WMO Resources by worldmacadamia

WMO Resources

September 2024

The ingredients opportunity for macadamias

What consumers are looking for from health orientated foods is changing and macadamias are strongly aligned with these trends.

Well renowned food trends writer Julian Mellentin identifies the following trends in his priority list.

What people want, more than anything else, is for their foods, beverages and ingredients to provide a health benefit they perceive as natural and intrinsic to the food. Further to this, naturally functional foods don’t need to be backed up by scientificallyproven health claims.

Hand in hand with more fat is fewer carbs. 20-30% of the population are choosing to have fewer carbs. Furthermore, LCHF (low carb high fat) diet is now medical mainstream science and keto diets have built awareness of this concept.

There has been a fragmentation of people’s beliefs about food and health and as a result, scientific views on saturated fat have evolved and it has gone from enemy to supporting good health. Resultingly, good fat brands are growing.

American consumers are embracing the emerging concept of nutrient density and it is even starting to show up in US dietary guidelines.

✓ Macadamias are aligned to key trends.

✓ They can help deliver nutritionally dense foods.

✓ They can help elevate products into premium and niche segments.

The World Macadamia Organisation (WMO) is here to grow the love of macadamias and represents the majority of growing regions across the globe.

WMO is committed to supporting product developers through their formulation journey and is investing in marketing to the consumer to build awareness and nutritional understanding of macadamias.

• WMO has created the WMO Macadamia Product Standard and visual style guide to encourage commonality in styles and product quality guidelines.

• Tim Avila, a US based product development expert, has been engaged to work together with product formulators to identify the “need to solve for” technical challenges and invest in their resolution.

• Insights from industry will encourage the development of new ingredient formats.

With increased supply, price changes and increased industry marketing support, now is a good time to evaluate macadamias as an ingredient in your future launches.

Products with macadamias are suited to ‘health active’ consumers and brands.

• Macadamias are a premium, niche nut with benefits that appeal to premium consumers.

• These more ‘health active’ consumers are focussed on being ‘the best version of themselves physically, emotionally and mentally’.

• Lifestylers and early adopters are a priority consumer target as they typically like new things, new ingredients and are willing to pay a premium for wellness. These consumers represent 25-35% of the market.

• With a ‘health meets luxury’ positioning, macadamias are well suited to premium challenger brands looking to create a point of difference, and brands that sell at a premium price.

As health and nutrition has become part of every company’s strategy, it’s more important than ever to look for ways to di erentiate your product o er.

The below chart highlights relevant category opportunities for macadamia nuts as an ingredient:

Macadamia category opportunities

Bars and bites

Better blood sugar

Nut butters

Savoury snacking: dried cheese and nut mixes

Savoury, chilled meat and cheese snacking

Meat snacking inclusions

Permission to indulge RTE popcorn

KEY: High growth Medium growth

Permission to indulge healthier confectionary

Plant-based powdered creamer

Fruit & vegetable ‘superfood’ powders

A niche within plant-based milk

A niche within plant-based yoghurt

Plant-based cheese micro-niche

Premium granola and muesli

Source: New Nutrition Business, 2022. A review of product categories with opportunities for macadamias. Commissioned by the WMO.

Permissible indulgence (combining health and indulgence) continues to be one of the most successful strategies in health, therefore categories such as macadamia RTE popcorn, healthier confectionary, superfood powders and plant based creamers present big opportunities.

If you’re interested in learning more about ways to include macadamia nuts in your product formulations, please reach out to your usual nut distribution partner, or one of our members. See separate page for details. Visit worldmacadamia.com or email info@worldmacadamia.com.

Nutrition

Macadamias have excellent nutritional credentials that are highly relevant to long term food trends. There is an opportunity to build a stronger understanding of the composition of macadamias and related benefits with current and future consumers. The World Macadamia Organisation’s (WMO) nutritional messaging is science based, unique to macadamias, and resonates with the health-forward audience in the United States.

This nutritional narrative intends to inform consistent messaging around why macadamias are healthy. It is at the convergence of consumer trends, science, and the attributes that are ownable by macadamias. Macadamia brand owners, processors, communicators and the wider industry are encouraged to use this messaging, as consistency and repetition are key to building consumer understanding and shifting consumption behaviour.

This narrative has been developed for the United States and is in alignment with US regulations. In other countries, other benefit areas may have more relevance or validity.

Good fats

Macadamia nuts contain a variety of ‘good fats’ that support a healthy diet. They have the highest level of monounsaturated fats (MUFAs) of all nuts in the form of Omega-9 and Omega-7. Omega-9 is known to reduce inflammation, improve heart function through lowering of ‘bad cholesterol’ levels, and support overall wellness. Research is emerging for the more rare Omega-7 and there are correlations with lower blood sugar levels and healthier insulin responses. Macadamias have polyunsaturated fatty acids (PUFAs) in the form of Omega-3 and Omega-6 and humans need both, however we typically overconsume Omega-6. The ratio of 6:1 (Omega-6: Omega-3) found in macadamias is an excellent balance for optimal health.

Nature’s real food

Consumers are increasingly seeking nutrient dense ‘real foods’ which are not highly processed. The good fats in macadamias contribute to nutrient density together with vitamins, mineral, antioxidants, and phytonutrients. Macadamias are uniquely rich in the mineral manganese, essential for skin cell development and resolving inflammation. Healthy fats also enable the absorption of fat-soluble vitamins. Macadamias are a direct-from-nature whole food that offers exceptional nutritional benefits relative to their calorie content.

Low in carbs

Macadamia nuts are low in carbohydrates, and combined with high levels of unsaturated fats, present an ideal snacking option for those aiming to maintain lower blood sugar levels. There is only a minimal spike in blood glucose levels postconsumption. Encouragingly, preliminary evidence suggests that incorporating macadamia nuts into a carbohydrate-rich meal or snack can lead to a reduced rise in blood glucose levels shortly after consumption, this is particularly relevant to consumers following a LCHF (low-carb, highfat) diet or managing diabetes. Increased use of personal continuous glucose monitors has elevated the conversation around blood sugar management.

Inflammation

Inflammation is a significant health concern. It is a complex immune system reaction in the body in response to damage or invasion, and excess inflammation can cause chronic diseases. Too much added sugar contributes to inflammation, along with an excess of saturated fats found in meat and dairy. Macadamia nuts help to reduce inflammation through the presence of good fats, a favorable ratio of Omega-3 and Omega-6, along with vitamins, minerals and phytonutrients. The consumption of macadamias may help address inflammation related issues, such as digestive, brain and heart health.

Macadamia nuts contain good fats, Omega-3, 7 and 9 and have a favorable ratio that suppo s a healthy diet.

The low-carb content, combined with high level of unsaturated fats, means macadamias won’t cause a spike in blood sugar levels.

Macadamias are a real food direct from nature, delivering nutrition in healthy unprocessed form.

In ammation is a signi cant health concern, and consumption of macadamias can help with digestive, brain and hea health.

* Serving size – 1 ounce | 28-30 grams | 1/8 cup

The nutrition information is in alignment with the United States of America Food & Drug Administration (FDA) regulations. This may differ in other countries.

How macadamias compare to other healthy foods

Based on 100g comparisons

Resources

Based on 100g comparisons

• Scientific review report is available on the WMO Members’ Portal – www.worldmacadamia.com/member-portal.

• For non-members, please email info@worldmacadamia.com

• Blogs and recipes can be found in the Inspiration section of www.lovemacadamia.org

• Nutritional related posts are on Facebook, Instagram and Pinterest, under the loveofmacadamia handle.

Macadamia supply & demand

Macadamias are a growth story. The industry more than doubled between 2010 and 2020. And it is tracking to more than double again to 2030 when it is projected to be 600,000MT for nut-in-shell (NIS) at 3.5% moisture.

35 year perspective

In 2023 the volume was 315,000MT, a 5% increase from the prior year. The 22% growth between 2021 to 2022 was a contributor to significant market disruption.

5 year perspective

Source: International Nut & Dried Fruit Council, Australian Macadamia Society, WMO industry estimates.

Note: Macadamia supply nut-in-shell 000T @ 3.5% moisture

Macadamia production is spread across continents, favouring sub-tropical environments. In 2023 the largest producer was South Africa with 27% of global nut-in-shell production, followed by China and Australia.

2023 by country

In key growing regions the 2024 crop is falling short of initial forecasts, largely driven by adverse weather conditions. Data is only available for WMO member countries.

2024 current season

Growth is forecast in all regions, with the exception of Hawaii. The 2029 forecast is for 560,000MT of nut-in-shell, a compound annual growth rate of 10.2%.

2029 supply forecast

China and North America are the biggest consumption regions globally. These numbers show kernel equivalent in metric tonnes; nut-in-shell and oil have been converted to an estimated kernel number.

2023 demand by region

Source: International Nut & Dried Fruit Council for 2024; industry estimates for 2029. Notes: Nut-in-shell @ 3.5% moisture. “Other” is included in total but not aligned to a country.

The World Macadamia Organisation (WMO) is an independent not-for-profit, operating since September 2021 to promote macadamias globally – helping to connect with the benefits of including macadamias in food choices and stimulate growth in untapped markets.

All parts of the macadamia industry are encouraged to become members, both to ensure we work collaboratively as an industry to meet this demand challenge and to access member-only benefits.

For information, visit worldmacadamia.com or email info@worldmacadamia.com

Source: WMO macadamia forum industry estimates, May 2024. Notes: Volume in 000MT kernel/kernel equivalent

Macadamia price trends

Pricing on macadamias as an ingredient is now more favourable for product developers so it’s a great time to consider using it in your formulations.

Favourable pricing is largely due to an increase in global supply.

– Macadamia trees are replacing crops such as tobacco, sugarcane and coffee around the world.

– Supply has doubled in the 10 years to 2022.

– 2022 production is 298k MT (nut in shell at 3.5% moisture) and is forecast to grow at 11.3% per year to reach 503k MT in 2027.

The price of macadamia has become more favourable for manufacturers.

Kernel prices vary from application to application, but the average price of the whole kernel has fallen by approximately 20% since 2019 and the small styles have fallen by up to 50%.

The average per kg price of US macadamia kernel imports overtime peaked in 2019 and has dropped back in recent years.

This chart reflects the average price for kernel imported and therefore are a mix of prices for both whole kernel and smaller styles. Whilst changes in the mix of imports of wholes and smaller kernel will change the average price, the graph reflects the downward trend of pricing and a more recent plateau.

Average price/kg of macadamia kernels imported into the US

Source: USDA, H1 is January to June, H2 is July to December.

NB: Average price per kg = total value/total volume reported for H3 code 080262 (macadamia kernels).

Macadamias are often viewed as elevating occasions and food products, and have highly positive taste characteristics. They also deliver a more conscious way of indulging thanks to their favourable health halo.

Globally the macadamia crop is expected to remain strong and therefore new products formulations that include macadamias can be launched with confidence.

For information, visit worldmacadamia.com or email info@worldmacadamia.com

Sustainability

Increasingly consumers care about the sustainability of the foods they chose to consume. The natural food conscious consumer wants to know food is grown ethically and without a detrimental impact on the earth.

Macadamias are grown in sub-tropical environments in most continents in the world. Whilst there is variation in the farming systems, across the world care is shown by farmers to have a favorable impact of the environment and communities where they grow their crops. The World Macadamia Organisation will build a data led picture of the different farming systems and highlight sustainability initiatives from across its member countries.

Of the 17 Sustainable Development Goals (SDGs), the WMO will focus on no poverty, zero hunger, clean water and sanitation, decent work and economic growth, responsible consumption and production, climate action, life below water, and life on land.

Water Use & Quality

Macadamias are mainly grown in rainy, sub-tropical regions of the world within generally within the band of the 35th parallel and the equator. Macadamias are a tree crop and there is a natural water efficiency that comes with this. Traditionally, macadamia crops were not irrigated. For more recent plantings the majority of orchards receive supplemental irrigation in dry periods, with improving irrigation technology enabling farms to be increasingly efficient in water usage.

Climate Change & Carbon

Macadamia trees typically live for around 40-60 years while some live more that 100 years. Based on their longevity, their store of carbon is long-term contributing to both above ground biomass and in soil organic matter. Macadamia trees can store three tonnes of CO2-equivalent per year in their stems and branches alone, whilst the compost from husks and other organic matter boosts soil carbon and soil health in many macadamia orchards.

Economic Development

In many developing countries macadamia nuts’ low maintenance requirements and ability to fit into mixed cropping systems makes the nut an ideal food item for small land holders who combine food production with cash-crop options. For both larger and smaller farms, there are often strong connections with local rural communities for labour, supplies and services.

Low Impact & Circular Economy

Macadamia nut production provides several examples of truly circular crop production. For example, the macadamia husk can be returned to orchards as compost, whilst the macadamia shell is often burned for fuel at the processing plants. There is a strong focus on soil health, with the balance of chemical and organic fertilisers applied based on the nutritional requirements of the trees, rather than as a routine activity. The orchard floors are closely managed, as the shallow network of feeder roots draw nutritients from the soil. To find out more, please visit www.lovemacadamia.org

Macadamia kernel storage and handling

Macadamias are known for their “good fats”, but this high fat content means there are some special considerations when it comes to storage and handling. Macadamia kernel have the potential for a long shelf life if handled correctly. The two most influential factors in achieving this are moisture and oxygen.

BULK PACKING

To maximise shelf life:

• moisture effectively controlled

• oxygen effectively controlled

• appropriate packaging used

Packaging

Package under vacuum using a high barrier film containing foil.

Packaging varies greatly in its barrier properties to oxygen and water. To achieve the recommended shelf life of 24 months bulk kernel should be packed under vacuum using a high barrier film containing foil.

Storage

Store in original, unopened package in a cool, dry environment. If partially used, reseal or place in a sealed plastic container and store between 5-10°C.

To ensure macadamia kernel retain their crunchy texture, great flavour, and optimum shelf life, they should be stored in their original unopened package in a cool, dry environment.

Once the kernel is exposed to air, it can rapidly accumulate moisture which causes loss of crunchy texture and reduced eating quality and shelf life. If a carton is opened and only partially used, simply reseal the remaining product or place into a sealed plastic container and store between 5-10°C.

RETAIL PACKING

Choose materials that include high barrier flexible packaging, hermetically sealed metal cans, or glass jars.

Retail packs are generally not packed under a vacuum so the barrier properties will heavily influence the shelf life of the final product.

There are many types of retail packaging available. The higher the barrier to oxygen and water, the longer the use-by date can be.

Recommended material for retail packing includes high barrier flexible packaging and hermetically sealed metal cans or glass jars.

BULK HOPPERS

Ensure lid closes, keep limited volume, and ensure nut rotation in replenishment.

When selling macadamia kernel through bulk hoppers, it is more challenging to maintain the product’s freshness and crunch as there is no barrier to oxygen or moisture.

However, by adopting some simple practices, the product’s freshness can be maintained:

• Ensure the hopper has a lid that closes once the consumer/retail assistant has taken the required volume of macadamias.

• Keep only a small amount of product in the hopper at any given time to ensure it will be turned over quickly – ideally every 2-3 days.

• When refilling the hopper, remove all remaining kernel first and set aside, then remove and discard any dust. Place the fresh kernel on the bottom of the clean hopper before replacing the older product on top.

KERNEL ROASTING

Roast at low temperatures and test parameters to achieve an even, creamy kernel colour.

Generally the best roasting results are achieved by roasting at a lower temperature for a longer time.

Before roasting a full batch of kernel, a small test batch should be trialled to determine whether the roasting parameters need adjustment. This could involve changes to the roasting time and/or temperature.

A suggested starting point for a continuous nut roaster such as a Proctor or Aeroglide is 125°C for approximately 11 minutes. If an adequate level of roast is not achieved, the time and/or temperature can be increased.

The consumer is typically looking for a final roasted product that has an even creamy colour, contains no dark kernel and has a pleasant roasted flavour that is not over-done.

OIL

Macadamias are known for their “good fats”, in high levels of healthy monounsaturated fats. The high proportion of monounsaturated fats makes macadamia oil relatively stable compared to most other plant oils. This stability means the oil has a long shelf life compared to other nut oils and a high smoke point of 210°C.

BLENDING MACADAMIAS WITH OTHER PRODUCTS

When blending macadamia kernel in products consider moisture content of other ingredients and the impact of coatings and roasting.

Mixed nuts

With macadamia kernel having a moisture content of up to 1.8%, they tend be lower in moisture compared to other ingredients. This can cause the moisture content of the macadamia to gradually rise after packing which will affect the shelf-life of the overall product. Therefore, the shelf life of the final product will often be determined by that of the ingredient with the shortest shelf-life in the formulation.

Ice cream

In ice cream, often the kernel is coated to reduce its moisture uptake. A coating such as honey can slow the uptake of moisture. Oil roasting can also provide a protective layer that will reduce moisture uptake.

Chocolate coated

It is common for macadamia kernel to be oil roasted before being chocolate coated. The oil roasting gives the kernel a nice flavour that complements the chocolate, and also provides a protective layer of oil around the kernel which prevents moisture transfer from the chocolate. Chocolate coated macadamias are best stored in a dry and cool storeroom between 18-25°C and at a relative humidity of less than 60%. Storing it within this optimal temperature range ensures the chocolate won’t melt or soften as it would in higher temperatures, and also prevents the formation of fat blooms which can occur below 15°C affecting the final product’s external appearance.

To find out more, please visit www.worldmacadamia.com

USA consumer claims and statements

Communicating the benefits of macadamia nuts, or any other food products, are restricted by the regulations of the country they are being sold in. This document summarises the authorised claims and qualified health claims as is relevant to the USA If you are selling products outside of the USA, please check the regulations in the country/countries relevant to your business.

NUTRIENT CONTENT CLAIMS

A nutrient content claim is a specific claim to the amount of a nutrient or vitamins/minerals present in a serving of the product and the amount it represents based on recommended daily intakes (RDIs). For macadamia nuts the following can be made:

• Rich in Manganese

• Good source of Copper and Thiamine

There are no RDIs specific to monounsaturated and polyunsaturated fats but can be expressed as ‘good fats’ with qualifiers on the benefits of consuming macadamia nuts as part of a healthy diet and lifestyle.

CERTIFIED CLAIMS

Other certified claims for macadamias:

• Kosher

• Vegetarian/Vegan

• Non-GMO

• Keto

• Gluten-Free

• Plant-Based

QUALIFIED HEALTH CLAIMS

There are certain claims, identified as Qualified Health Claims (QHCs). These claims are supported by scientific evidence, but do not meet the more rigorous “significant scientific agreement” standard required for an authorized health claim. To ensure that these claims are not misleading, they must be accompanied by a disclaimer or other qualifying language to accurately communicate to consumers the level of scientific evidence supporting the claim.

Macadamia nuts has the following QHC:

HEART HEALTHY

Supportive but not conclusive research shows that eating 1.5 ounces per day of macadamia nuts, as part of a diet low in saturated fat and cholesterol and not resulting in increased intake of saturated fat or calories may reduce the risk of coronary heart disease. See nutrition information for fat content.

The following consumer narratives and claims were designed to avoid regulatory warnings on packages, but are supported by sound science and could be used effectively in marketing material based on the identified positioning.

GENERAL GOOD FATS

• Macadamia nuts can be included in a heart-healthy diet, due to its cholesterol lowering effects.

• Macadamia nuts can substitute foods higher in saturated fats and increase satiety. Satisfying, portable snack that keeps you full between meals.

• Macadamia nuts are a rich source of monounsaturated fatty acids (MUFAs) and provide a healthy ratio of Omegas-6:3.

• We need good fats in our diet to remain healthy, Macadamia nuts provide healthy fats to meet these needs and promote our overall best health.

• Macadamia nuts are high in healthy fats.

• Healthy boost of monounsaturated fats and less of the bad fats.

• Packed with monounsaturated fatty acids, making them a healthy source of fat.

• Healthy boast of monounsaturated fats and less of the bad fats.

• Wholefood source of healthy fats.

• Macadamia nuts are great for heart health – fats matter now and into your future.

• The healthy fat content of macadamia makes it an excellent option for nut butters, nut oils, non-dairy frozen desserts, and potential innovative uses.

INFLAMMATION

• The fats in macadamia nuts may help fight inflammation and reduce cellular damage.

• Increasing consumption of monounsaturated fats can benefit digestion and overall gut health. Macadamia nuts are an important source of monounsaturated fats and offer the ideal ratio of Omega-6 to Omega-3s.

• Increasing consumption of monounsaturated fats and lowering saturated fats can help support our brain and cognitive function.

• The fatty acid content of macadamia, especially oleic acid, shows anti-inflammatory effects in cells.

OMEGA-7 PALMITOLEIC ACID

• Increasing consumption of monounsaturated fats and lowering saturated fats can help support our brain and cognitive function.

• Higher levels of Omega-7 palmitoleic acid in the blood correlate with lower blood pressure.*

• Higher levels of Omega-7 palmitoleic acid in the blood correlate with lower blood glucose levels and a healthier insulin response.*

• Some research shows increasing Omega-7 intake through sea buckthorn supplementation increases the levels of Omega-7 palmitoleic acid in the blood.

Note: We do not know if there is a cause-and-e ect relationship so can only say they are correlated.

GENERAL NUTRITION

• Macadamias are an excellent source of manganese. This nutrient is essential for healthy blood sugar levels, building collagen, antioxidant activity, preventing free radical formation inside our bodies, cell signalling, and healthy bones and teeth.

• One serving of macadamia nuts also contains dietary fiber, protein, thiamine, and a good amount of copper.

• Macadamia nut intake does not result in weight gain when consumed as part of a healthy diet.

• Nut intake, including macadamia, cause a smaller rise in blood glucose and a healthier insulin response than other snacks.

• Macadamias are a source of plant sterols (which can lower cholesterol in the blood) and polyphenols (antioxidants).

• Macadamia nuts have the fighting power of polyphenols and flavonoids. Flavonoid-rich foods are essentially superfoods.

• Cold pressing macadamia oil is a healthy method of oil extraction and protects the nutrient benefits of macadamia in this form.

• Macadamia nut oil has a high level of lignans, which are health-promoting anti-inflammatory compounds that act somewhat like a fiber.

• Roasting improves taste/texture of macadamia nuts and does not diminish nutritional quality. Roasted macadamia nuts are just as nutritious as raw.

These phrases below can be used as talking points for macadamias:

✓ Macadamias have as many good fats as avocados.

✓ Macadamia nuts have the same healthy fat as olive oil.

✓ Macadamias have more Omega-3s than most fish.

✓ Macadamia nuts are a quick, easy source of healthy fats.

✓ Macadamia nuts plus dark chocolate make an antiinflammatory snack or dessert.

✓ The good fats in macadamia nuts turn a salad into a meal.

✓ Adding macadamia’s good fats to a meal helps keep blood sugar stable.

✓ The good fats in macadamia nuts keep us full without weighing us down.

✓ Helps us stay full for a long time without causing a spike in blood sugar.

✓ Macadamias are low in carbohydrates and sugar.

✓ Macadamias are one of the best versatile and emerging superfoods.

For more information, or to request a copy of the WMO Nutrition Research Analysis Report and WMO Nutrition Summary, please contact info@worldmacadamia.com www.worldmacadamia.com | www.lovemacadamia.org

Brands we love

We are here to build the love of macadamia nuts and would like to collaborate with United States brands that have macadamia product o ers.

We o er, free of charge:

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Macadamia Kernel

Style Guide

All styles set out below are premium grade

Wholes

Kernels which are not split into halves, nor with more than 1/4 of the kernel missing, provided that the kernel contour is not materially affected by the missing portion.

Halves

Means that half of a whole kernel, with not more than 1/8 of its mass missing.