Pistachios are becoming an increasingly expensive raw material for the food industry, as strong consumer demand clashes with production that cannot be increased quickly.
One factor is the global popularity of Dubai chocolate - chocolate with a pistachio cream and kadaif filling, which has become a global trend thanks to social media. Its success has led to the emergence of many similar products and increased demand for pistachios from the confectionery industry. The popularity of this type of chocolate has already led to difficulties for manufacturers who had to quickly increase their production.
Production cannot be increased quickly
Unlike industrial goods, the supply of pistachios responds slowly to changes in demand. Trees take years to reach significant fruiting, and the harvest depends on climatic conditions and the availability of water.
Among the leading producers are the United States, where the main center is California, as well as Iran. Supply constraints are quickly transmitted along the chain to food processors and manufacturers.
From TikTok to the price of the raw material
The case with the pistachio also shows a new risk for companies - social networks can change the demand for a physical raw material in an extremely short time. The viral Dubai chocolate, for example, has racked up tens of millions of views and spurred many companies to launch their own versions.
For manufacturers, this means the need for more flexible supply chains, supplier diversification, and better forecasting of consumer trends.
Pistachios are a prime example of the new connection between social media and global supply chains: a trend can go global in days, while scaling up the production of an agricultural commodity takes years.