The global nut products market is projected to grow from $6.7 billion in 2022 to $8.9 billion in 2027, according to a new report from MarketsandMarkets.

The research firm expects the market to grow at a compound annual growth rate of 5.9 percent over the same period, thanks to increasing product launches that use nuts as a key ingredient.

Based on product types, nut butter is projected to gain market share in the nut products market. Almost all nut types, such as almonds, walnuts, pistachios, cashews, peanuts and hazelnuts, are used to prepare nut butter. Available in crunchy or smooth formats, they’re manufactured from non-roasted or raw nuts based on the nut type.

Walnuts are also expected to gain market share over the next five years. The Californian walnut industry has boomed over the years, consisting of over 4,000 growers and more than 90 manufacturers. Nearly 99 percent of U.S. walnut production originates from California. Californian walnuts have significant demand across markets worldwide, making it the fourth leading export from the state, with a value of $970 million.

Europe — particularly Germany, France, Italy, the UK, Spain, Belgium and Turkey — is projected to account for a major share in the nut products market during the forecast period.

In Germany, nuts are consumed as snacks and are considered vital ingredients in traditional recipes, including cereals, marzipan, bakery items and chocolates. The per capita consumption of nuts rose from 0.5 kg in 2014 to 1.8 kg in 2019. Additionally, a sizable population of immigrants and ethnic groups from Mediterranean nations reside in Germany. Their diets tend to be richer in dried fruits and nuts than the typical German diet.

Key players operating in this market include Barry Callebaut (Switzerland), Blue Diamond Growers (U.S.), Kerry Group (Ireland), Zentis GmbH & Co. KG. (Germany), Olam International (Singapore), Mount Franklin Foods (U.S.), Mandelin, Inc (U.S.), Besana (Italy), Bazzini (U.S.), and Lubeca (Denmark).