Market Trends of Europe Cashew Industry
Increasing Demand for Cashews is Boosting Imports
Cashews are gaining popularity in the European market, driven by their recognized health benefits and nutritional value. Europeans enjoy cashews as simple roasted snacks and incorporate them into various products, including fruit and nut bars, breakfast cereals, nut spreads, beverages, ice cream toppings, cookies, and other sweets. This diverse usage is fueling the rising demand for cashews across the region.
Rich in healthy fats, protein, and fiber, cashews have become a favored choice among Europeans. The International Nut & Dried Fruit Council reports an estimated per capita consumption of 1.88 kg annually in the region, reflecting the habits of those who include cashews in their diet. This surging demand for cashews in Europe is driving up import figures.
Germany is the region's top consumer, accounting for 28.5% of total imports. In 2023, Germany's imports reached 67,794 metric tons, marking a 13% increase from the previous year, according to ITC Trade Map. This uptick in consumption is expected to bolster imports from various countries, further propelling the market's growth during the forecast period.
Vietnam is the Major Supplier of Cashews to Europe
Vietnam, leveraging its vast production capabilities and automated processing equipment, has emerged as Europe's top supplier of cashew nuts, with the Netherlands trailing closely. Data from the ITC trade map indicates that in 2023, Vietnam achieved a record export volume of 43,575 metric tons of cashew nuts to Germany, followed closely by the Netherlands. Over the past five years, Honduras and Indonesia have been increasing their foothold in the European market, boasting average annual export growth rates of 40% and 50%, respectively. However, their overall export volumes remain modest. Notably, key EU nations, including the Netherlands, Germany, the United Kingdom, and Italy, rank among the top 10 markets for Vietnamese cashew exports.
Vietnam's cashew exports predominantly reach Western European countries such as Germany, the Netherlands, France, and Belgium. The cashew industry has made significant inroads into the Dutch and German markets, which serve as pivotal hubs for importing and re-exporting cashews. Beyond Western Europe, Vietnamese cashew nuts have found their way into several Eastern European nations, notably Russia, Poland, Romania, and Ukraine.
Moreover, the European Union and Vietnam Free Trade Agreement (EVFTA) have slashed the tax rate on cashew kernels imported from Vietnam to the EU down to 0%. In Germany, the popularity of cashews is on the rise, especially in the snack industry. The Vietnamese Ministry of Industry and Trade highlights that Germany consistently sources a significant chunk of its cashew imports from Vietnam, attributing this to the steady supply and superior quality. Consequently, the robust export volume and value of cashews to major European nations solidify Vietnam's position as a primary supplier, bolstering market growth projections for the coming years.
