The cashew market in India has been a significant player in the global nut industry, owing to the country’s prominent role as both a producer and consumer of cashews. Known as the “King of Nuts,” cashews have become a versatile commodity with wide applications in the food, beverage, confectionery, and cosmetics industries. With its thriving agricultural sector and expanding processing capabilities, India stands as a leader in the global cashew market.

In 2023, the India cashew market was valued at approximately USD 2.56 billion. With increasing domestic demand, export opportunities, and advancements in processing technology, the market is projected to grow at a compound annual growth rate (CAGR) of 4.2% between 2024 and 2032. By the end of this forecast period, the market is expected to reach a value of around USD 3.70 billion. This article delves into the key drivers, trends, opportunities, challenges, and other crucial aspects shaping the India cashew market.

Market Overview

Historical Context

Cashews were introduced to India by the Portuguese in the 16th century. Since then, India has emerged as one of the largest producers, processors, and exporters of cashews globally. The cashew industry is deeply rooted in the culture and economy of states like Kerala, Karnataka, Goa, and Maharashtra. Traditionally, India has been known for its manual cashew processing, which ensures superior quality and taste.

Market Size and Growth

• Market Value (2023): USD 2.56 billion
• CAGR (2024–2032): 4.2%
• Projected Value (2032): USD 3.70 billion

The growth of the cashew market in India is driven by increasing consumption, evolving dietary preferences, and rising demand for processed cashew products in both domestic and export markets.

Key Regions in Cashew Production

India’s cashew production is concentrated in the southern and western states, with Kerala, Karnataka, Maharashtra, and Goa accounting for a significant share. These regions benefit from favourable climatic conditions, which contribute to high yields and superior-quality cashews. Emerging states like Odisha and Andhra Pradesh are also contributing to the overall production, further boosting the market.

Get a Free Sample Report with Table of Contents

Key Drivers of the India Cashew Market

Growing Domestic Consumption

India has a burgeoning middle-class population with increasing disposable income, leading to higher demand for premium food products like cashews. Cashews are widely consumed during festivals, celebrations, and as part of everyday snacking habits. Additionally, the incorporation of cashews in Indian sweets, curries, and savoury dishes drives demand.

Export Opportunities

India is one of the largest exporters of cashews, with significant demand from countries like the United States, the United Arab Emirates, Japan, and European nations. Indian cashews are highly valued in international markets for their quality, taste, and processing standards.

Health Benefits Driving Demand

Cashews are rich in nutrients such as healthy fats, protein, vitamins, and minerals. Growing awareness of the health benefits of cashews, such as improved heart health, weight management, and immunity boosting, has led to increased consumption in both domestic and global markets.

Government Support

The Indian government provides substantial support to the cashew industry through subsidies, tax benefits, and initiatives like the Cashew Export Promotion Council of India (CEPCI). These efforts aim to enhance production capacity, modernise processing units, and boost exports.

Innovations in Processing

Advancements in processing technologies, such as automated shelling and grading, have improved efficiency and reduced costs. This, in turn, has enhanced the competitiveness of Indian cashews in the global market.

Market Trends

Organic and Sustainable Cashews

The demand for organic cashews is on the rise, driven by consumer preferences for sustainable and chemical-free products. Indian farmers are increasingly adopting organic farming practices, which is expected to drive the growth of this segment.

Emergence of Value-Added Products

Value-added cashew products, such as cashew butter, cashew milk, and flavoured cashews, are gaining popularity among health-conscious consumers. These products cater to the growing demand for plant-based and functional foods.

E-commerce Expansion

The proliferation of e-commerce platforms has made cashews more accessible to consumers. Online sales channels are witnessing robust growth, especially during festive seasons, due to convenience and attractive discounts.

Technological Advancements

Indian cashew processing units are adopting advanced technologies like AI-powered sorting machines and automated roasting systems. These innovations ensure better quality control and efficiency.

Focus on Sustainability

Sustainability is becoming a key focus area, with stakeholders across the value chain adopting eco-friendly practices. From using renewable energy in processing units to promoting zero-waste initiatives, the industry is aligning with global sustainability goals.

Opportunities in the India Cashew Market

• Expansion of Processing Capacity: Increasing the number of processing units and upgrading existing facilities can help India meet growing domestic and export demand.
• Diversification into Value-Added Products: Introducing innovative products like cashew cheese and cashew-based protein bars can open new revenue streams.
• Untapped Markets: Exploring markets in Africa, South America, and Southeast Asia can boost export volumes.
• Agri-Tech Integration: Leveraging agri-tech solutions for better crop management and yield optimisation can improve production efficiency.

Challenges Facing the Market

Dependence on Raw Cashew Imports

Despite being a major producer, India imports a significant portion of raw cashews from African countries. This dependency poses risks related to price volatility and supply chain disruptions.

High Production Costs

Manual labour and traditional processing methods result in higher production costs, making Indian cashews less competitive compared to those from Vietnam and other markets.

Climate Change

Erratic weather patterns and unpredictable monsoons affect cashew cultivation, leading to fluctuations in production and quality.

Global Competition

Countries like Vietnam and Brazil have invested in cost-effective and large-scale processing facilities, giving them a competitive edge over India in international markets.

Market Segmentation

By Type

• Raw Cashews
• Roasted Cashews
• Flavoured Cashews
• Value-Added Products

By Distribution Channel

• Retail Stores
• Supermarkets and Hypermarkets
• Online Platforms

By Application

• Food Industry
• Beverage Industry
• Cosmetics and Personal Care
• Others

Regional Analysis

South India

The southern states of Kerala, Karnataka, and Tamil Nadu dominate cashew production and processing. These regions are home to some of the largest cashew processing units in the country.

Western India

Goa and Maharashtra contribute significantly to India’s cashew exports, with high-quality produce and well-established processing infrastructure.

Eastern India

Emerging regions like Odisha and Andhra Pradesh are showing promise with increasing investments in cashew cultivation and processing.

Explore More Reports:

United Kingdom Power Rental Market: https://www.expertmarketresearch.com/reports/united-kingdom-power-rental-market

United States Drywall Market: https://www.expertmarketresearch.com/reports/north-america-drywall-market

United States Green Fashion Market: https://www.expertmarketresearch.com/reports/united-states-green-fashion-market

Competitive Landscape

The India cashew market is characterised by a mix of organised players and small-scale processors. Key players include:

• Olam Agro India
• Cashew Export Promotion Council of India (CEPCI)
• Palbani Cashews
• Kerala Nut Food Company
• Jain Agro Foods

These players are focusing on innovations, sustainability, and expanding their product portfolios to stay competitive.

Future Outlook

The India cashew market is poised for steady growth over the coming years, driven by rising domestic consumption, export opportunities, and innovations in processing. The focus on sustainability and value-added products is expected to redefine the market dynamics, opening new avenues for growth.

With a projected market size of USD 3.70 billion by 2032, the Indian cashew industry has a bright future, provided it addresses challenges such as dependency on imports and climate-related risks.