Beijing, November 7, 2025 – China's peanut industry, a cornerstone of the nation's agricultural output, is navigating a period of subdued activity as excess supply pressures prices downward, according to recent market analyses. As the world's largest peanut producer, accounting for approximately 36% of global production, China harvested around 18 million metric tons last season, but current stockpiles held by oil crushers have led to a noticeable dip in trading volumes.
Market observers report that peanut prices have declined by about 5-7% over the past month, settling at wholesale levels between $2.16 and $2.56 per kilogram. This softening is attributed to slower demand for peanut oil cakes used in animal feed, compounded by a broader economic slowdown that has curbed consumer spending on snacks and processed goods. "Sellers are eager to offload inventories before summer storage costs escalate, but buyers remain cautious amid volatile global commodity trends," noted an analyst from the China Edible Oil Association.
Despite the immediate challenges, the outlook remains optimistic. The Asia-Pacific peanut market, dominated by China, reached $81 billion in 2025 and is projected to expand at a compound annual growth rate (CAGR) of 4.1% to hit $98 billion by 2030. Rising health consciousness among urban consumers is fueling demand for nutrient-rich peanut products, with peanut butter sales surging 7.42% annually in the region, driven by plant-based diets and Western-influenced snacking habits. In China, peanut butter consumption has grown steadily, appealing to a burgeoning middle class seeking convenient, protein-packed options.
Adding to the supply dynamics, peanut acreage is expanding by roughly 10% this planting season, as farmers shift from lower-priced maize amid economic pressures. However, weather fluctuations and stringent quality standards for exports-particularly to Europe and the U.S.-pose ongoing risks. The influx of Argentina's new crop is expected to further challenge Chinese exporters, who shipped over 500,000 tons last year.
Industry experts urge stakeholders to focus on value-added innovations, such as organic and flavored variants, to capitalize on emerging trends. "While short-term volatility persists, the fundamental drivers of health and sustainability will propel the sector forward," the analyst concluded.
As China balances domestic surpluses with global ambitions, the peanut market exemplifies the resilience of its agricultural backbone in an uncertain era.
