Tree Nuts Market

Market Overview

The global tree nuts market size was valued at USD 42.43 billion in 2021 and is projected to reach USD 112 billion by 2030, registering a CAGR of 11.38% from 2022 to 2030. The rising global consumption of tree nuts can be attributed to their numerous health benefits as well as customers' need for handy, portable snacking options. The health benefits connected with tree nuts are one of the most important elements fostering industry growth.

Tree nuts are scrumptious seeds or fruits that have been dried out and are produced by woody plants that do not even have leaves. Nuts from trees are an excellent source of vegetable proteins of a high quality, as well as fibre, unsaturated fatty acids, and a variety of other nutrients and minerals, such as vitamin E and magnesium. Market enterprises are developing novel and distinctive snack options in response to the rising demand from customers in the millennial generation. Because they have a variety of positive effects on one's health, consumers have shown an increased interest in purchasing tree nuts. Millennials' growing preference for plant-based diets is the primary factor propelling market growth at the moment. It is anticipated that the global market for tree nuts will expand as a result of the numerous health benefits associated with eating these nuts. The fact that tree nuts are becoming more popular as a snack option among people in their 20s and 30s is a development that is encouraging for the industry. The purchasing power of millennials is rising all around the world, which is anticipated to assist in the expansion of the industry. Millennials are the generation currently in their 20s and 30s.

Market Dynamics

Tree Nuts Market Drivers

The rise in the occurrence of cardiovascular diseases

There has been a discernible increase in the prevalence of cardiovascular diseases all over the world over the course of the last few years, which has led to an increase in the need for associated diagnostic and therapeutic supplements. For example, according to a study conducted by the Centers for Disease Control and Prevention (CDC), in the year 2019, coronary artery disease is expected to affect approximately 18.2 million adults in the United States who are between the ages of 20 and 70. This represents approximately 6.7 percent of the total population in the United States.

People are becoming more health-conscious, and as a result, they are increasing their consumption of tree nuts. This, in turn, is helping to boost demand in markets all over the world. Tree nuts help to maintain healthy cholesterol levels, lower blood pressure, and improve heart health.

Tree Nuts Market Restraints

Growing incidents of allergies and high volatility in the cost

The increasing prevalence of allergic reactions that are brought on by eating tree nuts, such as cramping in the abdominal region, itchiness in the throat and mouth, nausea, difficulty swallowing, shortness of breath, runny nose, and a number of other symptoms, are putting a damper on sales in international markets.

It is projected that factors such as high price swings in tree nuts and the increasing availability of low-priced substitutes such as hemp seeds, sunflower seeds, sesame seeds, and others will slow the expansion of the market for tree nuts.

Tree Nuts Market Opportunity

Health advantages associated with tree nuts

Pistachios, almonds, and cashews are examples of tree nuts that can complement the nutritional and protein requirements of the human body. These factors are anticipated to contribute to a rise in tree nut consumption, resulting in a market increase. The increasing usage of tree nut oils in the cosmetics industry is one of the most significant market trends for tree nuts. Nuts are an excellent source of nourishment for the skin and hair, as well as a remedy for discomfort and dark circles. As a result of the presence of antioxidants, it is efficient at removing wrinkles and protecting the skin from damage. Tree nut oils are often used in anti-aging cosmetics because they help the skin retain moisture and fight ageing.

Regional Analysis

The market is split by region into North America, Europe, Asia-Pacific, and LAMEA.

In 2021, Europe held a dominant position on the market and accounted for a share of more than 30.0 percent. There is a shift occurring among European consumers away from conventional products and toward organic items. The ever-increasing popularity of healthy and nutritious snacking and eating habits among consumers in Europe is continuing to boost demand for tree nuts and ground nuts alike.

The largest consumer of tree nuts in the world is Germany. Intake of almonds in the United States averaged two pounds per person between the years 2001 and 2020, with a year-over-year growth of more than 50 percent over the course of the last decade. As a result of consumers' familiarity with organic goods, the United States has one of the highest per capita rates of consumption of healthy goods when compared to other parts of the world.

A move away from conventional sources of protein in the United States, such as red meat, has led to an increase in the consumption of nuts due to their high protein content and growing popularity among the population. Consumers are finding it much simpler to get their hands on nuts thanks to increased self-sufficiency in nut production as well as widespread availability of nuts through on-trade and off-trade distribution channels.

Segmental Analysis

In 2021, the almonds segment dominated the market and accounted for over 30.0% of worldwide sales. Almonds' delicate flavour and flavorful crunch complement a broad range of ingredients and variations. Almonds are naturally gluten-free, dairy-free, paleo, keto, and vegan, which makes them a convenient snack or addition to dairy-based beverages.

The plant-based revolution is currently a big trend, and almonds remain a crucial ingredient driving innovation in the snack food business. Blue Diamond Growers debuted Almond Breeze Extra Creamy Almond Milk, a plant-based alternative to whole milk, in January 2022. The milk is perfect for users who are allergic to dairy or lactose-intolerant, prefer non-dairy options for cooking and drinking, or are vegan.

The entire segment dominated the market in 2021, accounting for more than 70 percent of the global revenue, and is anticipated to grow at the highest CAGR during the forecast period. The predominant form of tree nuts is the whole. Snacks and midday meals are also common applications. The most common type of treenut in the world is roasted nuts.

Numerous individuals favour roasted or salted nuts as a snack. It may be kept for a long time because to its crunchiness. The vast majority of tree nuts are consumed whole, as culinary additives, or in medicinal preparations. In numerous Asian cultures, almonds have a key role in Ayurvedic treatment. The preference of consumers for entire tree nuts decreases the risk of infection, which adds to market expansion.

In 2021, the internet segment dominated the market and accounted for more than 50 percent of worldwide sales. The tree-nut internet distribution channel consists of e-commerce sites. Consumer preference for e-commerce is anticipated to propel the segment's expansion. The nationwide lockdown increased the demand for tree nut sales on the Internet.

Due to the epidemic, e-commerce channels and online grocery stores are gaining customer traction as individuals adapt to purchasing groceries online. The COVID-19 epidemic had a significant impact on the offline segment's growth due to the closure of the aforementioned stores. In addition, international tourism ground to a halt as a result of the global lockdown imposed by governments.

Recent Developments

In March 2022, Badam Charger is a premium almond-flavored milk with actual almond particles, and it was just revealed that Heritage Foods Ltd., a prominent maker of dairy products, is launching a new product called Badam Charger.