India Cashew Market (2023-2029)

Rising Disposable Income of Indian Population

With economic development & rising disposable income in India, there is an increased capacity for spending on food items like cashews nuts. The per capita disposable income in the country grew 8% in FY’24 and 13.3% in the previous year. The household spending in India is further showing a lot of promise as 2024 is seeing a year-on-year growth in expenditure, at 6.7% which is a slight increase from 6.5% in 2023. As more consumers are able to afford these items, there is going to be increased spending on luxury items. In this scenario, the cashew market is likely to see an expansion.

Large Exports of Cashew

India is one of the largest producers & exporters of cashew nuts globally. The key destinations of exports for India have been countries like UAE, Japan, Netherland, Saudi Arabia, US, UK, Canada, France, Israel and Italy. In FY’22, the number of cashew exports in India accounted for INR 31,530 million, which included cashew kernels & cashew nut shells liquid. India’s primary exports in this market included countries like Belgium, South, Korea, United States, China and Spain. Exports oriented means increased investments in production, processing & infrastructure which drive market expansion at a domestic level.

Healthier Cashew Snacks

Since many years, Indians have been consuming cashews. In Asian cuisines, cashews have been used as one of the main ingredients in snacks & cooking. Cashews are increasingly used in muesli, energy bars, cookies, chocolates and ice-creams. Cashews contain many nutritional elements such as copper which improves the bone health in humans. Additionally, cashews are high in monounsaturated and polyunsaturated fats are a good source of protein. This makes cashews a convenient substitute for heavy cream, as it is increasingly used in a variety of sweet or savory dishes as a healthy vegan alternative to heavy whipping cream in the country. In 2021, around 322.2 thousand metric tons of cashew nuts were consumed in India. This marked a 50% increase from the previous year i.e. 2020 when the cashew consumption reached 166.31 metric tons. Therefore, due to the increasing consumption of various cashew-based snacks and ready-to-eat foods in the country, the cashew consumption is expected to grow further.

Increasing Productions of Cashew

In India, cashew cultivation is spread along the coastal regions of the peninsula. The cultivation of cashews in India covers a total of 0.7 million hectares of land, and the country produces over 0.8 million tons (MT) on an annual basis. Between 2019-20 and 2021-22, India's cashew nut production grew from 0.70 million tonnes (MT) to 0.77 million tonnes (MT) in the respective years. Amongst all the states, Maharashtra leads in annual cashew nut production during 2021-22 at 0.20 million tonnes (MT), growing from 0.19 million tonnes cashew nut produced in 2020-21. In addition to the vast scale of cashew production, India is also known for leading the cashew processing industry and exporting cashew kernels globally. The cashew processing industry was concentrated in Goa, and Vettapalam (Andhra Pradesh), Kollam (Kerala), Mangalore (Karnataka), but currently, it is spread across many states of India. India's cashew industry symbolises resilience, innovation, and global competitiveness. With increasing production capabilities and a growing processing sector, India continues to make significant strides in meeting domestic demand and maintaining a prominent position in the international market.