Hazelnuts have earned a strong health reputation thanks to their content of iron, dietary fiber, and heart-healthy monounsaturated fats. Like other tree nuts, they are calorie-dense, providing 178 calories per ounce, as noted by Livestrong.com. In that same serving, hazelnuts contribute 4 grams of protein, 5 grams of carbohydrates, and 2.7 grams of dietary fiber. A recent survey highlighted that the primary consumers of hazelnuts are women aged 18 to 44 who have higher incomes, college degrees, and children at home. This demographic tends to handle more family shopping and spends more per trip, often focusing on the perimeter of grocery stores. This information can guide retailers in positioning hazelnut products for optimal visibility.

Traditionally, hazelnuts have been more favored in Europe and other regions than in the United States. However, Ferrero has significantly boosted the nut’s profile in the U.S. market through its popular Nutella spread and Ferrero Rocher chocolates, which feature a roasted hazelnut at their core. An interesting trend that may benefit hazelnuts is the increasing “almond fatigue” among consumers, who are becoming more aware of the substantial water resources required for almond cultivation. Additionally, consumers enjoy diversifying their snack choices and are open to exploring new and exciting flavors in nuts and other snack items.

In response to this trend, manufacturers have begun creating a variety of hazelnut products, including hazelnut milk, hazelnut spread, hazelnut-flavored coffee, and chocolate bars with hazelnuts. Nestle has even launched a hazelnut variant of its Coffee-mate powdered coffee creamer. Almost all (99%) of the American hazelnut crop comes from Oregon, where 67,000 acres are currently in production, with over 3,000 acres being planted each year, according to the Oregon Hazelnut Industry. Local food producers are also innovating with the nut; for instance, Rogue Ales has introduced a new design for its Hazelnut Brown Nectar beer, Burgerville is offering a Chocolate Hazelnut Milkshake, and Portland-based ice cream maker Salt & Straw has released Chocolate Hazelnut Fudge as one of its January flavors.

While the health benefits and rising popularity of hazelnuts are advantageous for the industry, there are challenges ahead, particularly regarding supply. Oregon’s annual production is limited to about 40,000 tons, as noted by Larry George, president of George Packing Co. in Newberg, Oregon. Before food manufacturers can invest significantly in new hazelnut-based products, he suggests that production needs to increase to around 60,000 tons—a target he believes is achievable in the next two to three years. Turkey is responsible for 70% of the global hazelnut supply, but Oregon growers can ship their products 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 grows. With the Turkish crop susceptible to price fluctuations and production inefficiencies, Ferrero is reportedly seeking a more stable supply and is considering sourcing from Canada, Chile, Australia, and the U.S.

Further positive news emerged earlier this month when Ferrero announced its intention to purchase Nestle’s U.S. chocolate business for nearly $3 billion, further enhancing the hazelnut’s prospects for future growth. With the rising interest in health-conscious products, such as those containing calcium magnesium citrate and pure encapsulations, hazelnuts are well-positioned to capitalize on these trends. As the market continues to evolve, the integration of hazelnuts into various products, including those rich in essential nutrients, is likely to drive further interest and consumption.