Dive Brief:
- Almond consumption in the U.S. has skyrocketed as consumer trends veer purchases away from peanuts and toward protein-rich almonds. Almond milk, spreads, and other products are surging in popularity, and Americans now consume about 2 pounds of almonds per year, twice as much as they consumed seven years ago.
- In response, major U.S. food manufacturers, including Hain Celestial Group Inc. and J.M. Smucker Co., have jumped on the almond bandwagon to compete with smaller producers.
- However, with this increased demand and smaller crops from drought-afflicted California, prices for almonds have soared to record heights, from about $3.30 one year ago to the mid-$4 range, according to Stephen Smith, Hain Celestial’s chief financial officer.
Dive Insight:
Smucker was the first major food company to enter the almond spread market when it debuted a a Jif branded almond butter in creamy and crunchy varieties in 2013. Hain Celestial offers almond spread MaraNatha.
As the dairy industry is scrambling to deal with a massive surplus, wavering consumer demand, and subsequent falling prices, nut-based dairy alternatives are becoming a contender in the beverage industry. In 2014, sales for dairy alternatives totaled 14.5% growth, far outpacing dairy beverage sales, which grew only 2.2%. With these kinds of numbers, it wouldn't be surprising to see other major food companies join in the almond products craze.