Hazelnut Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Hazelnut Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The hazelnut market is projected to register a CAGR of 10% during the forecast period (2022-2027).

With the impact of COVID-19, there has been an inclination toward eating healthy diets that include fruits, nuts, etc. Nuts, included in most healthy dietary patterns, are characterized by their high energy density as a result of their high lipid content. Hazelnut is a rich dietary source of protein, unsaturated fatty acids, and linoleic acid. It contains a higher concentration of alpha-tocopherol (vitamin E) than other nuts. The consumption of hazelnuts may also help regulate immunologic and inflammatory responses. Hence, the demand for hazelnuts is anticipated to grow in the future.

Research studies show that consuming hazelnuts can lower LDL (bad) cholesterol and increase HDL (good) cholesterol, which is increasing their sales. Hazelnuts are used in desserts, such as cakes, muffins, chocolate dishes, praline, or pastries. With the growing demand for the product, various producers are entering the market with innovative products. Bühler, the world’s largest provider of nut processing technology, expanded into the natural hazelnut market in May 2018, with the Turkish launch of its innovative combination of sorting technologies, leading to natural hazelnut processing systems.

Turkey dominates hazelnut production, with an estimated share of 65% globally. In terms of consumption, Europe is expected to register the highest CAGR of 7.6% during the forecast period due to the increasing demand for hazelnuts from the chocolate industries in Europe. With increasing demand from consumers and high health benefits, the market is expected to grow over the forecast period.

Chocolate manufacturers are re-introducing their signature products with hazelnut-incorporated product lines, which are coming out as an innovation in taste in the global confectionery market. Chocolate hazelnut spreads are gaining popularity, similar to peanut butter. An increasing number of food companies have started making their own versions of this spread, which are now available at most major grocery chains. For instance, the major chocolate manufacturer Lindt launched a chocolate spread made with 40% hazelnut in the United Kingdom market in 2018. The spread is likely to be available in other European countries, even though its launch happened in United Kingdom. Similarly, M&M'S launched its Hazelnut Spread Chocolate Candies featuring a hazelnut spread center covered in delicious milk chocolate. Hazelnuts are a key ingredient at Ferrero and are used in many of its trademark products, including Nutella, Ferrero Rocher, and Kinder Bueno. In fact, 25% of the world’s supply of hazelnuts goes into making Ferrero products. Nutella has become a food phenomenon around the world, with Nutella heists, a fan-led World Nutella Day, and Nutella bars opening across United States. The escalating popularity of Nutella has led to an increased demand for hazelnuts from the industries catering to the growing global consumer demand. Chocolatiers are also re-launching their products during festive seasons, with a fusion of traditional and western styles, generally with luxury nuts incorporated into chocolates, which is boosting the demand for hazelnuts.

Though Turkey is the largest producer of hazelnuts, accounting for 75% of the global production, Italy is the second-largest producer and top consumer of hazelnuts in the world. In Italy, hazelnuts are sold both in-shell and shelled, with in-shell nuts sold in the form of snacks, while shelled nuts are sold mainly to confectioneries and bakeries. An estimated 90% of the hazelnuts produced in the country go to processing companies, while the remaining 10% is for fresh consumption. As per the analysis, 89.7% of the domestic demand within the country is being satiated through production. In order to satiate the rest of the demand, the country depends on imports. In 2020, the country imported 61,320 ton of hazelnuts, valued at USD 45.7 thousand. Piemonte is also one of the major hazelnut-producing areas, accounting for 15% of the total Italian production. Italy typically grows the Corylus avellana variety, which, unlike the Turkish type, detaches naturally from the husk and falls to the ground. It is then dried (sun or hot air) and shelled if needed. Tonda di Giffoni in Latium, Tonda Rossa in Campania, Tonda Gentile delle Langhe in Piemonte, and Santa Maria de Jesu in Sicily are some of the major native cultivars in Italy.

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