Market Trends of Cashew Value Chain Analysis
Increasing Government Initiatives to Boost Cashew Production
Cashew cultivation operates in a structured value chain, with individual growers and grower cooperatives as the primary stakeholders. While most cultivation occurs on individual farms, a small portion of growers work through cooperatives, which manage limited areas. According to FAOSTAT, the global cashew cultivation area reached 6.85 million hectares in 2022, representing a 4.3% increase from 6.57 million hectares in 2021.
African governments are implementing market reforms and strengthening institutional infrastructure. The African Cashew Initiative supports improvements in primary production, processing, and market connections across the value chain. Through advisory services and training, the initiative helps cashew farmers and processors in Benin, Burkina Faso, Ivory Coast, Ghana, and Mozambique meet international standards. The program emphasizes increasing yield and quality while facilitating connections between business stakeholders. In Vietnam, government policies promote sustainable practices and quality standards in cashew production. Research initiatives by government agencies drive innovation, while collaborations between agencies and industry stakeholders facilitate knowledge-sharing and problem-solving, resulting in established industry standards and international compliance.
In February 2022, Vietnam expanded its market access through several trade agreements: the EU-Vietnam Free Trade Agreement (EVFTA), UK-Vietnam FTA (EVFTA), and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These agreements enhance Vietnam's access to European, American, and Chinese markets, supporting the growth of the country's cashew production.
Asia-Pacific is Leading the Consumer Demand
Asia-Pacific remains a significant importer of cashew kernels, despite housing major producing countries like India and Vietnam. India leads global consumption, while Vietnam dominates worldwide production and exports. According to the ITC Trade Map, Vietnam's cashew exports reached 421,972 metric tons in 2023, marking a 19% increase from 354,628 metric tons in 2022. The United States, China, and the Netherlands collectively account for over 50% of Vietnam's export volume.
Asia-Pacific holds the position of the largest cashew nut consumer globally. The region shows increasing adoption of cashew nuts in daily diets and healthy snack options. ITC Trade Map data indicates that China imported 44,408 metric tons of cashew nuts in 2023, positioning it as the fourth-largest global importer. The implementation of China's National Health Policy, specifically the 'Dietary Guidelines for Chinese Residents,' has established nuts as a fundamental component of Chinese dietary habits by recommending daily consumption. Chinese nut manufacturers have further stimulated market growth through campaigns promoting 'daily nuts' packages, which include cashews in ready-to-eat formats.
