Why Australia’s go-to healthy snack has more than doubled in price
Updated . First published
Aussie shoppers have been struggling with the increasing cost of their favourite nuts, with prices across the board increasing steadily over the past five years.
Almonds, Australia’s most popular nut, have increased in price by as much as 35 per cent since 2021. Cashews have soared in price by up to 60 per cent. And pistachios – which have been experiencing unprecedented demand of late thanks to the Dubai chocolate trend – have doubled in price.
Aussie shoppers are facing soaring nut prices in supermarkets across the country. Jo Abi
This is despite Australia’s world-class, highly robust nut industry. Australia is a major global nut producer thanks to our diverse climate regions which supports large-scale commercial cultivation of multiple nut varieties.
Global markets dictating local shelf prices
RaboResearch senior food analyst Michael Harvey has told nine.com.au Australia has a “very large almond industry,” but even this doesn’t help to keep local prices down.
Even our robust local almond industry hasn’t been able to ward off global price pressures. Jo Abi
“It’s a commodity, a food item, that is exposed to the global market,” Harvey explained.
“The way the almond market is structured is, we are a net exporter, and the global price is really dictated by what is going on in the US because they’re such a big producer of almonds.”
Almond production in the US has slowed due to a number of factors, including water restrictions in major growing regions in California, extreme weather, and global trade and supply chain disruptions.
“So what you have seen is reduced production in almonds in the US, which has lifted the global price. And that’s why consumers are paying more for almonds,” Harvey added.
“So with almonds, consumers pay more.”
Australia also has robust production of other nuts including macadamias, pistachios, walnuts, pecan nuts, and chestnuts, many of which have also been driven up in price by global prices.
‘Everyone in food, unfortunately, is suffering the same fate.’ Jo Abi
‘Everything is blanket going up’
Saeed Sidaoui, manager of family-owned Victoria retailer Nuts About Life, told nine.com.au it has gotten to the point where they no longer ask growers why the price of the nuts they purchase have gone up.
They simply accept it, and have watched prices steadily increase since 2021.
Prices have steadily increased since 2021 across all major nut categories. Jo Abi
“For the first couple of years, the first few months, we’d sit there and go, ’Yep, no worries.
“Can you please let us know why and what’s going on so of course we can pass that on to our consumers?′ But naturally, as time’s gone on, everyone just assumes the price is going up.
“And when you look at other commodities, you look at like sesame seeds, grains, you look at even meat, milk, cheese, it seems to be the same thing, which means at least it’s not isolated to our industry. Everyone in food, unfortunately, is suffering the same fate.”
Almonds are the biggest seller by far the company’s biggest seller and while they work closely with local growers, they do also source some stock from India, China, and Egypt as needed when Australian prices reach a price point customers just aren’t willing to pay.
What you’re purchasing at your local supermarket
Although Sidaoui noted that Australian almonds are far superior in quality when compared to the rest of the world, describing them as “unbeatable” and “the cream of the crop”.
And while majority of the almonds customers are purchasing at major supermarkets are likely Australian-grown, the more affordable packs may not be the premium stock.
“You’re probably not buying the highest grade. They may be a little chipped, a little bit small,” he said.
“When we buy pumpkin seeds, sesame seeds, almonds, macadamias, it all comes down to size, the colour, all those things you might not think about as a consumer.”
Australian almonds are far superior in quality when compared to the rest of the world. iStock
Peanuts, walnuts, macadamias, and pistachios also hit
Peanuts, famous for being the most affordable nut (although they are technically a legume), have also increased in price, Sidaoui explained, doubling in price since 2021.
“They used to be the absolute cheapest of the cheapest.”
Australia has a well-established peanut growing industry that produces tens of thousands of tonnes of peanuts annually, however faces major competition from Argentina.
“There is a lot of competition from Argentina.” Argentinian peanuts come in and they are a wonderful product, if I’m totally honest with you. So it’s hard to say Australian quality is unmatched. Argentinian peanuts are very good, so there’s some competition there, so prices have risen.
“Walnuts as well. A lot of Australian walnuts have gone up in price solely because walnuts are now being imported from Canada, from US, and now also from China. Again, the product is pretty good, and that’s unfortunate or fortunate, depending on where you sit on the spectrum.
“Macadamias have gone up a lot. You know, for the most part, they’re Aussie product and they’re wonderful products, but they’re not immune to price rises that have affected everything.”
Peanuts, famous for being the most affordable nut, have also increased in price. Jo Abi
As for pistachios, these have “probably gone up by the most,” Sidaoui said. Australia produces a healthy amount of quality pistachios in Adelaide that are, once again, impacted by global prices.
“They’re beautiful, very nice, very big, purple, green. But I think we’re paying $30–$40 a kilo. And you know, when that hits retail, it’s probably closer to $70–$80 a kilo. That’s why you can only really buy 50g packs, 20g packs, because you don’t get that price shock when you see something at like $60 for a small bag of nuts.”
Increase demand for nut bars has also contributed to price pressures. Jo Abi
Nuts remain one of Australia’s biggest sellers
Nuts remain a multi-hundred-million-dollar retail category in Australian supermarkets, driven by strong growth in the savoury snack and health food segments.
The Australian packaged nuts and seeds retail market generated $755.49 million in annual sales value, following steady year-on-year market growth.
Domestic nut consumption volume has more than doubled, and overall retail sales value has tripled over the past two decades. Demand is heavily driven by health and convenience trends, with per capita consumption of fruit, nut, and seed bars increasing by 50 per cent across Australian grocery retailers.
Increase demand for nut bars has also contributed to price pressures. Jo Abi
The snack bar segment has also grown by 50 per cent in that time, further driving up demand for our most popular nuts.
Australia has also seen in increase in sales of products such as almond flour and almond meal which has experienced a significant surge in popularity across Australia in recent years due to increasing uptake of Keto, Paleo, and gluten-free diets. This has placed further price pressures on almonds both locally and globally.
