Classification
Product TypeRaw Material
Product FormIn Shell
Industry PositionPrimary Agricultural Product
Raw Material
Commodity GroupTree Nut
Scientific NameJuglans regia
PerishabilityMedium
Growing Conditions- Temperate climate
- Deep, fertile, well-drained soil
- Adequate chilling before budbreak
- Full sun with reliable moisture supply
Main VarietiesChandler, Howard, Serr, Hartley, Franquette
Consumption Forms- In-shell retail snacking
- Shelled kernels for confectionery and bakery use
- Roasted nuts
- Further processing into ingredient formats
Grading Factors- Shell soundness
- Size/count
- Kernel color
- Dryness/moisture
- Freedom from splits, discoloration, mold, rancidity, and insect damage
Planting to Harvest5 to 10 years to commercial production
Market
In-shell walnuts are a globally traded temperate tree nut with production concentrated in China and the United States, while Chile provides the main Southern Hemisphere counter-seasonal window. Export flows are highly concentrated in a few origins, and Asia is the main import basin for in-shell trade, with Turkey, the United Arab Emirates, and India standing out as important destinations. Trade performance depends on crop size, harvest timing, shell and kernel quality, and disciplined drying and storage. The market is less perishable than fresh fruit, but it remains sensitive to weather swings, water stress, and post-harvest quality management.
Market GrowthGrowing (2014-2023 trade trend)World walnut exports have roughly doubled over the past decade, with in-shell shipments gaining importance alongside shelled trade.
Major Producing Countries- ChinaLargest producer; INC data for 2023/24 puts China at about 51% of world walnut output.
- United StatesSecond-largest producer; California is the core production base and the U.S. accounted for about 28% of 2023/24 output.
- ChileImportant Southern Hemisphere producer and counter-seasonal export origin; about 7% of 2023/24 output.
- UkraineMajor European producer and Black Sea origin with meaningful export potential.
- TurkiyeImportant producer, but a large share of output is consumed domestically.
Major Exporting Countries- United StatesLeads global walnut exports; INC reports 34% of 2023 exports and a five-year average near 39%.
- ChinaSecond-largest exporter; INC reports 22% of 2023 exports.
- ChileKey Southern Hemisphere exporter; INC reports 16% of 2023 exports.
- UkraineMeaningful Black Sea exporter and an important secondary source of supply.
Major Importing Countries- TurkiyeMajor in-shell destination and processing market; Asia is the main import basin for in-shell walnuts.
- GermanyMajor European walnut import market and an important distribution hub.
- United Arab EmiratesImportant destination and re-export hub for walnut trade.
- IndiaKey Asian in-shell buyer with growing demand for snack and festive use.
- ItalyMajor European consumer market for imported walnuts.
Supply Calendar- China:Aug, Sep, OctHarvest begins in August and typically continues into early October; export bookings can start in September.
- United States (California):Sep, Oct, NovMain harvest window runs from September to November.
- Chile:Apr, MaySouthern Hemisphere harvest is concentrated in April and May, providing a counter-seasonal supply window.
Specification
Major VarietiesChandler, Howard, Serr, Hartley, Franquette
Physical Attributes- Woody shell enclosing an oil-rich kernel
- Commercial lots are sorted by size and shell soundness
- Kernel color is traded from extra light through amber depending on grade
Compositional Metrics- Adequately dried walnuts should generally be at or below about 8% moisture
- Kernel color and dryness are key buyer checks in trade
- Low moisture and low water activity are required for stable storage
Grades- UNECE Extra Class
- UNECE Class I
- UNECE Class II
- U.S. No. 1
- U.S. No. 2
- U.S. No. 3
ProcessingPost-harvest hulling and drying are essential before storage and shipmentIn-shell lots are often packed by size and grade for exportSome downstream volumes are cracked or shelled for kernel trade
Supply Chain
Value Chain- Harvest -> hulling/dehusking -> drying -> size and color sorting -> grading -> in-shell packing -> cool dry storage -> export distribution
Demand Drivers- Health-oriented snacking and bakery use
- Seasonal holiday demand in Asia and Europe
- Industrial demand for shelled kernels in confectionery and food manufacturing
Temperature- Dry nuts store best at about 32-50°F with 50-65% relative humidity
- Heat above 90°F accelerates kernel darkening during handling and staging
Shelf Life- In-shell walnuts may be stored for many months in a cool, dry place
- Refrigeration or freezing extends quality retention; rancidity, mold, and insects are the main storage losses
Risks
Supply Concentration HighChina and the United States dominate world walnut supply, with INC data showing China at about half of 2023/24 output and the U.S. at about 28%. A poor crop, logistics disruption, or policy shock in either origin can tighten global availability and move prices quickly.Diversify sourcing into Chile, Ukraine, Turkey, and other secondary origins; use multi-origin contracting and inventory buffers.
Climate and Crop Variability MediumWalnut yields and quality are vulnerable to drought, late frost, spring rain, and alternate bearing. Rainy spring conditions can worsen walnut blight, while hot or delayed handling can darken kernels and reduce value.Balance origins across hemispheres and keep harvest-to-dry cycles short.
Storage and Quality Loss MediumIn-shell walnuts can hold quality for months only if they are dried promptly and stored cool and dry. Heat, moisture, rancidity, mold, and insect infestation can quickly downgrade marketable quality.Dry quickly, avoid warm staging, and store in sealed, odor-free conditions.
Sustainability- Water stewardship in irrigated orchards, especially in California, China, and Chile
- Climate variability and drought pressure can shift yields and quality from year to year
- Rain during bloom can increase walnut blight risk and reduce exportable quality
FAQ
Which countries dominate global walnut production?China and the United States dominate global production, with Chile, Ukraine, and Turkey also important. INC's 2023/24 data puts China at about half of world output and the United States at about 28%.
When do the main walnut origins harvest?China generally harvests from August into early October, California's main harvest runs from September to November, and Chile's harvest is concentrated in April and May.
What grades are used for in-shell walnuts?UNECE classifies in-shell walnuts as Extra Class, Class I, and Class II, while USDA also uses U.S. No. 1, No. 2, and No. 3 grades.
How should raw in-shell walnuts be stored?They should be dried promptly and kept in a cool, dry place. UC IPM says in-shell nuts can stay sound for many months, and refrigeration or freezing extends quality further.