Over the past decade, South Africa has become a powerhouse as country has been officially recognised as the world’s largest producer of macadamias, and the 2024 recovery on returns for macadamias after a two-year slump is further fuelling expansion. Considering the ongoing expansion of new orchards across the country, South Africa’s macadamia productions could double in the decade ahead, thus further entrenching this leading position.
This marked increase in production forms part of the global growth in the demand for tree nuts. The global shift towards healthier and more sustainable diets, particularly by young consumers has seen the demand for plant-based foods has surge. Tree nuts, prized for their nutritional profile, have seen a 70% increase in global consumption over the last ten years. In this context, macadamias have emerged as a premium offering, valued for their rich, buttery flavour, high monounsaturated fat content, and versatility in everything from snack foods to dairy alternatives.
A Story of Rapid Growth
South Africa’s macadamia production has expanded rapidly, growing from just over 16,000 tonnes (nut-in-shell) in 2006 to an estimate of between 90,000 and 94,000 tonnes expected for the 2025 harvest. The country now accounts for over 30% of global macadamia supply on a kernel basis, ahead of Australia and China, where macadamias have long been produced.
Traditionally, macadamias have been grown in the sub-tropical northern regions of South Africa. Production was focussed in areas of Limpopo, Mpumalanga, and KwaZulu-Natal, where the combination of warm temperatures, high humidity, and good rainfall provides ideal growing conditions. These regions continue to form the backbone of the industry, but newer orchards are now being established in parts of the Eastern Cape and even the Western Cape, where microclimates and irrigation infrastructure allow for experimental cultivation.
The expansion has been fuelled by good returns, and the industry consists of both commercial farmers and a growing number of smaller, emerging producers. The country has between 1300 and 1500 farmers, who are represented by the industry body Macadamias South Africa (SAMAC). The industry body estimates that over 12,500 people are employed in the sector, and this number is expected to rise as new orchards mature, and demand continues to grow.
Export-Oriented and Globally Competitive
South Africa’s macadamia industry is heavily export-oriented, with over 95% of production destined for international markets. The crop’s counter-seasonality is a key advantage, allowing South African exporters to supply Northern Hemisphere markets when global supply is at its lowest.
The export market is broadly divided into two categories: in-shell nuts, which are mostly shipped to China and Vietnam, and shelled kernels, which find their way to Europe, North America, and parts of Asia. In-shell exports are driven largely by strong demand from the Chinese market, particularly during Lunar New Year celebrations when nuts form a key part of gift-giving traditions.
On the kernel side, Germany, the Netherlands, Spain, the UK, Japan, and the US are key destinations. The rising demand in these markets is driven by macadamias’ use in health foods, plant-based snacks, and premium confections. Marketing efforts by organisations such as the World Macadamia Organisation (WMO) and Global Macadamias have helped to reposition the nut from a luxury item to a mainstream ingredient with global appeal, and this shift is beginning to yield real results. In early 2025, macadamia prices surged by over 30%, signalling a strong recovery from the pandemic-related market disruptions that plagued the industry in previous years. The uptick in kernel demand has been particularly notable, as food manufacturers continue to invest in macadamia-based products, broadening the range of macadamia-based food offerings with long-term market potential.
Industry Milestones and Innovations – TopNut introduces improved varieties
Key to the sector’s continued evolution is innovation in genetics and production practices. One of the most significant developments in recent years has been the introduction of improved cultivars, such as MCT1, an early-bearing, high-yielding macadamia variety originally bred in Australia.
In South Africa, TopNut, a joint venture between TopFruit and Agristar, has taken the lead in intellectual property and cultivar management. The company holds the master license for MCT1 in Africa and has already planted over 40,000 trees across South Africa and neighbouring countries. Its work not only helps improve productivity but also ensures that South African growers remain globally competitive through access to elite genetics.
TopNut’s expansion includes licensed nurseries in KwaZulu-Natal and the Western Cape, enabling broader access to high-quality plant material. The company’s independence from processors and nurseries allows it to serve the broader industry without bias, and its focus on sustainability and cultivar performance aligns well with global market trends.
Current industry challenges
The industry faces a range of production challenges, including climate instability and pressure from pests and diseases. Another significant concern is the industry’s dependence on a few major export markets. Any disruption in trade relations, such as potential changes to AGOA that could affect access to the U.S., could have serious consequences. Similarly, the increasing macadamia plantings in China raise concerns within the South African industry regarding future competition, particularly within the in-shell segment.
Processing capacity remains another area for improvement. While South Africa exports large volumes of in-shell nuts, the domestic value chain for cracking, sorting, and packaging kernels is still developing. Greater investment in local processing facilities could help capture more value domestically and build resilience against fluctuating global prices.
Looking Ahead
With a maturing orchard base, expanding export markets, and ongoing innovation in genetics and marketing, the South African macadamia industry appears poised for continued growth. Stakeholders are increasingly focused on sustainability, quality, and building a reputation as a reliable supplier of premium macadamia products.
As global awareness of the health and culinary benefits of macadamias continues to grow, South Africa is well positioned to lead the next chapter of this high-value crop’s evolution. By balancing export expansion with domestic value creation and sustainable practices, the industry has the potential to remain a global leader for years to come.