Market Trends of Africa Cashew Industry
Increasing Demand for African Cashews from European Countries
- The rising popularity of nuts, prized for their healthy fats, protein, and fiber, is fueling a surge in demand for cashews across Europe. While European consumers still favor simple, roasted, and salted cashews, there is a growing appetite for unsalted and less-processed varieties.
- While imports from Africa to the Netherlands remain modest, they show robust growth. Notably, between 2018 and 2022, imports from Burkina Faso surged at an impressive annual rate of 74%, reaching 1,841 metric tons. Additionally, in 2022, imports from Côte d'Ivoire surged by 28% Y-o-Y, reaching 1,217 metric tons.
- As per the Centre for the Promotion of Imports from Developing Countries (CBI EU), key European markets have consistently grown in cashew consumption over the past five years. The highest increase in cashew consumption was observed in Italy at 13.6% and the Netherlands at 10.7%. Other countries that observed significant increases in the consumption of cashews included Germany, the United Kingdom, and France. Import data reflected this trend, with cashew imports with origins from Africa climbing steadily, culminating in a value of USD 157,477 thousand in 2023.
- African nations are poised to ramp up their exports of cashews due to substantial investments in scaling up cashew nut processing capacities. Moreover, many African countries are bolstering their processing capabilities with backing from international and domestic governmental funds.
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Côte d’Ivoire Leads the African Cashew Market
- In 2022, Côte d'Ivoire emerged as the dominant country in the African cashew market, with Tanzania, Benin, and Nigeria being other significant producing countries. Côte d'Ivoire has seen a consistent uptrend in cashew production over recent years. Data from the Food and Agriculture Organization (FAO) revealed that Côte d'Ivoire's cashew nut production climbed from 968,676 tons in 2021 to 970,000 tons in 2022.
- A typical cashew plant bears fruit four to five years post-plantation, with productivity tapering off after about 15 years. Notably, in Côte d'Ivoire, a significant portion of cashew trees is young, boasting higher yields; over 10% of the acreage is under a decade old. The country's cashew acreage is expanding, with an annual influx of improved and advanced varieties. This surge in production has positioned Côte d'Ivoire as Africa's premier cashew exporter.
- Côte d'Ivoire's government is actively bolstering local production and championing national cashew processing. In 2022, the government earmarked over USD 20 million to aid struggling cashew processors, combating Asian competition and elevating the percentage of processed crops within the country. Collaborating with sector businesses, the government has introduced tax incentives and is fostering the construction of a robust local value chain.
- Moreover, investments from the World Bank and the International Monetary Fund (IMF) further fortify Côte d'Ivoire's cashew production landscape. These investments have catalyzed the establishment of processing centers in key regions like Bondoukou, Korhogo, Bouaké, Yamoussoukro, and Abidjan, underscoring the government's commitment to enhancing the nation's processing capabilities.
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