The crunchy green little nutritional powerhouses have become increasingly popular, appearing in everything from Starbucks drinks to croissant fillings and main dishes. As a result, California’s pistachio industry is thriving and poised for further growth, according to Capital Press. Between 2016 and 2020, growers added 173,540 acres of pistachio farmland in the state, with an additional 74,614 acres added by 2022, marking a 20% increase. These nuts thrive in the desert-like conditions found in various parts of California. The Administrative Committee for Pistachios reports that new plantings in California reached 35,000 acres in each of the past two years. Typically, pistachio trees have a long juvenile phase, producing only a few nuts before they reach five years of age, and achieving full production between eight and twelve years. The U.S. ranks as the second-largest pistachio producer, following Iran, with California leading the nation. However, Arizona and New Mexico are also making strides in this sector.
In 2023, floods caused significant damage to California’s crops, as noted by Andrew Ramirez, the manager of Consumer & Customer Market Insight at Torani. “After experiencing a couple of years of lower crop yields due to drought, the recent floods have added to the challenges. This raises the question of whether a reduced crop will lead to increased demand,” he said. Pistachios have a rich history, even referenced in the Old Testament. For thousands of years, pistachio trees have thrived in the Middle East.
“Consumers now have access to a wider variety of pistachio products than ever before. Thirty to forty years ago in the U.S., your options were limited to red-dyed pistachios or natural ones,” Ramirez explained. “We’ve come a long way from just having pistachios in their shells to enjoying them in dishes like baklava at Middle Eastern and Mediterranean restaurants.” The global pistachio market was valued at $4.3 billion in 2022 and is projected to grow to approximately $6.6 billion by 2030, with a Compound Annual Growth Rate (CAGR) of 5.5% from 2022 to 2030. Recent predictions by Baum + Whiteman and Lyons Magnus suggest that pistachios will be the top nut in food trends for 2023, appearing in a wide range of products from beverages to soaps and moisturizers.
According to Ramirez, sales of Torani Pistachio Syrup have already reached 93% of their 2022 levels, even before reaching the midpoint of the year. “[This] indicates that 2023 is on track to be a significant year for pistachios. In 2022, 65% of our pistachio sales came from the foodservice sector, compared to 35% from consumer channels.” Amberly Wilson, director of nutrition research and communication at American Pistachio Growers, attributes the nut’s surge in popularity during the pandemic to its convenience as a snack. “As more people turned to shelf-stable snacks, they began to consider the health and environmental impacts of their food choices, contributing to a rise in plant-based diets.”
“This ‘happy nut,’ as it is called in China, has generated some exciting trends as we begin 2023,” said Diana Salsa, associate vice president of marketing at Wonderful Pistachios. “We believe that increased awareness is a significant factor driving the current popularity of pistachios.” Salsa anticipates that pistachios will continue to be a favorite, whether in a cold brew or as a topping on an Instagram-worthy charcuterie board, as consumers increasingly seek healthier snack options and lifestyles. “Their appeal as both a luxurious and accessible food makes them suitable for any occasion,” she noted.
Looking ahead, Wilson is optimistic about the future of pistachios. “The global interest in pistachios is growing, and we still have much to explore regarding their unique health benefits. We are hopeful that consumer enthusiasm for these nuts is just beginning.” As a testament to their versatility, pistachios have even found their way into innovative products like b-cal ct tablets, further solidifying their position in the market.