Market Trends of Cashew Kernel Industry
Increasing Demand From the European Countries
In Europe, consumers are willing to spend more on quality foods. Consumers are also looking for new products due to increased health awareness and nutritional facts. Cashew kernels are primarily used in the European market as a roasted-and-salted snack. Lately, cashew kernel also turns out to be attractive to industrial users and is used for cookies and cereals, and is also promoted as a topping on ice cream. The United Kingdom is the second-largest consumer of cashew kernels in the region. In 2021, the per capita consumption of cashews in the United Kingdom was estimated to be 0.9 kg/year. The United Kingdom is the largest market in Europe for Fair Trade Certified products.
The rising demand for cashew kernel for health benefits, majorly distributed in snacks and other dietary options, coupled with the rise in consumption and imports of the European region, is further boosting the demand of the market. For instance, cashew nut kernels are used as an ingredient in various healthy food and functional food products, such as in breakfast cereals (e.g. Qnola), cashew nut butter (e.g. Pip&Nut), and chocolate products with cashew nuts (e.g. Squirrel Sisters). The Netherlands, Germany, United Kingdom, and the growing markets in Central and Eastern Europe offer opportunities for developing country suppliers. According to ITC Trade, in 2021, the import volume of cashew nuts in Germany reached 59,231 metric ton which was valued at USD 425.7 million.
Asia-Pacific Dominates the Market
The Asia-Pacific region is the largest consumer of cashew nuts in the world. Cashews are also increasingly consumed as snacks, owing to their high nutritional content. The shell of the nut is known to be a good source of an important liquid, known as cashew nut shell liquid (CNSL) in commercial applications. CNSL is a dark brown, sticky liquid extracted from the honeycomb structure of fresh shells. It is one of the few major economic sources of natural phenols.
India is the top consumer of cashew kernels in the world and accounts for 25% of the supply. The consumption is projected to increase for culinary and confectionery applications. In India, cashew kernels are roasted, salted, flavored, and coated with spices, honey, etc. Chinese consumers are also looking for diverse nut flavors and products. In China, roasted nuts and seeds, biscuits and cakes, dried bean curd and candies or chocolates are the most consumed products during snack time. Among others, roasted nuts and seeds, such as cashews and almonds, are the most saleable snack, which occupy the dominant position among all snack foods. The roasted nuts and seeds registered the highest sales rate in the Chinese snack food market, as taste, nutritional added value, and health benefits play an important role. The changing food habits and rising consumption of cashew among the affluent Chinese population has propelled the Indian exporters to increase their exports to China. For instance, in April 2019, Yalin International, a Chinese firm, invested USD 1.48 million in setting up a new cashew nut processing plant in Tanzania. The plant is targeting to export the products to China and other International markets.
