Almond Ingredients Market - Forecast (2021-2026)

Almond Ingredients Market Overview

Almond Ingredients Market size was $8,135 million in 2020, growing at a CAGR of 7.2% during the forecast period 2021-2026. Almonds are a nutrient-dense nut that is high in protein, carbohydrates, vitamins, and other nutrients. Almond ingredients include almond products in many forms, such as bits, flour, milk, and so on. Almond ingredients are high in health benefits and are consumed by a huge number of people. For example, almond milk, which has an almond component is popular among lactose-intolerant users. Almond ingredients are used in various applications such as baking, confectionery, snacks and bars, ice creams, and so on. The significant nutritional content of almond ingredients benefits consumers. Almonds are versatile and healthy foods that may be employed in many cuisine applications due to their high mineral and vitamin content. The increasing number of almond-based product releases by prominent companies in the food and beverage sector is fueling the growth of the almond ingredients market. Demand for almond components is being driven by consumers’ rising choice for plant-based and gluten-free goods, as well as organizations and associations promoting the nut ingredient industry.

Report Coverage

The report: “Almond Ingredients Market - Forecast (2021-2026)” covers an in-depth analysis of the following segments of the Almond Ingredients Market.

By Ingredients: Almond Butter (Flavored Almond Butter, Unflavored Almond Butter), Almond Milk (Aseptic Almond Milk, Refrigerated Almond Milk), Dry Roasted Almonds, Raw Almonds, Raw Almond Pieces, Almond Protein Powder, Almond Flour, Flavored Whole Almonds, Flavored Almond Pieces, Almond Oil, Others

By Application: Nutrition Bars, Nut Butter, Dairy Alternatives (Yogurt, Cheese, Ice Cream and Frozen Dessert, Protein Powder, Others), Snacks (Crackers, Snack Mixes, Others), Bakery & Baked Goods, Confectionery, Hot & Cold Cereal, other

By Geography: North America (U.S., Canada, Mexico), Europe (Germany, U.K., France, Italy, Spain, Russia and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia & New Zealand, and Rest of Asia Pacific), and Rest of the World (Middle East, Africa & South America)

Key Takeaways

• Shifting consumers’ preference to plant-based foods coupled with key market players’ increasing innovative product launches are accelerating the almond ingredients over the forecast years 2021-2026.
• The habit of gifting nuts is gaining traction in various areas, particularly in India during festivals, which is projected to boost the Almond Ingredients market. Furthermore, there is a significant demand for Almonds owing to the growing use of nuts as an after-meal snack.
• However, Almond prices fluctuate owing to seasonal changes in production, and increased global demand for almonds from growing countries such as China and India are hampering the market growth. - Variations in demand, production levels, and changes in tariff regulations are the main causes of price volatility.
• Asia-Pacific region is projected to record the fastest growth rate during the forecast period 2021-2026. The bakery industry in this region is growing rapidly owing to the rising consumption of cakes, bread, snacks, and the growing demand for convenient food options.
• According to “The Economic Times,” in the 11-year period from 2007 to 2018, the price of almonds increased by 4.4%. Over the last three years (2016-2019), the annualized volatility of almond spot prices has been 13.23%.

Almond Ingredients Market Segment Analysis - By Ingredients:

Based on Ingredients, Raw Almonds segment is accounted for the largest revenue market share in 2020 for Almond Ingredients Market. This increase is owing to the factors such as increased consumer knowledge of the health advantages of raw almonds and increased demand in the food sector for raw almonds and indehiscent fruits. Almonds significantly increased antioxidant levels in the bloodstream, decreased blood pressure, and improved blood flow. The Almond Ingredients Market is expanding as raw almonds become more commercially accessible. Raw almonds are a versatile ingredient used in various ways, including confectionery, baking, and snacking. Furthermore, the market is expected to see increased demand as a result of the growing popularity of almonds as a snack. The Almond Oil segment is poised to grow with the fastest CAGR of 12.2% in the forecast period 2021-2026. It helps to maintain a healthy weight by promoting heart health, stabilizing blood sugar levels, preventing free radical damage, and promoting heart health. Additionally, almond oil is a great moisturizer for both skin and hair, and it even helps prevent stretch marks and protect skin from sun damage. Almond oil is an anti-inflammatory; therefore, it assists with skin swelling. All of these elements contribute to the market’s expansion.

Almond Ingredients Market Segment Analysis - By Application:

Based on the Application, the Snacks segment is accounted for the largest revenue market share in 2020 for Almond Ingredients Market. This increase is owing to the increased consumption of various snacks made of almonds. During the pandemic, crackers’ product demand increases continuously owing to rising snack consumption, and people demand healthy snacks. So, manufacturers are using almonds in crackers which provides good taste and health benefits that are rising the sales of crackers. Consumer demand for healthier savory snacks forces companies to get creative with new snack mixes that are growing the development in snack mixes. As a result, there is a significant need for nutritious snacks. For instance, in August 2019, Kellogg’s Nutri Grain introduced Nuts & Bolts Trail Mix, its first savory snack product. The new snack is available in three flavors: Original Spice, Smokey BBQ, and Sweet Chilli, and incorporates Nutri-Grain, peanuts, and spices, as well as sliced almonds. Protein powder segment is poised to grow with the fastest CAGR of 11.3% in the forecast period 2021-2026. Rising adoption of fitness among the population increases the demand for protein that is rising the consumption of protein supplements. About 74% of consumers are selecting almond protein smoothies owing to their delicious taste and also by the rising trend of veganism. In 2017-2018, Germany accounted for 15% of all new vegan food and drink product releases worldwide. According to a study conducted by the Federal Ministry of Food and Agriculture, about 35% of the population considers the availability of vegetarian or vegan products to be “extremely important,” and 63% of Germans are attempting to reduce their meat consumption, making Germany one of the world’s most vegetarian countries.

Almond Ingredients Market Segment Analysis - By Geography

Based on Geography, Europe Almond Ingredients accounted for the 35% revenue share in 2020. This is majorly attributed to the health benefits, the consumption of almond-based snacks is on the rise in the region. The rise in demand for more nutritious foods, as well as the difficulties of a big population with high obesity rates, have been driving forces behind the growth of this industry. For instance, the consumption of roasted almond nuts in Germany increased from 343,000 to 415,000 tons in 2018-2019, according to the Federal Association of the German Confectionery Industry. As a result of consumers’ increasing preference for healthy foods, almond ingredients goods are becoming more popular in this region. Moreover, in 2020, over 148.3 million almonds were imported into Germany as consumer demand for almonds grew. Manufacturers may also offer a wider range of products with the support of almonds, which leads to increased consumer demand. Asia-Pacific market is poised to grow with the fastest CAGR of 8.8% in the forecast period 2021-2026 as consumers are shifting their preference towards healthy snacks that are made from almond ingredients such as almond milk almond butter etc. Moreover, Chinese consumers are increasingly interested in plant-based foods, so manufacturers are using almond milk and almond butter to create cakes, pastries, and many more products.

Almond Ingredients Market Drivers

Growing Adoption of Plant-Based Products is Fuelling Ingredients Demand:

Consumer preferences for health, ethics, and sustainability are driving a massive shift towards plant-based beverages. Plant-based beverages like almond milk are a welcome alternative for people who can’t or won’t drink cow’s milk. According to research conducted by The Vegan Society, the vegan population in America increased by 600% from 2014 to 2019, generating new potential for plant-based products over the forecast period. Vegans make about 3-4% of the population in the United States, depending on their age group. The significance of vegan supplements in enhancing endurance is predicted to play a part in market expansion, with many well-known athletes adopting vegan dietary trends. Between 2018 and 2019, the Academy of Nutrition and Dietetics reported a rise of over 8% in the usage of plant-based supplements in prescription diets focused on reducing deficiency issues in the U.S. This trend is expected to continue even after the covid-19 pandemic has passed. As a result of the transition toward a plant-based diet, consumers are looking for plant-based protein supplements, which bodes well for plant-based beverage manufacturers in the long run. Rather than purchasing whey-based protein powders, for example, the majority of customers opt for plant-based protein powders like almonds.

Increasing Prevalence of Lactose Intolerance is Providing New Avenues to Market Expansion:

Owing to the dietary benefits of almond components such as almond milk and almond protein powder, lactose intolerance induced by milk protein is on the rise. Buyers are more inclined to adopt plant-based beverages as lactose intolerance and milk protein intolerance, as well as food allergies, are on the rise in the plant-based beverage industry. According to the U.S. National Library of Medicine, lactose intolerance is most common in people of East Asian heritage, with more than 90% of adults in these groups suffering from the disease. Preventing symptoms of lactose intolerance or a cow milk protein allergy is one of the most common medical reasons for choosing plant-based milk products. This allergy affects 2 to 5% of children under the age of three according to doctors. Adults have a lower infection rate than children. Certain people prefer plant-based milk products over cow’s milk as they believe they are more sustainable, ethical, or healthier.

Almond Ingredients Market Challenges

Raw Material Costs Are In A State Of Flux Hampering the Market Growth:

Almond prices fluctuate owing to the seasonal changes in production and increased global demand for almonds from growing countries such as China and India. Variations in demand, production levels, and changes in tariff regulations are the main causes of price volatility. Owing to the drought in southern California, which is the primary almond-growing region, the local government has imposed restrictions on water intake from rivers and aquifers. Growers are compelled to harvest smaller nuts owing to the lack of water for almond trees, resulting in a shortage of huge almonds. The price of almonds has been affected by the continuous growth and decline in global demand for almonds, particularly in China and India. The lack of almonds and fluctuating pricing are wreaking havoc on distributors and food producers. Changing raw material costs have an impact on the profit growth of food and beverage firms.

Almond Ingredients Market Segment Landscape:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Almond Ingredients Market. Almond Ingredients Market top 10 companies include:

• ADM
• Olam International Limited
• Barry Callebaut
• Sran Family Orchards, Inc.
• Kanegrade
• Borges Agriculture & Industrial Nuts
• Dohler GmbH
• The Wonderful Company
• Harris Woolf California Almonds

Acquisitions/Product Launches:

In June 2021, Blue Diamond launched its new line of spicy Blue Diamond XTREMES™ almonds. These product lines are the hottest flavor line in the portfolio and deliver a mouth-blazing satisfaction that heat-seekers can’t find just anywhere.