A recent report by analysts MarketsandMarkets predicts the nut ingredients market will grow from $12.3bn in 2014 to reach $16.4bn by 2020, a CAGR of 5.8%.
Nut ingredients were benefitting from rising demand for convenient, nutritious snacks and meal replacements, and a growing variety of formats and target markets, according to MarketsandMarkets’ research analyst B. Sravanthi
“The bakery industry is one of the fast-growing segments in the food industry, and nut ingredients play a major role in the overall appeal and functional capacities in baked goods,” she added.
Almonds lead way in snacks and bars
Sravanthi said almonds were the preferred nut ingredients in snacks and bars in the North American market. According to the Agricultural Marketing Resource Center, almonds were also the leading US horticultural export commodity by value.
“Current trends such as increased awareness about heart health have brought a significant inclusion of almonds in snacking, confectionery, and bakery products,” she said. “Almonds provide a rare combination of qualities such as being healthful and offering a distinct texture and great taste.”
While developed countries including the US, Germany, Italy and France dominate the nut ingredients market, developing countries such as China and India are projected to be the fastest-growing markets for nut ingredients between 2014 to 2019, according to the report.
“The fast-growing consumer population and high disposable income are strong drivers in developing countries,” said Sravanthi.
Growth driven by health and technology
And although she warned the US nut ingredients market could become saturated in the future, Sravanthi said the launch of healthier products and technological advancements would continue to drive nut ingredients growth.
The report added that growth in the nut ingredients market was directly proportional to the growth of food industry sectors such as snacks and bars, baked goods and cereals.