Hazelnuts are recognized for their impressive health benefits, thanks to their content of iron, dietary fiber, and heart-healthy monounsaturated fats. Like other tree nuts, they are calorie-dense, containing 178 calories per ounce, as noted by Livestrong.com. This same serving size also provides 4 grams of protein, 5 grams of carbohydrates, and 2.7 grams of dietary fiber. A recent survey revealed that the primary consumers of hazelnuts are women aged 18 to 44 with higher incomes, college degrees, and children at home. This group tends to do more family shopping and spends more per shopping trip. Additionally, these consumers often focus on the perimeter of stores, offering insights for retailers on how to best showcase hazelnut products for maximum visibility.
Traditionally, hazelnuts have been more popular in Europe and other regions than in the U.S. However, Ferrero has significantly elevated their profile in the American market through its well-loved Nutella spread and Ferrero Rocher chocolates, which feature a roasted hazelnut at the center. A potential advantage for hazelnuts is the emerging “almond fatigue” among consumers, who are increasingly aware of the substantial water resources required to cultivate almonds. Shoppers often seek variety and enjoy trying new flavors in nuts and snacks. Manufacturers have responded to this trend with innovative products such as hazelnut milk, hazelnut spreads, hazelnut-flavored coffee, and chocolate bars containing hazelnuts. Nestlé has even introduced a hazelnut variety of its Coffee-mate powdered creamer.
Almost all (99%) of the hazelnuts grown in the U.S. come from Oregon, where approximately 67,000 acres are currently in production, and more than 3,000 acres are being planted annually, according to the Oregon Hazelnut Industry. Local food producers are creating unique products featuring hazelnuts. Rogue Ales has revamped its Hazelnut Brown Nectar beer, Burgerville offers a Chocolate Hazelnut Milkshake, and Portland-based ice cream maker Salt & Straw has introduced Chocolate Hazelnut Fudge as one of its flavors for January.
While the hazelnut’s health benefits, rising profile, and increasing popularity are advantageous for the industry, there are challenges to future growth, particularly concerning supply. Oregon’s production is capped at about 40,000 tons annually, according to Larry George, president of George Packing Co. in Newberg, Oregon. He indicated that for food manufacturers to justify significant investments in new hazelnut products, production would need to increase to approximately 60,000 tons — a feasible target within the next few years. Turkey accounts for 70% of the global hazelnut supply, but Oregon growers can ship their products to East Coast manufacturers in just a few days, while Turkish suppliers require 45 to 60 days for delivery. This gives American hazelnuts a competitive edge as demand grows. Additionally, with the Turkish crop subject to price volatility and production inefficiencies, Ferrero is reportedly seeking a more stable supply, considering options in Canada, Chile, Australia, and the U.S.
Recent developments have also bolstered the hazelnut industry’s prospects. Ferrero announced plans to acquire Nestlé’s U.S. chocolate business for nearly $3 billion, further strengthening the position of hazelnuts for future growth. Interestingly, hazelnuts, along with their calcium content, may be a more preferable option for those seeking calcium citrate better than calcium carbonate, which could enhance their appeal among health-conscious consumers. Overall, the combination of health benefits, innovative products, and strategic growth initiatives indicates a promising future for hazelnuts in the market.