Steady Growth Projected in India Cashew Market Through 2033

Aman Renub

Jun 3, 2025 - 17:24

Steady Growth Projected in India Cashew Market Through 2033

India Cashew Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033

Overview

India Cashew Market is projected to reach US$ 3.31 billion by 2033 from US$ 2.28 billion in 2024, growing at a CAGR of 4.25% from 2025 to 2033. The market is witnessing robust growth driven by rising health awareness, surging domestic demand, and growing export potential. Health-conscious consumers are increasingly opting for nutrient-dense foods like cashews, boosting local consumption. Simultaneously, international markets including the United States, the United Arab Emirates, and Japan remain key importers of Indian cashews, reinforcing India’s position as a leading global exporter.

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The report offers a comprehensive analysis of the Indian cashew market by examining production across key states and export dynamics by country. It further includes detailed company profiles, highlighting strategic developments and revenue trends.

India Cashew Market Overview

India is a major player in the global cashew industry, contributing significantly to both cashew production and exports. With over 0.8 million tonnes of cashews produced annually across approximately 0.7 million hectares, key states such as Tamil Nadu, Karnataka, Odisha, Andhra Pradesh, and Maharashtra lead the nation's cashew cultivation. The sector supports employment for around 1.5 million individuals, particularly in rural regions.

Kerala, especially Kollam, is known for its advanced processing infrastructure, establishing India as a global leader in cashew processing. India exports cashew kernels to over 60 countries, with the UAE, Japan, the Netherlands, and the US among its top buyers. Government initiatives like the Rashtriya Krishi Vikas Yojana (RKVY) and the Mission for Integrated Development of Horticulture (MIDH) aim to bolster production through high-yielding varieties and expanded cultivation.

A study published in the British Journal of Nutrition underscores the health benefits of nut consumption, such as a 37% reduced risk of coronary heart disease, supporting increased use of cashews in nutritious products like snack bars. This trend has spurred new business ventures focusing on value-added cashew products, including pulp and shell-derived cashew oil. For instance, Sahyadri Farms inaugurated India’s largest cashew processing plant in Nashik in 2023, capable of processing 100 metric tons per day, adding value through shell oil extraction.

Growth Drivers

Changing Consumption Patterns

Cashews have transitioned from occasional treats to everyday staples in Indian households, thanks to changing dietary preferences and modern retail proliferation. Supermarkets, hypermarkets, and e-commerce platforms have made cashews more accessible. Versatility in cooking, ranging from traditional dishes to snacks and plant-based alternatives, is driving demand. Additionally, value-added, ready-to-eat products like flavored and roasted cashews are gaining traction, especially in urban and semi-urban regions.

Product Innovation

Innovation is a key catalyst in the Indian cashew sector. Flavored options such as chili-roasted, honey-coated, and masala varieties cater to evolving consumer tastes. The demand for organic and clean-label products is also growing, targeting health and environmentally conscious consumers. Novel cashew-based items like cashew milk, butter, and energy bars are gaining popularity, especially among vegans and lactose-intolerant individuals, thereby expanding the market’s reach.

Health and Wellness Trends

The nutritional profile of cashews makes them a favorite among health-conscious buyers. Rich in monounsaturated fats, vitamins B6 and E, and minerals like zinc and magnesium, cashews support cardiovascular health, immunity, and overall wellness. This aligns with growing trends toward plant-based diets, boosting the popularity of dairy alternatives such as cashew milk and cheese. The clean-label movement is further driving demand for natural, nutrient-rich cashew products both domestically and internationally.

Key Challenges

Outdated Processing Technology

Despite India’s dominance in the cashew market, outdated processing technologies remain a bottleneck. Many small and medium enterprises still rely on manual processes for shelling and grading, resulting in inefficiencies and inconsistent product quality. In contrast, countries like Vietnam have modernized operations with automated systems, reducing costs and enhancing productivity. India risks losing competitiveness unless it embraces automation and modern machinery.

Labor Shortages and Skill Gaps

The labor-intensive nature of cashew processing presents another major challenge. Younger generations are increasingly reluctant to engage in this sector due to health hazards and strenuous working conditions. This has led to labor shortages and rising operational costs. Without targeted initiatives in skill development and mechanization, the industry could face long-term sustainability issues and diminished global competitiveness.

Regional Market Insights

Maharashtra Cashew Market

Maharashtra contributes approximately 25% to India’s cashew production, with key regions including Ratnagiri, Sindhudurg, and Kolhapur. Despite favorable agro-climatic conditions, the state is heavily reliant on imported raw cashew nuts due to pest issues and inconsistent yields. Most processing units are small-scale and labor-intensive.

To address these issues, the Maharashtra Cashew Board has launched initiatives to expand cultivation by 12,000 hectares using high-yield and organic varieties. This is expected to reduce raw material imports by 25%. The board is also promoting value-added products like cashew wine and juice, potentially boosting farmer incomes by 20%. Additional measures include establishing model nurseries, modernizing processing infrastructure, and launching training programs.

Kerala Cashew Market

Once a global leader, Kerala’s cashew industry is now in decline. With a production of only 83,000 MT against a demand of 600,000 MT, the state has dropped in national rankings. Declining cultivation and low-yield varieties are major concerns. The industry, which employs nearly 300,000 workers (95% women), is grappling with high operational costs and raw material shortages, leading to plant closures.

The Kerala State Cashew Development Corporation (KSCDC) is sourcing raw cashews from Africa and initiating partial mechanization to enhance productivity while preserving employment. These efforts aim to revive the state’s cashew industry without compromising livelihoods.

Vietnam Cashew Market

Vietnam has emerged as a global powerhouse in cashew processing, exporting over 730,000 tons of kernels in 2024 with revenues of $4.37 billion. The country processes over 80% of global cashew supply and benefits from advanced processing infrastructure. Although facing issues like increased shipping costs and limited domestic raw supply, Vietnam remains the top exporter of cashew kernels. India continues to export significant volumes of raw cashews to Vietnam for processing, underscoring the importance of modernization in India’s processing sector.

Market Segmentation

Cashew Production Market - By States