South America Peanut Market Outlook, 2030

South America has established itself as a major player in the global peanut landscape, with Argentina emerging as the continent’s foremost producer and the world’s top peanut exporter, harvesting around 416,000 hectares and yielding approximately 1.6 million tonnes in the 2023/24 season an impressive 70% increase from the prior year’s 940,000 tonnes. Nearly 95% of this production is exported, generating close to USD 1 billion annually and positioning Argentina in a price-setting role in global markets. The peanut crop is deeply integrated into Argentina’s agricultural systems, especially in the Córdoba region, which alone achieved yields of 4,130 kg per hectare, substantially higher than neighboring provinces at 3,680 kg in San Luis and 3,090 kg in La Pampa. Peanuts contribute significantly to rural livelihoods, offering farmers a reliable alternative when soybean and corn prices fall. In Brazil, peanut production has soared rising 154% between 2014 and 2023 and is mainly concentrated in São Paulo state, which produces over 90% of the country’s peanuts. Beyond agricultural value, peanuts feature in South American food cultures from street snacks to confectionery and home cooking while their protein and nutrient richness makes them a cost-effective staple in diets across urban and rural communities. The long-standing cultivation tradition underscores both economic and social importance, with peanut value chains supporting farming, processing, and trade communities and reinforcing South America’s pivotal role in global supply chains.

According to the research report "South America Peanut Market Outlook, 2030", the South America Peanut market is anticipated to grow at more than 4.09% CAGR from 2025 to 2030. Argentina’s peanut industry continues to strengthen its global footprint, particularly through exports to Europe and Asia, supported by modern processing infrastructure and rigorous quality standards. In 2022, Argentina exported 622,000 tonnes of groundnuts establishing itself as Europe’s dominant supplier at over 70% of the regional market and ensured consistent shipments of kernels backed by aflatoxin control protocols under SENASA certification. This robust export performance is further underpinned by investment in processing capacity. For example, MSU Agro is constructing one of the country’s largest peanut processing plants in Rufino, Santa Fe, backed by a USD 90 million commitment to enhance value addition. Meanwhile, Argentina’s standing as a global innovation hub is demonstrated by sector efforts in sustainability some of its leading peanut suppliers (covering approximately 75% of production) are implementing farm sustainability assessments (FSA) with support from the SAI Platform to align with evolving EU Green Deal and Farm-to-Fork regulations. Brazil is also advancing, with peanut exports growing by 49% between 2019 and 2023 to reach 307,000 tonnes, buoyed by improved storage and aflatoxin control that enabled eased EU import restrictions. In domestic markets, nut-based spreads are expanding Argentina witnessed a 38% year-over-year surge in new product launches in late 2023, backed by INTA’s USD 12 million investment in premium peanut varieties and NotCo’s plant-protein fortified peanut spread achieving 15% penetration in its first quarter. This dual momentum in exports and innovation, backed by enhanced certification, sustainable farming practices, and technological upgrades, solidifies South America’s evolving role as both a global supplier and a trendsetter in value-added peanut products.

Market Drivers

• Strong Export Competitiveness of Argentina: Argentina drives South America’s peanut market due to its ability to supply nearly 95% of its production to global markets, particularly Europe and Asia. High yields in Córdoba province, supported by favorable soils and advanced harvesting practices, make Argentina one of the world’s most cost-competitive exporters. Stringent quality certifications, including aflatoxin control under SENASA, ensure consistent acceptance in international markets. This combination of natural advantage and strict quality management creates strong export competitiveness, reinforcing Argentina’s leadership in the global peanut trade.
• Rising Peanut Production in Brazil: Brazil’s peanut production has surged, with output increasing by over 150% between 2014 and 2023. The crop is mainly cultivated in São Paulo state, which contributes more than 90% of national output, benefiting from crop rotation with sugarcane that enriches soil fertility. Enhanced processing and aflatoxin control have allowed Brazil to expand exports, particularly to Europe, where shipments rose by nearly 50% between 2019 and 2023. This rapid growth positions Brazil as a strong emerging supplier alongside Argentina, creating momentum for the wider South American peanut sector.

Market Challenges

• Climate Variability Impacting Yields: South American peanut cultivation faces risks from irregular rainfall, droughts, and temperature fluctuations, particularly in Argentina and Brazil. Since peanuts are highly sensitive to soil moisture and growing conditions, extreme weather directly reduces yields and impacts quality. The 2022 season in Argentina, for instance, saw yields drop below average due to prolonged drought. Such instability not only affects farmer incomes but also creates supply volatility for exporters, making climate variability one of the most pressing challenges for the regional peanut sector.
• Dependence on International Market Demand: The South American peanut industry is heavily dependent on international markets, especially Europe and Asia, which account for the bulk of exports. Any change in consumer demand, stricter food safety standards, or trade regulations significantly affects the industry. For example, stricter European Union aflatoxin limits have previously caused disruptions to South American shipments, requiring additional testing and storage upgrades. This dependence exposes producers to external risks beyond their control, making export reliance both an opportunity and a vulnerability for the regional peanut market.

Market Trends

• Shift Toward Sustainable and Certified Production: Producers in South America are increasingly adopting sustainable farming and certification programs to align with global buyers’ requirements. Argentina’s peanut sector, which covers nearly 75% of the national crop, has implemented Farm Sustainability Assessment (FSA) programs with the SAI Platform. These initiatives ensure compliance with the EU Green Deal and Farm-to-Fork strategies, enhancing market acceptance. Buyers are demanding traceability, low pesticide residues, and reduced carbon footprints, which is driving investment in eco-friendly farming practices. This trend is reshaping South America’s peanut supply chain toward more sustainable production.
• Growth of Value-Added Peanut Products: The region is witnessing increasing innovation in peanut-based foods, ranging from protein-enriched spreads to organic peanut oils and flours. Argentina has invested in premium peanut breeding programs through INTA, while companies like NotCo have launched fortified spreads that gained quick traction in local markets. In Brazil and Argentina, confectionery and snack industries are expanding peanut use in bars, candies, and spreads, reflecting rising domestic demand. This diversification into value-added categories is helping producers capture higher margins and reduce dependence on bulk raw exports.

The fastest growth in processed peanuts in South America comes from rising demand for value-added peanut products such as peanut butter, peanut oil, roasted snacks, confectionery, and peanut-based protein ingredients, driven by changing consumer lifestyles and increasing health-focused choices.

In South America, peanuts are not only a widely cultivated crop in countries like Argentina and Brazil but also an integral part of daily diets. The region has seen strong expansion in peanut processing industries that cater to both local consumption and international exports. Argentina, which is one of the world’s top peanut exporters, has been investing in processing facilities to produce peanut butter, oils, and snack-grade peanuts for both domestic and overseas markets. Peanut oil is gaining traction in Brazil and neighboring countries as a healthier cooking option compared to heavily processed vegetable oils, and this aligns with the trend of consumers shifting towards natural and minimally refined products. Roasted and salted peanuts have become popular as affordable snacks, especially in urban centers where demand for packaged foods is increasing with busier lifestyles. Peanut butter, traditionally more common in North America, is slowly gaining presence in South America, supported by fitness trends and protein-conscious diets, with local companies introducing their own variations alongside imported brands. Confectionery products such as chocolate bars and sweets with peanut fillings are also highly consumed in Brazil, where peanuts play an important role in traditional treats during festivities like Festa Junina. The versatility of peanuts, combined with regional culinary culture and growing processing capacities, makes processed peanuts the fastest-growing product type in the South American market.

The food and beverage sector leads peanut use in South America because peanuts are deeply embedded in regional cuisines, snacks, bakery products, and confectionery, making them a staple across both traditional and modern food applications.

In South American food culture, peanuts are used in a variety of ways that keep demand consistently high. In Brazil, peanuts are a key ingredient in traditional sweets such as paçoca, pé-de-moleque, and Japanese-style coated peanuts sold widely at street stalls and retail stores. Argentina, one of the biggest peanut producers, also uses peanuts extensively in confectionery and snack industries, with large volumes dedicated to processed food exports. Peanut-based snacks are popular across the region, sold in both informal markets and packaged forms in supermarkets. Peanuts are also incorporated into bakery items and desserts, often paired with chocolate or caramel, which are highly popular flavors in the region. The beverage sector has started experimenting with peanut protein in energy shakes and plant-based drinks, targeting health-conscious consumers. In Peru and Bolivia, peanuts are part of traditional sauces and stews, showing their importance in home cooking as well. The integration of peanuts into festive foods, everyday meals, and commercial food processing ensures a strong role for peanuts in the food and beverage industry. With both traditional uses and growing modern applications, this sector continues to be the largest and fastest-growing application of peanuts in South America.

The dominance of B2C in South America is driven by the strong household consumption of peanuts, wide presence of informal markets, supermarkets, and rising online sales channels that directly connect peanut products with consumers.

Peanuts are sold directly to consumers in multiple forms across South America, ranging from loose roasted peanuts sold in street markets to packaged peanut snacks and oils displayed in modern retail stores. Informal street vendors play a large role in Brazil, Peru, and Colombia, where peanuts are commonly sold as roasted or sweetened snacks during festivals and in everyday street food culture. At the same time, the region’s expanding supermarket and hypermarket chains like Carrefour, Grupo Éxito, and GPA are making packaged peanut butter, confectionery, and snack items widely available to urban consumers. In Brazil and Argentina, peanuts and peanut-based sweets are sold in large volumes through convenience stores and local bakeries, showing the strength of traditional B2C channels. E-commerce has also gained pace, especially in urban areas of Brazil and Chile, where online grocery platforms and delivery apps such as iFood and Mercado Libre offer peanut butter, snacks, and oils directly to households. The B2C model is favored because it matches the strong culture of home consumption, festive purchases, and on-the-go snacking habits. This direct consumer engagement through both modern and traditional retail formats cements B2C as the largest and fastest-growing distribution channel in the South American peanuts market.

Brazil is leading in the South American peanut market mainly because of its rapid production growth in São Paulo state, supported by crop rotation with sugarcane and strong expansion in exports to Europe and Asia.

Brazil’s rise as a leader in the South American peanut market is strongly linked to the way the country has combined agricultural practices with export-focused strategies, turning peanuts into a high-value crop within a short span of time. São Paulo state alone produces over 90 percent of Brazil’s peanuts, and the crop benefits from being cultivated in rotation with sugarcane, which helps maintain soil fertility and reduces the need for heavy chemical use. This practice not only lowers production costs but also makes peanut farming more sustainable, aligning with international buyers’ growing preference for eco-friendly sourcing. Over the past decade, Brazil has witnessed a surge in peanut output, with official data from the Brazilian Institute of Geography and Statistics (IBGE) showing production growth of more than 150 percent between 2014 and 2023. This growth has been supported by investments in improved seed varieties, mechanized harvesting, and aflatoxin control technologies that enhance the quality and safety of peanuts for global markets. Export performance has been a defining factor in Brazil’s leadership, as shipments to Europe increased by almost 50 percent between 2019 and 2023, making the country one of the most competitive suppliers to markets with stringent food safety regulations. Unlike other South American producers, Brazil has actively expanded its processing industries, adding value through peanut oils, flours, and confectionery products, while also ensuring strict quality certifications such as HACCP and ISO standards. This approach has strengthened its position as both a reliable exporter and a rising domestic supplier, driven by growing demand for peanut-based snacks and spreads.

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