Pistachios are the green edible seeds of the pistachio trees that grow and thrive best in Mediterranean climates. The trees take about seven to ten years to produce a significant crop.

 

Raw or roasted and salted, pistachios are often consumed as an aperitif or in pastries and their taste depends on various factor, including tree variety. In California, the Kerman variety has been the industry standard over the past 50 years. However, the Kerman variety matures within a tight 3-week window in September and October, putting both handlers and producers under pressure.  Additional varieties such as Golden Hills and Lost Hills are quickly gaining ground to solve this issue.

 

This market research includes growers, hullers / Shellers, handlers, manufacturers, equipment suppliers, brokerage firms and cooperatives.

 

California hosts more than 95% of the production in the U.S, and five counties in southern San Joaquin Valley, namely Kern, Kings, Tulare, Fresno and Madera account for more than 90% of the overall production.

 

The demand for pistachios has been growing as more and more people incorporate it to their diets. Pistachios benefit from a positive health perception from consumers as well as healthier snacking habits.

 

In 2019, 77% of the production harvested in California was exported outside of the United-States, up from 51% in 2018. The main recipients were China, followed by the European Union and Canada. Exports have been boosted by the US-trade sanction against Iran which accounted for more than half the world’s production of pistachios in 2017, falling to as low as 7% two years later.

 

The pistachio industry in California has weathered the COVID-19 crisis without major hurdles, managing to haul in a record-crop of 1 billion pounds in 2021. Prices remained steady, supported by robust domestic demand while exports were up 16% year-to-year.

 

Recently, the number of by-products based on pistachios has been increasing. Starbucks launched its Pistachio Latte in 2021 while Táche and Three trees have been selling pistachio-based nut milk for over two years. On the production side, organic pistachios remain a marginal part of the industry, but the market is expected to increase and several growers are making the jump.