Cashew Milk Market Size (2024 – 2030)

The Cashew Milk Market was valued at USD 68.15 Million in 2023. Over the forecast period of 2024-2030, it is projected to reach USD 133.65 Million by 2030, growing at a CAGR of 10.1%.

Key Market Insights:

Cashew milk presents various nutritional benefits and is particularly favored by individuals who experience lactose intolerance or adhere to a plant-based lifestyle. One notable advantage of cashew milk lies in its absence of lactose, rendering it a suitable option for those managing lactose intolerance or allergic reactions to dairy. Unlike traditional dairy milk, cashew milk lacks cholesterol and maintains a naturally low level of saturated fats. Instead, it boasts heart-healthy unsaturated fats, particularly oleic acid, akin to that found in olive oil. This nutritional profile positions cashew milk as a favorable substitute for individuals prioritizing cardiovascular health and aiming to mitigate the risks of stroke and coronary heart disease. Moreover, cashew milk stands out as an excellent source of essential nutrients. It contains significant quantities of B vitamins, including thiamine, riboflavin, and niacin, crucial for energy production and overall well-being. Additionally, cashew milk provides essential minerals such as copper and magnesium, contributing to diverse bodily functions, including enzyme activity, bone health, and nerve function.

Cashew Milk Market Drivers:

The increasing demand for plant-based food is driving the market growth.

Various factors, including the rise of plant-based foods, are contributing to the market's growth. Cashew milk is prominently marketed as a plant-derived beverage enriched with calcium, appealing to consumers due to its low sugar and fat content.

As cashew milk steadily displaces traditional dairy milk for a significant consumer base, key players are becoming increasingly influential in the restaurant sector. These companies are capitalizing on the trend by introducing gluten-free cashew milk options.

In addition to established market leaders, startups are leveraging the growing demand for plant-based and non-dairy food products. The heightened awareness of the adverse health effects associated with high cholesterol has led to an increased demand for low-fat dairy alternatives, such as cashew milk. Individuals deficient in vitamins B12 and B2 are also turning to cashew milk as a nutritional choice.

The trend towards non-dairy frozen desserts is another notable development in the cashew milk market. Value chain stakeholders are expanding their product portfolios to include frozen desserts made from coconut milk, almond milk, and cashew milk.

Companies are allocating more resources to research and development (R&D) efforts aimed at extending the shelf life of plant-based products. Given the rapid degradation of conventional herbal products leading to food waste issues, this research has provided companies with a competitive edge. Consequently, new entrants in the cashew milk market are introducing milk powder as a solution to create plant-based products with an extended shelf life.

Cashew Milk Market Restraints and Challenges:

The cost of cashew milk surpasses that of traditional dairy milk, primarily due to the elevated prices of cashews, thereby constraining the global demand for cashew milk.

In response to this challenge, major industry players are scaling up their production capacity to manufacture cashew milk powder. This innovation enables consumers to mitigate concerns about wastage associated with the relatively shorter shelf life of liquid cashew milk compared to regular milk.

The heightened cost of cashew milk, attributed to the rising expenses associated with cashews, serves as a hindrance to market growth when compared to conventional milk. Additionally, the availability of alternatives, such as organic milk sourced from pasture-grazing cows, and economic constraints in developing nations contribute to the market's limitations during the forecast period.

Cashew Milk Market Opportunities:

Benefits of Cashew powder creating opportunities.

The potential to enhance digestive system functionality and the growing demand for plant-based milk present an opportunity for the market. Additionally, the extensive use of powdered cashew milk in cafes, bakeries, and wholesale food chains as a dry ingredient for various products like pancakes, biscuits, muffins, and hot chocolate mix, offers a longer shelf life compared to its liquid counterpart, facilitating convenient storage and transportation. Furthermore, the increasing research and development initiatives and advancements in new product formulations contribute to the market's growth during the forecast period.

CASHEW MILK MARKET REPORT COVERAGE:

Cashew Milk Market Segmentation: By Packaging

• Cartons

• Pouches

• Jars

• Bottles

• Cans

• Others

The market is currently dominated by the bottles segment due to its wide popularity among the consumers and easy to store capabilities. The cartons segment emerge as the fastest-growing segment during the forecast period, 2024-2030 as more and more focus is shifting toward efficient and sustainable packaging methods.

Cashew Milk Market Segmentation: By Product Type

• Plain Cashew Milk

• Flavored Cashew Milk

The flavored cashew milk segment has taken the lead in the market, driven by the increasing consumption and production of cashew milk products. Looking ahead to 2030, it is anticipated that the plain cashew milk segment will dominate the market, fueled by the heightened demand for plant-based milk with a creamy fluid texture.

Cashew Milk Market Segmentation: By Form

• Powder

• Liquid

The utilization of the powder form is considered the most optimal method for formulating final products and extracting from almond grains. Within this category, the powder sub-segment is expected to command a substantial market share. Multiple studies indicate that Cashew Milk powders offer gluten-free options and are non-GMO.

Furthermore, the Cashew Milk powder's vitamin E sources contribute to a heightened production of fat-soluble antioxidants, making it a suitable choice for individuals following a vegan diet. The market for Cashew Milk powder is projected to experience a Compound Annual Growth Rate (CAGR) of 5.9%.

Cashew Milk Market Segmentation: By End-Use

• Food & Beverages

• Nutraceuticals & Baby Food

• Personal Care

• Pharmaceuticals

• Others

The Food and beverage application segment significantly contributed to the market share. In the projected period, sweetened dairy alternatives designed for beverages are expected to maintain a prominent position in the market. Opportunities for product penetration are anticipated, driven by the increasing demand for added sugar and enhancements in taste and flavor, particularly among the infant and young population.

Cashew Milk Market Segmentation: By Sales Channel

• Supermarket & Hypermarket

• Online Retails

• Others

Supermarkets and hypermarkets have emerged as the primary distribution channels, leading the market. This channel's popularity is attributed to advantages such as allowing customers to inspect products before purchase and the presence of store associates assisting in product selection, influencing purchasing decisions. Major supermarket chains like Reliance Fresh, Big Bazaar, Easy Day, and others serve as key distributors of cashew milk for various companies.

The online distribution channel is poised for rapid expansion, representing the fastest-growing segment. In a bid to reach a broader consumer base, companies are forming partnerships with online retailers and establishing their e-portals, including platforms like Alibaba, Amazon, Walmart, Big Basket, Nature’s Basket, LuckyVitamin.com, and Delights Food (India). For instance, the Forager Project Company operates its portal and collaborates with various online platforms such as Prime Now, Fresh Direct, Mylk Guys, Instacart, Peapod, Thrive Market, and Milk and Eggs.

Cashew Milk Market Segmentation- by region

• North America

• Europe

• Asia Pacific

• South America

• Middle East & Africa

The North American cashew milk market commands a significant 40% share in 2023, with the United States emerging as the leading contributor. The adoption of lactose-free products, coupled with the increasing demand and production in the U.S., is a major driver for the growth of the Cashew Milk market. This surge is attributed to a shift in dietary preferences and heightened awareness of the associated benefits. The U.S. cashew milk market is projected to experience a Compound Annual Growth Rate (CAGR) of 3.8% from 2024 to 2030.

The growing number of vegan consumers in the United States has led to an increased demand for plant-based milk, specifically driving the use of cashew milk in this region. Moreover, the proliferation of manufacturers and vendors has expanded the availability of cashew milk in the United States.

Meanwhile, the Asia Pacific region stands out as the fastest-growing market, expanding at a robust CAGR of 5.9% throughout the forecast period. This growth is attributed to increasing awareness, evolving taste and preference trends, and health-related concerns. Consumers in the region are increasingly investing in these products due to rising disposable incomes and the health benefits associated with them. The escalating focus on cashew milk intake, driven by the growing demand for non-dairy products and heightened lactose intolerance awareness, is a pivotal factor propelling the market in the region. Noteworthy companies like So Delicious and Elmhurst are strategically expanding their presence in the Asia Pacific market.

COVID-19 Pandemic: Impact Analysis

The COVID-19 pandemic has played a significant role in increasing the overall demand for plant-based food and beverages. The global health crisis has expedited the trend toward healthier lifestyles and plant-based diets. Individuals are becoming increasingly health-conscious, actively seeking alternatives to traditional dairy products, leading to heightened demand for plant-based milk, with a notable impact on cashew milk. This surge in demand is anticipated to positively impact the cashew milk market in the post-pandemic phase as well.

Key Players:

These are the top 10 players in the Cashew Milk Market:-

1. Forager Project

2. White Wave Services Inc.

3. Provamel

4. Nutty life

5. Plenish Cleanse Ltd.

6. So Delicious Dairy Free 

7. Blue Diamond Growers

8. Alpro

9. Danone SA

10. Cashew Dream