Pistachio is one of the most known dry fruits which belongs to the cashew family. Due to its health benefits, pistachio is often recommended by nutritionists.
According to the report of the International Nut and Dried Fruit Council, the total supply of pistachios across the world in 2021 has increased to 1,171,800 MT from 835,700 MT of total supply in 2020. Pistachio-producing countries include the United States, Turkey, and Iran followed by Syria, Greece, and Afghanistan among others.
Although the pistachio market has been witnessing growth, there are inevitable challenges being faced by the industry. Let us try to understand the challenges impacting pistachio market growth.
Challenges Impacting Pistachio Market Growth
The major reason behind the growing demand for pistachios boils down to their limited production. This is due to the complexity of the cultivation of pistachios. Pistachio farming is not practiced across all the countries in the world. They are being exported by a few countries. Here are major challenges faced in pistachio cultivation.
Suitable Climatic Conditions
Pistachio is grown in areas where summers are long, hot, and dry and winters are slightly cold. This plant is said to have originated in the central Asian countries including Iran, Turkey, and Afghanistan. Iran and Turkey have been its top producers over the centuries.
Excessively Lengthy Yield Duration
On average, a period of a minimum of 5 years is expected for the first fruit and a minimum of 8 years for a better yield from the pistachio tree. It takes 15-20 years to reach peak production.
A highly vigilant and skilled farmer force is required to keep a check on the plants against diseases and to cultivate them. The plant needs to be grown in specific soil and water conditions.
High Fund Requirements
Since the pistachio crop does not land you up in ‘instant profits’, you cannot rely on the plantation for future funds. It is a must to deploy highly skilled labor and invest in proper maintenance of the crop. To achieve this, one needs to have investment-ready funds for nearly 8 years. After which, one can bootstrap the plantation.
Due to these challenges and climatic constraints, pistachios are grown only in a few countries across the world. Currently, North America is the largest producer of pistachios across the world. Major production comes from the cities of California, New Mexico, and Arizona states of the country.
Adding to the above-mentioned factors, pistachios have numerous health benefits, such as, they are rich in fiber. They further help to reduce cholesterol levels in the body. Pistachio intake is said to reduce the risk of cardiovascular diseases. Due to these undeniable benefits of pistachios, the pistachio market is expected to witness growth during the forecast period of 2021-2027 as per the market trends.
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Co-founder and Director at RationalStat
Ujjwal is a thought leader and recognized expert in the market research and consulting field. He is the co-founder at RationalStat, a leading global market research & procurement intelligence firm with 10+ years of industry expertise.