The global almond market is expected to grow at a CAGR of 4.47% over the forecast period to reach a total market size of US$12.073 billion by 2025, increasing from US$9.286 billion in 2019. Almonds are consumed worldwide due to its health benefits and are also utilized in the form of food inclusions; hence, the growing food inclusions market will have a positive impact on the growth of the global almond market during the forecast period. Almonds can be preserved for a longer duration in comparison to the fresh fruits and they also serve as handy snacks, especially for long journeys, and there is no need for refrigeration as well which is why they are widely accepted around the globe.
California is one of the world’s largest producer of almonds.
California Almond crop is growing significantly, and it has the largest tree nut crop globally. Almond is considered an imported crop in the region in terms of both export and domestic purposes and with the growing adoption of almond as a dietary solution option its demand is further increasing. Almond growers need more pollination than any other crops therefore, they are also the major source of demand for beekeepers in the country. Since they are required all the year around consequently due to unavailability of beekeeping or delay in beekeeper delivery increases the overall cost of the production and further negatively impacts the production of almonds in the country.
The European region is holding a substantial share in the market
Increasing demand for vegan and organic food in the region is expected to drive the market for almond during the forecast period. In addition, the major economies expanding the food and beverage industry coupled with the growing investments by big market players in the region to increase their market share are anticipated to propel the market growth opportunities. In addition to this, changing consumer preferences and increasing adoption of meat alternative and substitute products due to rising vegan population is anticipated to further propel this growth in the coming years. For instance, according to multiple surveys, the vegan population in the United Kingdom has increased substantially over the past few years, with strong growth still anticipated during the forecast period. Major market players are focusing on the almond health positioning and consumer marketing efforts and creating a model and approach to developing markets like India, and China. Furthermore, expanding the e-commerce industry in the United Kingdom is attracting new market players to enter the market with advance and innovative products, thus increasing competition and further propelling the market growth opportunities for manufacturers and vendors. In fact, according to the United Nations Industrial Development Organization, the E-commerce market contributed to more than7.12% of the United Kingdom's GDP in 2018. Also, the UK is the third-largest B2C market in the world with an estimated $174.2 million online sales of goods and services in 2016.
Rising adoption of almond milk is creating opportunities for new players to enter the market.
Due to the prevalence of lactose intolerance which is caused by the inability of the lactase enzyme produced by the cells present in the lining of the small intestine to breakdown or digest lactose (milk sugar). Hence, consuming almond milk provides an alternative for individuals suffering from lactose intolerance, which is considered lactose-free without compromising with the nutritional benefits. Lactose-intolerance present in infants is due to congenital lactase deficiency, also known as congenital anastasia, a disorder, caused by mutations in the LCT gene. The newborns are unable to breakdown lactose present in the breast milk or the milk formula. This type of disorder is a rare disorder and the incidence at present is unknown. However, as per the National Institutes of Health (NIH) estimates, lactose intolerance in infants reported is around 1 in 60,000 in Finland. For adults, not able to digest lactose comprises over 60% of the human population. The disease at the time of adulthood is prevalent among the individuals of East Asian descent affecting over 70% of the population. Also, lactose intolerant is found prevalent among the population of West African descent, Arab, Jews, Greek, and Italian descent, hence, providing an opportunity for the market to grow in the forecast period.
Growing demand in developing and underdeveloped economies
The rise in the standards of living has led to an increase in consumer spending in some developing economies such as India and China. Moreover, an increase in the working population ratio and rapid industrialization and urbanization has further increased the demand for well-preserved foods. This has thus created a huge opportunity for almonds.
Furthermore, similar countries have also seen an increase in the number of supermarkets and retail stores and an increase in the trend of buying well-preserved foods. According to the Food and Grocery Product Opportunities Stemming from Internal Sector Shift by the USDA Foreign Agricultural Service, modern formats such as supermarkets and hypermarkets are growing at 15% per annum in India. In addition to this, the widening of the retail chain and growing globalization has resulted in an increase in the demand for food products that have longer shelf lives and can be preserved without requirements of any kinds of special storages, and would thus result in an increase in the demand for almonds in these kinds of economies.
Availability of substitutes is anticipated to restrain the growth of the almond market in the coming years.
There are multiple substitutes available that offer similar functionality to almonds and will pose as a restraint to the demand for almonds. Alternatives in the form of raisins, apricots, and cashews among others are used and are gaining popularity in the coming years.
The growing concerns regarding the impact of current COVID-19 pandemic on global food production and distribution comprising fresh and dried fruits and vegetables, threatening food security is projected to impede the almond market growth. During the COVID-19 pandemic, the United Nations evaluated the relationship between novel coronavirus and global food security. According to the United Nations Food Security Committee on the World Food Security defined as “all people, at all times, have physical, social, and economic access to sufficient, safe, and nutritious food that meets their food preferences and dietary needs for an active and healthy life”. Also, on 21st April 2020 it is estimated by the United Nations that due to the novel coronavirus pandemic, numerous individuals are suffering from food insecurity issues in various parts of the globe. The increase in buying for immunity booster and healthy products like almonds consequence in the disruption in the equilibrium prices as market demand exceeds the supply which further resulted in the increase in prices of almonds.
The overall almond industry is highly competitive. It offers various opportunities for new entrants owing to a continuous shift in consumer preferences towards a healthy lifestyle. Also, with the increasing application in various industry is widening up the growth opportunities for the almond producers in various parts of the world. Besides, in this market, factors such as territorial market size, competition intensity, capacity, and development of demand through marketing, and local infrastructure are projected to influence the whole value chain of the product. In addition, companies are directly involved in retailing and are investing in e-commerce channels to gain benefits from the growing market. Furthermore, consumer buying behavior has reshaped in recent years with growing varieties, and online retailing discount offers have impelled consumers to prefer online retail. Prominent/major key market players in the global almond market include Wonderful Pistachios & Almonds LLC, South Valley Farms, Almond Ace, Agriland Farming Company Inc, Olam International, Harris Family Enterprises., Western Nut Company., BAPU Almonds, Chico Nut Company, Chico Nut Company, TREEHOUSE ALMONDS, and RPAC, LLC among others. The number of players in the almond market is huge and is growing with the opportunity to generate significant revenues because of growing demand in various parts of the world. The players in the global almond market are implementing various growth strategies like marketingand online discount schemes to gain a competitive advantage over its competitors in this market. Major market players in the the global almond market have beenexhaustively covered along with their relative competitive position and strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies), strategies, and key products and services being offered along with the recent deals and investments of these important players in the global almond market.