Plant-based trend boosts global almond business, says Blue Diamond VP at Anuga 2019

10 Oct 2019 --- The plant-based trend is boosting the almond business globally, particularly with an increased interest in almond milk, almond flour and almond protein, says Bill Morecraft Jr, Senior Vice President, Global Ingredients Division at Blue Diamond Growers. Speaking to NutritionInsight from the floor of Anuga 2019, Morecraft highlighted how the plant-based trend is driving the company’s growth and how the snacking trend is also adding to it, especially in Europe. The company recently inaugurated a new processing facility in California, US, and also expects to see the proliferation of its business in Japan, in light of a recent US-Japan trade agreement.

“We do find the plant-based trend very favorable for almonds and we have been growing rapidly. It fits very well into the clean label space and the healthy eating space. We have seen almond milk grow on our consumer side, because of the plant-based trend. We have also seen its impact more so in North America than Europe with our almond flour as well, as a healthier alternative to traditional flours,” Morecraft notes. 

“At the show, we are showcasing our manufacturing ingredients. We have some growth areas that we have put increased focus on such as almond flours, almond butter and almond protein,” he adds.

The plant-based trend grew exponentially within 2018 and continues to rise. According to data from Innova Market Insights, there has been more than 45 percent average annual growth in food and beverage launches with a vegan positioning (CAGR, 2013-2017). The trend is driven by vegetarian and flexitarian diets that seek a more healthy and environmentally friendly approach to nourishment. 

Click to EnlargeBill Morecraft Jr, Senior Vice President, Global Ingredients Division at Blue Diamond Growers at Anuga 2019 in Cologne.One of the biggest results of the plant-based boom has been the strong rise in dairy alternatives. There has been a 17 percent average annual growth in dairy-free products (Global, CAGR 2013-2017) of these products, which include dairy alternative drinks and spoonable non-dairy yogurt. Between 2013 and 2017, soy continued to be the top ingredient for plant-based dairy alternative drinks, however, the market penetration is decreasing. Almonds and oats also show strong growth over the years, with a CAGR of 39 percent and 36 percent, respectively (2013-2017).

The market researcher also recently crowned almonds as the most popular nut in Europe. According to the data, there were over 4,500 new product introductions with almonds in Europe in 2018, representing 45 percent of all new product introductions with almonds globally.

Boosting production
The cooperative’s new facility in Salida, California, US, features new pasteurization technology and processing lines that seek to support the growing demand for almond products as well as support future expansion plans. The plant is pegged by the company as the “largest almond receiving station in the world” and boasts energy-saving and sustainable manufacturing capabilities. 

The facility spans 52,000 square feet. Within the facility, Blue Diamond is the first in the almond industry to use Log5 technology across two of its natural pasteurization lines – one for processing whole almonds and the other for dry roasting on an integrated line. A third line uses innovative design with custom features to produce the finest flour texture in the industry, the company says. 

Snacking trend and global markets
Aside from the plant-based trend, the high nutritional profile of almonds is also contributing to the sector’s growth. “Nutritionally, almonds give you an element of fiber and an element of protein and as a whole food, they tap into the healthier options space,” Morecraft notes.

The almond market is driven by factors such as the growing demand for plant-based products and increased awareness about the health benefits of almonds as a healthy and high-nutrient ingredient. Despite the demand for the high nutrient nut, high prices, fluctuating production and potential allergies could possibly inhibit the growth of the almond ingredients market. Morecraft, however, remains positive that the growth will be steady and continuous, particularly in the alternatives space. 

Click to EnlargeInnova Market Insights reports a 10 percent average annual growth of global launches with a snacking claim over the past five years.Touching upon one more trend, Morecraft notes that the almond sector is also bolstered by the snacking trend which is well-established in North America and less in the European scene. Nonetheless, busy schedules are changing consumer lifestyles and boosting snacking among boomers and millennials, establishing a “fourth meal” culture.

“The snacking sector in Europe is also growing rather rapidly. In the US there is a very well-developed almond snacking sector, whereas Europe is a large consumer of almonds but focused on other applications, mostly for baking with almond flour and marzipan which is a more traditional approach. But we are seeing a renewed interest and growth in almond snacking in Europe,” Morecraft highlights.

Innova Market Insights reports a 10 percent average annual growth of global launches with a snacking claim over the past five years (CAGR, 2013-2017).

In recent business developments, Blue Diamond Growers applauded a trade agreement announced by the US and Japan. The agreement recognizes and further solidifies the important partnership between both countries. Blue Diamond has heavily invested in Japan for more than 60 years, making the country a key market for US almonds. Removing trade barriers and promoting trade opportunities is vital for the economic success of the cooperative and the California almond industry. Given the recent China-US trade hurdles, the move is a significant one, establishing trade relations with other Asian markets. 

While on the showfloor on Anuga, cannabidiol (CBD)-infused offerings, disruptive protein drinks, bakery products inspired by millenials and the fusing of beauty from within and on-the-go formats, were prominent. In addition, the NewtritionX summit, part of Anuga 2019, saw industry experts such as Michael Gusko, Managing Director of GoodMills Innovation and Dr. Simone Frey,  CEO of NutritionHub, discuss topics such as personalized nutrition. 

By Kristiana Lalou

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