Pistachio Market Report

The pistachios are expected to rise due to the increase in the use of pistachios in bakery products to add flavor to them. It is used in bakery products such as cookies, biscuits, and pastries; thus, the rising demand for bakery goods is expected to drive the sale of pistachios. The rising demand for bakery products is driven by their convenience and variety, catering to busy lifestyles and diverse consumer preferences. Additionally, growing interest in artisanal and healthier options are fuelling the growth of the bakery sector. As per the data the total global retail sale of baked goods was valued at US$407.2 billion in 2021 and was valued at US$ 569 billion in 2023 registering a compound annual growth rate of 5%. Thus, due to rising demand, baked goods, especially health and wellness baked goods, are expected to boost the demand for the pistachio market. The demand for the for the Spanish pistachio industry has been rising steadily as per the data from the U.S. Department of Agriculture. According to USDA, pistachio production in Spain was valued at 19,889 metric tons in 2022 and is expected to rise with constant growth.

The primary challenge faced by the pistachio market is the rising price of pistachio. The reason behind the price rise includes the process of cultivating pistachio. The process is considered a tough one where a sufficient amount of water should be present with fertile land in the right climate only then pistachio trees survive. Thus, due to the tedious process, the price of pistachio is rising with the rising inflation. Also, the rising price of the pistachio forces the customer to buy available nutrient substitutes available in the market. Though there are few substitutes available in the market that offer similar nutritional benefits to pistachio, the price of these substitutes is less compared to pistachio. Substitutes such as walnut, sunflower seeds, hazelnut, mung bean, and soy flour, are high in calcium, vitamin B6, iron, dietary fibre, and protein. Furthermore, pistachio market pistachio farming needs a huge amount of water, which raises environmental concerns. Thus, pistachio production with sustainable techniques and water conservation efforts is critical and a costly option. Thus, due to the above problems, the demand for pistachios is affected.

In February 2023 California Pistachios launched the 'Crack it snack it' campaign to promote healthy snacking. They celebrated World Pistachio Day and National Snacking Day with the new campaign. California Pistachios had a 'Double Dhamaka' celebration for World Pistachio Day on February 26 and National Snacking Day on March 4 with the launch of their #CrackItSnackIt campaign. The company stated that the campaign featured a celebrity partnership, humorous social media videos, and an addictive Instagram game filter. In October 2020, Wonderful® Pistachios launched two additions to its successful Wonderful Pistachios No Shells product line—BBQ and Sea Salt & Vinegar, both tried and true flavours that appealed to sackers every day. BBQ Wonderful Pistachios No Shells allowed sackers to savour the taste of summer all year long. They exploded with hickory-smoked flavour and were dashed with garlic, paprika, and salt, making them an irresistible mix of sweet and smoky. Sea Salt & Vinegar Wonderful Pistachios No Shells were a tart, tangy snack – the perfect balance of sour and savoury.

North America can be considered a lucrative market due to rising production and exports of pistachios globally. As per the data of the International Dried Fruits and Nuts Council in 2021, the production of the United States was valued at 401,000 metric tons, which amounted to 54% of the global pistachio production. Further, the United States holds a total share of 55 percent in global pistachio exports, which amounts to 210,504 metric tons. European Union can also be considered a potential market due to the rising awareness and need for pistachios. As per the data of the U.S. Department of Agriculture, European Union out of US$ 6.8 billion of imports of nuts in 2022, pistachios valued at US$ 787 million are expected to rise at a similar pace. Also, the Asia-Pacific region, especially countries such as Australia, Japan, China, Malaysia, etc., can be considered a potential market due to the rising number of diabetic patients. As per the data of the International Diabetes Federation in 2021, the Asia Pacific region had 296 million patients, of which 206 million are present in the Western Pacific region and are expected to reach 151 million by 2045. Thus, Asia Pacific, especially the western Pacific market, due to its rising number of diabetic patients, is considered a lucrative market.