Hazelnuts Processing Plant Setup Cost

Hazelnuts Processing Plant Project Report (DPR) Summary: 

IMARC Group's comprehensive DPR report, titled "Hazelnuts Processing Plant Project Report 2026: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue," provides a complete roadmap for setting up a hazelnuts processing unit. The hazelnuts market is supported by rising demand for nuts in bakery and confectionery products, increasing consumption of plant-based and nutrient-rich foods, growing use in spreads and snacks, and expanding applications across food processing industries. The global hazelnuts market size was valued at USD 20,340.10 Million in 2025.  According to IMARC Group estimates, the market is expected to reach USD 39,062.16 Million by 2034, exhibiting a CAGR of 7.5% from 2026 to 2034.

This feasibility report covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements, utility requirements, infrastructure requirements, machinery and technology requirements, manpower requirements, packaging requirements, transportation requirements, etc.

The hazelnuts processing plant setup cost is provided in detail covering project economics, capital investments (CapEx), project funding, operating expenses (OpEx), income and expenditure projections, fixed costs vs. variable costs, direct and indirect costs, expected ROI and net present value (NPV), profit and loss account, financial analysis, etc.

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What are Hazelnuts? 

Hazelnuts, coming from the Corylus genus, are tree nuts that are highly appreciated for their unique taste, nutrition, and flexibility in cooking. They can be eaten in different forms, such as raw, baked, blanched, sliced, chopped, or as paste, and thus, they are used in making chocolates, spreads, bakery items, and candy, cereals, and dairy alternatives. Hazelnuts are rich in healthy fats, proteins, vitamins and antioxidants appealing to the indulgent as well as health-conscious consumers. The hazelnut industry utilizes a commercial processing technique consisting of shell removal, roasting under strict controls, grading to ensure uniformity, and packing in a hygienic way that guarantees quality, safety, and long shelf life. Their versatility and excellent nutritional content render them fit for local as well as global markets with growing demand across both traditional and specialty food sectors. 

Key Investment Highlights 

• Process Used: Raw hazelnut cleaning and grading, shelling, roasting or blanching, skin removal, sorting and sizing, quality inspection, and hygienic packaging. 
• End-use Industries: Food processing industry, bakery and confectionery sector, chocolate and spreads manufacturers, snack food producers, and retail food segment. 
• Applications: Chocolate and confectionery ingredients, nut spreads and pastes, bakery fillings, snack nuts, breakfast cereals, and plant-based food products.

Hazelnuts Plant Capacity: 

The proposed processing facility is designed with an annual processing capacity ranging between 10,000 - 20,000 MT, enabling economies of scale while maintaining operational flexibility. 

Hazelnuts Plant Profit Margins: 

The project demonstrates healthy profitability potential under normal operating conditions. Gross profit margins typically range between 20-30%, supported by stable demand and value-added applications. 

• Gross Profit: 20-30% 
• Net Profit: 8-12% 

Hazelnuts Plant Cost Analysis: 

The operating cost structure of a hazelnuts processing plant is primarily driven by raw material consumption, particularly raw hazelnuts, which accounts for approximately 80-85% of total operating expenses (OpEx). 

• Raw Materials: 80-85% of OpEx 
• Utilities: 10-15% of OpEx 

Financial Projection:  

The financial projections for the proposed project have been developed based on realistic assumptions related to capital investment, operating costs, production capacity utilization, pricing trends, and demand outlook. These projections provide a comprehensive view of the project’s financial viability, ROI, profitability, and long-term sustainability.

Major Applications: 

• Bakery and Confectionery Industry: Used in chocolates, pralines, spreads, and baked goods. 
• Food Processing Sector: Incorporated into cereals, snacks, and dessert products. 
• Retail and E-commerce Channels: Sold as packaged whole, roasted, or chopped nuts. 
• Plant-Based and Health Foods: Used in nut butters, dairy alternatives, and nutrition-focused products. 

Why Hazelnuts Processing? 

✓ Growing Global Demand for Nuts: Rising consumer preference for healthy snacking and plant-based diets is boosting demand for hazelnuts and nut-based products worldwide. 

✓ Versatile Food Applications: Hazelnuts are widely used across premium and mass-market categories, including chocolates, spreads, bakery, confectionery, cereals, and dairy alternatives. 

✓ Value Addition Opportunities: Processing techniques like roasting, blanching, and grading enhance flavor, texture, and market value of hazelnut products.

✓ Strong Export Potential: Standardized processing and packaging enable consistent quality, making hazelnuts highly suitable for international markets. 

✓ Scalable Production Models: Diverse product formats and flexible manufacturing processes allow producers to efficiently scale operations to meet growing domestic and global demand. 

Transforming Vision into Reality: 

This report provides the comprehensive blueprint needed to transform your hazelnuts processing vision into a technologically advanced and highly profitable reality. 

Hazelnuts Industry Outlook 2026: 

The hazelnut market is predominantly driven by rising global consumption of chocolates and confectionery products. As per an industry report, around 80% of consumers in the U.S. purchased chocolate-based confectionery over the past year, attracted by its taste, indulgent nature, convenience, and premium positioning. Nearly 40% of consumers consume chocolate confectionery more than once a week. In accordance with this, increasing consumer preference for nutrient-dense, natural foods supports market demand. The growing adoption of plant-based and flexitarian diets is further augmenting the use of hazelnuts in dairy alternatives and spreads. Additionally, the expansion of bakery chains and premium snack brands is increasing the need for processed hazelnuts. Strong demand from multinational chocolate manufacturers continues to accelerate large-scale consumption. Furthermore, continual advancements in cold storage, processing, and grading technologies, which improve supply chain efficiency and reduce losses, are stimulating market accessibility. The rapid growth of e-commerce platforms is also enhancing product accessibility and market reach. Moreover, rising disposable incomes in emerging economies are encouraging higher consumption of value-added nut products. 

Leading Hazelnuts Processors: 

Leading processors in the global hazelnut industry include several multinational companies with extensive production capacities and diverse application portfolios. Key players include: 

• Ferrero 
• Olam International 
• Arslanturk S.A. 
• Holmquist Hazelnut Orchards, LLC 
• DurakFindik 
• DeveHerbes 
• Azerstar LLC 
• American Hazelnut Company 
• Hazelz New Zealand 

all of which serve end-use sectors such as food processing industry, bakery and confectionery sector, chocolate and spreads manufacturers, snack food producers, and retail food segment. 

How to Setup a Hazelnuts Processing Plant? 

Setting up a hazelnuts processing plant requires evaluating several key factors, including technological requirements and quality assurance.  

Some of the critical considerations include: 

• Detailed Process Flow: The processing procedure is a multi-step operation that involves several unit operations, material handling, and quality checks. Below are the main stages involved in the hazelnuts processing procedure flow: 
  • Unit Operations Involved
  • Mass Balance and Raw Material Requirements
  • Quality Assurance Criteria
  • Technical Tests
     

• Site Selection: The location must offer easy access to key raw materials such as raw hazelnuts, roasting equipment, blanching lines, sorting, and packaging. Proximity to target markets will help minimize distribution costs. The site must have robust infrastructure, including reliable transportation, utilities, and waste management systems. Compliance with local zoning laws and environmental regulations must also be ensured.​ 

• Plant Layout Optimization: The layout should be optimized to enhance workflow efficiency, safety, and minimize material handling. Separate areas for raw material storage, production, quality control, and finished goods storage must be designated. Space for future expansion should be incorporated to accommodate business growth.​ 

• Equipment Selection: High-quality, corrosion-resistant machinery tailored for hazelnuts processing must be selected. Key equipment includes cleaning machines, shellers, roasters, blanchers, sorting systems, conveyors, and packaging machines. All machinery must comply with industry standards for safety, efficiency, and reliability.​ 

• Raw Material Sourcing: Reliable suppliers must be secured for raw materials like raw hazelnuts, roasting equipment, blanching lines, sorting, and packaging to ensure consistent production quality. Minimizing transportation costs by selecting nearby suppliers is essential. Sustainability and supply chain risks must be assessed, and long-term contracts should be negotiated to stabilize pricing and ensure a steady supply. 

• Safety and Environmental Compliance: Safety protocols must be implemented throughout the processing process of hazelnuts. Advanced monitoring systems should be installed to detect leaks or deviations in the process. Effluent treatment systems are necessary to minimize environmental impact and ensure compliance with emission standards.​

• Quality Assurance Systems: A comprehensive quality control system should be established throughout production. Analytical instruments must be used to monitor product concentration, purity, and stability. Documentation for traceability and regulatory compliance must be maintained. 

Project Economics: 

​Establishing and operating a hazelnuts processing plant involves various cost components, including:​ 

• Capital Investment: The total capital investment depends on plant capacity, technology, and location. This investment covers land acquisition, site preparation, and necessary infrastructure. 

• Equipment Costs: Equipment costs, such as those for cleaning machines, shellers, roasters, blanchers, sorting systems, conveyors, and packaging machines, represent a significant portion of capital expenditure. The scale of production and automation level will determine the total cost of machinery.​ 

• Raw Material Expenses: Raw materials, including core ingredients like raw hazelnuts, roasting equipment, blanching lines, sorting, and packaging, are a major part of operating costs. Long-term contracts with reliable suppliers will help mitigate price volatility and ensure a consistent supply of materials.​ 

• Infrastructure and Utilities: Costs associated with land acquisition, construction, and utilities (electricity, water, steam) must be considered in the financial plan.  

• Operational Costs: Ongoing expenses for labor, maintenance, quality control, and environmental compliance must be accounted for. Optimizing processes and providing staff training can help control these operational costs.​ 

• Financial Planning: A detailed financial analysis, including income projections, expenditures, and break-even points, must be conducted. This analysis aids in securing funding and formulating a clear financial strategy.   

Capital Expenditure (CapEx) and Operational Expenditure (OpEx) Analysis: 

Capital Investment (CapEx): Machinery costs account for the largest portion of the total capital expenditure. The cost of land and site development, including charges for land registration, boundary development, and other related expenses, forms a substantial part of the overall investment. This allocation ensures a solid foundation for safe and efficient plant operations.

Operating Expenditure (OpEx): In the first year of operations, the operating cost for the hazelnuts processing plant is projected to be significant, covering raw materials, utilities, depreciation, taxes, packing, transportation, and repairs and maintenance. By the fifth year, the total operational cost is expected to increase substantially due to factors such as inflation, market fluctuations, and potential rises in the cost of key materials. Additional factors, including supply chain disruptions, rising consumer demand, and shifts in the global economy, are expected to contribute to this increase.

Capital Expenditure Breakdown:

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Operational Expenditure Breakdown:

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Profitability Analysis: 

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Latest Industry Developments: 

• December 2025: Barista Coffee Company launched a limited-edition hazelnut-based menu, “Go HazelNUTS with Barista,” across 150 Indian outlets from December 2025 to February 2026. Featuring beverages and desserts made with real hazelnuts, the festive menu highlights premium ingredients, innovation, and an elevated café experience. 
   
• July 2025: Mondelēz launched BelVita Duo Crunch Choco Hazelnut, a limited-edition wholegrain biscuit featuring chocolate hazelnut filling between two crunchy biscuits. Available from August 2025 to December 2026, the product targets convenience retailers in a 5×2 pack format, aiming to attract new shoppers and boost incremental sales. 

Report Coverage:

Report Customization

While we have aimed to create an all-encompassing report, we acknowledge that individual stakeholders may have unique demands. Thus, we offer customized report options that cater to your specific requirements. Our consultants are available to discuss your business requirements, and we can tailor the report's scope accordingly. Some of the common customizations that we are frequently requested to make by our clients include:

• The report can be customized based on the location (country/region) of your plant.
• The plant’s capacity can be customized based on your requirements.
• Plant machinery and costs can be customized based on your requirements.
• Any additions to the current scope can also be provided based on your requirements.

Why Buy IMARC Reports?

• The insights provided in our reports enable stakeholders to make informed business decisions by assessing the feasibility of a business venture.
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• We keep a constant track of land costs, construction costs, utility costs, and labor costs across 100+ countries and update them regularly.
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