India Cashew Market Outlook to 2028

India Cashew Market Outlook to 2028

• The India Cashew Market is valued at USD 2.2 billion, driven by high domestic consumption and export demand. Factors such as increasing consumer preference for healthy snacks, the growing use of cashews in cooking and snacking, and technological advancements in cashew processing are pivotal in driving this markets growth. With cashews being a vital export, India is well-positioned for sustained growth.

• Indias Cashew Market is dominated by regions like Kerala, Tamil Nadu, Andhra Pradesh, and Karnataka, all known for large-scale cashew farming. Kerala leads due to its favourable climate, skilled labour force, and well-established processing infrastructure. These regions cater to both domestic demand and exports, making India a key player in the global cashew market, especially in the Middle East and Europe.
• Food Safety and Standards Authority of India (FSSAI) guidelines for food labelling and packaging were introduced in 2024. These guidelines mandate that cashew packaging must clearly indicate information such as nutritional content, allergens, and proper storage instructions. This regulation aims to improve consumer awareness and ensure the quality and safety of cashew products in the market.

India Cashew Market Segmentation

• By Product  : The India Cashew Market is segmented by product type into plain cashews, salted cashews, flavoured cashews, and cashew kernels. Plain cashews dominate the market due to their widespread use in various consumer segments, including snacking and cooking. This segment benefits from cashews' versatile appeal, their nutrient-rich profile, and their steady demand both locally and internationally. Flavoured cashews are gaining traction, especially in urban areas, driven by the growing trend of premium snacking options.

• By Distribution Channel : The India Cashew Market is segmented by distribution channel into supermarkets/hypermarkets, convenience stores, specialty stores, online retail stores, and others. Supermarkets and hypermarkets lead the market due to their broad consumer reach and ability to cater to both bulk and packaged cashew sales. These retail outlets offer a wide variety of cashew products, including both premium and mass-market options. The rise in e-commerce has also contributed to the growth of online retail, with consumers increasingly opting for home delivery services for convenience.

India Cashew Market Competitive Landscape

The India Cashew Market is highly competitive, with key players such as Wonderland Foods, Kalbavi Cashews, Britannia Industries Limited, Haldirams, and Beta Cashews leading the market. These companies have substantial market presence, supported by strong distribution networks and significant investments in product innovation. The consolidation of these players reflects the market's competitive nature and their role in shaping the sector's future. Companies are focusing on expanding their product range and improving supply chain efficiencies to remain competitive.

India Cashew Industry Analysis

Growth Drivers

• Rising Health Consciousness : India's growing health awareness is driving demand for healthier snacks such as cashews. Data indicates that non-communicable diseases like diabetes are on rise in India, diabetic patients in India are projected to increase from 77 million in 2019 to 95 million by 2030. As consumers adopt healthier eating habits, cashews are becoming a popular snack choice, this shift towards healthy eating has propelled cashew consumption in the country.
• Export Growth : India continues to be one of the largest exporters of cashews, with the Ministry of Commerce and Industry reporting that in 2022, India exported over 52,896,000 kg of cashew nuts. The United States and European Union are significant markets, contributing to the steady demand. The Indian government has invested heavily in improving trade infrastructure, with initiatives aimed at reducing export bottlenecks.
• Product Innovation : India's cashew producers are capitalizing on product diversification, tapping into the growing trend of plant-based alternatives. The Ministry of Food Processing Industries notes that innovations like cashew milk, butter, and cashew-based snacks have seen increased demand. This aligns with Indias expanding plant-based food market, which is growing in line with shifting dietary preferences.

Challenges

• Climate Dependency : Cashew production in India is highly vulnerable to fluctuating climate patterns, which directly affect yields. India experienced surplus monsoon rainfall in 2022, with rainfall being 106% of the long-period average (LPA). These adverse weather conditions have resulted in inconsistent production cycles and, subsequently, price instability in the market.
• Supply Chain Constraints : The cashew supply chain in India faces significant infrastructure and logistics hurdles, hindering efficient product movement from farms to processing units. Indias logistics sector remains inefficient, with high post-harvest losses estimated at over 15 million metric tons annually due to inadequate storage and transportation facilities. These inefficiencies are further compounded by road congestion and limited access to cold storage.

Future Outlook

Over the next 5 years, the India Cashew Market is expected to continue its growth trajectory, driven by increasing consumer awareness about health benefits, greater demand for premium cashew products, and the continued growth of the export sector. Innovations in product offerings, such as flavored and organic cashews, are expected to cater to evolving consumer preferences for healthier snacking options.

Opportunities

• Growing Vegan and Plant-Based Trend : India's rapidly expanding plant-based food market offers a significant opportunity for cashew products, especially cashew-based alternatives like milk and butter. Data from the Indian Ministry of Food Processing Industries reveals a steady increase in the consumption of dairy alternatives, particularly in urban centers. Sales of plant-based milk alternatives has also grown notably as urban consumers shifted towards vegan diets.
• E-Commerce Expansion : India's e-commerce sector continues to expand rapidly, providing an avenue for cashew producers to reach consumers directly. India's e-commerce market is expected to grow at a 19% CAGR by 2030. Cashew brands can leverage online platforms to increase visibility and offer direct-to-consumer sales, especially in metro cities where digital penetration is high.