Market Trends of Peanuts Industry
This section covers the major market trends shaping the Peanuts Market according to our research experts:
Increasing Demand in the International Market
The increasing demand for protein-rich foods is expected to drive the high demand for peanuts globally over the forecast period, encouraging higher exports. Furthermore, the growing demand for peanut oil in the pharmaceuticals and personal care sectors has further boosted the market's growth. Argentina, India, the United States, and China are the major exporters of peanuts globally. According to the ITC trade map, in 2021, Argentina exported 634,080 metric ton of peanuts, followed by India with 563,268 metric ton in second place. In the United States, the production is dominated by the Southeast, the Southwest, Virginia, and North Carolina, from where the majority of the exports take place.
The Netherlands, Germany, and the United Kingdom are the three countries that offer ample opportunities to exporters of peanuts in developing countries. In the future, the European market for peanuts is expected to grow due to the changes in the consumption patterns of customers, as plant-based protein is gaining popularity instead of meat-based protein. With people becoming more interested in healthy eating, peanuts are expected to become an important source of unsaturated fats, fiber, proteins, vitamins, and minerals.
Additionally, the consumers' busy lives are pushing them toward more protein-rich healthy snacks that require less time to serve, such as peanut butter, nut bars, etc., which is boosting the market during the forecast period.
Asia-Pacific Leads the 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 provinces. The tropical climatic conditions favor the production of peanuts in this region. In 2020, according to FAO, China was the biggest peanut producer, with a production of 18.0 million metric ton. India, Nigeria, and the United States followed with about 9.9,4.4, and 2.7 million metric ton, 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, the production rose back up.
China and India are the largest consumers and exporters of peanuts in the world. With people becoming increasingly interested in healthy eating, peanuts are expected 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, used for cooking, and the leftover after oil extraction, used as animal feed in these countries. Additionally, about half of China's peanut supply is 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 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 growth is anticipated to bolster over the forecast period globally, owing to the demand from processed foods industries for products such as peanut snacks, a widely consumed snack in the Asia-Pacific region.
