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In 2023, the California walnut industry took aim at an ambitious vision: making California walnuts craved around the globe. Since then, the industry continues to weather ever-changing market dynamics, increasing global competition and ongoing regulatory and price pressures. And while these challenges are real, it’s important to recognize the significant strides the industry is making together.

Because of the hard work and dedication of California’s growers and handlers, California walnuts are earning new ground, in retail produce aisles, with restaurant and food manufacturing decision-makers and in kitchens around the globe. While much has been accomplished, there is work yet to be done.

Expanding Global Markets
Globally, consumption of walnuts is on the rise and export markets remain critical to the industry’s success. As a steward of the industry, the California Walnut Board and Commission are focused on opening new markets and maximizing market share. The California Walnut Commission (CWC) participates in USDA grant programs, including the Market Access Program and Regional Agricultural Promotion Program, which help fund efforts to develop and enhance market opportunities for California walnuts in key international markets. Asia, Europe and the Middle East continue to bring opportunities, although trade policies significantly influence market dynamics.

India represents one of the most significant growth opportunities, with a growing middle-class population of 400 million that is looking for nutritious, healthier food choices. Indian importers and retailers estimate annual demand could grow dramatically with improved market access. India has a 100% tariff on all walnuts that was issued in 2018, and there is tremendous opportunity to increase shipments if the tariff were reduced. In the current season, India will import about 16,000 tons of California walnuts. Elsewhere, demand in South Korea, Japan and the European Union has remained steady.

Building Domestic Demand
At home, the California Walnut Board and Commission recently launched a new integrated marketing effort to boost domestic sales and introduce walnuts to younger audiences through lifestyle-driven storytelling, while also appealing to longtime consumers. At the center of these efforts is shifting away from thinking walnuts are for grandma’s banana bread to a focus on positioning California walnuts as a “feel-good” food, packed with nutrition and perfect to elevate snacks, salads, meals and plant-based applications. The feel-good messaging was developed after consumer research showed consumers prioritize emotional health, rest and feeling their best, and that California walnuts have an opportunity to meet those needs.

Early results show the messaging is working, with more than 35 social media influencers sharing videos about the feel-good power of California walnuts, reaching tens of millions of consumers in the primary target audience during the last six months. These videos reach consumers where they are, on social media, and are designed to spark inspiration that translates into trial and ongoing consumption of California walnuts. Online efforts are complemented with in-store activity to drive purchases and move California walnuts beyond the baking aisle through expanding displays and co-marketing promotions in the fresh produce section. To do this, the board and commission meet with retail operators to showcase the quality of California walnuts, grow relationships and accelerate year-round sales.

For restaurant and food service operations, efforts include educating and inspiring chefs and restaurant menu developers about the benefits and features of California walnuts and how walnuts add value to menus. On behalf of the industry, the board and commission have engaged Chef-in-Residence Robert Danhi to use his expertise and connections to promote California walnuts using platforms like walnut cream and walnut meat as a foundation for the numerous culinary uses walnuts can take. He recently developed a groundbreaking flavor wheel that includes a comprehensive assessment of walnuts’ flavors, aromas and textures to drive excitement with chefs, restaurants and food technologists to use walnuts in new and exciting ways. Danhi is a 38-year veteran and thought leader in the food and beverage industry, a James Beard Award-winning cookbook author and a former instructor at The Culinary Institute of America.

In food manufacturing, consumers are looking for more than just a handful of nuts; they want taste adventures, portion control and functional formats. California walnuts are uniquely positioned to meet the moment and are already featured in new innovations being brought to market, such as snack mixes, confections, baked goods, granolas and more. These efforts are picking up steam and building upon years of industry investment in nutrition research.

Leveraging Nutrition
For more than 30 years, CWC has supported health-related research examining the effect of walnut consumption on areas like heart health, cognition, cancer, diabetes, metabolic syndrome, gut health, body weight and composition, reproductive health and more. This research isn’t simply for the sake of research; it’s a tool to further industry growth.

The commission uses the latest science to arm health professionals with information about the health benefits of walnuts. By doing so, it amplifies the effect of the industry’s research investments. Brochures, articles and toolkits for registered dietitians are just a few of the tools made available. In July, CWC hosted its Global Walnut Nutrition Science Summit in San Diego, bringing together leading researchers and growers to discuss the latest findings on walnuts. Topics included cognition, early development and lifelong health.

At the time of this writing in late August, the industry is preparing for a new crop year. Early estimates suggest a larger crop than last year with one of the lowest unsold carry-in inventory volumes the industry has seen in years. Much of the inventory will be sold in September and October before the new harvest is ready to ship. California walnut quality will be exceptional, the result of careful farming and ideal growing conditions throughout the summer. While there is a lot to be optimistic about, continued coordination among growers, handlers and industry members is paramount.

We encourage all growers and handlers to get involved by coming to meetings and events, participating in surveys and opportunities for input, and staying up to date on the work of the California Walnut Board and Commission. We also encourage growers to work closely with their handlers to understand the global market conditions and how handlers manage their sales and marketing strategies to drive higher values.

What’s more, it’s important to always remember that while change is a constant and challenges remain, together we can go much further than any one grower, handler or entity can on its own. Learn more about how you can continue to support industrywide efforts to create a thriving future by signing up for our industry newsletter at walnuts.org/industry-subscribe.