Interest in pistachio as a flavor has grown, with consumer interest in pistachios showing compound annual growth of 8% according to data from Hanford, Calif.-based Nichols Farms.
Web searches for pistachios are up 60% since 2019, but this has not necessarily translated to growing consumption, said third-generation pistachio grower Jeff Nichols, vice president of supply chain and grower relations for Nichols Farms.
Nichols said domestic pistachio consumption has been relatively flat for the past four years. The industry ships about 250 million pounds a year, he said.
“The interesting thing is that in-shell has been declining over the past four years while kernels have been growing 28% on average over the last three years,” Nichols said. “Consumers are adopting more the kernels just because there are a lot more flavors and they’re just a lot more of a portable snack and very tasty.”
Nichols said consumers seek sweet/savory and spicy flavors; that’s why Nichols launched its Spicy-Savory-Sweet product line, which features flavors such as Jalapeño Lime, Garlic and Garden Herbs, and Cocoa Cookie. The company also offers organic pistachios with flavors such as Rosemary and Garlic, Maple Butter, Hot Honey and Habanero Lime.
“We understand that people around the world are trying to eat healthier and more conscious about what they eat, so providing organic line is the best way for us to satisfy those needs,” Nichols said.
Nichols said he’s seen a lot of interest in pistachio butter and paste, which he said is good for the industry, though the cost to use pistachios as a raw ingredient is much higher in almonds so that does challenge the expansion of those types of products.
Nichols said pistachio displays are a great fit for retailers, noting the success of showcasing organic products and vibrant product flavors with eye-catching displays.
“Retailers really like pistachios because the velocity dollar is a lot higher than other valued nuts in general,” he said. “For each purchase and each floor space that pistachios take up the retailers are making more of a margin.”
