Global Cashew Kernel Market Ascends at a Healthy CAGR of 5%

Introduction

Cashews include more fiber than peanuts, which supports healthy weight growth by improving digestive function. Cashews have more iron and magnesium than peanuts, which boost the body's enzymatic responses. To meet consumer demand, snack manufacturers have developed a variety of cashew-based snacks, such as lactose-free cashew milk, due to the high nutritional value of cashews—the continents of North America and Europe. Government initiatives and rising demand for flavored cashews drive the cashew nut market. Cashew is in exceptionally high demand due to their unique nutritional properties, which include vitamin B, antioxidants, and minerals such as manganese, magnesium, iron, and zinc. The market for dried fruits and nuts as a whole is expanding as a result of the growing health consciousness of the population.

Market Dynamics

Initiatives Related to Production Boost to Drive theGlobal Cashew Kernel Market

Global cashew production has significantly benefited from initiatives aimed at bolstering production, which has been instrumental in creating a robust market. In 2009, for instance, the African Cashew Initiative (ACI) was established to enhance primary production, processing, and market links along the value chain. It is a project funded by the Bill & Melinda Gates Foundation and the German Ministry for Economic Cooperation and Development (BMZ) to assist cashew farmers and processors in Benin, Burkina Faso, Côte d'Ivoire, Ghana, and Mozambique in meeting international standards. Twenty processing factories, supported by ACI (with Technoserve advisors), have increased their processing capacities, five units have increased their installed capacities, and some have acquired new equipment, thereby driving the cashew kernel market by boosting production and processing of cashews in the major cashew-producing countries. 

The cashew industry has enormous expansion potential. Nonetheless, the visibility of equipment and processing technology is the most significant factor inhibiting potential investors. As a result, the Cotton and Cashew Council is working to put processing equipment manufacturers and investors in direct contact to increase traceability and familiarity with the industry's requirements. Consequently, these initiatives are anticipated to drive the global cashew kernel market due to the global availability of efficient production and processing facilities.

Increasing Demand for Cashew Kernel in Asia-Pacific to Provide Opportunities for the Global Cashew Kernel Market

Despite the presence of major cashew-producing nations, such as India and Vietnam, the Asia-Pacific region has been a consistent importer of cashew kernels. China's imports of shelled cashew increased exponentially from 2016 to 2018, followed by Japan, Thailand, and India. Consequently, the demand for cashews in the region has increased continuously. Promoting "guilt-free" food and snacks, including cashew kernel, has led to an increase in the consumption of cashew kernel in Japan, prompting domestic consumers to gradually shift their consumption patterns toward healthier snacks, such as roasted cashew. Although Thailand and India are the leading cashew processing nations, cashew imports have increased steadily in recent years due to domestic demand exceeding supply. India's estimated annual per capita consumption of nuts and dried fruits increased to 0.24 kilograms in 2018 from 0.19 kilograms in 2017. 

Additionally, total food and beverage retail sales in Thailand rose to USD 54.2 billion, an increase of 6.7% from 2016. Increasing demand for healthier ready-to-eat snacks, such as cashew kernels, almonds, and dried fruits, drove this growth. As a result, rising cashew kernel consumption in the Asia-Pacific region is anticipated to drive the market over the forecast period.

Regional Insights

By region, the global cashew kernel market is segmented into Asia-Pacific, North America, Europe, and Africa.

Asia-Pacific dominated the global cashew kernel market and is expected to exhibit a CAGR of 4.2% during the forecast period. According to the Food and Agriculture statistics, China produced approximately 44 metric tons of cashew kernels in 2019. The production increased slightly from 32 tons in 2016 to 39 tons in 2017. Due to unfavorable climatic conditions in the country, production may stay relatively high in the coming years. Hainan Province's coastal regions of Ledong Lingshui, Dongfang, and Sanya are the central cashew-producing regions. In addition to Wanning and Wenchang in the province of Hainan, there are scattered cultivations in Xishuangbanna and Gejui in the province of Yunnan. Domestic production of kernels in the country is deficient, and imports of kernels are heavily relied upon to meet domestic demand. Vietnam has been China's largest supplier of cashew kernels for the past decade. Due to the country's unfavorable conditions for cashew production, it is anticipated that production will increase slowly over the forecast period.

Europe is the second largest region. It is estimated to exhibit a CAGR of 3.5% during the forecast period. Germany is the leading user of cashew kernels in the European Union. The need for cashews as snacks in Germany peaks throughout winter and declines during summer. According to the International Nuts and Dried Fruit Council, Germany had the most significant per capita intake of nuts and dried fruit in the world in 2017, with an estimated 1.7 kilograms per person. The growing trend of healthy snacking has raised the consumption of cashew nuts. In recent years, cashew nuts have become an increasingly popular ingredient in spreads and snack bars. In Germany, roasted and salted cashew kernels are a popular snack. There has been a rise in the use of kernels in the food and beverage industries, with the demand for pieces and broken kernels stemming from the expansion of the food industry. Recent industrial interest in cashew nuts has led to their use in biscuits, cereals, ice cream toppings, and the production of cashew nut butter. In Germany, the rising demand for cashews from the processing industry is driving the consumption of cashew kernels.

North America is the third largest region. Due to the high rate of growth in the prices of imported cashew kernels, the market value is likely to grow faster than the number of cashew kernels being eaten. Only a few states, including California, Florida, New York, Texas, and New Jersey, account for most of the nation's cashew consumption. Organic food is purchased in the United States because it is healthier. Consequently, the country's overall demand for organic nuts, including cashews, continues to rise, increasing in cashew demand. The country's end-user food sector has rising applications for cashew kernels. In addition, raw or roasted cashew kernels are utilized in the production of cashew butter, an alternative to peanut butter for people with a peanut allergy. Consequently, the increasing demand for cashews from the processing industry is boosting cashew kernel consumption in the country.

Key Highlights

• The global cashew kernel market was USD 6 billion in 2022. It is anticipated to reach an expected value of USD 9.5 billion by 2031 at a CAGR of 5% during the forecast period (2022-2031).
• By grade, the global cashew kernel market is bifurcated into white wholes, scorched wholes, white pieces, scorched pieces, dessert wholes, and dessert pieces. The white wholes segment dominated the market and is expected to grow at a 5.4% CAGR over the forecast period.

Competitive Players

Competitive Landscape

Key players in the global cashew kernel market are Vietnam Cashew Processing Co., Alphonsa Cashew Industries, Nutsco Inc., DVK Group, Prime Nuts FZE, Bismi Cashew Company, Olam International Limited, and others.

Recent Developments

Market News

• September 2020 - As part of its commitment to resource conservation, Alphonsa collaborated with its paper and packaging suppliers to address the effects of its use of fiber for packaging. As a result of our commitment, 100% of the fiber used in our paper packaging now originates from FSC-certified suppliers.
• September 2020 - Alphonsa invests in a new Pasteurization and Packing Complex to keep up with the law and its customers' expectations, given the rapidly rising global food safety regulations.

Segmentation

Global Cashew Kernel Market: Segmentation

By Grade

• White Wholes
• Scorched Wholes
• Dessert Wholes
• White Pieces
• Scorched Pieces
• Dessert Pieces

 By Region

• Asia-Pacific
• North America
• Europe
• Africa