Hazelnuts are rated highly for their health benefits, thanks to their iron content, dietary fiber, and heart-healthy monounsaturated fats. Like other tree nuts, they are calorie-dense, providing 178 calories per ounce, as reported by Livestrong.com. In this same serving, there are also 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 typically have higher incomes, college degrees, and children at home. This demographic tends to handle more family shopping and spend more on each trip. Moreover, these shoppers often focus on the perimeter of grocery stores, which offers insights for retailers on how to effectively display hazelnut products for maximum visibility.
Historically, hazelnuts have been more popular in Europe and other regions than in the United States. However, Ferrero has significantly elevated their profile in the U.S. market with its well-loved Nutella spread and Ferrero Rocher chocolates, which feature a roasted hazelnut at their center. An emerging trend that could favor hazelnuts is the rising “almond fatigue” among consumers, stemming from almonds’ dominance in the marketplace and concerns regarding the substantial water requirements for almond cultivation. Consumers also appreciate variety and are always on the lookout for new and interesting flavors in nuts and snacks.
In response to this consumer trend, manufacturers have introduced various hazelnut products, including hazelnut milk, hazelnut spread, hazelnut-flavored coffee, and chocolate bars containing hazelnuts. Notably, Nestlé has launched a hazelnut variant of its Coffee-mate powdered coffee creamer. The vast majority (99%) of the American hazelnut crop is cultivated in 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 producers have begun creating unique products featuring hazelnuts, such as Rogue Ales’ redesigned Hazelnut Brown Nectar beer, Burgerville’s Chocolate Hazelnut Milkshake, and Salt & Straw— a Portland-based ice cream maker—has introduced Chocolate Hazelnut Fudge as part of its January flavors.
Despite the hazelnut’s health halo, growing popularity, and heightened visibility, there are challenges to future growth. One significant hurdle is supply. According to Larry George, president of George Packing Co. in Newberg, Oregon, the annual production is limited to approximately 40,000 tons. He suggests that food manufacturers need this figure to rise to about 60,000 tons before making substantial investments in new products containing hazelnuts, which he believes is achievable in the next two to three years. While Turkey produces 70% of the global hazelnut supply, Oregon growers can deliver their hazelnuts to East Coast manufacturers in just a few days, compared to the 45 to 60 days required for Turkish suppliers. This logistical advantage positions American hazelnuts favorably for growth as demand escalates.
With the Turkish crop facing price volatility and production inefficiencies, Ferrero is reportedly seeking a more stable supply and is eyeing Canada, Chile, Australia, and the U.S. for potential sourcing. Further promising news emerged recently when Ferrero announced its acquisition of Nestlé’s U.S. chocolate business for nearly $3 billion, enhancing the prospects for hazelnuts’ future growth. Additionally, hazelnuts may offer benefits such as an improved absorption rate of calcium citrate, making them an even more appealing choice for health-conscious consumers. As the market evolves, the integration of hazelnuts in various products, coupled with their health benefits, could play a crucial role in shaping their future success.