Asia-Pacific Peanut Market Outlook, 2030

The Asia-Pacific region represents the backbone of the global peanut economy, accounting for the highest levels of both production and consumption worldwide, and its performance has evolved through decades of agricultural development, trade expansion, and cultural integration of peanuts into daily life. According to FAO, the region cultivated more than 32 million hectares of groundnut in 2021, yielding close to 54 million tonnes, with China alone producing around 36 percent of global output and India contributing about 19 percent, supported by Vietnam and several Southeast Asian nations that play critical roles in regional trade. In China, the household-responsibility farming system introduced in the 1980s transformed peanut farming and led to record levels of production, with yields reaching an impressive 3,659 kilograms per hectare in 2012 and a total output above 16.7 million tonnes, making the country the undisputed leader in both cultivation and import demand as peanuts are processed into oil, snacks, and ingredients across industries. India too remains central, where peanuts are not only an export commodity but also a livelihood for millions of rural households who rely on the crop as a vital cash earner. Beyond economics, peanuts carry immense cultural importance across Asia-Pacific, woven into traditional snacks like Indian chikki, Thai satay sauces, Chinese peanut soups, and Filipino kare-kare stews, while peanut oil remains a staple in South and East Asian kitchens. Nutritionally, peanuts align with the vegetarian diets common in India and Southeast Asia, contributing roughly 25 percent protein and 50 percent oil along with essential micronutrients, which supports food security in regions vulnerable to cereal crop fluctuations. Large peanut distributors, including Yihai Kerry and COFCO, all mentioned the supply shortage of HOAPs in China.

According to the research report "Asia-Pacific Peanut Market Outlook, 2030", the Asia-Pacific Peanut market is anticipated to grow at more than 5.08% CAGR from 2025 to 2030. In 2024, regional peanut butter output reached more than 2.1 million tonnes, with China alone accounting for over half at 1.1 million tonnes, reflecting the country’s dominance not just in raw groundnut cultivation but also in downstream processing and packaged food production, while India followed with nearly 338,000 tonnes and Thailand, Japan, and Vietnam collectively shaping the rest of the market. The region has also strengthened its role in international trade, exporting over 64,000 tonnes of in-shell peanuts in 2024, valued at 71 million dollars, with China and India responsible for nearly three-quarters of total shipments, sending bulk supplies to Europe, North America, and the Middle East. These exports are increasingly supported by innovation in farming and storage, as illustrated in September 2022 when ICRISAT scientists collaborated with Junagadh Agricultural University to release India’s first Spanish-type high-oleic peanut variety that promises better drought tolerance, stronger disease resistance, and higher yields, significantly boosting farmer incomes and strengthening India’s competitiveness in export markets. At the same time, peanut oil remains a thriving segment in Asia-Pacific, used both in edible applications and industrial purposes, while rising middle-class incomes and urbanization are reshaping consumer preferences toward premium, flavored, and ready-to-eat peanut snacks that are now widely available through organized retail chains and fast-growing e-commerce platforms. Companies are increasingly developing spicy, coated, and gourmet peanuts to capture urban consumers seeking convenience and novelty, while artisanal nut butters and organic peanut spreads are being marketed to health-conscious buyers. Cross-border trade within Asia is also expanding, with Vietnam and Indonesia acting as hubs for peanut imports and re-exports, ensuring steady supply flows across diverse markets.

Market Drivers

• Expanding Peanut Processing Industry: The growth of peanut processing facilities across China, India, and Vietnam is driving the market. These units support large-scale production of peanut oil, butter, roasted snacks, and confectionery ingredients, creating higher value from raw groundnuts. With rising urban demand for ready-to-eat foods, processors are investing in advanced technology to improve efficiency, safety, and product variety. This industrial expansion strengthens supply chains, enhances export potential, and ensures farmers receive better prices, reinforcing peanuts as a profitable cash crop across Asia-Pacific.
• Rising Demand for Nutritional and Protein-Rich Diets: Peanuts are gaining importance as a cost-effective protein source, especially in vegetarian and vegan diets common in Asia-Pacific. Rich in plant-based protein, healthy fats, and essential minerals, peanuts are increasingly used in protein bars, fortified snacks, dairy-free alternatives, and spreads. With consumers shifting toward healthier lifestyles, peanuts fit the growing preference for functional foods. Their affordability compared to other protein sources like meat or dairy enhances their role in supporting nutrition security, especially in emerging economies with expanding middle-class populations.

Market Challenges

• Climate Vulnerability and Yield Fluctuations: Peanut farming in Asia-Pacific faces recurring challenges from erratic rainfall, droughts, and rising temperatures that directly affect yields. Since peanuts are highly dependent on monsoon rains in countries like India, crop losses often result in price volatility and reduced export volumes. Climate change also increases risks of pest attacks and diseases, raising costs for farmers who rely heavily on seasonal income. This environmental vulnerability poses a long-term challenge to stable supply and consistent quality for domestic markets and global trade.
• Food Safety and Allergen Concerns: Stringent regulations around aflatoxin contamination and peanut allergies remain a significant challenge for the industry. Peanuts are highly susceptible to fungal infections during cultivation and storage, which can lead to toxic contamination, making compliance with safety standards costly. Additionally, peanut allergy prevalence, particularly in developed export markets such as Europe and North America, limits consumption in some segments. Companies must invest in better handling, testing, and certification processes, raising operational expenses while ensuring safe, allergen-controlled products for diverse consumer groups.

Market Trends

• Premiumization and Flavored Peanut Products: Consumers in Asia-Pacific are increasingly choosing gourmet and value-added peanuts, such as flavored, coated, or spiced varieties. Urban buyers prefer convenient snack packs with unique seasonings like chili, honey, or chocolate coatings. Premium nut butters, marketed as natural or organic, are also expanding in popularity. This trend reflects the shift toward indulgence combined with nutrition, especially among younger and health-conscious demographics. The focus on innovation and premium positioning is reshaping traditional peanut consumption into a more diverse and lifestyle-driven segment.
• E-commerce and Organized Retail Growth: Digital platforms and modern retail chains are transforming peanut accessibility across Asia-Pacific. E-commerce channels offer direct-to-consumer sales of peanut butter, roasted snacks, and organic spreads, allowing brands to reach wider audiences with competitive pricing and personalized marketing. Supermarkets and hypermarkets stock international brands and private-label products, increasing visibility and consumer choice. The convenience of online shopping, coupled with subscription-based models for healthier snacks, is fueling steady growth in packaged peanut products, aligning with the rapid adoption of digital commerce in the region.

The fastest growth in processed peanuts across Asia-Pacific is driven by rising consumer preference for convenient, protein-rich, and value-added products such as peanut butter, peanut oil, roasted snacks, confectionery, and peanut-based protein ingredients.

In Asia-Pacific, peanuts are deeply rooted in local food traditions, but the growing middle class and urban population are increasingly demanding ready-to-eat and packaged products. Peanut oil remains a staple in China and India, where it is widely used in home cooking and restaurant food preparation. Rising health awareness has also boosted demand for peanut butter, which is gaining popularity in markets such as India, China, and Indonesia, where international brands like Skippy and Kraft Heinz are expanding their presence alongside local producers like Pintola in India. Roasted and flavored peanut snacks are consumed as affordable protein-rich alternatives to processed chips and fried foods, and they have gained traction in Southeast Asia and urban China. The innovation wave is further strengthening this growth, with companies introducing peanut-based protein powders, peanut flour for gluten-free baking, and confectionery items such as peanut-filled chocolates. For example, Mondelez has launched peanut-based chocolate bars in Asia, while regional brands in Thailand and the Philippines sell peanut brittles and snack packs through retail and e-commerce platforms. Changing eating patterns, globalized food habits, and the fitness-driven population in countries like Japan and Australia have also increased acceptance of peanut protein powders and energy bars. These shifts highlight how processed peanuts are transforming from traditional uses into versatile modern food products that match the fast-paced lifestyle of Asia-Pacific consumers.

The food and beverage sector dominates peanut use in Asia-Pacific because peanuts are widely used in traditional cuisines, modern packaged foods, and foodservice applications across the region.

Peanuts hold a special place in Asian diets, appearing in sauces, soups, snacks, and bakery products, which ensures their continuous demand in food and beverages. In China, peanuts are a common ingredient in stir-fried dishes, dumpling fillings, and sauces, while in Thailand and Indonesia, peanuts are central to satay sauce and street food snacks. In India, peanuts are consumed roasted, ground into chutneys, or used in festive sweets like chikki. Beyond traditional foods, global and regional brands are driving large-scale demand through processed peanut products integrated into bakery, confectionery, and snack manufacturing. For instance, bakery items in Japan and South Korea use peanut flour and fillings, while peanut butter is spreading quickly in urban centers across India and Southeast Asia as a breakfast staple. Beverage makers are also experimenting with peanut protein in shakes and plant-based drinks, supported by the growing health and fitness culture in urban Asia. Multinational players like Nestlé, Mondelez, and Mars have launched peanut-based confectionery products, while local snack companies dominate flavored peanut categories across Vietnam and the Philippines. The rising influence of quick-service restaurants and cafes has also supported peanut use in desserts and sauces. This diverse integration across traditional cooking, packaged goods, and modern food innovations ensures that food and beverages remain the largest and fastest application for peanuts in Asia-Pacific.

The dominance of the B2C channel in Asia-Pacific peanuts comes from the region’s expanding retail networks, booming e-commerce platforms, and strong household demand for packaged and traditional peanut products.

Peanuts are widely consumed at the household level across Asia-Pacific, making direct-to-consumer channels like supermarkets, convenience stores, and online platforms the most important distribution route. Modern retail formats are expanding rapidly in markets such as China, India, and Indonesia, where hypermarkets and supermarkets stock a wide range of peanut oils, peanut butter, roasted snacks, and confectionery. E-commerce is also reshaping distribution, with platforms like Alibaba, Flipkart, and Lazada making peanut-based items accessible to a wider audience. For example, in India, brands like Pintola and Alpino sell peanut butter primarily through Amazon and Flipkart, targeting fitness-conscious youth. In China, peanut snacks and oils are heavily promoted through JD.com and Tmall, reaching both urban and rural consumers. At the same time, traditional B2C outlets like street vendors, kirana stores, and local markets continue to sell roasted peanuts and homemade products, keeping them deeply embedded in daily diets. The channel benefits from its ability to reach all consumer segments, from low-income households buying loose roasted peanuts in rural areas to affluent urban buyers choosing premium packaged peanut butter or protein bars online. This layered distribution structure, combined with the speed of retail modernization and e-commerce penetration, explains why B2C is the largest and fastest-growing distribution channel for peanuts in Asia-Pacific.

China is leading the Asia-Pacific peanuts market mainly because it combines the world’s largest production capacity with massive domestic consumption supported by deep cultural integration of peanuts in diets and industries.

China’s dominance in the peanut sector comes from its strong agricultural foundation and the role peanuts play both as a staple food and as an industrial raw material. The country has vast cultivation areas spread across provinces such as Shandong, Henan, and Hebei, which together account for a significant proportion of global peanut output. This scale of production is made possible by favorable agro-climatic conditions, large tracts of arable land, and government-backed initiatives that promote oilseed crop farming for food security and rural livelihood support. Peanuts are central to China’s food culture, where they appear in multiple forms such as roasted snacks, confectionery fillings, peanut oil, sauces, and traditional dishes, embedding them deeply in everyday consumption patterns. Peanut oil, in particular, is one of the most widely used edible oils in Chinese households and food services, ensuring steady demand across urban and rural markets. Beyond food, peanuts are also important in processed industries, supplying ingredients to bakery, confectionery, and beverage sectors that are scaling with rising disposable incomes. The export market further strengthens China’s role, as the country ships both raw and processed peanuts to Asia, Europe, and the Middle East, benefiting from advanced storage and logistics networks that support international trade. Research collaborations and innovation in seed varieties, such as the development of high-yield and disease-resistant lines, have also improved productivity and reduced vulnerability to crop losses. At the same time, the massive scale of domestic consumption means that most of China’s production is absorbed internally, creating a cycle where farming, processing, and trade continuously reinforce one another.

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