribute toward the growth of the market during the forecast period.

The clean label trend indicates that the food is prepared with natural flour. Furthermore, consumers are opting for alternatives to synthetic flour, and their increasing preference for natural almond flour is expected to drive the demand for almond flour ingredients, thereby supplementing the global market growth. Natural almond flour is free of genetically modified organisms (GMO) and allergens, which act as antioxidants and protect the body against cellular damage, chronic diseases, and the effects of aging. Moreover, the increase in consumer awareness toward the usage of natural almond flour in bakery & confectionery products has increased in the last few years. This factor creates further opportunities for the manufacturers to focus on R&D activities for the production of advanced natural almond flour with superior properties, including pH and heat stability. However, the recent outbreak of the novel coronavirus has impacted the supply chain globally and is anticipated to affect the almond flour market in the short term. On the contrary, the advantages offered by these natural almond flours are expected to boost the market growth, as consumers have become more health conscious since the onset of the pandemic.

Furthermore, According to the International Trade Center (ITC), developing nations such as the U.S., Germany, India, Spain, Italy, and Turkey reported consuming more almond flour today than they did three years back. Similarly, people living in other emerging countries such as China, South Korea, and UAE have also become aware of the health benefits of consuming almond flour and its products and, thus, are adopting it as a bakery or confectionery product. Almond consumption in Asian countries has increased in the last few years, and hence, developing nations are expected to lead the market growth. These factors indicate the increase in demand for almond flour in developing nations during the analysis period and represent a great opportunity for market expansion. The U.S. dominates the market in terms of production and consumption of almond flour, as it exports one-third of the almond production.

Also, Blanched almond flourishes are beneficial for hair and skin and are widely used in a range of cosmetic and personal care products, such as hair oils and soaps. Almond flour is widely used in the cosmetics, bakery & confectionery industries. It is also widely used as an effective alternative to other flour products. It has become increasingly popular owing to its high nutrient content, which is beneficial for skin and hair and is expected to experience high growth in the future. The rise in demand for almond flour in the cosmetic industry is projected to drive the market for almond flour globally.

What are the Restraints for The Global Almond Flour Market?

Consumers' preference for cereals rich in proteins, fiber, minerals, vitamins, and carbohydrates, such as wheat flour, oat flour, rice flour, and others, over baked goods such as bread, cookies, and rolls. This is anticipated to inhibit the expansion of the almond flour market. Even though numerous healthy bakery products are available on the market, cereal grains are regarded as the ideal energy source and aid in preventing various diseases, including cancer, high blood sugar, and constipation. Thus, the availability of healthier alternatives hinders market expansion.

The regulations associated with bakery & confectionery products are related to various ingredients used in the process, food hygiene labeling & packaging, health claims, and others. For instance, according to the Food and Drug Administration (FDA), regulations about menu labeling insist on providing information such as nutrition facts, ingredients used, common names of the products, name & address of manufacturers, and others on labels, which are sold in various supermarkets, retail stores, and bakeries. Thus, these regulations regarding various ingredients and the quality of ingredients used in the bakery &confectionery products are expected to hamper the market growth.

What are the Future Opportunities for The Global Almond Flour Market?

The quality of baked goods is affected by variables such as pH, water activity, and moisture content, leading to deterioration and contamination, which impact shelf life. However, manufacturers concentrate on extending their products' shelf life by using yeast-inhibiting preservatives such as sorbates and benzoates. In addition, effective packaging extends the shelf life of bakery and confectionery products, which is anticipated to create lucrative opportunities for the almond flour market. In addition, innovative technologies such as long fermentation, new refrigeration technologies, and contemporary baking techniques have helped improve almond flour ingredients' quality.

Also, The almond flour market is a niche market, which creates opportunities for small-&mid-sized companies to invest in this market. As the diversified players that dominate the food industry have limited presence, stakeholders are planning to invest and expand their business by innovating new products. Thus, small and medium enterprises (SMEs) can take advantage of premium-priced almond flour products. Furthermore, several companies are completely dedicated to producing and selling almond flour products. For instance, Blue Diamond Growers expanded its facility for both lines, one for whole-processing almonds and the other for dry roasting on an integrated line. Moreover, this innovative processing technology in the facility provides the highest quality almonds and its products to customers and consumers globally. Thus, such factors create an opportunity to gain major traction in the coming years.

Regional Analysis

The global market for Almond Flour has been segmented based on geography into North America, Europe, Asia Pacific, and LAMEA.

The North American almond flour market is studied across the U.S., Canada, and Mexico. North America is a mature market with high penetration of packaged goods. The demand for natural almond flour products has witnessed a steep increase over the years, owing to a change in consumer preference toward food with natural ingredients. Consumers in the region are increasingly adopting a healthy lifestyle, which is leading to the growth in the consumption of almond flour in bakeries, confectionery, cosmetics, and other products. The U.S., in terms of value, dominates the North American market and is one of the major producers and consumers of almond flour globally. In the U.S., the demand for almond flour is growing extensively for various bakery products as it is rich in vitamins and minerals. Consumers are increasingly opting for high protein consumption resulting in a strong requirement for high-protein and low-carb food products. Thus, manufacturers focus on introducing products such as pasta, bakery, and others containing almond flour to meet this rise in protein requirements among consumers. Higher commercial consumption rate results in market growth in the region.

Europe's market is studied across Germany, France, the UK, Italy, Spain, and the rest of Europe. The consumption of almond flour is increasing at a significant rate in Europe, owing to the rise in awareness of the health benefits of almond flour among consumers. With high disposable income, demand for almond flour products is growing among consumers, in turn boosting the demand for different types of almond flour products in the region. The market for almond flour is expected to grow at a significant rate, owing to their increasing consumption of bakery products, snacks, confectioneries, and cosmetics products. Germany is the largest market in Europe due to the increase in demand from millennials and the surge in marketing activities. Improved distribution channels are also driving the growth of the market in Europe. Furthermore, a surge in awareness among the European population about the benefits of almond flour products, their affordability, and an increase in application areas drive the growth of the market. Moreover, the rise in the adoption of various end-use applications such as bakeries, confectionery, cosmetics, and others is expected to create numerous opportunities for the market.

The Asia-Pacific almond flour market is studied across China, Japan, India, Australia, South Korea, and the rest of Asia-Pacific. The Asia-Pacific market is estimated to register a CAGR of 8.50% during the forecast period, owing to a rise in demand for bakery & confectionery food products and a surge in consumer awareness toward clean label products and healthy ingredients. Moreover, the adoption of the western lifestyle and the rise in disposable income is anticipated to drive the growth of the market. Furthermore, the increase in affluence of middle-income groups has created scope for customized bakery products such as cakes & pastries, cookies, and others. In India, rolls and bread are witnessing increasing popularity as compared to traditional breakfasts, which reflects the strong potential of almond flour in this country. In addition, the consumption of baked food in China is growing significantly due to improved living and economic growth. Thus, China possesses high growth potential. Almond flour products are widely used in the bakery & confectionery industry in many Asian countries. An increase in investments by several small and midsized food manufacturing companies in developing countries supports the growth of the market. The region's major drivers of the market are the presence of a high population base, changes in taste & preferences of consumers, and a surge in the fast food restraints/trucks. Moreover, the adoption of the western lifestyle and rise in disposable income is anticipated to drive the growth of the market. The rise in purchasing power of the Asia-Pacific population, increase in urbanization, wide customer base, growth in stress, and preference for tasty food products drive the market growth in the Asia-Pacific region.

The LAMEA market is studied across Brazil, the United Arab Emirates, Saudi Arabia, Turkey, and the rest of LAMEA. The consumption of almond flour in the LAMEA region is expected to grow at a significant rate of 8.2%during the forecast period. The surge in disposable income fosters the demand for bakery & confectionery products. In Brazil, due to high urbanization in the region, a drastic change in consumer lifestyle has been witnessed along with dietary habits. This has resulted in a shift toward ready-to-eat foods by the urban population, which drives the growth of the market. In the Middle East and African countries, an increase in the workforce is influencing consumers to change their dietary preferences from traditional food to ready-to-eat food products, which has propelled the demand for bakery products, which in turn, augments the growth of the market. Furthermore, a rapid increase in the number of retail chains boosts the sales of bakery products, thereby supplementing the market growth in this region. The market continues to experience rapid growth in the LAMEA region, owing to changes in consumer lifestyle, which has encouraged them to dine out more frequently. In addition, the trend of consuming processed bakery products and confectionery products among youth boosts the market's growth in this region. An increase in the consumption of almond flour products among Brazilians, following promotional advertising campaigns of natural almond flour by manufacturers, is expected to propel the growth of the market in the coming years.

Segmental Analysis

The Global Almond Flour Market is segmented based on Type, Application, End-use, and Sales channel.

By type, the market is bifurcated into natural and blanched almond flour.

Natural almond flour is a low-carb and gluten-free alternative to wheat flour. Natural almond flour is an effective source of electrolytes as it is rich in vitamins such as E and A, omega fatty acids, B, minerals, and proteins. It finds an array of applications, such as baking, cosmetics, and confectionery, among others. Natural almond flour possesses a low level of fats and Cholesterol, with very low calorific value. It includes many antioxidants and possesses therapeutic properties. It helps in reducing the risks of various heart diseases and promotes health. The demand for natural almond flour is rising owing to the increasing consumer preference for organic label products. Awareness regarding the harmful effects of artificial almond flour and the chemical utilized in the manufacturing of almond flour products are substantially fueling the demand for natural almond flour in numerous applications. The growing need for convenience food products owing to increased consumer knowledge about products with exotic and traditional tastes is attracting manufacturers to reinvent their food products and use clean-label flour in their food and beverage products. Active and health-conscious consumers have shifted their preference toward natural alternatives to caffeinated and sugar-based energy drinks. Hence, the demand for natural almond flour is growing rapidly due to its nutritional properties, such as electrolytes and nutrients. The demand for natural almond flour is growing in developed countries such as the U.S., Germany, the UK, and France, owing to a rise in awareness of its health benefits.

Blanched almond flour is lighter and much better for making bakery products. It also carries the same nutritional benefits as natural almond flour. It is typically preferred for its fine, smooth, and fluffy texture. It is used as a base in bread, muffins, cookies, cakes, pancakes, and other products. Blanched almond flour is an excellent source of fat, protein, vitamins, fiber, and minerals. As blanched almond flour has a very low level of unsaturated fatty acids, it maintains good cholesterol levels in the body, reducing the risk of heart disease. It also finds a wide range of applications in the bakery industry as dietary fat in filling milk, infant milk powder, ice cream, and confectionery &bakery products. The blanched almond flour segment held the largest market share in 2021 and is expected to lead the market in the near future. Blanched almond flour is used in a wide range of bakery products, confectionery, hair, and skin care products globally, and its demand is growing in developed countries. Moreover, consumer changes in lifestyle and inclination toward diet & nutritional products are the factors expected to augment the growth of the market. The aforementioned factors related to consumer demand are expected to encourage the growth of the almond flour products market during the forecast period.

By application, the market is categorized into the bakery, confectionery, cosmetics, and others.

Baking is one of the oldest processes of cooking under dry heat with the help of an oven. Bakery products usually include bread, biscuits, cookies, brownies, cakes, rolls, pies, muffins, and others. These products are manufactured using flour from different types of grains. The bakery product manufacturing industry is expected to grow in the food processing sector to cater to the rise in demand for bakery products across the globe. The consumption of bakery products is highest in North America owing to high popularity among the youth, cost-effectiveness, health benefits, convenience, and others. The bakery segment is expected to grow at a moderate rate in North America and is expected to continue to retain the maximum market share in terms of value. Prominent manufacturers have focused on developing consumer-centric products at economical prices to achieve market growth and sustainability. An increase in the nutritional content of various products is anticipated to create a significant demand for bakery products. This is anticipated to provide the potential for the expansion of the market.

Confections are food products made from sugar, which is high in carbohydrates. Candied nuts, chewing gums, sweet toffees, jellies, cotton candies, icing, frostings, glazes, lollipops, and others are some of the majorly consumed and manufactured products. These food products are used to reduce stress, alleviate boredom, and satisfy cravings. Health awareness & consciousness among customers and changes in consumer eating habits & tastes drive innovation in the confectionery industry. Active and health-conscious consumers have shifted their preference toward natural alternatives to caffeinated and sugar-based energy drinks. Hence, the demand for natural almond flour as a natural energy drink is witnessing rapid growth in developed countries due to its nutritional properties, such as electrolytes and nutrients. The bakery & confectionery industry possesses high growth potential and is anticipated to garner a remarkable position in the food processing sector. This is attributed to a surge in demand for confectionery items, owing to a busy lifestyle and increased preference for fresh & ready-to-eat convenience foods comprising high nutritional values. Upsurge in the consumption of confectionery products, especially the packaged variety, has augmented the demand for natural almond flour, thereby supplementing the growth of the global market.

Almond flour is widely used in the cosmetic industry for its penetrating, moisturizing, and restructuring properties. Almond flour has better health benefits in cosmetics products as a gentle exfoliant for the skin. It has been widely used in Ayurvedic skin care regimes and traditional Indian ubtans. A wide range of skin care products uses almond flour as one of the main ingredients. The antioxidant, anti-aging, and anti-inflammatory properties of almond flour make it integral to products such as anti-aging creams, body lotions, and skin packs. The market share in the cosmetic industry is expected to increase in the near future owing to the growth of their application in skin and hair care products. The rise in the trend of using organic ingredients in cosmetics and the development of new and innovative cosmetics using almond flour ingredients is expected to drive the growth of the market.

By end use, the market is bifurcated into commercial and household.

The commercial segment of the market includes hotels, restaurants, industry, hospitals, and others. The key players in the market are continuously evolving the requirements of the commercial industry by modifying and innovating existing almond flour products. As a result, frequent product launches, especially for the commercial segment, have been witnessed in the past few years. Increasing investments in commercial spaces such as airports, hospitals, hotels, and restaurants, among others, are anticipated to significantly increase the demand for almond flour. The market is primarily driven by factors such as ease of sales and purchase, the variety of brands available, and price. Increased sales of natural almond flour are anticipated to increase commercial demand for almond flour.

Almond flour is used for household purposes for preparing healthy and nutritional meals. It is also used as a flavor enhancer in various food items. Almond flour is usually used in cooking food items, as it has a good taste and is incredibly nutritious; hence, it is steadily finding applications in many food products. The rise in popularity of natural almond flour products is owing to growth in health concerns among consumers and an increase in awareness with regard to the health benefits of organic food. Consumers’ perception of organically grown food is that it is healthy and is a nutritious alternative to conventionally grown products. Traditional motives to buy organic-concern for the environment have environment have been eclipsed by health and food safety concerns. The array of natural almond flour products now available and the retail channels through which they are sold have evolved in the market for almond flour.

By sales channel, the market is bifurcated into online and offline.

The easy accessibility offered by online platforms boosts their adoption in the almond flour market, thus becoming a popular medium for the purchase of almond flour. Easy availability of information about the features present in almond flour products, time-saving features, and the facility of home delivery contribute toward the growth of online sales. An increase in penetration of various online portals in developing regions and a rise in the number of offers or discounts attract the consumer to purchase almond flour through the online channel. In addition, the online sales channel has expanded its consumer base, making it a key revenue generator for many businesses. In addition, the online sales market is anticipated to grow in the near future due to the rapid expansion of online and mobile user bases in emerging markets. Increased e-commerce sales, enhanced logistics services, simplified payment options, and the ability for major brands to enter new international markets all contribute to the expansion of the market.

The offline segment consists of supermarkets, convenience stores, and specialty shops. Convenience stores provide consumers with the desired convenience and a variety of options. Market participants are establishing new convenience stores in various regions to increase their customer base and expand their reach. Furthermore, specialty stores are retail outlets that are engaged in the business of selling a particular range of associated products. Most business operators maintain a considerable depth in the variants & types of products they specialize in selling, generally at premium prices. Specialty stores are introducing different types of almond flour products with healthier nutrients and rich in vitamin B1, which attract the consumer, thereby propelling the growth of the market. Moreover, the specialty retail industry is anticipated to witness uncertain growth owing to macroeconomic factors such as consumer spending and higher disposable income. Convenience stores help manufacturers introduce their products in the market and cater to a large consumer base. Consumers pay more attention to the overall shopping experience while buying products at convenience stores. Attractive displays and low prices of almond flour products in the hypermarket/supermarket are expected to boost the sales of almond flour products. Hence, the establishment of convenience stores in widespread locations makes way for lucrative opportunities for the growth of the offline sale channel in the market. Furthermore, these stores are replacing the old-fashioned general stores. The presence and popularity of specialty stores and hypermarkets/supermarkets, among others, is a significant factor that boosts the growth of the market for offline sales channels.

Recent Developments

• In November 2022, Blue Diamond Introduces New Limited-Edition Snickerdoodle and Peppermint Cocoa Flavored Almonds for the Holidays.
• In October 2019, Olam International acquired Hughson Nut Inc., a California-based almond ingredient processor and producer, along with its real estate assets for USD 54 million. Due to the acquisition, Olam International was able to increase its almond ingredient capacity, and by leveraging Hughson Nut's manufacturing expertise, it will be able to target new customers in the food segment, manufacturing, and e-commerce.
• In September 2019, The company Blue diamond Growers officially opened its new 52,000 sq. Ft, energy–saving manufacturing facility in Salida, California. This facility is the first in the almond industry to use Log5 technology in both lines, one for whole-processing almonds and the other for dry roasting on an integrated line. Moreover, this innovative processing technology in the facility provides the highest quality almonds and its products to customers and consumers globally.
• In May 2018, Hodgson Mill, a national leader in whole-grain natural foods, announced a new "Broker of Record" position and an official partnership with Alliance Sales & Marketing.