Market Diversification Key to California Walnut Industry Stability

A mechanical harvester kicks up dust as it moves through a California walnut orchard during harvest. With about 70% of the crop exported, the industry is increasingly focused on expanding global markets (Photo C. Parsons.)

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Trade dynamics are in constant motion and often shift with the political tides. At the same time, competition from other growing regions is intensifying and consumers are aging out of many traditional geographic markets for California walnuts. With 70% of U.S. walnuts exported annually, the industry’s long-term stability depends on market diversification.

Leveraging federally funded grant dollars, including those from the Market Access Program (MAP) and the Regional Agricultural Promotion Program (RAPP), is key to developing new markets and furthering marketing in existing ones.

In February, the California Walnut Commission (CWC) secured $3.65 million in funding from the 2026 MAP to aid in these efforts, adding to $14 million in RAPP funds to be utilized over the next five years. The CWC also applied for funding through the America First Trade Promotion Program in January 2026. Funds from these programs support marketing activities, meetings with the trade, retail sales activations, product innovation, trade shows, advertising, trade missions and more, in more than 20 countries and are key to ensure a more resilient future for California walnut growers.


The Middle East and North Africa
In the Middle East and North Africa, the CWC is concentrating efforts in Türkiye, the United Arab Emirates (UAE), Saudi Arabia and Morocco while exploring opportunities in other Gulf Cooperation Council countries.

Both Türkiye and the UAE are highly price-sensitive markets where China increased its presence, especially during last season’s reduced California crop. This made it important for the industry to reinforce its quality, superior taste and reliability position as supply returned with the recent harvest, and in 2026, California walnuts are regaining ground. January sales reached near-record levels in Türkiye and the UAE, two pivotal inshell destinations, driving year-to-date increases of 261% and 253%, respectively.

Walnuts are highly prized in Türkiye and are included in all parts of Turkish cuisine. While Türkiye is a walnut-producing nation, consumption far exceeds local production, which supplies only 27% of demand, according to statistics from Trade Data Monitor and the International Nut and Dried Fruit Council. This consumption gap makes Türkiye heavily reliant on imports, making the California walnut industry well positioned to supply the region with the quality walnuts consumers demand.

CWC efforts in Türkiye consist of retail expansion, foodservice partnerships and health-forward messaging, as well as participation in events like World Walnut Day, celebrated with the country’s thriving tourism industry. California walnuts received substantial exposure from the event, which showcased California walnuts as a nutritious, flavorful and versatile food choice.

The industry’s standing is also being strengthened in the UAE, another high-consumption area for walnuts. Efforts include attendance at Gulfood in Dubai, where the industry engaged in in-depth discussions about new opportunities for California walnuts in global markets, and a partnership with Dubai’s International Centre for Culinary Arts to spotlight walnuts’ role in the growing hospitality sector.

Morocco is one of the leading countries to import walnuts in North Africa and the only African continent nation with a free trade agreement with the United States. Driven by middle-class growth and urbanization, there is growing consumer interest in quality products, convenient packaging and health-conscious food choices, making the Moroccan market primed for California walnuts.

Last year, the CWC secured a local agency to build trade relationships and develop the market. Efforts included webinars for industry members to learn more about the Moroccan market, tools to mitigate financial risk and import clearance, and the execution of a walnut-focused trade mission, which laid the foundation for future growth.


European Union
Consumer excitement for California walnuts is growing across the European Union as consumers seek good-for-you foods with clear health and wellness benefits, along with more plant-forward dietary patterns. The EU remains one of the industry’s most important regions, accounting for roughly one-third of California walnut exports in recent years, with 187,280 MT imported during the 2024-25 season. In 2026, the region is showing further strength, with kernel shipments up 25% year to date.

Germany is a key European market where consumers are looking for more plant-forward products like walnuts. It is currently California walnuts’ top export destination, and despite a smaller 2024-25 crop, Germany still received more than 79,600 MT, a 3% year-over-year increase. That momentum has continued into this season, with kernel shipments up 65% as of the January shipment report. Recently, the CWC partnered with one of the country’s largest retailers to promote California walnuts as a versatile meat substitute, garnering increased consumer engagement and sales.

ā€˜By broadening global opportunities
and
reducing market volatility, the California walnut industry can
pave the way for long-term stability
and steadier grower returns.’

In Spain, walnuts are the most consumed nut, and the CWC is expanding California walnuts’ presence there through efforts designed to increase visibility, sales and California preference.

Recent efforts leveraged Spain’s holiday season to generate awareness during a peak consumption period. The CWC promoted California walnuts at Madrid’s La NavideƱa Christmas Market with a festive campaign that embraced Spanish culinary trends and strengthened consumer awareness of California walnuts’ flavor, value and versatility.

In the UK, food culture is shifting, and consumers are increasingly seeking nutrient-rich options that fit into balanced lifestyles. In response, the CWC partnered with the country’s largest supermarket chain to bring California walnuts to the forefront, increasing sales and laying the foundation for long-term growth.


Asia and South Asia
Market diversification for California walnuts in Asia and South Asia is becoming increasingly important, as population growth shifts along with socioeconomic development. Efforts in new markets like India, where its population and middle-class consumers are growing, will be key to the industry’s long-term stability in the region.

In Japan, a loyal market for California walnuts, the California walnut industry organized the Japan World Walnut Summit, which brought together leading scientists, health professionals, media and influencers to spotlight the benefits of California walnuts. Walnut growers and processors participated in interviews with media, sharing their family farming stories and passion for California walnuts. Through this effort, the CWC and industry members were able to increase sales and continue to keep California walnuts top of mind.

In Korea, efforts have been consistent for more than three decades. Recently, the CWC partnered with the hit KBS TV show Pyun-restaurant, where celebrities create original dishes that later become ready-to-eat meals sold nationwide. A prominent Korean celebrity spotlighted California walnuts in creative recipes, highlighting walnuts as an excellent source of plant-based omega-3 ALA (2.5 grams per ounce). Walnuts also contain 18 g of total fat, ā€œgood fatsā€ including 2.5 g of monounsaturated fat and 13 g of polyunsaturated fat as well as 1.5 g of saturated fat per ounce.

India, as most of the industry knows, continues to provide significant opportunity for California walnuts. In February 2026, the California walnut industry received long-awaited news that tariffs were being lowered in India, although it is unclear if or when the industry may see these reductions, given ongoing trade discussions. With a consumer base of more than 400 million people in the country’s middle class, many of whom are vegetarian and seeking plant-based foods, there is also a growing focus on preventative health, with rising interest in superfoods and functional nutrition. Additionally, fast-paced lifestyles are fueling demand for convenient, healthy snacks.

The CWC has made meaningful strides in the Indian market by blending health education, influencer partnerships, experiential events and widespread media outreach. Efforts include participation in a major medical conference and hosting specialized workshops with top nutritionists to deepen awareness of walnuts’ role in heart, brain and gut health. Additionally, the CWC is partnering with Indian grocery chains to feature California walnuts in high-traffic stores.

Expansion into the Indian market has previously been difficult, but with a potential reduction in tariffs in the future, the industry could see meaningful gains from today’s roughly 16,000 tons shipped annually from California.

While efforts by the CWC and industry are opening doors for California walnuts in one of the world’s most promising markets, the industry should not put its faith in one market.

Overreliance on a single high-volume market leaves growers vulnerable to unexpected tariff hikes, shipping delays, geopolitical tensions or sudden changes in demand. Market diversification, supported by strategic use of USDA grant funding, will be key to navigating these challenges. By broadening global opportunities and reducing market volatility, the California walnut industry can pave the way for long-term stability and steadier grower returns.