Is pistachio the new pumpkin spice? Why production of the nut is booming in California

Pistachios have long polarized the world’s taste buds – the flavor is bold, nothing like the subtlety of an almond or a walnut. You either love them or hate them.

But one side of the pistachio debate appears to be reigning supreme. Pistachios were named nut of the year in 2023, unsurprising to anyone who had an eye on pop culture. Pistachio is now a popular flavor of latte. Pistachio butter and cream became food trends on social media. Vibrant pistachio green even made several appearances on the runway, with fashion designers being inspired by the unique, earthy hue.

The rise of the pistachio in the US can be attributed to California. Pistachios generated nearly $3bn last year for the state, which ranks the nut at number six in value out of the over 400 agricultural commodities grown in the state.

Owing almost entirely to California farmers, the US has surpassed Iran, where the nut is native, in the last decade to become the world’s top exporter of pistachios.

The reason behind the rise is less complicated than you might guess; pistachios are sustainable. California droughts have been a persistent problem for several years, but pistachios have offered a silver lining. The nuts are drought-resistant because the trees have deeper roots that can better withstand periods of limited water availability.

“The weather is ideal for pistachios,” said Zachary Fraser, the president and CEO of American Pistachio Growers. “There’s only like two or three places in the entire world where that is the case.”

California’s southern Central valley is a particularly popular spot for pistachio farming. The dryness of desert-like conditions during the summer months is no deterrent for the nut.

“Pistachios also don’t need the same high-quality water that something like almonds do,” said Darwin Inman, vice-president of sales and marketing at Horizon Nut Company. “They’re a fairly stout tree. They can get away with a little bit less quality of water, irrigation water.”

Horizon produces anywhere between 60m and 100m lb of pistachios annually, making them one of the largest pistachio processors in the US.

The diminished need for water means that farmers have more readily embraced pistachios, including when it comes to the nut’s biggest rival, almonds, which generated nearly $4bn in California last year. More growers are opting to dedicate land to drought-tolerant pistachios over thirsty almond trees.

“We’re about 70% pistachios right now,” said Jeff Nichols, vice-president of supply chain and grower relations for Nichols Farms. “Of the remaining 30%, only 23% consists of almonds.”

Nichols Farms has been in the nut-growing business for over 40 years, and currently produces more than 35m lb of pistachios and almonds per year, with pistachios being the bulk of the harvest.

“Pistachios are definitely more profitable than almonds currently, they have been for the last nine years,” Nichols said. “They are more expensive to process but overall, growers are making far better returns with pistachios than almonds with a lot less volatility.”

The pistachio boom is a prime example of the relationship between climate and market. With the climate crisis exacerbating droughts across the world, the investment in drought-resistant crops has caused pistachios to flood the market, turning the luxury nut into an accessible flavor for everything from coffee syrups to shower gel.

Fraser also emphasizes the significance that pop culture and fashion trends such as pistachio green have had on making the nut a household name: “We take any chance that we have to lean into these opportunities and remind people that it’s not just about the color, it’s about the quality of the product. And our growers are the best at what they do in the world.”

The sudden boom in popularity has even had some food experts predicting that pistachio may be the next big seasonal flavor to follow pumpkin spice. But the explosion of pistachios may not spell a green windfall for everyone, as over-saturation of the market means smaller businesses can be left bearing the brunt.

The Santa Barbara Pistachio Company is the only locally owned and family-managed organic pistachio farm on California’s central coast.

“We have about 400 acres and we do it all with pretty much two tractors and maybe three employees,” said Josh Zannon, who manages Santa Barbara Pistachio. Every acre of their farm is dedicated exclusively to growing organic pistachios, with no plans to change.

But because pistachio trees take about seven years to start producing a decent harvest of nuts, it’s possible that California has not yet reached peak pistachio from all the trees planted in the last decade.

“It’s just a lot of people are moving away from almonds and getting into pistachios,” Zannon said. “We’ve only done pistachios, and the market is getting fairly saturated with all the new trees on the ground.

“We’re just trying to survive,” he added. “Every year is a gift.”