Walnut Ingredients Market Report Scope & Overview:

The Walnut Ingredients market size was valued at USD 1.99 billion in 2024 and is expected to reach USD 3.08 billion by 2032, growing at a CAGR of 5.61% over the forecast period of 2025-2032.

The walnut ingredients market is gaining momentum with rising preference for plant-based ingredients, and is further supported by innovation in walnut flour, walnut protein & walnut oil that cater to clean label, vegan, and gluten-free trend. Increasing preference in the food, nutraceutical, and cosmetics industry is driving the growth of the walnut ingredients market, as companies like Mariani Nut Company and California Walnut Commission are moving forward with product development. Rising consumer demand for natural products also continues to underpin the walnut ingredients market trends.

In 2023, California’s 370,000 bearing acres of walnuts amounted to 790,000 tons, 5% up from 2022, says the USDA. A $120 million purchase of walnut kernels for food banks was carried out by a USDA Section 32 action. These factors are increasing the walnut ingredients market share and are giving expansion opportunities to walnut ingredients companies, with further walnut ingredients market analysis and innovation of walnut ingredients offerings.

Market Dynamics:

Drivers:

• Expanding popularity of plant-based ingredients accelerates the walnut ingredients market growth

The growing inclination for plant-based ingredients is a key factor boosting the walnut ingredients market demand, owing to the rise in the consumers' demand for vegan, keto-friendly, and gluten-free alternatives. Walnut flour, walnut protein, and walnut oil are gaining traction with food formulators for their nutritional and clean-label attributes. The California Walnut Commission, for example, indicated that walnut production increased 5 5% to 790,000 MT in 2023, further emphasizing the increased availability of ingredients. Several cosmetic companies are also including walnut shell powder as an exfoliant in cosmetic products, which highlights emerging trends in walnut ingredients in the cosmetics & personal care industry. This trend is driving the walnut ingredients market size, thereby ramping up product innovation prospects for walnut ingredients companies in various sectors.

• Government procurement programs bolster the walnut ingredients market share

Increase of walnut ingredients market share, with government assistance such as USDA Section 32 supporting consistent demand for walnut ingredients. While the 2023–2024 USDA purchase up to $120 million of edible walnuts (kernel) for nutrition assistance for Section 32 purchase, stabilizing the market despite fewer acres. Meanwhile, although bearing acreage also declined in California by 4% to around 385,000 acres in 2013, the government had mitigated supply limitations and reduced the risk of volatile production patterns from the walnut ingredients market size. These buys create a sense of security among walnut ingredients businesses, which also attracts additional investment, promotes stable supply chains, and supports walnut ingredients market analysis forecasts.

Restraints:

• Competition from alternative plant-based oils restricts the walnut ingredients market growth

The walnut ingredients market is highly competitive on the back of the growing popularity of plant-based oils such as almond oil, coconut oil, and avocado oil. Reports from USDA-FAS, such as that which details global tree nut consumption trends, illustrate the aggressive promotion of the other nut sectors. To win the walnut ingredients market share, walnut oil needs to distinguish itself via nutritional or performance benefits. Furthermore, cosmetic and food producers otherwise prefer cost-effective or conventional ingredients that limit the demand for walnut oil and walnut protein sections. In response, walnut ingredient vendors will need to focus research on health benefits and performance impacts that will allow nut-based ingredients to grow even against well-established competition.

Segmentation Analysis:

By Nature

The conventional segment dominated the walnut ingredients market in 2024, holding a 72.7% market share, on account of mature production facilities and high consumer preference. Traditional walnuts are winning out with the California Walnut Commission reporting that although the number of acres decreased slightly, production remained consistent. Consumer and manufacturer demand for the traditional walnut ingredients is due to quality consistency and price stability, which supports growing market share. Government-sponsored procurement programs guaranteeing stable supply and demand also strengthen the position of this segment in the walnut ingredients market, according to the USDA.

Organic walnut ingredients are the fastest-growing segment with a CAGR of 5.9% forecasted through 2032. Increasing consumer health consciousness and demand for clean-label products are driving this growth. The USDA’s push for organic farming practices and the rise of plant-based diets boost organic walnut flour and walnut oil adoption. Organic certification by associations like the Organic Trade Association further propels consumer confidence, accelerating the walnut ingredients market growth in this segment.

By Product

Walnut kernels dominated the walnut ingredients market in 2024 with a 54.5% market share, attributed to their versatile use in food and cosmetic products. Organizations such as the California Walnut Commission emphasize kernels’ superior nutritional value, leading to widespread application in food processing. Additionally, government-supported export initiatives have helped stabilize the kernel supply, enhancing the market share of this segment within the walnut ingredients industry.

Walnut flour/meal is the fastest-growing product segment with a CAGR of 6.23% projected through 2032, driven by rising demand for gluten-free and plant-based protein alternatives. Nutrition-focused consumer trends, supported by USDA promotion of plant-based diets, are increasing walnut flour in bakery and health supplements. Associations promoting plant-based ingredients highlight walnut flour’s benefits, fueling rapid adoption and growth in the walnut ingredients market.

By Application

The food industry segment dominated the walnut ingredients market in 2024, commanding a 48.2% share, due to walnut ingredients’ high nutritional value and versatility in food formulations. The California Walnut Commission reports significant growth in food applications, supported by USDA programs promoting walnut consumption for heart health. This segment’s dominance is further driven by the rising trend of plant-based diets and functional foods.

Cosmetics and personal care are the fastest-growing application segment with an estimated CAGR of 6.09% through 2032. Walnut oil’s antioxidant properties and natural exfoliant benefits are fueling growth, especially in skincare products. Industry associations such as the Personal Care Products Council recognize walnut-derived ingredients as sustainable alternatives, which, coupled with consumer demand for natural cosmetics, enhances the walnut ingredients market growth in this segment.

By Distribution Channel

Supermarkets and hypermarkets dominated the walnut ingredients market in 2024 with a 44.0% market share. This segment leads due to widespread consumer access, strong retail partnerships, and assured product visibility. Government agencies like the USDA have strengthened food labeling standards, boosting consumer confidence in packaged walnut flour and walnut oil available in large retail chains. Additionally, promotional activities by the California Walnut Commission and in-store health awareness campaigns have encouraged mainstream shoppers to choose walnut-based products, reinforcing the channel’s dominant role in the walnut ingredients market share.

Online retail is the fastest-growing distribution channel segment with a projected CAGR of 5.92% through 2032. Driven by rising digital adoption and convenience-led shopping behavior, online platforms are rapidly reshaping how consumers access walnut ingredients. E-commerce portals provide a broader assortment of walnut protein and organic options, supported by USDA-certified labeling and traceability. Walnut ingredients companies are expanding their direct-to-consumer reach through digital platforms, enhancing consumer engagement and subscription-based models. This shift aligns with plant-based ingredient trends, making online retail a key growth vector in the walnut ingredients market analysis.

Regional Analysis:

North America led the walnut ingredients market in 2024 with a 35.8% market share, supported by high walnut consumption, large-scale production, and product innovation.

The U.S. market leads in the North America region with a market size of USD 497.35 million in 2024 and is projected to reach USD 763.81 million by 2032 with a market share of about 70%. In the U.S., California produces over 99% of U.S. walnuts, as per the California Walnut Commission. With USDA Section 32 procurement boosting demand stability and Canada’s rising organic walnut oil use, the region’s dominance is reinforced. The growth of walnut protein in bakery, snacks, and supplements sustains the walnut ingredients market growth across the North American walnut ingredients industry.

Europe held a 27.0% share of the walnut ingredients market in 2024, driven by clean-label trends and increased usage in cosmetics and bakery sectors. Germany and France lead the region in walnut flour and walnut oil consumption, aligning with EFSA regulations supporting product transparency and safety. European countries favor California walnut imports due to their consistent quality, contributing to the walnut ingredients market share. The rising use of plant-based ingredients and consumer demand for omega-rich foods continue to drive the walnut ingredients market growth in Europe.

Asia Pacific secured a 23.5% walnut ingredients market share in 2024 and remains the fastest-growing region with the highest CAGR of 6.05% through the forecast period of 2025 to 2032. India cut tariffs on U.S. walnut imports in 2023, boosting demand, while USDA data projects 70,000 metric tons of imports by 2025. Japan and South Korea are incorporating walnut protein in bakery and personal care, aligning with wellness trends. The expanding middle class, growing online walnut oil sales, and shift toward plant-based ingredients contribute significantly to walnut ingredients market trends and walnut ingredients market analysis across the region.

Latin America is emerging in the walnut ingredients market, with Chile dominating through robust exports and global certifications led by the Chilean Walnut Commission. Brazil and Argentina are increasingly incorporating walnut flour and walnut oil into wellness-focused foods and skincare, contributing to the walnut ingredients market share. Government incentives supporting agribusiness exports have enabled local walnut ingredients companies to scale. Rising urban health awareness and demand for plant-based ingredients are expanding the walnut ingredients market size in Latin America’s food processing and personal care sectors.

The Middle East and Africa represent the fastest-growing region in the walnut ingredients market during the forecast period, driven by increasing demand for premium, halal-certified plant-based ingredients. The UAE and Saudi Arabia dominate regional imports, with walnut oil and walnut flour widely used in natural cosmetics and nutritional food products. Supported by the UAE Ministry of Economy’s trade facilitation and rising e-commerce infrastructure, the region’s walnut ingredients market growth is accelerated. Local walnut ingredient companies are capitalizing on evolving dietary patterns and beauty trends.

Key Players:

The major walnut ingredients market competitors include Poindexter Nut Company, Hammons, California Walnuts, Mariani Nut Company, Carriere Family Farms, BORGES AGRICULTURAL & INDUSTRIAL NUTS, S.A., Morada Nut Company, GoldRiver Orchards, Inc., Sacramento Valley Walnut Growers LLC, and Kashmir Walnut Group.

Recent Developments:

• In March 2025, the California Walnut Commission secured USDA funding to expand international marketing and supply infrastructure, supporting walnut ingredients market growth in emerging export destinations.

• In January 2025, California Walnuts released a report promoting walnut flour and oil as functional CPG ingredients due to omega-3s, fiber, and magnesium, targeting the growing precision wellness segment.