The hazelnut market size was valued at USD 9.5 billion in 2025 and is projected to reach USD 10.2 billion in 2026 and USD 16.8 billion by 2034, growing at a CAGR of 6.50% during the forecast period (2026-2034) as per Straits Research Analysis.
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Food manufacturers are using hazelnuts in plant-based milk, spreads, protein snacks, and desserts to provide a creamy texture and act as a natural sweetener without an artificial additive. As many people are switching to vegan diets due to lactose intolerance, the consumption of hazelnut milk and butter is becoming common.
Large confectionery manufacturers of chocolate spreads, pralines, chocolate bars, and baker fillings are opting for hazelnuts due to their consistent taste, oil content, and roasting quality. They engage in direct sourcing to avoid price volatility.
Hazelnut production is concentrated in a few countries, such as Turkey and Italy as they require unique climate and soil conditions. As a result, sourcing stability and long-term procurement strategies have become a structural market trend in the hazelnut industry.
Companies are integrating sustainably sourced and traceable hazelnuts to ensure ethical labor practices and a stable long-term supply. Certified hazelnuts are becoming a preferred ingredient, which helps in building brand trust and premium positioning.
Increasing chocolate consumption directly leads to higher industrial demand for hazelnuts, as they are a core ingredient in spreads, pralines, and premium bars. As confectionery production expands, the manufacturers also produce larger volumes of kernels and paste to maintain product formulations.
Rising disposable incomes in emerging markets boost the demand for premium snacks and confectionery containing hazelnuts. As more consumers can afford imported products, the procurement of hazelnuts for large-scale production increases. As per the International Nut & Dried Fruit Council (INC), Asia Pacific is expected to witness an increased demand for nuts in the coming years.
The growth in premium and artisanal food segments demands high-quality hazelnuts for enhanced taste, texture, and product differentiation. Higher-grade hazelnuts fetch premium prices, which directly boosts the revenues for growers and suppliers.
The rising retail consumption and product launches of nut-based snacks in the forms of trail mixes and bars directly increase hazelnut procurement.
The growing use of hazelnut oil and flour in gluten-free, keto, and specialty food drives demand for processed hazelnut derivatives. These ingredients drive higher margins and let manufacturers cater to health-conscious and specialty-diet consumers.
Production of hazelnuts in new climate areas will help lower the dependence on a concentrated geography for procurement. This will result in higher global output and supply stability.
Traditional hazelnut varieties have limited genetic diversity and yield ceilings. Development of a diverse range of hazelnut varieties will improve plant genetics that have a more climate-resilient nature. As per an article by the International Society for Horticultural Science, interspecific hybrids are allowing expansion of plantings to areas with a less suitable climate, including eastern North America and northeastern China.
Producers can bank on single-origin and specialty-grade hazelnuts to attract premium pricing, which will lead to higher margins per kilogram.
Vertical integration lets producers capture more value by selling hazelnut products, such as paste, oil, and flour, which command higher margins than raw nuts. This strengthens supply chain control and opens new revenue streams.
SEGMENT
INCLUSION
DOMINANT SEGMENT
SHARE OF DOMINANT SEGMENT, 2025
PRODUCT
Shelled Hazelnut
XX%
FORM
Raw Hazelnut
END USE INDUSTRY
Confectionery Industry
REGION
Europe
58%
The hazelnut market in Europe had amarket share of 58% in 2025 due to the traditional incorporation of nuts in chocolates, the presence of large processing facilities, and a well-established sweet snack culture, which encourages consumption of hazelnut-based products, such as Nutella and Ferrero Rocher.
Asia Pacific is expected to be the fastest-growing region in the hazelnut market, owing to expanding plant-based beverage portfolios by companies such as Oatly and Nestle. The market is also driven by higher adoption of Western-style eating habits, inclination toward health-oriented diets rich in vitamin E & antioxidants, and growth in retail channels such as hypermarkets, supermarkets, and e-commerce platforms.
The North America hazelnut market is driven by consumers’ willingness to switch to dairy and sweetener alternatives for digestion comfort and calorie control. Consumers in this region also rely on functional foods, protein-enriched snacks, and clean-label products that incorporate hazelnuts for their daily nutrition. The region also boasts of research initiatives focusing on hazelnut cultivation and disease resistance. For instance, the Oregon State University Hazelnut Breeding Program has conducted over 200,000 controlled pollinations and released multiple pollinizers.
The Middle East & Africa region is driven by the increasing preference for nuts in traditional desserts such as baklava and kunafa. A strong culture of gifting premium sweets during religious and social celebrations also increases the consumption of hazelnuts in this region.
The Latin American market is overseeing a boom in local manufacturing by reducing reliance on imported finished goods. For instance, Grupo Arcor (Argentina) and Grupo Bimbo (Mexico) are processing, blending, and packaging hazelnut products at local facilities. Chile being a major hazelnut producer globally boosts roasting, paste production, and confectionary manufacturing in the region.
The global hazelnut market is moderately consolidated with the presence of growers, including independent farmers, agriculture cooperatives, and large orchards. The market supply is led by kernel processing export firms, ingredient manufactures, and confectionary manufacturers. The market also encompasses private-label brands, retailers, and agribusiness players. The intensity of competition among growers is driven by factors such as kernel quality, oil content consistency, supply reliability, and traceability certifications.
TIMELINE
COMPANY
DEVELOPMENT
December 2025
Barista Coffee Company
The company launched a limited-edition hazelnut menu across 150 Indian outlets, featuring beverages and desserts made with real hazelnuts.
Apis India
Apis India expanded its spread category with a new chocolate hazelnut spread.
October 2025
Ferrero Group
Ferrero Group invested USD 40 million in Chilean plants for new processing facilities and regenerative agricultural manuals.
September 2025
Ferrero Group and WK Kellogg Co.
Ferrero acquired WK Kellogg Co., broadening its offerings into breakfast cereals and related categories.
Aydın Kuruyemiş Sanayii ve Ticaret A.Ş.
The company participated in WorldFood Instanbul.
The company launched a global sustainability campaign tied to responsible sourcing and branding, called Quality at Heart, in France.
July 2025
Mondelēz
Mondelēz launched BelVita Duo Crunch Choco Hazelnut.
Source: Secondary Research
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Research Associate
Tejas Zamde is a Research Associate with 2 years of experience in market research. He specializes in analyzing industry trends, assessing competitive landscapes, and providing actionable insights to support strategic business decisions. Tejas’s strong analytical skills and detail-oriented approach help organizations navigate evolving markets, identify growth opportunities, and strengthen their competitive advantage.
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