Market Trends of Peanuts Industry
The Rising Production of Peanuts
The increasing demand for protein-rich foods is driving the high demand for peanuts during the forecast period, encouraging higher exports. Furthermore, the increasing demand for peanut oil in the pharmaceuticals and personal care sectors has further boosted the market's growth. According to the FAO, world peanut production totals about 45 million metric tons annually. The United States is the world's fourth largest producer, after China, India, and Nigeria, and exports about 25-30% of production. For instance, according to the FAOSTAT, in 2021, 2,885,450 metric tons of peanuts were produced in the United States, up from about 2,479,560 metric tons of peanuts in 2019.
Runner, Virginia, Spanish, and Valencia are grown commercially in the United States. The most common type is the runner peanut, primarily used for making peanut butter, accounting for 80% of the country's peanut production. Runner peanuts are predominantly grown in the Southeast of the United States. The Virginia peanut, grown in Virginia and North Carolina, is popular for gourmet snacks and makes up 15% of the US peanut crop. Spanish peanuts, known for their strong nutty flavor due to a higher oil content, are typically cultivated in Oklahoma and Texas and contribute about 4% to the national crop. Valencia peanuts, primarily grown in New Mexico, comprise around 1% of the crop and are often roasted and sold in their shells or used for natural peanut butter.
The market for peanuts is projected to grow in the future due to changes in customer consumption patterns, as plant-based protein is gaining popularity instead of meat-based protein. With people becoming more interested in healthy eating, peanuts are anticipated to become an important source of unsaturated fats, fiber, proteins, vitamins, and minerals. Additionally, consumers' busy lives are pushing them toward more protein-rich healthy snacks that require less time to serve, such as peanut butter and nut bars, which is boosting the market during the forecast period.
Asia-Pacific is the Largest Market
China is the world's leading producer of peanuts. The five provinces where 70% of the crop is grown are Shandong, Henan, Hebei, Guangdong, and Jiangsu. The tropical climatic conditions favor the production of peanuts in this region. In 2020, according to the FAO, China was the biggest peanut producer, producing 18.0 million metric tons. India, Nigeria, and the United States followed with about 9.9,4.4, and 2.7 million metric tons, respectively. In 2019, the production of peanuts decreased in India, the United States, and Senegal due to adverse weather conditions like delayed and irregular rainfall. Later, in 2020, production rose.
China and India are the largest consumers and exporters of peanuts globally. With people becoming increasingly interested in healthy eating, peanuts are projected to become an important source of unsaturated fats, fiber, protein, vitamins, and minerals. The wide usage of by-products and end products of peanuts, such as peanut oil, is used for cooking, and the leftovers after oil extraction are used as animal feed in these countries. Additionally, about half of China's peanuts are directly consumed by humans, and the other half is crushed into meals or oil. India is another key market in the region, with per capita consumption reaching 4.26 kg in 2020, as per the International Nut & Dried Fruit Council.
Moreover, the increased demand from major importers such as Vietnam, Thailand, and Japan led China to increase its production, which grew in 2020. The market's growth is anticipated to be bolstered during the forecast period globally, owing to the demand from processed foods industries for products such as peanut snacks, a widely consumed snack in Asia-Pacific.
