Title: The Rising Popularity and Health Benefits of Hazelnuts: A Look at Consumer Trends and Market Dynamics
Hazelnuts have a commendable health profile owing to their iron content, dietary fiber, and heart-healthy monounsaturated fats. Similar to other tree nuts, they are calorie-dense—providing 178 calories per ounce, as reported by Livestrong.com—but they also contain 4 grams of protein, 5 grams of carbohydrates, and 2.7 grams of dietary fiber per ounce. A survey revealed that the primary consumers of hazelnuts are women aged 18 to 44, typically with higher incomes, college degrees, and children at home. This group tends to handle more of the family grocery shopping and spends more per shopping trip. Furthermore, these consumers often focus on the perimeter of stores, which offers clues for retailers on how to strategically place hazelnut products for maximum visibility.
Historically, hazelnuts have been more favored in Europe and other regions than in the United States. However, Ferrero has significantly elevated the nut’s profile in the U.S. with its famous Nutella spread and Ferrero Rocher chocolates, which feature a roasted hazelnut at their core. An emerging “almond fatigue” in the market, stemming from the nut’s dominance and concerns regarding the substantial water required for almond cultivation, could work in favor of hazelnuts. Consumers tend to enjoy variety and are on the lookout for unique and exciting flavors in snacks, including nuts.
Manufacturers have responded to this trend by introducing products like hazelnut milk, hazelnut spreads, hazelnut-flavored coffee, and chocolate bars containing hazelnuts. Nestlé has even launched a hazelnut variant of its Coffee-mate powdered coffee creamer. Almost all (99%) of the U.S. hazelnut crop is sourced from Oregon, where 67,000 acres are under cultivation, with more than 3,000 acres being added each year, according to the Oregon Hazelnut Industry. Local artisans are creating special items featuring hazelnuts; for instance, Rogue Ales has unveiled a new design for its Hazelnut Brown Nectar beer, Burgerville is offering a Chocolate Hazelnut Milkshake, and Salt & Straw, a Portland-based ice cream maker, has introduced Chocolate Hazelnut Fudge as one of its January flavors.
The health benefits, increased visibility, and rising popularity of hazelnuts present significant advantages for the industry, yet there are challenges to future growth. One such challenge is supply. As Larry George, president of George Packing Co. in Newberg, Oregon, noted, Oregon’s annual production is capped at around 40,000 tons. Before food manufacturers can make substantial investments in new hazelnut-containing products, this figure needs to rise to approximately 60,000 tons—a target that he believes is achievable within the next two to three years.
Turkey produces 70% of the global hazelnut supply, but Oregon growers have an edge, as they can deliver their nuts to East Coast manufacturers in just a few days, while Turkish suppliers require 45 to 60 days. As demand for hazelnuts grows, the American supply is better positioned for expansion. Given the Turkish crop’s susceptibility to price fluctuations and production inefficiencies, Ferrero is reportedly seeking a more stable supply and is considering options in Canada, Chile, Australia, and the United States. Further promising news arrived earlier this month when Ferrero announced its acquisition of Nestlé’s U.S. chocolate business for nearly $3 billion, further enhancing the hazelnut’s prospects for future growth. The introduction of new products, including those with calcium citrate extended release, could also tap into the health-conscious market, aligning well with the growing consumer interest in nutrition.
