Hazelnuts have a relatively high health rating due to their iron, dietary fiber, and heart-healthy monounsaturated fats. Like other tree nuts, they are calorie-dense, providing 178 calories per ounce, as reported by Livestrong.com. In that same serving size, they also contain 4 grams of protein, 5 grams of carbohydrates, and 2.7 grams of dietary fiber. The survey revealed that the primary consumers of hazelnuts are women aged 18 to 44, who tend to have higher incomes, college education, and children at home. This demographic is more involved in family shopping and tends to spend more per trip. Additionally, these shoppers focus on the perimeter of stores, which gives retailers insight into effectively positioning hazelnut products for maximum visibility.
Historically, hazelnuts have been more popular in Europe and other regions than in the United States. However, Ferrero has significantly increased the nut’s visibility in the U.S. market with its well-known Nutella spread and Ferrero Rocher chocolates, which feature a roasted hazelnut at the center. A potential advantage for hazelnuts could be the emergence of “almond fatigue,” as consumers grow weary of the dominant almond market and express concerns about the substantial water needed for almond cultivation. Consumers often seek variety and enjoy trying new and interesting flavors in nuts and other snacks.
Manufacturers have recognized this trend and have introduced products such as hazelnut milk, hazelnut spread, hazelnut-flavored coffee, and chocolate bars containing hazelnuts. Nestle has even launched a hazelnut variation of its Coffee-mate powdered coffee creamer. Nearly all (99%) of the U.S. hazelnut crop is grown in Oregon, where 67,000 acres are currently in production, and more than 3,000 acres are planted each year, according to the Oregon Hazelnut Industry. Local food producers have begun creating unique products featuring hazelnuts. 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 company, has introduced Chocolate Hazelnut Fudge as one of its January flavors.
While the health benefits, increasing recognition, and rising popularity of hazelnuts are positive for the industry, there are challenges to future growth. One such challenge is production limitations; Oregon’s output is capped at about 40,000 tons annually, as stated by Larry George, president of George Packing Co. in Newberg, Oregon. He noted that for food manufacturers to significantly invest in new hazelnut products, production would need to rise to approximately 60,000 tons — a target he believes is achievable within the next two to three years. Turkey produces 70% of the global hazelnut supply, but Oregon growers can deliver their product to East Coast manufacturers within a few days, while Turkish suppliers require 45 to 60 days. This gives American hazelnuts a competitive edge as demand increases. Due to price volatility and production inefficiencies in the Turkish market, Ferrero is reportedly seeking a more stable supply and is looking toward Canada, Chile, Australia, and the U.S.
In exciting news for the hazelnut sector, Ferrero announced its acquisition of Nestle’s U.S. chocolate business for nearly $3 billion, further positioning hazelnuts for future growth. Additionally, incorporating 400 mg calcium citrate into new products could enhance their nutritional appeal, making them even more attractive to health-conscious consumers. As the industry capitalizes on the hazelnut’s health benefits and growing profile, focusing on product innovation and strategic marketing will be key to overcoming existing challenges and expanding its market presence.