Pistachio Prices Reach $4.57/lb High, Threatening Starbucks’ Flavor Costs
Pistachio prices hit $4.57 per pound in March, the highest since May 2018, after Iran’s war, sanctions and a smaller 2025 crop cut exports by about a third. Starbucks’ pistachio-flavored coffee faces higher ingredient costs following a 30% price jump since late 2023 and shipping cancellations since March 2.
1. Global Pistachio Price Surge
Pistachio prices rose to $4.57 per pound in March, the highest level since May 2018, after the war in Iran combined with sanctions, a smaller-than-expected 2025 crop and export cancellations reduced global supply by about a third. Supply chains face additional strain from shipping lines halting fresh bookings to the Middle East since March 2 and surging consumer demand that drove a 30% price increase since late 2023.
2. Implications for Starbucks
Starbucks, which popularized pistachio-flavored coffee and plant-based milk, may incur higher input costs as wholesale pistachio prices climb. The cost pressures could force menu price adjustments or margin compression, while sourcing alternatives or hedging strategies may be explored to mitigate the impact on its beverage lineup.