Cashew Nuts Market Size (2024 – 2030)

The Global Cashew Nuts Market was valued at USD 7.5 billion in 2023 and is projected to reach a market size of USD 9.42 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 3.31%. 

The expansion of the cashew market is propelled by increasing health consciousness, the burgeoning trend towards vegan and plant-based diets, and the rise in disposable income. Consumers' preference for healthy and convenient snack options drives the demand for cashews. Asia Pacific stands out as the primary importer of cashews, with China taking the lead, followed by Japan, Thailand, and India.

Key Market Insights:

The global cashew nut market is experiencing a delicious boom, driven by a perfect storm of consumer trends. Health-conscious individuals are seeking nutritious snacks to fuel their busy lifestyles.  This creates a sweet spot for cashews, packed with protein, healthy fats, vitamins, and minerals.  Furthermore, the growing popularity of vegan and plant-based diets positions cashews as a complete protein source, further boosting demand.

Rising disposable income, particularly in developing economies, empowers consumers to indulge in premium snack options like cashews. This translates into specific product preferences within the cashew market. Whole and roasted cashews enjoy the fastest growth due to their perceived health benefits and convenience. Consumers favor whole cashews for minimal processing and portion control, while roasted cashews offer enhanced flavor and ease of consumption.

The market caters to the on-the-go lifestyle with Snacks & Bars and Bakery Items leading the application segment.  These convenient and healthy options perfectly align with modern consumer needs.  Convenience stores are projected to be the fastest-growing distribution channel due to their accessibility and extended hours.  This makes it easier for busy individuals to grab a quick and nutritious cashew-based snack.  Asia Pacific remains the dominant region for cashew imports, with a rising middle class and increasing disposable incomes leading the charge. China reigns supreme as the top importer, followed by Japan, Thailand, and India.

The global cashew nut market presents exciting opportunities, with health-conscious snacking driving the trend. Understanding these key trends and consumer preferences allows businesses to capitalize on this growing market segment.

Cashew Nuts Market Drivers:

Health-conscious consumers favor cashews' nutritional richness for wholesome snacking choices:

Cashews are increasingly recognized for their nutritional value, being rich in protein, healthy fats, vitamins, and minerals. This aligns with the growing trend of health-conscious consumers seeking wholesome snack options.

Cashews cater to rising demand as a protein substitute for vegetarians:

The surge in popularity of vegan and plant-based diets is boosting the demand for cashews as a substitute for animal protein. Cashews serve as a complete protein source, catering to the dietary preferences of vegetarians and vegans.

Growing income levels propel demand for premium nuts, particularly cashews:

With rising disposable income, particularly in emerging economies, consumers have greater purchasing power to invest in premium nuts like cashews. This economic shift contributes to the growing demand for cashews globally.

Convenience drives cashew popularity, meeting modern lifestyles' on-the-go snacking needs:

Modern consumers, leading busy lifestyles, are driving the demand for convenient and healthy snacking alternatives. Cashews fulfill this need perfectly, offering a portable and nutritious snack option suitable for on-the-go consumption.

Cashew product innovation diversifies offerings, attracting a broader consumer base.

The introduction of innovative cashew-based products, such as flavored cashews, cashew butter, and cashew milk, is attracting new consumer segments and stimulating market growth. These product innovations capitalize on evolving consumer preferences and diversify the cashew product portfolio.

Cashew Nuts Market Restraints and Challenges:

Price fluctuations disrupt cashew market stability, driven by weather and demand:

Cashew prices are prone to fluctuations influenced by variables such as weather conditions, crop yields, and global demand. This inherent volatility poses challenges to supply chain management and market stability.

Labor shortages hinder cashew processing, particularly in developing countries:

Labor-Intensive Operations: The labor-intensive nature of cashew processing, especially prevalent in developing countries, faces obstacles due to labor shortages. These shortages can hinder productivity and operational efficiency.

Strict food safety regulations increase costs and logistical challenges for processors: Compliance Requirements Increase Costs: Adherence to stringent food safety regulations adds complexity and costs to cashew processing operations. Meeting these regulatory standards presents logistical challenges and escalates operational expenses for manufacturers.

Cashews face competition from almonds and walnuts for market share:

Challenged by Substitutes: Cashews encounter competition from other nuts such as almonds and walnuts, which offer comparable health benefits. This competitive landscape poses challenges to cashew market growth and market share retention.

Seasonal production causes supply chain disruptions and price fluctuations annually:

Supply Chain Disruptions: The seasonal nature of cashew production leads to fluctuations in supply and price during off-season periods. Managing these seasonal variations presents challenges for supply chain management and market stability.

Cashew Nuts Market Opportunities:

Emerging markets offer growth potential fueled by rising incomes and middle classes: Expanding into emerging markets like China and India, characterized by growing disposable incomes and an expanding middle class, offers lucrative growth opportunities for the cashew market.

Sustainability concerns drive demand for ethically sourced cashew products:

Implementing sustainable sourcing and processing methods aligns with consumer preferences for environmentally friendly products. Manufacturers can attract eco-conscious consumers by prioritizing sustainability in their operations.

E-commerce platforms facilitate broader market access for cashew manufacturers:

With the surge in e-commerce platforms, cashew manufacturers can leverage online channels to access a broader customer base and extend their market presence, tapping into the convenience and accessibility of online shopping.

Innovation in cashew-based products attracts new consumer demographics:

Introducing innovative cashew-based products such as milk alternatives, cheese substitutes, and dips diversifies product offerings, appealing to varied consumer preferences and expanding market opportunities.

Organic and fair-trade trends create opportunities for niche market penetration:

Addressing the growing demand for organic and fair-trade products enables manufacturers to cater to niche market segments. By offering certified organic and fair-trade cashews, companies can tap into the preferences of discerning consumers seeking ethically sourced products.

CASHEW NUTS MARKET REPORT COVERAGE:

Cashew Nuts Market Segmentation: By Form

• Whole

• Roasted

• Splits

• Paste

The whole cashew segment is expected to witness the fastest growth due to an increasing preference for minimally processed and perceived healthier options. Consumers believe whole cashews offer the most natural form of the nut and the greatest control over portion sizes.

Roasted cashews remain popular due to their enhanced flavor and convenience. The roasting process intensifies the cashew's inherent nutty flavor and makes them easier to consume.

Splits and Cashew Paste segments are primarily used in the food processing industry for various applications like thickening sauces, dips, and spreads. These segments are expected to grow steadily alongside the demand for processed food products.

Cashew Nuts Market Segmentation: By Usage

• Public Dairy Products

• Cereals

• Confectionaries

• Beverages

• Snacks & Bars

• Bakery Items

Snacks & Bars emerge as the largest and fastest-growing segment due to the surging demand for convenient and healthy on-the-go snacks. Offering portability and nutrition, cashew-infused bars cater to busy lifestyles. With a rising health-conscious consumer base, cashew snacks are perceived as a healthier alternative to sugary treats, further driving their popularity. The versatility of cashews allows for a wide variety of snack bar options, appealing to diverse palates and dietary needs.

Additionally, cashews are a rich source of protein, making them a satisfying choice for active individuals seeking an energy boost. Urbanization, health awareness, growing plant-based diets, and continuous product innovation fuel the global rise of Snacks & Bars, solidifying their dominance in the cashew market.

Public Dairy Products are being made using cashews to create dairy-free alternatives such as cream cheese and yogurt, offering options for lactose-intolerant or vegan consumers. While this segment is stable, growth may be slower due to the entrenched dominance of traditional dairy products.

Cashews are incorporated into cereals to add protein and healthy fats, catering to health-conscious consumers seeking nutritious breakfast options. This segment is expected to experience moderate growth as consumer demand for protein-rich foods rises.

Confectioneries: Cashews are favored for their texture and flavor in candies, chocolates, and desserts. Despite facing competition from other nuts, cashews maintain a presence in confectionery products. Moderate growth is anticipated in this segment due to evolving consumer preferences for healthier sweets.

Beverages: Cashew milk has emerged as a popular dairy-free alternative, driven by the increasing adoption of plant-based diets and awareness of vegan options. This segment is poised for significant growth, fueled by factors such as lactose intolerance and the shift toward plant-based beverages.

Cashew Nuts Market Segmentation: By Distribution Channel

• Convenience Stores

• Hypermarkets & Supermarkets

• Retailers

• Specialist Stores

Supermarkets, hypermarkets, and convenience stores hold a dominant position in the market, with supermarkets and hypermarkets emerging as particularly efficient distribution channels. The proliferation of these outlets significantly boosts offline sales, as they offer ample shelf and storage space to accommodate a diverse range of products sourced from both local and international suppliers. Notable brands such as Reliance Fresh, Spar International, and Spencer’s Retail Ltd. play a pivotal role in providing consumers with a wide array of options. Industry players are actively pursuing strategic market expansion initiatives to further extend their presence and enhance their market share.

Supermarkets, hypermarkets, and convenience stores collectively command the largest market share, with supermarkets and hypermarkets serving as highly effective distribution channels. The growing number of these outlets contributes to the rise in offline sales, facilitating the availability of various products from both local and international suppliers. Key players like Reliance Fresh, Spar International, and Spencer’s Retail Ltd. are instrumental in offering consumers diverse choices. To augment offline sales, industry participants are proactively expanding their footprint across different regions through strategic initiatives aimed at strengthening their market presence.

Cashew Nuts Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Asia Pacific is the largest global market for cashew nuts. This region is at the forefront for several reasons. Firstly, there's a growing middle class here with more money to spend, which means a higher demand for premium nuts like cashews. Plus, cashews are deeply ingrained in Asian cuisine, both in traditional dishes and modern snacking habits. Importantly, countries like China, Japan, Thailand, and India are big importers of cashews, further boosting Asia Pacific's position.

While Asia Pacific is the largest, the fastest-growing regions are likely to be Latin America and the Middle East & Africa. These areas are seeing growth thanks to rising incomes and a greater awareness of the health benefits of cashews. Also, people worldwide are snacking more, and cashews fit that trend perfectly. In North America, for example, health-conscious consumers are driving demand for whole and roasted cashews. Europe has similar trends, with a growing interest in plant-based alternatives. In Latin America and the Middle East & Africa, people mostly eat cashews directly, but there's potential for growth in snacks and bakery products.

Asia Pacific will probably stay ahead but there's a lot of potential for growth in Latin America and the Middle East & Africa for companies that can adapt to local tastes and build strong distribution networks. So, while Asia Pacific is currently in charge, emerging markets have a bright future as more people around the world develop a taste for cashews.

COVID-19 Impact Analysis on the Global Cashew Nuts Market:

The global cashew nut market witnessed disruptions amid the COVID-19 pandemic, impacting various aspects of the supply chain. Lockdowns disrupted distribution channels, leading to challenges in moving cashews from processing centers to major consumer markets. Labor shortages further compounded the issue, affecting cashew processing and export. Price fluctuations ensued due to decreased production and uncertainty in demand, adding to the market's challenges during the initial phase of the pandemic.

Despite the initial disruptions, shifting consumer trends offered some opportunities for the cashew nut market. Increased snacking, driven by lockdowns and stay-at-home orders, potentially boosted the demand for cashews as a healthy and convenient option. Additionally, the accelerated growth of e-commerce during the pandemic created new sales avenues for cashews, offsetting disruptions in traditional retail channels. Looking ahead, the focus may shift towards sustainability in cashew production practices, driven by heightened awareness of supply chain resilience. While the long-term impact on cashew consumption in different regions remains uncertain, emerging markets with rising disposable income are expected to contribute to continued market growth beyond the pandemic.

Latest Trends/ Developments:

• September 2022: As part of efforts to diversify into other sectors of the economy, the Nigerian Construction Firm Julius Berger Nigeria PLC has unveiled a modern cashew processing plant in Epe, Lagos State, Nigeria. The development helps the company to enter the agriculture produce processing along with improving the cashew processing capacity of the country.

• July 2022: Singapore-based company Royal Nuts has opened its USD 23 million new cashew nut processing plant in Ivory Coast under its subsidiary Dorado Ivory. The new plant is the world's largest cashew processing facility operating at an annual capacity of 75,000 Metric tons. It helps the company to expand its cashew trade and manufacturing business.

Key Players:

1. ACBL Natural Foods (Pvt) Ltd.

2. Agrocel Industries

3. Ajanta Industries

4. Aurora Products, Inc.

5. Delphi Organic GmbH

6. Greendot Health Foods Pvt. Ltd

7. Nutty Yogi,

8. Lafooco and Aryan International

9. Delicious Cashew Co.

10. Haldirams, Divine Foods.