Walnut Oil Market Size, Share, and Industry Analysis by Grade (Food grade, Cosmetic grade, and Pharma grade), By Application (Food & Beverages, Pharmaceuticals, Nutraceuticals, Aromatherapy, and Others) and Regional Forecast till 2032

The global walnut oil market has been steadily growing, driven by rising consumer knowledge of its multiple health benefits and rising demand across a variety of industries. This nutrient-rich oil, extracted from walnut tree nuts, is high in vital fatty acids, antioxidants, and vitamins, making it a favorite choice among health-conscious consumers. The oil is well known for its ability to promote heart health, reduce inflammation, and improve skin and hair care regimens, which has increased demand in both the food and cosmetic industries.

The increased popularity of natural and organic products has propelled the market growth as people seek chemical-free alternatives for cooking, personal care, and therapeutic applications. Furthermore, the food sector has adopted walnut oil as a luxury ingredient, prized for its distinct flavor profile and high nutritional value. From gourmet chefs to home cooks, oil is utilized to improve the taste and nutritional content of a variety of dishes. As the market evolves, improvements in product formulations and sustainable production methods are anticipated to drive the global market.

Walnut Oil Market Driver

Rising Health Awareness and Demand for Natural Products to Drive Market Growth

The global walnut oil market is expanding rapidly, owing to increased knowledge of the oil's multiple health benefits and rising consumer demand for natural and organic products. Walnut oil, which is high in omega-3 fatty acids, antioxidants, and critical vitamins, has become a popular ingredient in both the culinary and personal care industries. Consumers are increasingly prioritizing heart health, skincare, and overall well-being, which are driving up demand for this nutrient-dense oil.

The growing popularity of clean-label and chemical-free goods has boosted its use in cosmetics and personal care, where walnut oil is recognized for its ability to nourish skin and hair organically. Furthermore, its distinct flavor and health-boosting characteristics have made it popular with both health-conscious consumers and gourmet chefs. As plant-based and vegan diets become more popular, walnut oil's significance as a nutritious, plant-based alternative to standard oils has increased market expansion

Walnut Oil Market Restraint

Availability of Inexpensive Substitutes to Impede the Market Growth

Walnuts are a somewhat expensive raw material when compared to other oilseeds, and the extraction procedure, which involves cold-pressing to preserve the oil's nutritional content, can be labor-intensive and costly. This leads to a higher price for walnut oil, limiting its affordability and accessibility, especially in price-sensitive regions. Furthermore, the availability of cheaper alternatives, such as olive oil and sunflower oil, often drives consumers to choose less expensive options, reducing walnut oil's market share.

Walnut Oil Market Opportunity

Growing Walnut Production to Propel Industry Growth

The global walnut oil market is poised for growth, driven by rising demand for organic, natural, and specialty oils across a variety of industries. China and the U.S. contribute significantly to supply. As customers become more health-conscious and seek high-quality, plant-based products, walnut oil emerges as a premium alternative, particularly in the food, cosmetic, and pharmaceutical industries. Increasing walnut production in China and U.S. is primarily contributing to the industry growth.

According to the U.S. Department of Agriculture, China and the U.S. hold 51% and 28% of global walnut production in 2023/24. The walnut production in these countries has increased from 1.0 MMT and 0.59 MMT in 2019 to 1.4 MMT and 0.75 MMT in 2023, respectively. Increasing the production of walnuts will assist oil manufacturers in procuring raw materials smoothly at competitive price ranges.

Segmentation

Key Insights

The report covers the following key insights:

• Overview of Walnut Oil Market
• Supply Chain Analysis
• Regulatory Analysis
• Industry SWOT Analysis
• Key Industry Developments
• Qualitative Analysis Related to COVID-19

Analysis by Application

Based on application, the market is subdivided into food & beverages, pharmaceuticals, nutraceuticals, aromatherapy, and others.

The food and beverages segment leads the market, owing to rising demand for healthy cooking oils and gourmet ingredients. Walnut oil is widely sought after in this industry due to its high nutrient profile, particularly its omega-3 concentration and antioxidants, which appeal to health-conscious consumers and food connoisseurs. The oil is commonly used in salad dressings, sauces, and luxury snack formulations, with food and beverages accounting for the largest market share. Natural, plant-based oils are becoming increasingly popular due to their functional benefits in home and restaurant cooking.

The nutraceutical industry is emerging as the fastest-growing segment and is anticipated to depict the highest CAGR during the forecast period. Several industrial research demonstrated the therapeutic potential of walnut oil. Its application in nutraceutical goods, particularly for cardiovascular health and cognitive function, is becoming increasingly popular. Walnut oil's anti-inflammatory and heart-healthy characteristics are gaining popularity in the pharmaceutical industry.

Analysis by Grade

By grade, the market is divided into food grade, cosmetic grade, and pharma grade

The food-grade walnut oil holds the largest share due to its widespread use in cooking, dressings, and health supplements. The food industry values walnut oil for its high omega-3 fatty acid concentration, antioxidants, and distinct flavor character, which appeal to both health-conscious consumers and gourmet chefs. As the demand for healthy and natural oils rises, food-grade walnut oil remains the market leader, owing to the trend toward plant-based diets and functional foods. This category is further reinforced by its use in premium food goods and health supplements, making it the most profitable and in-demand segment.

The cosmetic grade segment is also growing rapidly, driven by a growing preference for natural chemicals in personal care goods. Walnut oil is highly valued for its skin-nourishing, anti-aging, and moisturizing characteristics, making it an essential component of organic skincare and hair care formulas. The rising desire for clean-label beauty products free of synthetic chemicals is propelling cosmetic-grade walnut oil to the forefront, notably in Europe and North America.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America, notably the U.S., is the leading participant, propelled by California's huge walnut production. California's excellent growing environment, technical developments in agriculture, and strong domestic demand for health-conscious products have all contributed to the region's market leadership. Walnut oil is widely used in gourmet cookery, health supplements, and beauty, which helps to explain its large market share. Furthermore, the region benefits from customer demand for organic and natural oils, which have contributed to growth in luxury product categories.​

The Asia Pacific market is emerging as a key growing area, with China and India serving as both producers and consumers. Rising disposable incomes, urbanization, and increased awareness of health advantages are driving the demand for walnut oil in these countries. Furthermore, the increasing use of walnut oil in traditional and alternative medicine is adding to its attractiveness in these countries.​

Key Players Covered

• La Tourangelle (U.S.)
• Caloy Company (U.S.)
• Henan Guanghua Agricultural Product Co., Ltd. (China)
• Ol'Vita (Poland)
• Aromex Industry (India)
• Kunhua Biological Technology Co., Ltd. (China)
• Corky’s Nuts (U.S.)
• Proteco Oils (Australia)
• Bio Planète (Germany)
• Borges Agricultural & Industrial Nuts ( Spain)
• Mahida Oil Mill (India)
• La Nogalera Group (Chile)

Key Industry Development

• In May 2024, the California Walnut Commission (CWC)'s involvement in supporting the USDA's expansion of nut and seed offerings. The USDA's Food and Nutrition Service (FNS) Child Nutrition Programs authorized the inclusion of walnuts as a full meat/meat alternative in meals, boosting the demand for walnut-based products and further solidifying the role of walnuts in global markets.
• In June 2021, Forbidden Foods, an ASX-listed company, launched walnut oil to the market. The newly launched product is enriched with algal docosahexaenoic acid (DHA) and available in 50 ml dropper and 250 ml bottle packaging.