The American pistachio industry is finding marketing success in a mature North American market as shipments to export markets have doubled in some cases.

Fueled by in-store promotions, demand for unshelled pistachio kernels to U.S. consumers drove domestic sales 12% higher on the marketing year as of June, according to Hannah Young, North American marketing manager for American Pistachio Growers.

“APG recognizers that the U.S. is a mature and expensive market to be in,” she said. “It would take a significant marketing budget to dramatically increase shipments into the U.S., which is why APG focuses our marketing efforts in our export markets.”

Building demand

Scott Fryer, vice president of global marketing for APG, said that while the domestic shipments are noteworthy, it’s the international markets where the U.S. pistachio industry is seeing its biggest growth and greater opportunities. Still, some minor marketing spends in the U.S. have netted the industry significant results.

In one example, Fryer said a company he formerly worked with contacted him about technology that can trace consumer responses to advertising and their decisions to buy.

“This technology allows us to trace when a consumer sees an ad on their smartphone and connect that all the way down to when they buy a product in the store,” he said. Loyalty card programs are another tool he said APG can use.

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“So, we tested this and spent $25,000 here in the United States to do a digital advertising campaign,” he continued. “With this money we were able to reach 2.6 million unique people.”

With that money the U.S. pistachio industry was able to move over 150,000 pounds of nuts, of which 63,000 pounds went to people who had not purchased pistachios in the previous two years.

APG is also maximizing its marketing spends through government grants. Through the Market Access Program, a combined effort between APG and Wonderful company netted the pistachio industry $1.8 million for marketing. That money was split between APG and Wonderful. APG will get an additional $3.5 million in Agricultural Promotional Program money to market pistachios to countries underdeveloped with U.S. trade.

Exports

A growing middle class in countries like India and Mexico helped push export shipments up 7% to 80% of the U.S. crop through June of this year, according to Fryer.

Suzanne Devereaux, APG’s international director of marketing for Asia, said India could provide exponential growth for U.S. pistachios as that nation’s population exceeds 1.4 billion. About 40% of that population is under the age of 25.

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“Experts suggest that by 2030, India will surpass Japan to become the third largest economy in the world,” she said.

What makes India unique and exciting, according to Devereaux, are the numerous changes in food, language and culture within the country based on geography. It also creates challenges in marketing, but APG is already working on that through partnerships that include an Olympic gold medalist.

The efforts seem to be working. Shipments of 14 million pounds in June 2022 more than doubled the following year, she said. She cited higher U.S. production that increased availability, rising demand, and competitive pricing in the increased shipments.

India also apparently plays an important role in shipments to other countries. Some of those nuts wind up re-exported to Vietnam, Turkey, and other countries.

China remains an important destination for U.S. pistachios as growth there nearly doubled this year, compared to last, she said. Competitive pricing and health consciousness consumers are fueling these purchases. Younger Chinese consumers with a preference for innovative, trendy snacks are also helping boost demand.

Mexico appears to be another bright spot for U.S. pistachios, according Young. Like China, a growing middle class and more health conscious consumers are driving demand. Shipments to Mexico are up about 44% year to date, Young said.

Europe

Last season’s record-breaking U.S. crop has also helped move more pistachios into Europe, according to Kendra Hall, APG’s marketing manager for Europe.

Spanish consumers are showing a preference for U.S. pistachios over domestically grown pistachios due to quality issues, Hall said.

“While there is an increase in locally grown pistachios in Spain, and a very strong preference for that locally grown product, there are horticultural issues which negatively affect their harvest volume and quality, making them significantly more expensive than American Pistachios,” she said.

The Mediterranean diet, which strongly encourages nut consumption, is popular in Spain, and has contributed to rising demand of pistachios and other nuts there, she added.

Germany remains a significant market for U.S. pistachios. Germany this year saw a 93% boost in shipments when compared to the same time last year. There are over 83 million consumers in Germany, which also serves as a key re-export market to other countries in the world.

U.S. pistachio production this year remains to be seen but estimates put this year’s crop at or just above 1 billion pounds. The unsold portion of last year’s harvest, or carry-out, is projected to be low as well, reducing the available supply of nuts for global markets in the upcoming marketing year.