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- Pistachio crop basics, such as where and how they're grown
- Current market size
- Primary purchasers and markets
- Tailwinds currently boosting pistachio market health
- Headwinds currently affecting pistachio market prospects
- And more.
Pistachio Market Report Summary
On the global stage, there are only two major pistachio producers: Iran, where pistachios are native, and the U.S. The U.S. is responsible for just over half (51% to be exact) of the world’s supply.
Virtually all of those U.S. pistachios are grown in California’s Central Valley, which has the arid climate and long growing season that pistachio trees love. In addition, cold winters are vital for them to bloom and pollinate. These conditions only exist in certain areas of the world, most notably, California.
Pistachios also have a short harvest window. When it’s happening all at once and in one place, there’s the risk of processors’ capacity being strained.
Despite these risks, California’s pistachio acreage has increased by 110% in the past decade to nearly 300,000 acres, mirroring a global trend in which world pistachio production steadily grew.
Consumption is keeping pace, largely thanks to rising global incomes and trends in health-conscious snacking. Multi-million dollar advertising spending by marketplace giant Wonderful Pistachios also helps keep demand high.
U.S. pistachios’ position in the global marketplace depends on a few geopolitical intricacies that, if they were to change, would heavily impact producers at home. China, the U.S.’s number one export market (accounting for 41% of total exports) does impose tariffs, which could potentially rise or start to see stricter enforcement. In addition, legislative sanctions on Iran insulate U.S. pricing from external competition. Lifting them would expose domestic markets to oversupply.
Despite some ups and downs, pistachio prices have seen general growth. U.S. pistachios remain in high demand both at home and abroad, so modest price appreciation in the coming decade seems likely.
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