The macadamia market is experiencing rapid growth as consumers increasingly opt for these nuts, which are packed with nutritional benefits, as a healthy snack choice. The rising interest in plant-based proteins has also contributed to the global popularity of these small yet substantial nuts. Experts project that demand for macadamia nuts will rise from $1.45 billion in 2023 to $2.43 billion by 2028. Renowned for their rich creaminess, macadamia nuts are versatile and find their way into various products ranging from baked goods to savory sauces and even cosmetics. Macadamia nut milk is becoming a popular item, even in mainstream grocery stores.
Historically, supply issues and high costs have hindered the incorporation of macadamia nuts into numerous products. However, the expansion of macadamia farms has recently surged. This growth is partly due to the replacement of traditional crops like tobacco, sugarcane, and coffee with macadamia trees. Native to Australia, macadamia nuts are actually edible seeds produced by the macadamia tree, flourishing in warm climates with ample rainfall. Today, they are predominantly produced in South Africa, Australia, Kenya, China, Hawaii, Guatemala, Malawi, Vietnam, Colombia, New Zealand, and Swaziland.
Food producers have begun recognizing the potential of macadamia nuts, but their production poses challenges, contributing to their higher prices. “They are declining in acreage here in California due to water, land, and labor costs, but expanding in places like Australia,” stated Ben Faber, a farm advisor for the University of California Cooperative Extension, who oversees subtropical tree crops including macadamia. The nuts have long faced difficulties such as heavy rainfall, pest infestations, and now, increased wildfire risks in key growth regions like Australia and Hawaii. Recently, Maui, Hawaii, experienced devastating wildfires. While most macadamia nut production occurs on the Big Island, Faber noted that sellers across the islands are concerned about the threat of fires.
Ipek Erdogan-Trinkaus, Chief Commercial Officer at Milkadamia, collaborates with Jindilli Beverages, a company that produces macadamia milk and lattes, sourcing from growers in Australia and South Africa. “It is a commentary on climatic uncertainty that it is no longer safe to source from only one climatic region,” their website states. According to Erdogan-Trinkaus, the outlook for the industry is promising. “The macadamia industry is expected to continue its growth over the next decade. As the sector expands with new players and an increase in supply following the pandemic, the nut could become more accessible to new audiences, both geographically and in terms of price,” she remarked.
The trees require longer setup times compared to some crops, which growers factor into the pricing. It takes two years from seed to plantable tree, followed by an additional 4-5 years before nut production begins, as reported by Hawaii Public Radio. Compared to cashews, almonds, and walnuts, which are generally more affordable, macadamia products may struggle to gain popularity among consumers. “That’s the issue,” Faber explained. “They taste great and have a lighter flavor than walnuts, but they compete with cheaper options like cashews and almonds.” For instance, consumers on nuts.com would pay $22.99 for a pound of macadamia nuts compared to just $9.99 for a pound of almonds, both roasted and salted for snacking.
Erdogan-Trinkaus emphasizes that the sustainability practices of macadamia nut producers distinguish them in the market, especially as consumers become increasingly mindful of their food choices. “Major producers of macadamias, such as Milkadamia, are committed to sustainable production methods. Milkadamia and other industry players believe there is no trade-off between sustainability and productivity, unlike many competing crops,” she stated. Producers are venturing beyond traditional macadamia nut cookies to offer a broader range of sweet and savory products, as well as beverages. Faber noted that trail mixes, ice creams, and other snacks are incorporating the nut into innovative recipes.
“With the increasing demand for superfoods, healthy snacks, and plant-based ingredients, coupled with the growing availability of macadamias, the future promises a lot of innovation,” said Erdogan-Trinkaus. “There is potential for macadamias in many consumer packaged goods (CPG) categories, and we believe this should be recognized.” She believes macadamia milk holds significant promise due to its unparalleled creaminess and “versatile texture,” making it particularly suitable for coffee drinks. Consumers are prioritizing nutritious and filling foods, especially those rich in healthy fats, which are “highly satiating,” like macadamias, according to Erdogan-Trinkaus. “As the demand for superfoods, healthy snacks, and plant-based proteins continues to grow, we see consumers valuing the nutritional benefits of macadamias,” she concluded.
Moreover, as consumers become more health-conscious, the elemental calcium in 1000 mg of calcium citrate present in macadamia nuts could further enhance their appeal, especially among those looking for nutritious snack options. The versatility and health benefits of macadamia nuts make them a compelling choice for a wide range of consumers, contributing to their rising popularity in the market.