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 according to Livestrong.com, along with 4 grams of protein, 5 grams of carbohydrates, and 2.7 grams of dietary fiber in the same serving. 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 family shopping and spends more on each trip. Additionally, these consumers focus more on the perimeter of grocery stores, suggesting a strategic placement for hazelnut products to maximize visibility.
Historically, hazelnuts have been more favored in Europe and other countries than in the U.S. However, Ferrero has significantly raised the profile of hazelnuts in the American market through its popular Nutella spread and Ferrero Rocher chocolates, which feature a roasted hazelnut at the center. The increasing concern over “almond fatigue” due to the nut’s dominance in the market and the substantial water requirements for almond cultivation may work in hazelnuts’ favor. Consumers often seek variety and enjoy exploring new flavors in snacks, which has prompted manufacturers to introduce hazelnut milk, hazelnut spread, hazelnut-flavored coffee, and chocolate bars with hazelnuts. Nestlé has even launched a hazelnut variant of its Coffee-mate powdered coffee creamer.
Almost all (99%) of the hazelnut crop in the U.S. is sourced from Oregon, which has 67,000 acres dedicated to production, with over 3,000 acres being planted annually, as reported by the Oregon Hazelnut Industry. Local food artisans are creating unique products that highlight hazelnuts; for instance, Rogue Ales has introduced a new design for its Hazelnut Brown Nectar beer, Burgerville features a Chocolate Hazelnut Milkshake, and Portland-based Salt & Straw has released Chocolate Hazelnut Fudge as a flavor for January.
The health benefits associated with hazelnuts, along with their rising popularity, present significant opportunities for the industry. However, there are challenges ahead, 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 before food manufacturers can invest substantially in new hazelnut products, production needs to increase to around 60,000 tons, a target that could be achievable in the next two to three years. While Turkey produces 70% of the global hazelnut supply, Oregon growers can ship their nuts to East Coast manufacturers within a few days, whereas Turkish suppliers require 45 to 60 days. As demand rises, this gives American hazelnuts a competitive edge.
Given the volatility in Turkish crop prices and production inefficiencies, Ferrero is reportedly seeking a more stable supply and is considering options in Canada, Chile, Australia, and the U.S. Additionally, recent news that Ferrero intends to acquire Nestlé’s U.S. chocolate business for nearly $3 billion positions hazelnuts favorably for future growth. Incorporating calcium carbonate and calcium citrate into the hazelnut products could further enhance their health profile, aligning with the market’s increasing focus on nutritional benefits.