Pecan Market

Pecan Market Outlook (2023-2033)

The market for pecan can be expected to expand at a value based CAGR of 5.8% and show an increase in revenue from US$ 1,906.5 Mn to around US$ 3,649.8 Mn by 2033.

Pecan Consumption Analysis (2018-2022) Vs. Market Estimations (2023-2033)

The global pecan market has witnessed significant growth in the historical period registering a CAGR of 5.5% in the historical period and was valued at US$ 1,906.5 Mn in 2023. The market is expected to grow steadily with increasing awareness about applications of pecan.

Increasing number of customers are turning to healthy eating, and nutritious nuts are emerging as a major source of healthy food, which includes pecans. The demand for pecan nuts has been witnessing a substantial rise in the global nuts market, owing to increasing consumer awareness regarding their health benefits. Pecan contains 14 different types of vitamins and minerals in a single serving, and this acts as a major contributing factor for its nutritional composition. Additionally, strong natural food antioxidants and protein sources are also considerable aspects.

Considering the availability of other healthy nuts, pecan is still emerging as a healthy source for consumers. Pecan-based food products are currently trending, as they have become one of the preferred nuts among health-conscious consumers; for instance, pecan-based products such as pecan muffins, pecan biscuits, and many other pecan-based bakery products are becoming popular as a part of healthy diets.

As the health and nutrition factor would continue to dominate consumer food preferences, rising pecan consumption is expected to drive the market over the coming years. The global market for pecan is estimated to reach an approximate valuation of US$ 3,649.8 Mn in the forecast period.

What are the Key Trends in the Market for Pecan?

“Consumers Welcoming Diverse Range of Pecan Snacks”

Pecan is widely consumed as a snack across the U.S., Canada, Mexico, and Western European countries, owing to its nutty flavour, taste, and availability in multiple varieties and sizes. Food processors are emphasizing on targeting individual consumers by offering multiple types of pecan snacks.

Salted, unsalted, BBQ, and roasted pecans are some of the snacking categories available that most consumers are favouring. Moreover, innovative product categories are also coming up in the market, such as glazed pecans, butter-roasted pecans, maple glazed pecans, and others. Additionally, pecan-based confectionery products such as pecan candies, pecan chocolate, pecan pralines, honey glazed pecans, milk chocolate pecans, and others are trending in the confectionery market.

“Direct-to-consumer Model Supporting Pecan Market Growth”

The direct-to-consumer model is gaining popularity in the global nut industry, which allows producers to gain valuable insights into consumer behaviour and a more tailored approach to marketing and differentiation. D2C allows companies to build a direct relationship with consumers that are not available through other channels.

“‘Snackification’ Trend Supporting Pecan Market Growth”

Since customers are increasingly substituting snacks for meals, the phenomenon of snacking has increased. Snacking is becoming more popular among consumers as a way to increase daily nutrient intake. The addition of plant-based proteins, vitamins, and minerals has changed the nutritional composition of snack foods. Bowls have become clever containers for combining the flavors and textures offered by pecans and other nuts. Products made from pecans are more suited to be used as nutritious snacks since they provide both delightful nutty flavor and health and nutritional benefits.

• For instance, meal kits with pecans and similar goods were introduced by the American snack company Newk's in April 2020.

““Pecan, a more than Pie” an Effective Campaign for Growth of Pecan Market”

Pecan, a native of America, is one of the most popular nuts in the United States, but it lags behind other nuts in terms of consumption. 'Pecan, more than Pie' is a campaign or trend that is sweeping the United States in an attempt to change consumers' attitudes toward pecans. Consumers are more likely to think of pecan as a bakery, confectionery, and snacking ingredient, and they are unaware of its health benefits. The trend is expected to change consumer behaviour toward pecan products in the near future. Local food service restaurants are also influencing customers by supporting this trend.

• In New York City, for example, a pecan pop-up shop called "The Not Pie Shop" served a full pecan menu (except pie) and had shelves full of innovative pecan products.

“Increasing Popularity of ‘Keto Diet’ to Promote Use of Pecans”

Consumption of low carbohydrate, moderate protein, and high fat diet is becoming widely popular. Keto diet is popular among millennials and the working population, which is opening new avenues for manufacturers of pecan products. The prime focus of a Keto diet is lowering the carbohydrate intake and increasing consumption of protein and fats. Pecan has an excellent nutrient profile for the Keto diet as they are high in saturated fat and low in carbohydrates. One ounce of pecan contains 4 grams of carbs, and 20 grams of fat, which may become a perfect ingredient for the Keto diet.

• For instance, Amoretti a nut products provider offers premium natural pecan flour, which is suitable to use in various Keto diets.

“High Availability of Substitutes for Pecan to Limit Sales”

Pecan is one of the most health beneficial nut and also widely consumed for its nutty flavour. Nevertheless, other popular nuts such as almonds, cashew, walnut, hazelnut, pistachios, and other nut products are also becoming a barrier to the pecan sales. Especially, the demand for almond is rising in the U.S. which is also affecting the growth of the pecan market. Moreover, outside North America, consumers aren’t aware of the pecan nut as the other nut consumption is high in different regions. Even while containing the same nutritional composition as other nuts, pecan nuts are facing tight competition from other nuts, which is limiting the sales of pecan products across the world.

Country-wise insights

What does the global pecan market look like?

The pecan market is expanding due to increasing consumption in non-traditional markets such as China and the ASEAN countries. These countries are major consumers of in-shell pecans, while Europe has seen a rise in the consumption of shelled pecans. Major consumers for shelled pecans are countries such as the Netherlands, U.K., and other Western European Countries.

In China, the demand for pecans is increasing at high rate, compelling producers in the country to boost their production capacities and also explore opportunities to expand their import base. In response to this demand, Mexico is also tapping into this market by prioritizing pecan as a key export product to the Chinese market.

According to the Agricultural Marketing Resource Center, which is a national information base for value-added agriculture, exports of the U.S. have grown by 28% since 2013. Exports in ASEAN countries exhibited the highest increase, which was nearly 170%. In a similar way, Mexico exhibited a 42% increase for in-shell pecans, and The Netherlands and the U.K. have exhibited nearly 19% and 13% increase in exports in the shelled segment, respectively, since 2013.

This upsurge in exports is attributed to the booming demand for pecans in emerging markets. Other leading producers such as South Africa and Australia are also expanding their production capacities in order to cater to the huge consumer demand for pecan nuts in emerging markets.

What is the Outlook for U.S Pecan market?

The U.S. alone supplies 70-80% of pecans across the world. Major food and beverage manufacturers purchase these pecans in large quantity, which has further ensured the stock of pecan. The market in the United States is expected to reach a valuation of approximately US$ 891.5 Mn in 2023 and holds around 96% of the market value share.

Category-wise insights

Which Form of Pecan Accounts for High Revenue Generation?

The largest share is contributed by raw/whole pecan nut which attained a valuation of US$ 1,829.7 Mn in 2023 with a value CAGR of 5.1%. Raw nuts being easy to source are preferred as processing of pecan nuts drives up the input and subsequently raises the final cost of the product.

Which Distribution Channel Accounts for Greater Footprint in the Pecan Market?

Specialty stores and online retailing are helping producers identify new upcoming trends and improvise products according to consumer demand. Major pecan producers are also utilizing the consumer interaction strategy to get to know consumer buying behaviour, and launching new pecan-based products in the market.

• For instance, Diamond Food is increasingly involved in brand marketing and promotional activities to increase the buzz for its products. The company is involved in tracking its consumers’ sentiments for its flavours to better understand their requirements.
• In August 2019, Cane River Pecan Company celebrated 50 years with a pecan pie festival. At the festival, the company sold pecan pies filled with Boudin and sweet potato soufflé, and received positive feedback from consumers.

Competitive Dashboard

The global pecan market is dominated by a large number of multinational corporations. Companies with a global presence account for 40-45% of the market. Due to the rising demand for pecan in non-traditional regions, players in the pecan market are focusing their product offerings specifically on international food manufacturers. Some of the major players in the global pecan market include The Kraft Heinz Company, John B. Sanfilippo & Son, Inc., and Diamond Foods, Inc. Regional multinational players account for 35-40% of the market, while local players account for 5-15%. These companies are in the pecan proving business, operate on a small scale, and are more export-oriented.

• Royalty Pecan Farms is highly focused towards the consumer satisfaction and brand awareness approach to benefitting the business. The company is increasingly interacting with its consumers to promote its brand and reach to maximum number of consumers.
  • For instance, in November 2019, Royalty Pecan Farms hosted a festival in its farm. The company has provided the public an opportunity to explore the farm and also organize events to pick out pecans.
• Kraft Heinz completed the acquisition of Primal Kitchen, a leading provider of healthy snacks and other food products, in January 2019. The acquisition will help the company strengthen its position in the food and beverage market in the United States.
• The heirloom nut and fruit blends from Diamond Foods, which include pecans, walnuts, and macrons, were introduced in October 2018. The clean-label dried fruits are part of these products, which are vegan-friendly. The heirloom pecan combination also contains sliced honey crisp apples with their original red peel and crunchy peach wedges. The product is regarded as a nutritious substitute for conventional trail mixes.
• In 2019, Orchard Valley Harvest, a brand of John B. Sanfilippo & Son witnessed 16% sales increment in the consumer channel from previous year. The major contributing factors are new product introductions, higher velocity, and increased distribution.

Pecan Industry Report Scope

Pecan Industry Research by Category

By Product Type:

• In-shell
• Shelled

By Form:

• Raw/Whole
• Processed

By End Use:

• Food Industry
  • Bakery & Confectionery
  • Snacks & Meals
  • Dairy & Desserts
  • Beverages
• Dietary Supplements
• Cosmetics & Personal Care
• Retail/Households

By Distribution Channel:

• Business to Business
• Business to Consumer
  • Hypermarkets/Supermarkets
  • Convenience Stores
  • Specialty Retail
  • Online Retail

By Region:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa

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