The global pecan industry, while not as large as the Walnut or Almond industries is undergoing massive growth with the US leading the way in international marketing, research and production. But other regions are fast emerging as major players in the production of pecan nuts.
Pecan Production
Global pecan production is estimated somewhere around 700-800 million pounds of in-shell which equates to 350-400 million pounds of edible kernels. Quite small when compared to just the state of California’s almond crop which is around 2.8 billion pounds of kernels.
The United States and Mexico have been the major producers of pecans for centuries but over the past decade South Africa has emerged as a major producer of pecan nuts now approaching the 100 million pound mark. Last year South Africa produced around 80 million pounds of pecans and is expected to reach 100 million pounds of in-shell pecan production in the next couple of years.
Emerging Regions
While the U.S. and Mexico dominate production, other countries, including South Africa, Australia, and China, are gradually increasing their pecan output. Australia has been slow to increase production and has been plateaued at current production levels for nearly 10 years.
China having developed a taste for pecans began planting large swaths of pecans in areas such as Anhui, Jiangsu, Yunnan, Zhejiang, Jiangxi, Hunan, Henan, Shandong, Guangxi with estimates of 83,000-85,000 hectares (205,000-210,000 acres) planted. Despite the rapid expansion in plantings, the production quantities are still quite low, estimated to be around 6,500 MT (14,000,000 lbs).
Another region receiving attention for pecan production is South America, specifically in the areas of southern Brazil, Uruguay, Argentina,Peru, Northern Chile, Paraguay, and Bolivia. This area has seen significant plantings over the last few years and is expected to become a major producer in the coming years. Argentina alone has planted around 10,000 hectares (24,000 acres) and increases this annually by around 1,000 hectares.
Trade Dynamics
The global pecan trade is largely influenced by the supply and demand dynamics in the U.S. and Mexico. These two countries are major consumers and exporters, shipping pecans to various destinations around the world.
Export Trends
The U.S. exports pecans to various countries, with Canada, China, and European nations being significant markets. Mexican pecan exports also target similar regions. The export volumes fluctuate depending on the harvest size and prices. While the US developed the Chinese pecan market, much of the supply now comes from South Africa and Mexico after trade tariffs on US agricultural products increased cost for US produced pecans entering China. The supply of pecans shifted from the US to South African and Mexico. While the US does still ship pecan into China the additional cost imposed by tariffs have shifted purchases of pecans to other countries without the tariffs. India has become a major focus of the US pecan growers as India’s population and economy continues to grow and becomes a major consumer of premium goods. However pecan exports to India are still relatively low and is expected to take time to develop that market.
Import Trends
Countries that do not produce pecans rely on imports to meet their domestic demand. European countries, parts of Asia, and the Middle East are among the major pecan importers. The demand for pecans in these regions is growing, driven by factors such as increasing awareness of health benefits and culinary applications.
Market Growth
The global pecan market is expected to continue growing, driven by factors such as increasing disposable income, urbanization, and the growing awareness of health benefits. The demand for pecans is also supported by the food industry, which uses the nuts in various products.
Future Outlook
The future of the global pecan industry looks promising. The increasing demand for healthy and nutritious foods, coupled with the versatility of pecans, is expected to drive market growth. Innovations in production and processing techniques can further enhance the industry’s efficiency and competitiveness, and is being led by American pecan growers via their organizations such as the APC and the APPB.