Pistachios Riding Crest of Healthy Eating Wave

The major driver of demand globally is increasing awareness of health benefits.

When it comes to pistachio production, the U.S., or more specifically California, remains the big player. According to American Pistachio Growers, California accounts for 99% of annual U.S. pistachio production, with more than 312,000 acres being farmed across the state. In total, the yearly production represents over $1.6 billion to the California economy.

Nichols Farms, Hanford, CA, is a fourth-generation family-owned and -operated pistachio farm in the San Joaquin Valley and is counted among the top five producers in the country.

Senior brand manager Christine Trageser says the category has benefited from the rising consumer demand for better-for-you snacks high in protein. “Coupled with the viral Dubai chocolate trend, pistachios as a snack and as a flavor have soared in popularity,” she says. “Nichols Farms branded product has seen volume increase 55% over the last year.”

Trageser believes another major driver of pistachio demand globally is increasing awareness of their health benefits. “Consumers seeking plant-based protein, healthy fats, fiber, and antioxidants are drawn to pistachios as a nutritious snack or ingredient,” she says. “This is especially true for Gen Z and Millennials who have shown an outsized interest in health-conscious snacking and plant-based protein sources.”

As the world’s largest grower and processor of pistachios, Los Angeles, CA-headquartered Wonderful Pistachios grows, markets, and distributes California pistachios in more than 70 countries.

According to the company’s vice president of marketing, Diana Salsa, the company has used the past 12 months to build on a strong presence in Europe, the Middle East and China — in addition to its U.S. business — and to expand into Mexico and India, taking advantage of rising disposable income and increased health consciousness.

“Pistachios have truly owned the past year, not just as a trend, but as a full-blown movement.”
— Diana Salsa, Wonderful Pistachios, Los Angeles, CA

“Pistachios have truly owned the past year, not just as a trend, but as a full-blown movement,” says Salsa. “As both an indulgence and an everyday snack staple, they offer an approachable luxury that resonates with today’s consumers. Their rise is driven by a unique blend of aesthetics, taste and health, making them a standout at the intersection of flavor and wellness.”

WELCOME TO FLAVORTOWN

Based in Terra Bella, CA, Setton Farms is the second-largest pistachio grower-processor in the U.S. and exports internationally, including to emerging markets, as well as selling substantial volumes within the domestic market.

The company recently launched Tajín-seasoned pistachio kernels, as part of a move to introduce new flavors into the category, according to Executive Vice President Joseph Setton.

“Traditionally, people have looked toward chips and other fried snacks for their flavor experiences. However, with this introduction of seasoned pistachios, we’re giving people the best of both worlds,” he says. “They are able to get their flavor experience with a healthy product that is protein-packed, with antioxidants and other healthy fats.”

Setton says the company’s dry-roasted pistachios offer a healthy snack “without any of the extra oils or mess that comes along with fried products.”

Wonderful, which offers both in-shell and no-shell products, has a lineup of flavors that include Sweet Chili, Roasted & Salted, Salt & Pepper, Seasoned Salt, Lightly Salted, and Unsalted for in-shell, and Chili Roasted, Honey Roasted, Sea Salt & Vinegar, Jalapeño Lime, Smoky Barbecue, and Sea Salt & Pepper for no-shell. This range was recently complemented by the launch of a no-shell Dill Pickle flavor.

Nichols, which offers a variety of pistachio products, from in-shell and no-shell to organic pistachios, markets a wide range of flavors, including the traditional Roasted with Sea Salt, as well as the more adventurous Cocoa Cookie, Garlic and Garden Herb, and Jalapeño Lime. The company’s organic line features Roasted with Sea Salt, plus flavors such as Habanero Lime, Rosemary Garlic, Maple Butter and Hot Honey.

With the rising popularity of pistachio products, Trageser says Nichols is exploring additional flavor varieties and product lines to meet consumer demand.

EFFECTIVE MERCHANDISING

Commonly found in the produce department due to their perceived health benefits and natural, whole-food association, pistachios are frequently grouped with other packaged nuts and dried fruits, Trageser says, creating a “trail mix” destination.

A winning secondary placement for pistachios is among lettuce and leafy greens, highlighting the nuts’ effectiveness as salad toppers, she adds. “Placing them near bagged salads, salad kits, or bulk salad bar ingredients can inspire consumers to add pistachios for crunch and protein.”

Given their versatility, pistachios can be paired with both sweet and savory offerings, allowing retailers flexibility with in-store placements. Trageser adds that using stand-alone displays that share the benefits of consuming pistachios are effective merchandising options for retailers without “clean floor” policies.

As well as providing in-store point-of-sale (POS) displays, Wonderful offers a dedicated in-house merchandising team to help stores build larger-than-life displays. According to Salsa, stores using Wonderful’s POS displays see up to two times higher sales velocities on average.

“Highlighting the health benefits and unique flavors of Wonderful Pistachios through bold signage, promotions, and on the packaging itself can help attract health-conscious consumers looking for nutritious snack options,” she says. “By leveraging these merchandising strategies, retailers can maximize their salty snack sales effectively.”

To capitalize on pistachios’ appeal as a snack, Salsa recommends cross-merchandising in complementary areas outside the produce area, such as snack aisles, beer and beverage sections, or on endcaps with clip strips.

“Pistachios are in high demand. If you give them some extra exposure, you’re going to see customers flocking in to purchase them.”
— Joseph Setton, Setton Farms, Terra Bella, C

With pistachios being the “No. 1 nut” for many retailers, Setton believes more prominent placement will encourage greater numbers of shoppers to pick up a pack as they head to the checkouts. “Pistachios are in high demand. If you give them some extra exposure, you’re going to see customers flocking in to purchase them.”

Setton recommends cross-merchandising pistachios with beers, mocktails or even water, as well as maintaining a presence alongside the produce aisles.

PACKAGING PISTACHIOS

Setton notes Setton Farms has experienced particular success with packaging pistachios in zip-close bag pouches, and says the option has worked well for the new, seasoned pistachios by locking in the extra ingredients, while also showcasing the contents.

Setton expects to see more recyclable packaging in the category, adding that his company is already fully equipped to handle recycled versions of its current packs.

Trageser believes the best packaging solutions for pistachios are those that offer a longer shelf life to both retailers and consumers. This, she says, will guarantee the pistachios are fresh once they make it into a kitchen pantry.

At the same time, she says pistachio packaging has evolved to meet the needs of consumers and their lifestyles. “Many prefer smaller pack sizes to benefit an on-the-go lifestyle or for snacking occasions that don’t take place in the home.”

Following the success of the Tajín-seasoned pistachios, Setton reveals that Setton Farms will be introducing further additions to its seasoned pistachio range in the near future. “With the Tajín pistachios, we have opened up the market to something that’s never been done before,” he says. “We have been able to find customers who wouldn’t normally buy pistachios, so stay tuned to see what’s coming next.”