Pistachio paste trend boosts demand for California growers
Demand for pistachios is rising as food manufacturers use them in products such as chocolate, pastries and beverages. The trend is supporting market growth as California production continues to increase.
Key takeaways
Ingredient use is increasing demand for pistachios.
Dubai chocolate helped accelerate global interest.
California production has expanded significantly in recent years.
Rising demand from food manufacturers is expanding the market for pistachios, shifting the crop’s role from a snack product to a widely used ingredient.
Industry sources said increased use of pistachio paste in chocolate, pastries and beverages has driven demand for pistachio kernels. The trend has been fueled in part by the popularity of Dubai chocolate, a confection filled with pistachio paste and tahini that has gained global attention.
The demand increase comes as California pistachio acreage has expanded significantly. From 2018 to 2022, growers planted more than 30,000 acres annually, with bearing acreage reaching 488,000 last year—more than double the total from a decade ago. In 2025, the U.S. produced about 65% of the world’s pistachios, according to the U.S. Department of Agriculture.
DJ Ellsworth of Meridian Growers said international buyers are seeking pistachios for new product development, including pastries and other specialty foods. Additional interest has come from manufacturers experimenting with pistachio ingredients in products such as sauces.
Zachary Fraser, president and CEO of American Pistachio Growers, said expanding ingredient use has helped strengthen demand as production increases. He said the industry is working to develop new markets for pistachios beyond traditional in-shell consumption, according to the recent article from California Farm Bureau AgAlert.
Industry participants said the shift has also increased processing activity, with a growing share of the crop sold as kernels rather than in-shell nuts.
FAQ
Q: What is driving pistachio demand?
A: Increased use in products like chocolate, pastries and beverages, especially pistachio paste.
Q: What role did Dubai chocolate play?
A: It helped popularize pistachio paste and boosted global demand.
Q: How much of the world’s pistachios does the U.S. produce?
A: About 65%.
Q: How has California production changed?
A: Bearing acreage has more than doubled over the past decade.
Q: How are pistachios being sold differently?
A: A larger share is being processed and sold as kernels instead of in-shell.
What this means
Expanded ingredient use is helping the pistachio industry absorb increased production and stabilize returns.