Market Snapshot
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 8.83 Billion |
| Market Size (2029) | USD 11.22 Billion |
| CAGR (2024 - 2029) | 4.90 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
Walnut Market Analysis
The Walnut Market size is estimated at USD 8.83 billion in 2024, and is expected to reach USD 11.22 billion by 2029, at a CAGR of 4.90% during the forecast period (2024-2029).
- The walnut market is experiencing steady growth, driven by increasing demand for healthy and nutritious food products, particularly due to walnuts’ high omega-3 content and recognized health benefits. Walnuts are primarily consumed as a snack, used in the food processing industry (confectionery, bakery, and dairy), and valued for their oil. The global production of walnuts is concentrated in a few key regions, with China, the United States, and Chile leading the market.
- China stands as the largest producer, accounting for over half of the global walnut production with the production of 1.4 million metric tons in 2023 according to the United States Department of Agriculture. The country’s extensive walnut cultivation is supported by favorable climate conditions and governmental incentives to boost nut production. The United States, particularly California, is another major player, contributing around 30% of global walnut production annually, according to the Dried Fruit Association of California. The United States walnut industry benefits from well-established infrastructure, advanced agricultural practices, and substantial research efforts to improve yield and resistance to diseases. Chile is another major country concerning walnut production and accounted for 198 million metric tons in 2023. However, it is often constrained by older farming techniques and political issues affecting exports.
- On the consumption side, walnuts are popular in North America, Europe, and parts of Asia-Pacific. The United States and China are not only major producers but also significant consumers. In China, walnuts are a common snack and ingredient in traditional dishes, driving domestic consumption which was 398.4 thousand metric tons in 2021 according to the International Nut & Dried Fruit Council-Statistical Yearbook, 2023. The walnut oil industry is also growing, driven by demand from the cosmetics and skincare sectors, which use walnut oil for its moisturizing and anti-aging properties. Additionally, walnut meal, a byproduct of oil extraction, is gaining popularity in the food industry as a protein-rich ingredient. Therefore, the walnut market is expected to grow, driven by rising consumer interest in healthy eating and increased demand from the food processing, cosmetics, and health food industries.
Walnut Market Trends
Higher Demand for Certified and Premium Walnuts in Emerging Markets
- Despite China being the world’s leading walnut producer, the United States stands out as one of the largest walnut exporters globally. Several key factors including agricultural policies, quality control, and favorable growing conditions drive this dominance in walnut exports. Firstly, the United States, particularly California, has optimal climatic conditions for growing high-quality walnuts, which are appreciated worldwide. The state's fertile soil, temperate climate, and advanced irrigation techniques result in a consistently high yield of walnuts. California alone accounted for 99% of the walnut production in the United States according to the California Department of Food and Agriculture in 2023. These natural advantages are coupled with stringent quality control standards and certifications, such as the USDA quality grading, ensuring that the country's walnuts meet international food safety standards.
- One of the reasons the United States has become such a dominant exporter is product differentiation and the variety of walnut forms the United States offers including whole in-shell, shelled, walnut oil, and even processed walnut products. The United States walnut industry has invested significantly in marketing and branding, positioning its walnuts as premium products, especially in Europe, Middle East, and Asia. Germany and Japan are the largest importers of shelled walnuts in 2023 which accounted for USD 101,628 thousand and USD 77,370 thousand respectively according to the ITC Trademap. In terms of in shell walnuts, Turkey and UAE are the major importers which imported walnuts worth USD 83,301 thousand and USD 53,009 thousand in 2023 respectively.
- Additionally, technological advancements in processing and packaging have also contributed to the country's large exports as walnut producers in the United States use advanced hulling, drying, and packaging methods that extend the shelf life of walnuts. Therefore, even though China leads in walnut production, the United States has leveraged superior quality, product variety, and access to international markets to establish itself as a leading walnut exporter.
Asia-Pacific is the Largest and Fastest Growing Market
- The Asia-Pacific region leads the world in walnut production, with countries such as China, India, and Japan playing key roles due to their growing production capabilities and increasing consumer awareness of walnuts’ health benefits. China not only dominates walnut production in Asia-Pacific but also globally, contributing 52% of the world’s walnut output according to the United States Department of Agriculture (USDA) in 2023. Within China, Xinjiang Province is the top producer, followed by Yunnan, Shanxi, and Shaanxi Provinces. Over the past decade, walnut output in China has surged nearly 80%, partly due to a poverty-alleviation program in mountainous and hilly areas that encouraged new plantings. Additionally, China’s significant domestic consumption of walnuts is driven by a growing middle class, urbanization, and a rising preference for healthy snacks.
- In India, the walnut market is expanding rapidly, propelled by rising disposable incomes, increasing health awareness, and a growing demand for nutritious food products. Although India is not a major producer of walnuts compared to China, it is a significant importer to meet its rising domestic demand. Regions such as Jammu and Kashmir are the primary walnut-growing areas in India, with an increasing focus on improving yields and expanding cultivation through governmental initiatives. Inclduing walnut under One District One Product Scheme introduced in 2020 to Kishtwar and Kupwara districts of Jammu and Kashmir by the Government of India is projected to drive the production of walnut in the country.
- Japan and Southeast Asian countries such as Vietnam and Thailand, despite being a smaller walnut consumer relative to its Asian neighbors, is witnessing growth in demand driven by its aging population, which is increasingly focused on heart health and maintaining a balanced diet. Similarly, countries in Central Asia, like Kazakhstan and Kyrgyzstan, have ideal environments for walnut production but are limited by a lack of organized farming and market access. These countries have begun to recognize the potential of walnut farming as an income generator, and policies to encourage orchard establishment and improve export capabilities are being developed.
Walnut Market News
- June 2024: Chilean walnut producer Quelen Fruit surpassed European Category 1 quality standards using TOMRA Food technology. The Merquén plant, a part of Quelen Fruit Holding, features a TOMRA Food processing line capable of handling various fruits, including walnuts. The 10,000-square-meter facility has an annual processing capacity of 6,000 metric tons of in-shell walnuts and 3,000 metric tons of shelled walnuts.
- October 2022: In the United States, the Federal Crop Insurance Corporation (FCIC) has updated its walnut crop insurance regulations by eliminating the minimum acreage insurability requirement. This adjustment will bring walnut crop insurance in line with the insurability standards for other tree nut insurance policies.
- January 2022: The Indian Ministry of Science and Technology has introduced innovations in walnut processing, such as a walnut cracking machine, along with a peeler, washer, and sorter. These advancements aim to streamline walnut production and alleviate the labor-intensive nature of walnut processing, a specialized occupation mainly found in the Union Territories of Jammu and Kashmir and Ladakh, as well as parts of Himachal Pradesh, Uttarakhand, Sikkim, and Arunachal Pradesh.
Walnut Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Government Support for Walnut Cultivation
4.2.2 Higher Demand for Certified and Premium Walnuts in Emerging Markets
4.2.3 Rising Demand for Plant-based Protein
4.3 Market Restraints
4.3.1 Water-Intensive Crop
4.3.2 High Labor Costs and Harvesting Challenges
4.4 Value Chain Analysis
5. MARKET SEGMENTATION
5.1 Geography (Production Analysis by Volume, Consumption Analysis by Value and Volume, Import Analysis by Value and Volume, Export Analysis by Value and Volume, and Price Trend Analysis)
5.1.1 North America
5.1.1.1 United States
5.1.1.2 Mexico
5.1.2 Europe
5.1.2.1 France
5.1.2.2 Ukraine
5.1.2.3 Germany
5.1.2.4 Italy
5.1.2.5 Spain
5.1.2.6 Netherlands
5.1.2.7 Moldova
5.1.3 Asia-Pacific
5.1.3.1 Japan
5.1.3.2 China
5.1.3.3 South Korea
5.1.3.4 Australia
5.1.3.5 India
5.1.3.6 Turkey
5.1.4 South America
5.1.4.1 Chile
5.1.4.2 Brazil
5.1.4.3 Peru
5.1.5 Middle East and Africa
5.1.5.1 Iran
5.1.5.2 Turkey
5.1.5.3 Egypt
6. MARKET OPPORTUNITIES AND FUTURE TRENDS
Walnut Industry Segmentation
Walnuts are round, single-seeded stone fruits that grow from walnut trees. The walnut market is segmented by geography (North America, South America, Europe, Asia-Pacific, and Middle-East and Africa). The report provides the production analysis (volume), consumption analysis (value and volume), export analysis (value and volume), import analysis (value and volume), and price trend analysis. The report also offers the market size and forecasts in terms of value in USD and volume in metric tons for the above-mentioned segments.
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Walnut Market Research FAQs
How big is the Walnut Market?
The Walnut Market size is expected to reach USD 8.83 billion in 2024 and grow at a CAGR of 4.90% to reach USD 11.22 billion by 2029.
What is the current Walnut Market size?
In 2024, the Walnut Market size is expected to reach USD 8.83 billion.
Which is the fastest growing region in Walnut Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Walnut Market?
In 2024, the Asia-Pacific accounts for the largest market share in Walnut Market.
What years does this Walnut Market cover, and what was the market size in 2023?
In 2023, the Walnut Market size was estimated at USD 8.40 billion. The report covers the Walnut Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Walnut Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Walnut Industry Report
Statistics for the 2024 Walnut market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Walnut analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Walnut Market Report Snapshots
