U.S. pistachio growers are seeing increasing demand for their product as production continues to expand. Industry projections indicate that supply could approach 2 billion pounds as additional orchards reach production.
U.S. pistachio production totaled about 1.57 billion pounds last year. The crop follows an alternate bearing pattern. Growers first surpassed the 1 billion-pound mark with the 2020 harvest. Production declined in 2022 but has increased again as new orchards have entered production.
Global demand for pistachios has also increased in recent years. Industry representatives say consumer interest has grown across different snack products and food items. The popularity of a chocolate bar developed in Dubai containing crushed pistachios has also contributed to increased demand for other products.
Pistachios are now widely available in retail channels and snack formats. Shelled and flavored pistachios are increasingly found in grocery stores, convenience stores, and airline snack offerings. Retail distribution has expanded to include large retailers, truck stops, and online platforms.
Wonderful Pistachios processes a large share of the U.S. pistachio supply and distributes products through retail snack categories. Other processors are also supplying flavored and shelled pistachios in retail markets, including mixed nut products sold by brands such as Planters.
According to Zachary Fraser, president and CEO of American Pistachio Growers, the United States accounts for about 63 percent of global pistachio production. Other producing countries include Iran and Turkey, as well as Spain, Syria, Afghanistan, China, Greece, Italy, and Australia.
American Pistachio Growers represents more than 850 growers from California to Texas. Fraser said in a state-of-the-industry address at the American Pistachio Growers conference that pistachios are expanding into additional markets. "The halo effect" of crushed pistachios added to Dubai chocolate bars that gained in popularity has helped tremendously.
Despite increasing demand, growers face several production challenges. Water availability remains a concern in production regions from California to Texas. Growers also face rising operational costs and regulatory requirements.
Industry representatives say that as production continues to expand, supply growth and production costs will remain factors affecting the U.S. pistachio sector.
Source: FarmProgress
