Almonds – Procurement Best Practices & Sourcing Strategies

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Global Almond Market Size

ELINT Market Research assesses the size of the almond market to be USD 10.27 billion in 2021. This startling figure vividly exemplifies the importance and worldwide demand for almonds as an economic entity. As for availability, in 2022, the almond industry is expected to have reached 1.61 million metric tons. This hefty volume highlights that the supply of high-quality almonds continuously increases as demand from the food, health, and cosmetics industries increases.

Besides their economic value, almonds have benefited from epidemiological research by health professionals who attest to the nut’s benefits. Results of the study show that people eating tree nuts, particularly almonds, twice a week or more had a 15.5% lower risk for total cardiovascular disease conditions and an 18% lower risk for coronary heart disease. These results offer evidence of almonds’ important role in maintaining cardiac health, making them a favored choice among health-conscious consumers. Almonds provide heart-healthy fats, fiber, and essential nutrients for cardiovascular well-being.

Market Definition

The almond market includes the production, storage, processing, and transmission of almonds, which are the Prunus dulcis orchard tree seeds. Almonds are famous for being a highly nutritious snack, with healthy fats and protein combined with many vitamins and minerals. Almonds are usable in various forms, from whole almonds to almond butter, almond milk, or even the gluten-free flour used for glazes. Consumers are becoming increasingly sensitive to products made from environmentally sustainable, ethically produced raw materials. The producers of almonds are taking steps by using sustainable agricultural means and environmentally friendly processing methods.

Almond Market Drivers

Rising Demand for Plant-Based Proteins:

Now that plant-based diets have caught on, almonds have naturally become a significant source of plant-based protein. The market is growing, with consumers increasingly seeking plant-based replacements for traditional proteins.

Health Conscious Consumer Trend:

An essential factor stimulating the growth of the almond industry is people’s increasingly enlightened awareness of its health advantages, centered on healthy hearts, weight control, and antioxidants. Nutritious dry fruit Almonds are in demand from health-conscious consumers and are considered a nutrient-dense snack.

Versatility in Culinary Applications:

Almonds are preferable for their adaptability to both sweet and savory dishes. Almond milk, almond butter, and snacks made of almonds have also entered the market for organic food.

Almond Market Challenges

Price Volatility:

The price of almonds is affected by many factors. These include environmental weather conditions, global demand, geopolitical events, and market dynamics, strong or weak at any time. Price variations affect producers and consumers, and the industry needs effective risk management methods.

Climate Sensitivity and Water Usage:

Almonds require a particular climate, and the struggle to regulate water use has been among the significant problems that have dogged the almond industry. Sustainable practices and water-saving cultivation methods are needed to solve this problem.

Almond Market Opportunities

Innovation in Almond-Based Products:

As the demand for innovative and convenient food products increases, almond-based offerings provide a new growth scope. With rising consumer demand for healthier products, companies might explore product diversification, such as almond-based snacks and beverages or desserts.

Expansion in Emerging Markets:

The burgeoning potential for the almond industry lies in the emerging markets. With clear growth potential within regions where almond consumption remains unexpanded, strategic market expansion paired with targeted marketing campaigns can play a vital role in realizing the total value of an individual producing area.

Almond Market Trends

Premiumization and Specialty Almonds:

Now, consumers show interest in preferred grades of almond varieties and even different tastes. There is a clear trend emerging toward premiums and specialties. The direction allows market players to distinguish their products and capture niche consumer markets.

E-commerce and Direct-to-Consumer Channels:

E-commerce has changed the distribution paradigm for almonds. Many companies use online platforms and direct-to-consumer channels to expand their reach, making shopping more convenient and personal.

Rise of Almond Snack Products:

Several convenient and healthy snack products made with almonds have recently been marketed, including almond butter, roasted almonds, and various energy bars. It is consistent with consumers’ increasing demands for convenient, nutritious snacks.

Almond Market Segmentation

The almond market can be segmented based on various factors, including:

Product Type: The research divides the market into Whole Almonds, Almond Butter, Almond Milk, and Almond Flour.

End-Use Application: Based on end-use application, the research classifies the market into Snacks, Bakery and Confectionery, Dairy Alternatives, and Nutritional Supplements.

Distribution Channel: The research segments the market into Supermarkets and Hypermarkets, Convenience Stores, Online retail, and Specialty Stores.

Almond Market Regional Dynamics

A comprehensive regional analysis of the global almond market indicates a pyramidal distribution of importance among crucial producing countries. The United States single-handedly comprises 79% of total production. Australia follows suit some way behind but with a noteworthy 9% holding. Inside the European Union alone, Spain takes center stage with 8% of the market share. The geographic division of labor indicates the critical role of certain countries in giving shape and form to the almond industry at large.

Shifting the focus to pricing structures in essential markets, almonds from the United States cost USD 4.53 per kilo; these small economic factors circulate through markets and affect trends. Also, the fact that the US is a large producer and determines market prices shows how closely related regional contributions are to the total.

Engagement Models

The engagement model is essential for trade relations in the almond market, representing flexibility and point-to-it. Long contracts of 6 to 12 months provide a strategic framework and commitment. The flexibility of the contract caters to all different types of edible nuts. The fact that price-lock months are closely related to the nut’s seasonal properties is essential. By carefully choosing optimal price-lock months, participants can ensure their efforts work in step with the heartbeat of nature, achieving sustainable trade. Stakeholders who bring together both foresight and adaptability use these models to create a robust foundation for the ever-changing market.

Almond Market Players

The major players in the almond industry are OLAM, BLUE DIAMOND, ADM (Archer Daniels Midland Company), SELECT HARVEST, TREEHOUSE CALIFORNIA ALMONDS, HILLTOP RANCH INC., and JD ALMOND FARMS contribute to the production and supply in the market. They also influence the development of the almond industry, each with different skill sets and contributions to growing, processing, and distributing almonds worldwide.