Market Trends of North America Cashew Industry
Increasing Consumption Owing to Nutritional Benefits of Cashew
- The increasing inclusion of cashew nuts in daily diets and healthy ready-to-eat snacks has led manufacturers to target both young and older consumers with innovative products. Cashews, rich in magnesium, contribute to numerous bodily functions and have become a popular base for dairy alternatives, including cashew milk, cheese, cream sauces, and sour cream.
- The United States Food and Drug Administration (FDA) has approved a health claim stating that consuming 1.5 oz of most nuts daily as part of a balanced diet may reduce heart disease risk. This endorsement has increased consumer interest in cashews and related products, potentially driving market growth. The United States leads cashew consumption in North America, followed by Canada and Mexico. Processing cashews domestically is limited because the bulk of cashew handling occurs in producing countries. This is partly due to the hazardous nature of cashew shelling, which requires careful handling to avoid exposure to toxic shell oil. Consequently, the North American region mainly imports shelled, ready-to-use cashews, which are widely incorporated into plant-based products like dairy substitutes. According to the International Trade Center (ITC), the United States was the largest global importer of shelled cashews in 2023, with an import volume of 143,573 metric tons. However, this figure represents a decrease from the previous year, attributed to reduced imports from major suppliers such as Vietnam, Ivory Coast, and Nigeria. Notably, imports from Vietnam to the United States declined by 3.0% in 2022 compared to 2023, while imports from Nigeria decreased by 37.6%. Cashew consumption in the United States is primarily concentrated in states like California, Florida, New York, Texas, and New Jersey, influenced by the rising prices of imported cashews.
- Similarly, Canada also imported significant quantities from Vietnam, Brazil, Ivory Coast, and others. This trend is expected to drive market value growth at a faster rate than consumption volume. Responding to consumer demand, distributors and manufacturers are introducing new cashew-based products, which is projected to contribute to market growth in the coming years.
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United States Dominated the Cashew Market in the Region
- The United States has established itself as the leading consumer of cashews in North America, demonstrating a strong demand for this nutritious nut in both raw and processed forms. The country's dominance in the market is attributed to increasing per capita consumption and the popularity of cashews as a convenient, health-oriented snack. According to the International Nut and Dried Fruit Council-Statistical Yearbook, 2023, the per capita consumption of cashews in the United States increased from 0.48 kg in 2019 to 0.54 kg in 2021.
- The cashew market in the country has experienced a significant shift due to an increase in exports and re-exports of cashews. This change is driven by enhanced processing capacities within the United States and growing demand for value-added cashew products in international markets. Major export destinations for United States' shelled cashews include Canada, Vietnam, Mexico, and the Netherlands. Re-exports to these countries increased from 1,640 metric tons in 2019 to 2,684 metric tons in 2022, as reported by the ITC Trade Map. However, in 2023, the country's re-exports declined by 26.8% due to decreased imports, as the United States is primarily import-dependent. This decline was influenced by production issues in major producing countries. The re-exported quantity decreased in 2023 compared to 2022, particularly to neighboring countries like Canada. Conversely, countries with limited processing industries, such as Vietnam and Mexico, continue to rely on the United States. The ITC Trade Map data shows that re-exports to Vietnam increased by over 150%, from 549 metric tons in 2022 to 1,588 metric tons in 2023.
- The growth in facilities and adoption of advanced processing technologies in the United States have facilitated this market development. These advancements allow cashew kernels to be processed and packaged according to specific requirements of target export markets. The perceived higher quality of the United States cashews is attributed to the stringent standards set by the United States Department of Agriculture (USDA) and Food and Drug Administration (FDA).
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