Title: The Rising Popularity and Health Benefits of Hazelnuts: Opportunities and Challenges in the U.S. Market

Hazelnuts are recognized for their considerable health benefits, largely attributed to their iron, dietary fiber, and heart-healthy monounsaturated fats. Like other tree nuts, they are calorie-dense, containing 178 calories per ounce according to Livestrong.com. In that same serving, hazelnuts provide 4 grams of protein, 5 grams of carbohydrates, and 2.7 grams of dietary fiber. Recent surveys indicate that the primary consumers of hazelnuts are women aged 18 to 44, particularly those with higher incomes, college degrees, and children at home. This demographic not only engages in more family shopping but also tends to spend more during their grocery trips. Furthermore, these consumers often focus on the outer aisles of grocery stores, which could inform retailers on the best placement strategies for hazelnut products to maximize visibility.

Traditionally, hazelnuts have been more favored in Europe and other regions than in the United States. However, Ferrero has significantly raised the nut’s profile in the U.S. through its well-known Nutella spread and Ferrero Rocher chocolates, which feature roasted hazelnuts at their core. The growing trend of “almond fatigue,” stemming from the nut’s dominance in the market and concerns regarding the water-intensive cultivation of almonds, may favor hazelnuts. Consumers enjoy variety and seek new, exciting flavors in snacks, which has prompted manufacturers to create hazelnut milk, hazelnut spreads, hazelnut-flavored coffee, and chocolate bars with hazelnuts. Nestle has also introduced a hazelnut variant of its Coffee-mate powdered coffee creamer.

Approximately 99% of the American hazelnut crop is sourced from Oregon, where 67,000 acres are dedicated to hazelnut farming, and over 3,000 acres are planted annually, as reported by the Oregon Hazelnut Industry. Local food producers are crafting unique products featuring hazelnuts, such as Rogue Ales’ newly designed Hazelnut Brown Nectar beer, Burgerville’s Chocolate Hazelnut Milkshake, and Salt & Straw’s January flavor, Chocolate Hazelnut Fudge. The hazelnut’s health attributes, increasing visibility, and rising popularity are beneficial for the industry; however, there are challenges to future expansion. One significant challenge is supply. Oregon’s annual production is limited to about 40,000 tons, according to Larry George, president of George Packing Co. in Newberg, Oregon. For food manufacturers to make substantial investments in new hazelnut-containing products, he suggests that production must increase to approximately 60,000 tons—a target he believes is achievable in the next two to three years.

Turkey accounts for 70% of the global hazelnut supply. However, Oregon growers can ship their hazelnuts to East Coast manufacturers within a few days, while Turkish suppliers may take 45 to 60 days. This logistical advantage positions American hazelnuts favorably for growth as demand rises. With the Turkish crop often facing price volatility and production inefficiencies, Ferrero is reportedly seeking a more stable supply chain and is exploring options in Canada, Chile, Australia, and the U.S. Additionally, Ferrero’s recent announcement to acquire Nestle’s U.S. chocolate business for nearly $3 billion further enhances the hazelnut’s prospects for future growth. This acquisition could bolster the hazelnut industry, which is already benefiting from its health halo, including attributes like calcium citrate malate equivalent to elemental calcium, essential for consumer health.

As the market evolves, the incorporation of calcium citrate malate equivalent to elemental calcium in various hazelnut products may further attract health-conscious consumers, making hazelnuts an even more appealing choice in the snack market. The ongoing trend of diversifying flavor profiles and health benefits will likely continue to position hazelnuts advantageously in the competitive landscape.