Market Trends of Cashew Kernel Industry
A surge in cashew nut demand.
Cashews are nutrient-dense, containing healthy fats, protein, vitamins, and minerals. Their reputation as a nutritious snack option has led to increased consumer interest. The market is experiencing a shift towards unsalted and minimally processed varieties. In addition to plain cashew nuts, there is a growing demand for cashews with various roasting flavors.
In Germany, the healthy snacking trend has significantly increased cashew nut consumption. Cashew nuts are increasingly used in spreads, sauces, and organic snack bars. In 2022, 47% of German consumers indicated a willingness to pay more for brands with positive societal or environmental impacts. This trend positions Germany as a leading market for organic cashew nuts in Europe. As Europe's primary importer and consumer of cashew nuts, Germany presents a significant opportunity for organically certified products.
The increasing consumption of cashew nuts is driven by the healthy snacking trend and their use as alternatives to animal proteins. Cashew nuts are being incorporated into products such as cashew butter, both as standalone spreads and in blends with other nuts. They are also used in fruit and nut bars, nut butter spreads, and dairy-free beverages. These factors, combined with their health benefits and culinary versatility, indicate continued growth potential for the cashew market.
Rising Popularity of Cashew Nuts in Asia Pacific Diets
The Asia-Pacific region is the world's largest consumer of cashew nuts. There has been an increasing interest in incorporating cashew nuts into daily diets and as healthy snacks. This growing demand has prompted manufacturers to produce more cashew nut-based foods. In India, for example, products such as roasted and spiced cashew nuts have been developed to suit local preferences.
India is the world's leading consumer of cashew kernels, accounting for 25% of the global supply. This consumption is expected to increase, particularly for culinary and confectionery applications. Indian preparations of cashew kernels typically involve roasting, salting, flavoring, and coating with spices or honey.
China is experiencing significant growth in cashew demand. According to the Agency of Foreign Trade (MOIT), cashew nut exports to China increased substantially in the first quarter of 2024. Exports reached nearly 24,000 tons, valued at USD 131 million, representing a 104% increase in volume and a 76% increase in value compared to the same period in 2023.
Chinese consumers are showing an increasing preference for diverse nut flavors, particularly during snack times. Popular snack choices include roasted nuts and seeds, biscuits, cakes, dried bean curd, and confectioneries. Roasted nuts and seeds, especially cashews and almonds, dominate the snack food market. These items have the highest sales rates, driven by their taste, nutritional value, and perceived health benefits. As food habits evolve and the affluent Chinese population increasingly incorporates cashews into their diets, exporters have responded by increasing their shipments to China.
