Chestnut Market - Forecast(2024 - 2030)

Chestnut Market Overview

Chestnut Market size is estimated to reach $4.9 billion by 2030, growing at a CAGR of 3.7% over the forecast period of 2024-2030. Chestnuts are a species of trees and shrubs that are commonly found in temperate regions of the northern hemisphere. There are 4 major Chestnut species namely, American Chestnut, European Chestnut, Chinese Chestnut, and Japanese Chestnut. Although Chestnuts seem similar to the seeds of plants such as Water Caltrop, Buckeye, and Horse Chestnuts, they are different as true chestnuts belong to the beech family. Moreover, Chestnuts are safe to consume while Buckeye and Horse Chestnuts are poisonous for humans. Chestnuts are consumed raw, roasted, or ground into flour. Pre-cooked Chestnut flour is used as a garnish in meat products and as an ingredient in salads. The rise in the use of chestnuts in bakery products is anticipated to drive market growth. However, the high cost of chestnuts acts as a major challenge to the chestnut industry during the forecast period.

The chestnut market is witnessing a significant upsurge driven by the increasing adoption of chestnut flour as a gluten-free alternative in various food applications. With rising awareness of gluten intolerance and celiac disease, consumers are actively seeking out gluten-free options in their diets. Chestnut flour, renowned for its nutty flavor and gluten-free characteristics, is emerging as a versatile ingredient in bakery products, pasta, confectionery, and other gluten-free recipes. Moreover, the nutritional benefits of chestnuts, such as being low in fat and high in fiber and essential nutrients, further contribute to their appeal among health-conscious consumers. This growing trend not only expands the market for chestnut flour but also boosts the overall demand for chestnuts, propelling market growth.

Market Snapshot:

Report Coverage

The report: “Chestnut Market Forecast (2024-2030)”, by Industry ARC, covers an in-depth analysis of the following segments of the Chestnut Market.

By Species Type: American Chestnut, Chinese Chestnut, European Chestnut, and Japanese Chestnut.
By Distribution: Hypermarket and Supermarkets, Convenience stores, Online Stores and Others.
By Application: Food and Beverage Industry, Cosmetic Industry and Others.
By Geography: North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, and Rest of South America) and Rest of World (Middle East and Africa).

Key Takeaways

• Geographically, the Asia Pacific market accounted for the largest Chestnut Market share in 2023 and it is poised to dominate the market over the forecast period of 2024-2030 owing to the high awareness of the nutritional benefits of chestnut consumption. 
• An increase in the global population suffering from gluten intolerance is projected to drive the market. However, the high susceptibility of chestnut trees to diseases such as blight and ink disease is anticipated to be a major challenge for the market.
• Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Chestnut Market Report.

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Chestnut Market Segment Analysis - By Species Type

Based on Species Type, the Chestnut Market is segmented into American chestnut, Chinese chestnut, European Chestnut, and Japanese Chestnut. The Chinese Chestnut segment is anticipated to be the largest in 2023 and is predicted to continue dominating the market over the forecast period of 2024-2030 owing to their extensive usage as stuffing and in soups, salads, and various confectionery items such as pancakes and muffins. However, the North American chestnut segment is anticipated to witness the fastest growth rate at a CAGR of 3.5% during the forecast period owing to high investments put into the development and cultivation of blight-resistant American chestnut variants. The traditional American chestnuts almost became extinct during the first part of the 20th century owing to them being susceptible to blight.

Chestnut Market Segment Analysis - By Distribution

The Chestnut Market based on Distribution Channel can be further segmented into Hypermarket and Supermarkets, Convenience stores, Online Stores and Others. The Supermarkets and Hypermarkets segment is predicted to be the largest segment during the forecast period owing to their rapid expansion in major developing regions and their high penetration by key players such as Walmart and Target in developed countries. The large size along with the organized layout of Supermarkets and Hypermarkets ensures that all major varieties and forms of Chestnuts are available for customers in one location. However, the Online Stores are anticipated to register the fastest growth rate during the forecast period at a CAGR of 3.6% owing to their high convenience as products are delivered to the customer’s home. Moreover, the Covid-19 pandemic and the subsequent restrictions imposed by various governments are anticipated to further boost the growth of the Online Store segment over the forecast period of 2024-2030.

Chestnut Market Segment Analysis - By Geography

The Chestnut Market based on Geography can be segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. The Asia Pacific was the largest segment in 2023. This growth can be attributed to the high rate of production and consumption of chestnuts in the region. According to Food and Agriculture Organization, China is the world’s leading producer of Chestnuts, producing around 1.56 million tonnes of raw chestnuts in 2022 alone. Japan, South Korea and North Korea are also among the top 10 chestnut producers. However, the North American Chestnut Market is projected to grow the fastest over the forecast period of 2024-2030, owing to the introduction of blight-resistant chestnut tree variants into the region. These new variants ensure that the trees are not destroyed by diseases such as blight or Ink disease and therefore, assure the farmers of returns during harvest. This is encouraging the development of Chestnut production in the region.

Chestnut Market Drivers

Increase in Global Population with Gluten Intolerance is Projected to Drive Market Growth

The rapid rise in the global population suffering from conditions such as gluten intolerance and celiac disease is anticipated to drive the Chestnut Market. Chestnut flour is gluten-free and therefore, it is a safe substitute for those who are suffering from such conditions. It is estimated that around 1-2% of the population suffer from celiac disease and up to 6% have gluten intolerance globally. Gluten intolerance affects the Caucasian race more than others and therefore, North American and European markets are rapidly shifting to gluten-free alternatives such as Chestnuts.

Rise in Awareness of Health Benefits Offered by Chestnuts is Anticipated to Boost Product Demand

The increase in global awareness regarding health benefits is driving the market. Chestnuts are rich in vitamin C. Just half a cup of raw chestnut can provide 35-45% of the daily requirement of vitamin C. They also contain antioxidants such as gallic acid and ellagic acid which are known to reduce risks of cardiovascular diseases, stroke, and some cancers. Moreover, the high fiber content in chestnuts helps improve digestion and balance blood glucose levels. Chestnut consumption does not lead to a rapid rise in blood sugar as they have a low glycaemic index of 54 on 100.

Chestnut Market Challenges

The Susceptibility of Chestnuts to Various Diseases and Insects is Anticipated to Hamper Market Growth

Owing to the stringent regulations regarding the use of chemical pesticides, the risk of diseases and insect infestation has risen significantly. Chestnut plants are highly vulnerable to insects such as Dryocosmus kuriphilus wasps, polyfag moth larvae, chestnut weevil, and diseases like Chestnut blight, ink disease, Phytophthora disease, and root rot. Chestnut blight alone was responsible for the destruction of around 4 billion North American Chestnut trees in the early 20th century. These diseases and pests can limit the chestnut output for farmers and thereby, cause a major challenge for the market growth.

Long Time Required for Producers to Break-Even is Projected to Limit Growth Opportunities

Even though the initial investment required for starting a small chestnut farm is relatively low, the time required for Chestnut trees to produce nuts takes around 4 or 5 years. Moreover, the time by which the producers break-even is estimated to be around 10 to 13 years. The low productivity and small size of Chestnut farms is a key reason for the long break-even time. For instance, around 50% of the chestnut farms in North America are only between 3 and 10 acres in the area while an average almond farm is around 235.5 acres.

Chestnut Market Industry Outlook

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Chestnut Market.

 The top 10 companies in of the industry are-

1.     Chengde Shenli Food Co. Ltd.

2.     ConAgra Foods Inc

3.     Chestnut Growers Inc

4.     Shandong Zhifeng Foodstuffs Co., Ltd

5.     Tangshan Goldentang Food Co., Ltd

6.     Qinhuangdao Yanshan Chestnut Co., Ltd.

7.     Roland Foods LLC

8.     Clément Faugier

9.     Route 9 Cooperative

10.  Battistini Vivai

Recent Developments

• In June 2023, Warnell School of Forestry and Natural Resources achieved a breakthrough in the chestnut market. By collecting over 11,000 chestnuts in Central New York, researchers-initiated efforts to identify the OxO gene, crucial for resisting chestnut blight. This development marks a significant stride in restoring lost chestnut populations, employing innovative techniques like somatic embryogenesis for genetic replication
• In February 2022, a new project led by Cornell Cooperative Extension Tompkins County (CCE-Tompkins) and partners signifies a recent advancement in the chestnut market. Titled "Facilitating the Adoption of Silvopasture and Alley Cropping Production of Nut Crops in New York State," the initiative aims to expand nut growing and processing in the Finger Lakes region. It introduces innovative agroforestry practices to enhance sustainability and economic viability

Relevant Reports

Edible Nuts Market – Forecast (2021 - 2026)

Report Code: FBR 92267

Packaged Nuts & Seeds Market – Forecast (2021 - 2026)

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