A large chop provides crunch. As the chop size becomes smaller, so does the crunch effect. A coarsely ground powder provides no crunch, but does provide grit. All granulated peanuts are a source of flavor, but often this flavor is drowned out by other flavors in a food formulation. As a result, the peanut flavor of products containing granulated peanuts often needs to be reinforced with other peanut flavor ingredients.
Granulated peanuts are used for an infinite variety of purposes, and therefore they come in an infinite variety of sizes, one to fit each purpose.
From coating of candied apples, to providing crunch, flavor and visual appeal to chocolate bars, the possibilities are endless.
Formulators will usually choose the largest possible size to fit the application, subject to their visual / textural targets as well as the limitations of their own processing machinery.