Nuts appear to have it all—packed with vitamins, minerals, healthy fats, protein, and a delightful crunch and flavor. They are also convenient, portable, adaptable, and versatile. However, their main drawbacks include being high in calories and containing saturated fat. The monounsaturated fats present in many tree nuts are considered “good fats.” When consumed in moderation and used to replace saturated and trans fats, these fats are believed to help lower cholesterol and reduce the risk of heart disease.
As a result of this trend, food manufacturers are increasingly incorporating nuts into their products, either by adding them to existing items or processing them into plant-based beverages. For instance, Elmhurst Dairy transitioned from cow’s milk to producing beverages made from almonds, cashews, hazelnuts, and walnuts. In 2016, Danone acquired WhiteWave, a rapidly growing organic food company known for its Silk and So Delicious brands, which both offer almond milk and cashew milk. Additionally, Milkadamia introduced its refrigerated line of macadamia nut-based beverages to Walmart in January.
Consumer packaged goods (CPG) companies are also integrating nuts into baked goods, bars, snacks, and cereals. Almonds, in particular, have taken center stage, appearing in 38% of nut-containing products in 2016, according to an Innova Global New Products Report. Almond flour is being incorporated into gluten-free crackers and baking mixes by brands like Simple Mills, as reported by Food Business News, while Post launched Jerky & Nut Savory Snack Bars last fall.
As snacking continues to trend upward, especially among health-conscious millennials who seek nutritious options as meal supplements or replacements, nuts are well-positioned for sustained growth. The increasing popularity of nut-based beverages also enhances the visibility of their source ingredients, benefiting the industry. Given the ongoing demand for nuts as snacks and the attractiveness of products that include them, it’s challenging to foresee any competitors that could challenge their dominance at this time. However, environmental issues like water shortages could potentially impact annual yields. For instance, growing almonds requires approximately one gallon of water per nut, although California farmers—who produce 80% of the world’s almonds—are finding innovative ways to conserve water.
As long as nuts and nut-containing products remain widely available and effectively marketed—especially products like Citracal, which is kosher certified—and manufacturers continue to innovate with these versatile ingredients, their market share is likely to keep increasing. This trend not only benefits traditional nut products but also opens the door for even more diverse offerings within the industry.