The almond is having its moment.

Though criticized for being a water-thirsty crop grown mostly in California, almonds are more popular than ever. And spreads made from the tree nut are increasingly supplanting peanut butter in U.S. lunch boxes and pantries. Americans are eating about 2 pounds of almonds per person annually, double the amount they consumed just seven years ago.

A row of dead almond trees in Fresno, Calif. The water-thirsty crop is mostly grown in California, where a drought is now in its fourth year.

Protein-rich Paleo diets, peanut butter allergies and evolving tastes have all fueled demand. That’s sent major U.S. food makers such as Hain Celestial Group and JM Smucker into the market, where they’re vying against smaller suppliers. Almond butter now comes in a range of flavors, including maple and dark chocolate.

But the almond craze has come at a cost. The growth in consumption – coupled with smaller crops – have sent prices surging to record levels. With California in its fourth year of drought, the burgeoning assortment of almond products is in danger of becoming too costly for most consumers.

“Almonds a year ago were priced at about $3.30, and we thought that was an exorbitant price,” Stephen Smith, Hain Celestial’s chief financial officer, said on a conference call last month. “And here we are looking at prices in the mid-$4 range.”

For now, almond spreads are stealing market share from peanut butter. U.S. sales of specialty nut butters – including those made with almonds – have more than doubled since 2011, according to research firm IRI. They jumped 22 percent last year to reach $448.9 million. Peanut butter sales, meanwhile, fell 4.1 percent.

More kids have peanut allergies these days, sending parents in search of alternatives. The number of U.S. children who can’t eat peanuts tripled from 1997 to 2008, according to Food Allergy Research & Education Inc. For that reason, some schools have banned peanuts altogether.

The situation prompted Smucker to get into the almond-spread business in 2013. The company rolled out an almond-butter version of Jif in creamy and crunchy varieties, becoming the first national brand to make the move. Jif also sells cashew butter and hazelnut spreads.

“There’s a little peanut butter fatigue, and you have people who want to try different types of spreads,” said Bloomberg Intelligence analyst Kenneth Shea. Consumers are more willing to experiment, and almonds have a lot of protein, he said.

Americans are trying to eat healthier and cut back on carbs, making almonds more appealing. They’re high in monounsaturated fats – the good kind – and don’t have any cholesterol or sodium. They’re also gluten-free.

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