Pistachio Market - Forecast(2023 - 2028)

Key Takeaways

• Geographically, the North American Pistachio Market accounted for the highest revenue share in 2021. The growth is owing to staggering production and consumption in counties like Syria, the United States, Turkey, Iran, and Others, conducive environment as long hot summers are an important prerequisite in order to grow these seeds, rising purchasing power of consumers in the Middle East and North America, and growing confectionery demand.
• Changing attitudes off people from health reactiveness to proactiveness, rising demand for protein-rich foods and beverages, eventful lifestyles of people, the rising middle-class population in developing countries, and augmenting health problems like heart attack, diabetes, and obesity are said to be preeminent drivers driving the growth of Pistachio Market. Surging inflation, crippled demand-supply chain, and the presence of potent chemicals like aflatoxin that have carcinogenic nature are said to reduce the market growth.
• Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Pistachio Market report.

Pistachio Market Segment Analysis - By Nature

The Pistachio Market based on nature can be further segmented into organic and conventional. The organic segment held the largest share in 2021. The growth is owing to fewer labor requirements which drastically increases farmers’ revenue. Also, conventional farming is best known for higher yield as several chemicals taken into account lessen the insects’ attacks and unwanted weeds and is practiced all over the globe because of its low labor requirement. And, conventional farming uses genetically altered seeds that result in a more fruitful crop. Additionally, the high price of organic harvest and little to no awareness among people regarding the existence of organic alternatives has aided the demand for conventionally grown. Nevertheless, the organic segment is estimated to be the fastest-growing segment with a CAGR of 4.3% over the forecast period 2022-2027. The growth is owing to mounting campaigns like “Save Soil” aimed at revitalizing the organic content of soil by pesticides and fertilizer use, proliferating health attentiveness among people, and government policies intended to maintain the environment’s health.

Pistachio Market Segment Analysis - By Distribution Channel

The Pistachio Market based on distribution channels can be further segmented into Offline (Supermarkets/Hypermarkets, Convenience stores, Small retail stores) and Online platforms. The offline segment held the largest share in 2021. The growth is owing to comprehensive existence in both metropolitan and pastoral areas. On the contrary, online or e-commerce services are bound to certain requirements such as full-fledged infrastructure for their smooth functioning; otherwise, it is not viable for them to offer doorstep deliveries. Additionally, the majority prefer buying offline because of advantages like instant purchases, hassle-free returns, bulk buying, bargaining, and quality check. In addition to that, the growing existence of modern outlets like supermarkets has gravitated the attention of billions worldwide because well-established nature, easy shopping, lucrative sale deals, and one-stop solution. Nevertheless, online is projected to be the fastest-growing segment with a CAGR of 5.1% over the forecast period 2022-2027. The growth is owing to augmenting trend of work-from-home jobs. The covid-19 outbreak has made WFH a new normal in contemporary society. Therefore, as people don’t get much of a chance to go outside, they are turning toward e-commerce services. In addition to that, flourishing technological advancements like Google maps and e-banking services, all-weather network access, the time-saving nature of e-commerce purchases, and expanding smartphone users are the factors behind the market expansion.

Pistachio Market Segment Analysis - By Geography

The Pistachio Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held the largest share with 38% of the overall market in 2021. The growth in this segment is owing to the factors such as massive production and consumption in North American and Middle East countries. According to Food and Agriculture Organization Corporate Statistical Database (FAOSTAT) Iran, Turkey, Syria, and United States are the biggest pistachio-producing countries in the world. In 2019 Iran produced 337, 815 tonnes, the US produced 335,660 tonnes, Turkey produced 85,000, and Syrian annual production stood at around 31, 813 tonnes. However, in 2020 and 2021, the U.S. has overtaken Iran and single handily accounted for nearly 50 percent of global production; the sole reason behind this is trade sanctions applied to Iran. In addition to that, high demand for foods like pistachio salad, Turkish delight, and other desserts in these countries have emerged as a primary reason for market expansion in the said segment. However, Asia-pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This growth is owing to the growing popularity of this dry fruit and the enormous population in Asian countries. Confections like pistachio halva, baklava, pistachio ice cream and kulfi, and biscotti have drawn the eyes of consumers because of their taste and appealing aroma. In addition to that, rising living standards, growing disposable incomes, growing pistachio production in China, and bettering retail networks are anticipated to aid the market.

Pistachio Market Drivers

The overall consumption of pistachio has heightened in recent years. According to a report, the global pistachio consumption reached 864.75 thousand metric tons in 2020-2021. Several Middle Eastern and North American countries like the U.S., Turkey, Syria, and Israel are some of the biggest consumers. For instance, Turkey consumes over 145,000 metric tons annually; the U.S. pistachio consumption has reached 164,453 metric tonnes. In addition to that, the growing demand for confectionery items and rising GDP per capita incomes in developing countries have emerged as a big driver. For example, from $5,624 in 2020, South Africa's GDP per capita income reached $6,861 in 2021; nevertheless, the figure is anticipated to reach $7081 in 2022. Other developing nations like India, China, and Indonesia are too witnessing a slight surge in per capita incomes.

Cardiovascular diseases have emerged as the leading cause of death and have pierced the healthcare systems across the globe. According to a report, nearly 659,000 Americans lose their lives every year because of a heart attack which means 1 in every 4 deaths in the U.S. is because of a heart attack. In addition to that, 10.5 percent of adults across the globe has diabetes in 2021; nevertheless, the figure is anticipated to cross the 12 percent mark. Countries in Oceania such as Nauru, Cook Islands, Palau, and Others have more than 50 percent obesity rates. Similarly, the U.S. ranks 12th on the list of most obese countries with more than 36 percent obesity rates. Therefore, considering the benefits of pistachio in reducing the risks of aforementioned health problems, the overall demand is sky-rocketing.

Pistachio Market Challenges

Poorly harvested pistachios have higher risks of developing carcinogenic chemicals like aflatoxins which can set health compilations like food poisoning in nature. In addition to that reducing discretionary spending because of rising unemployment rates and high inflation has challenged the growth of the pistachio market. For Instance, in Sri Lanka, the inflation rate soared to 17.5 percent in February 2022 (8 years' highest). Also, Americans are battling staggering inflation as the country’s inflation rates reached 7.5 percent in the second month of 2022. In addition to that, there are many other countries like India, Pakistan, and many others witnessing a severe surge in inflation rates which is ultimately putting an extra burden on consumers, and pistachio being an expensive product becomes unreachable to consumers, therefore, hampering the market growth.

Pistachio Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the aforementioned Market. Pistachio market top 10 companies include-

1. Germack Pistachio Company
2. Whistler Foods
3. Sierra Nut House
4. Bates Nut Farm
5. Wonderful Pistachios & Almond Company
6. Rasha Pistachio Co
7. Meridian Growers LLC
8. Houston Pecan Company
9. Setton Pistachio of Terra Bella
10. Specialty Food Association, Inc.

Recent Developments/Product Launches:

• On March 16, 2022, Lidl GB (a German retailer chain operating in Great Britain) announced the recall of pistachio nuts sold under the name of “Alesto Californian Pistachio” amid fears of salmonella (Gram-negative bacteria that set diarrhea and food poisoning in motion) presence and other labeling problems. After dispatching batch code and other important information regarding the product, Lidl advised the customer not to consume them.
• On February 7, 2022, a report published by Iran’s customs office “Islamic republic of Iran customs administration” (IRICA) claimed that country’s pistachio exports have plummeted precipitously by 19 percent. March 21 to December 21. Iran sold pistachio worth $738.5 which is way less compared to the previous year's exports.
• In September 2019, Nestlé introduced new KitKat and Yorkie chocolate bars in the UK and Ireland as a part of a new range called More. Both bars contain fruit, nuts, and cereal contains more protein, fiber, and 30% less sugar than comparable chocolate bars.
  

Relevant Links:

Fruit and Vegetable Seeds Market – Forecast (2022 - 2027)

Report Code: AGR 0035

Packaged Nuts & Seeds Market – Forecast (2022 - 2027)

Report Code: FBR 0117

Edible Nuts Market – Forecast (2022 - 2027)

Report Code: FBR 92267 

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