How it work

The cashew tree is a tropical evergreen tree that produces the cashew seed and the cashew apple pseudofruit. The tree can grow as high as 14 m, but the dwarf cultivars, growing up to 6 m, prove more profitable, with earlier maturity and greater yields. The cashew seed is commonly considered a snack nut (cashew nut) eaten on its own.

The global cashew market is projected to register a CAGR of 4.6% during the forecast period (2021-2026).

COVID-19 had a direct and unfavorable impact on the cashew market, globally. Global lockdown to curb and contain the pandemic adversely affected the distribution channels. Value addition activities were affected as a disrupted distribution channel lowered the availability of end-products of cashew nuts in the market. Producers from West Africa suffered as they were unable to send cashew to Vietnam and India for processing due to the lockdown. The delays in collection and shipment will ultimately result in lower yields than normal, further reducing the overall kernel supplies.

On the other hand, there is a global trend that looks favorably at vegan and plant-based diets. People who embrace a plant-based vegan diet prioritize alternative sources of protein, instead of those derived from animals, resulting in the soaring demand for nuts and nut-infused foods.

Increasing demand for flavored cashews and favorable government initiatives are further fueling the consumption of cashew nuts in the African region. In 2018, among all the cashew producing nations, African countries contributed 56.5% to the global production, while Asian countries contributed 44%. In the last eight years, Vietnam has been the largest supplier of cashew to the United States, China, Australia, Canada, and New Zealand. Furthermore, cashew production is growing tremendously in Vietnam. The Vietnamese government commissioned a study of Oltremare’s machines when developing its own cashew industry.

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OPPORTUNITIES 

 

Edible cashews have been used as a snack for a long time. Cashews are also used as one of the main ingredients in preparing various sweet and savory dishes, especially in Asian cuisine. Moreover, nowadays, cashews are used in mueslis, energy bars, cookies, chocolates, and ice creams. Cashews are known to be high in nutrients, such as copper, which improve bone health, as one ounce of cashew contains 622 micrograms of copper. Nevertheless, cashews have an inflation-driven consumption pattern, as reported by the International Nut and Dried Fruit Council.

Cashews are relatively high in fiber compared to peanuts, and they help gain healthy weight by improving digestive function. Such high-value nutrition has prompted snack manufacturers to launch several cashew-based snacks to meet the demand, such as the ready-to-drink cashew milk, which acts as a lactose-free milk substitute. Due to increasing health consciousness among consumers in the European region, there has been a growing trend of cashew nut consumption. Recently, cashew nuts are also increasingly being used as an ingredient in spreads and snack bars (especially organic), boosting cashews' consumption overall.