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Global Peanuts Market Size
According to ELINT Market Research, the global peanuts market not only enjoyed a huge USD 45.7 billion market size in 2020 but also peanut availability, which was exceptionally high at 50.68 MMT during 2021-2022. This increased market is indicative of the tremendous economic significance of peanuts in a global sense, which possesses many compelling factors. The increasing popularity of peanuts can be ascribed to their vital applications and nutritional value, making them an indispensable item in the food industry. Also, the trend among health-conscious consumers towards eating nut-based snacks, nut butter, and foods rich in protein fuels further increases the demand for peanuts.
China and India, alone accounting for over 38% of the world’s consumption and export markets, hold the balance of power on export. The rapidly rising demand for peanuts, mainly inspired by Southeast Asian countries and the European region, mirrors the growing attractiveness of nut-based snacks and products such as nut butter and protein food. These consumption and export trends impact the size of the peanuts market they participate in, influenced by price differentials and regional dynamics.
Market Definition
The peanuts market covers a process from the cultivation of peanuts through to processing and distribution. Scientifically called Arachis hypogaea, it is a nutritious legume known for its abundant flavor and numerous applications in cooking. Also called groundnuts are not only a popular snack but also an essential raw material in many food products such as oils and confectionery items.
Peanuts Market Drivers
- Growing Consumer Awareness about Health Benefits:
One of the main driving forces of the peanut market has been growing awareness about the nutritional value of peanuts, packed with protein, healthy fats, and essential vitamins. Consumers are prowling for more nutritious snacks, stimulating the demand for peanut and peanut-based products.
- Rising Demand for Plant-Based Proteins:
Around the world, plant-based diets have picked up speed, and peanuts are an inexpensive yet sustainable source of protein from plants. This dietary change impacts the peanuts industry, guiding product development and innovation.
- Expanding Application in the Food Industry:
Peanuts and peanut-derived products are highly adaptable ingredients that find extensive use in the food industry. The fact that peanuts are being incorporated increasingly in confectionery, bakeries, and savory snacks has spurred the market. The use of peanut oil in cooking and the application of peanut butter to all kinds of food products has served only to stimulate further growth.
Peanuts Market Challenges
- Allergen Concerns:
Although peanuts are rich in nutrients, they are a common allergen. It creates problems for the market from an allied point of view. Manufacturers invest heavily in research and development to make allergen-free peanut products, which is still challenging.
- Weather-Related Risks:
Weather conditions affect peanuts; bad weather, such as droughts or too much rain, can cause a poor harvest. This heavy weather-related damage, which generally affects the ecological balance and supply chain, is a problem for farmers and the industry.
Peanuts Market Opportunities
- Emerging Markets and Global Expansion:
An expanding middle class and changing lifestyle in emerging economies offer a significant opportunity to the peanuts industry. For industry players, expansion into pristine markets and the building up of a solid global image are strategic opportunities.
- Innovation in Product Development:
New flavors, formats, and packaging also keep product development fresh. All provide the chance for growth in the marketplace. In the competitive environment, providing conveniences and novel taste experiences can be critical in allowing companies to differentiate themselves.
Peanuts Market Trends
- Rise of Specialty Peanuts:
The specialty peanuts taking off on the market are organic and gourmet varieties. The trend toward specialty products is due to consumers’ growing interest in high-quality, unique peanuts.
- Sustainable Practices in Peanut Farming:
These days, sustainability is one of the biggest trends in agriculture. Peanut growers, too, are increasingly taking up environmentally friendly production methods. In addition to water conservation, sustainable ways of soil health management are beginning to come into practice.
Peanuts Market Segmentation:
- Product Type: The research segments the market into Raw Peanuts, Roasted Peanuts, Peanut Butter, and Peanut Oil.
- Application: Based on application type, the research segments the market into Confectionery, Bakery, Snacks, Peanut Butter and Spreads, and Cooking Oil.
- Distribution Channel: The research divides the market into Supermarkets and Hypermarkets, Convenience Stores, and Online Retail.
Peanuts Market Regional Dynamics and Pricing
Behind the pricing dynamics of global peanuts is a complex series of inter-region factors that impact both world and local economies. Pricing in the US, where peanuts sell for USD 1,661 per Metric Ton (MT), is to a certain extent dependent on production costs and the price of labor, as well as technology and agricultural inputs. At the same time, China, as a producer with a 36% share, commands a price of $2000/MT because of its large agricultural base with various agro-climatic conditions and high general productivity. With its extensive farming lands and competitive trading policies, Argentina accounts for 22% of global exports at a USD 1,550 MT price. The distribution of crucial exporting and producing countries is a second factor directly affecting pricing differentials. India (16%), Argentina (22%), and the US (12%) dominate exports, while China (36%) leads in production, along with India (13%) and Nigeria (9%). Thus, these statistics show the complexity of the interaction between production costs, agronomic conditions, trade policies, and regional roles. To understand and respond appropriately to market dynamics, stakeholders must navigate these complicated dynamics.
Cost Drivers:
To understand the peanut market’s mechanism, stakeholders must understand its cost structure. 39% of the production cost goes to peanuts and seed fertilizer chemicals, 21% to peanuts, machinery, and equipment, and 13% to peanuts and custom operations maintenance. Stakeholders looking for opportunities to improve production and profitability should identify these cost drivers.
Engagement Models:
In the peanuts market, the contract periods for general commercial contracts usually range from 6 to 12 months. Various specific arrangements vary on the type of edible nut in question. Furthermore, the most advantageous price-lock months are also determined by edible nut types and their seasons, affording industry participants some flexibility.
Recent Activities in the Peanuts Market
- Luray Peanut Co. has announced that it will embark on an official USD 5.25 million expansion, one that expects to change the economic face of Hampton County significantly. The decision to expand into Hampton County relies upon a full assessment of the area’s economic potential, sound infrastructure, and the availability of skilled labor.
- Mi Arcus has sealed a cooperation agreement with Peanuts Worldwide LLC. Joining Mi Arcus’s creativity and Peanuts Worldwide LLC’s brand strength is a significant step forward for both organizations. Mi Arcus aims to use this alliance to give the brand wider distribution on various digital platforms.
Peanuts Market Players
In this ever-changing peanuts market, the principal competitors include ADM, a worldwide power in food processing; WILCO PEANUT COMPANY, producers of superior peanuts; MANIAGRO SA, one of South America’s most prominent players and keen on quality and sustainability; ACEITERA GENERAL DEHEZA SA, These players dominate the market, responding to varied consumer preferences around the world. Each market player offers something new, shaping the market’s future and catering to ever-changing consumer needs worldwide.
