China's nuts market lucrative for US company

Wonderful Pistachios and Almonds LLC, the largest pistachio producer by both production volume and sales revenue in the United States, plans to allocate additional resources to expand its sales network and enhance supply chain operations as it aims to capture a greater market share in China in the coming years, a senior company executive said.

Many opportunities arise from Chinese consumers' soaring demand for western-style snacks, including booming cross-border e-commerce businesses and health and wellness trends. These factors have created a strong demand for pistachios in China, with the trend expected to continue as health, convenience and variety remain key priorities for shoppers.

Michael Hohmann, executive vice-president and chief financial officer of the Los Angeles-headquartered company, said in addition to providing pistachios in large quantities to Chinese consumers during the Spring Festival period, the company wishes to extend this beyond the seasonal peak.

"We see considerable potential for growth beyond the Chinese New Year period, and we are keen to make our products available all year round," said Hohmann, adding that e-commerce platforms and a variety of retail channels present excellent opportunities for achieving their goal.

China's nuts market has expanded into a $40 billion industry, with tree nut imports reaching $3.28 billion, according to a report released by the US Department of Agriculture early this year.

Over the past decade, the volume of dried fruit imports in China have surged 3.4 times. The nuts market is rapidly growing across various sectors, including food processing, coffee, tea and other categories, the report said.

Hohmann said the US company is observing a robust consumption of pistachios not only in top-tier cities like Beijing, Shanghai and Guangzhou, Guangdong province, but also in second-tier cities like Chengdu, Sichuan province and Changsha, Hunan province.

This widespread interest presents an additional opportunity for the company to continue expanding its market presence across the country.

Emphasizing the numerous possibilities for innovation, he said that looking ahead, the company is not only committed to selling pistachios but is also open to exploring new avenues, such as incorporating pistachios into beverages, smoothies, lattes and pastries in the Chinese market.

Echoing the same sentiments, Li Guoxiang, a researcher at the Rural Development Institute of Chinese Academy of Social Sciences in Beijing, said that food consumption reflects economic success, and as consumption rises, the variety of foods people eat is also expanding in China.