A greatly rewarding potential awaits Indian pistachio market

The industry is set to experience an annual growth rate of 5.1% in total acreage, with projections indicating nearly 811,300 acres dedicated to pistachio farming by 2031. This bullish outlook opens doors for business expansion and increased sourcing, particularly from California.

In recent years, consumers are placing a greater emphasis on healthy eating habits to avoid health problems like food poisoning, high cholesterol and obesity. Growing knowledge of the presence of toxins in various food products as a result of the use of pesticides and chemical fertilizers in farming has led to an increase in demand for organic food products like vegetables, fruits and nuts.

As pistachios are used in food preparation and are eaten as snacks, the organic type is gaining in global popularity and is projected to aid the market’s growth.

According to Gunjan Jain, MD and CEO of VKC Nuts Pvt. Ltd. and President of Nuts and Dry Fruits Council India, “Last year, India consumed over 60M pounds of pistachios, out of which 75-80% was imported from California. This indicates a steady increase in demand. We strongly believe that by providing consumers with the right information and building a strong distribution network that ensures accessibility and availability, this healthy snacking alternative can become a part of people's daily diets. We are optimistic about the growth potential of the overall DF&N category.”

Wonderful® Pistachios, the world’s largest vertically integrated pistachio and almond grower and processor, with local operations in India as California Pistachios, partnered with the Nuts and Dry Fruit Council India ,hosted the inaugural retail conference titled "Get Crackin': Decoding the Potential of Pistachios" on November 24.

Pistachios are seeds of the pistachio plant (Pistachio vera). Pistachios are high in antioxidants and fiber, which aid in lowering cholesterol, controlling blood sugar, and lowering the risk of diseases such as cancer. Pistachios are primarily consumed by people with type 2 diabetes. Pistachios are high in dietary fibres, proteins, xanthophyll carotenoids, manganese, iron, vitamin K, vitamin B-6, and phosphorus, among other minerals. This pistachio also aids in the improvement of body metabolism.

The increase in the number of health-conscious customers who recognize pistachios as a guilt-free and nutrient-dense food are predicted to propel the target market forward. Reduced risk of cardiovascular disease and diabetes, enhanced digestion, immunological system, and nervous system are just a few of the benefits of pistachios. The increased awareness regarding the health benefits of pistachios, which keep the sugar controlled, helps reduce cholesterol levels and reduce the risk of diseases like cancer which further boosts the market growth.

Additionally, the growing usage of pistachio as a flavoring agent in the bakery product coupled with the rising consumption of pistachio as a snack are estimated to bolster the overall growth of the market. Furthermore, the growing demand for pistachio oil in the food and cosmetic industry further fuels the market growth.

The higher demand for nutritious food along with its wide used as a flavoring agent in a bakery product such as biscuits, pastries and cookies also cushions the market’s growth within the forecasted period.

The industry is set to experience an annual growth rate of 5.1% in total acreage, with projections indicating nearly 811,300 acres dedicated to pistachio farming by 2031. This bullish outlook opens doors for business expansion and increased sourcing, particularly from California.

In contrast, the growth rate for bearing acres-those that are mature and fruit-bearing-is at around 1.2% annually. This growth in bearing acres suggests a balanced development strategy, ensuring a steady supply of mature, productive trees.

The pistachio industry is on track to produce an impressive 2.08 billion pounds by 2031. This surge in supply could be a game-changer for market dynamics, necessitating a reevaluation of procurement strategies for wholesalers and food factories.

Pistachio trees exhibit a natural cycle of high and low yields. The industry expects this pattern to persist, with 2031 slated to be an ‘on’ year. This cyclical behavior is a crucial consideration for inventory management and pricing strategies.

Global Pistachio Market was valued at $ 3,907.07 million in 2021 and is expected to reach $ 5,282.52 million by 2029, registering a CAGR of 3.7% during the forecast period of 2022-2029.

While California remains the epicenter, the pistachio landscape is expanding to states like Arizona, New Mexico, and Texas. This geographical shift offers new sourcing avenues and thereby recalibrate supply-demand equations.

The industry's ambitious growth plans come with their own set of challenges, from logistical hurdles to quality assurance issues. Businesses will need to fine-tune their operations to manage these larger volumes effectively.