U.S. tree nut industry members discuss diversification, India, and marketing efforts

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U.S. tree nut industry members discuss diversification, India, and marketing efforts

India has long been a key market for the U.S. nut industry. While market diversification is a major priority, India’s demographics, dietary habits, and economic growth have made it a natural fit for U.S. nut exports. Years of marketing efforts have positioned the U.S. as the country’s top supplier of almonds and pistachios.

Freshfruitportal.com spoke with several industry leaders about the characteristics that make India such a significant market for U.S. tree nuts and the strategies that have helped solidify their presence there.

A major factor behind this success is the U.S.’s position as a leading producer. California alone supplies approximately 80% of the world’s almonds, while the U.S. produces 40% of the world’s pistachios, with 90% of that volume coming from California. However, India’s growing young population, dietary preferences, and economic expansion have also played a crucial role.

According to Laura Morin, Director of North America and China Global Market Development for the Almond Board of California, India has experienced remarkable growth over the past decade. “The most significant shipment increase was in 2020 when India grew to a 350 million+ pound market for shipments of California almonds.”

“India is a market for almonds that is unlike any other in the world. Almonds have an incredibly strong heritage in India, with health benefits linking back to Ayurveda,” Morin explained. “These deep-rooted health perceptions make almonds a special, sought-after food for Indians. Also, almonds are important for gifting during the holidays and at weddings. This unique heritage, combined with the largest population in the world and a rapidly growing middle class, makes India an extremely favorable market for almonds.”

To maintain strong global demand, the Almond Board has focused on diversifying its export markets. “With ongoing changes in global economics and trading policies, this diversification helps to ensure that there is always strong demand for California almonds,” Morin said.

Pistachios

While the U.S. pistachio industry only began focusing on India after the 2017-18 trade war with China, it has followed a similar marketing approach as almonds, recognizing India’s consumer potential.

Suzanne Devereaux, Director of International Marketing for American Pistachios, has worked in the industry for years and emphasized the importance of understanding Indian culture when establishing a strong market presence.

“India’s population is over 1.4 billion people, and the majority of the growing class is middle class, with 40% under the age of 40. I think we’re on the cusp of something fantastic because the ability for growth is just incredible,” she said.

Plus, Zachary Fraser, the President and CEO of the American Pistachio Growers, said most of India's population are vegetarian by culture, "with the vast majority of their protein coming from sources that are not animal proteins, so plants." 
 
He explained that the almond industry precedes the pistachio industry by decades when considering the growth of tree nuts in the Indian market, but since the initial tariff conversations back then, they have shifted a lot of their focus to diversification. 
 
"The industry recognized, 'hey, we better start diversifying, and in addition to India being close in proximity, the consumer profile really met the mark, young, up and coming, educated, and seeking protein sources that don't come from animals," Fraser explained. "So, it really checked many boxes for the pistachio industry." 
 
China remains the main importer of U.S. pistachios, followed by Germany, Turkey, Spain, and India. Although India is fifth, it has experienced major growth over the last seven to eight years.
 
"That dramatic shift happened because of the marketing efforts to bring awareness and build demand," Fraser said. "Five weeks on the job, Suzanne walked into my office with the biggest 'oh, my gosh, this is the greatest opportunity ever' look on her face and put a proposal down on my desk to sign Jasprit Bumrah, who is among the top cricket players in the entire world, for North Americans, that might not mean very much, but cricket has 3.2 billion fans around the world."
 
Devereaux explains that part of the reason she's so passionate about pistachios is its health benefits, which has really helped their marketing efforts in the country.
 
"Over 1.1 million people have already been diagnosed with type 2 diabetes, and 138 million people have been diagnosed with pre diabetes, so we also launched a study that shows how pistachios can help with this issue," she explained. "So it's really important that not only are we partnering with the right people, because that's really important to share that story, but we're also continuing to explore the nuts nutrition benefits." 
 
Overall, Devereaux said their most important goal is to "build bridges and trust between the American Pistachio team and Indian importers." 
 
This year is anticipated to be favorable for American pistachios. Fraser said they're projecting the industry will surpass over 500,000 acres of producing trees this year, a new milestone for the industry. This is mainly due to planted trees coming to fruition and this year being a high-yield one for pistachio trees, which Fraser explained belong to the alternate bearing list. 
 
Both Devereaux and Fraser expressed their excitement for what's to come in India for the pistachio industry. They said they're also working on establishing a presence in Poland, Brazil, and Indonesia while also making sure to pay attention and create strong bonds. 

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