USA Cashew Market Outlook to 2028

USA Cashew Market Overview

• The USA Cashew Market was valued at USD 1.2 billion in 2023, driven by rising demand for healthy snacks, increasing consumer awareness of plant-based diets, and the growing popularity of nut-based products. Cashews, known for their rich nutritional profile, have become a staple in various applications, including snacks, dairy alternatives, and confectionery items.
• Major players in the USA Cashew Market include Kraft Heinz, Blue Diamond Growers, Planters, Emerald Nuts, and Sahale Snacks. These companies lead the market through strong distribution networks, innovative product offerings, and strategic partnerships to cater to the rising demand for nut-based products.
• Regions such as California, Texas, and New York dominate the market due to their large urban populations, health-conscious consumers, and higher disposable incomes. These states are also pivotal in the distribution and consumption of cashew-based products.
• In January 2022, Kraft Heinz completed the acquisition of an 85% stake in Germany-based Just Spices GmbH.Just Spices is a start-up with USD 67 million in annual sales, offering a portfolio of spice blends, salad dressings, and easy-to-prepare meal solutions.

USA Cashew Market Segmentation

The USA Cashew Market is segmented by product type, form, and region.

• By Product Type: The market is segmented into Whole Cashews, Cashew Splits, Cashew Kernels. In 2023, Whole Cashews held the dominant market share due to their widespread use in snack products and premium pricing. Companies like Planters and Blue Diamond Growers are key players in this segment, offering a variety of whole cashew products to cater to diverse consumer preferences.

• By Form: The market is segmented by form into Raw Cashews, Roasted Cashews, Flavored Cashews, and Cashew Butter. Roasted Cashews led the market in 2023, driven by their popularity as a convenient and healthy snack option. The demand for flavored varieties, including honey-roasted and spicy cashews, is also on the rise, appealing to consumers looking for diverse taste experiences.

• By Region: The market is segmented by region into West, Midwest, South, and Northeast USA. The West USA region, particularly California, dominated the market in 2023 due to its large health-conscious consumer base and high demand for plant-based and organic products. The region's strong retail infrastructure and focus on healthy living have further fueled the market growth.

USA Cashew Market Competitive Landscape

• Kraft Heinz: In 2021, Planters announced its acquisition by Hormel Foods for USD 3.35 billion. This partnership enhances the brand's potential by leveraging Hormels extensive resources in marketing and innovation. The collaboration aims to drive growth and expand Planters presence in the snacking market, delivering a diverse range of delicious nut products that cater to evolving consumer preferences.
• Blue Diamond Growers: On April 8, 2024, Blue Diamond Growers revealed a new partnership with Kagome Co., Ltd. for the production and distribution of Almond Breeze in Japan. This collaboration aims to accelerate market growth and increase demand for Almond Breeze products in the Japanese market.

USA Cashew Market Analysis

Growth Drivers

• Increasing Health Consciousness and Dietary Shifts: The growing awareness of health benefits associated with nut consumption has driven the demand for cashews in the USA. According to the International Nut and Dried Fruits Council, the per capita consumption of cashews in the USA increased from 0.48 kg/year in 2019 to 0.54 kg/year in 2021, indicating a growing trend. This trend is particularly prominent among millennials and Gen Z consumers, who are more health-conscious and inclined towards plant-based diets. The demand for cashews is also bolstered by the rise in popularity of paleo and keto diets, which emphasize high-fat, low-carb food options, further driving cashew consumption as a preferred snack and ingredient.
• Expanding Applications in the Food Industry: Cashews have seen expanding applications beyond just snacks, entering the realms of dairy alternatives, confectionery, and ready-to-eat meals. The Food and Drug Administration (FDA) reported in early 2024 that cashew-based dairy alternatives, including cashew milk and cheese, saw a substantial increase in sales compared to 2023. This surge is fueled by the growing vegan population and lactose-intolerant consumers seeking dairy-free options.
• Expansion of Nut-Based Product Lines: The expansion of nut-based product lines in the market has become a substantial growth driver, with companies increasingly diversifying their offerings to meet the evolving preferences of consumers. In recent years, there has been a marked shift towards incorporating cashews into a broader range of food products beyond traditional snack forms. Companies are innovating by developing cashew-based products such as dairy alternatives, including cashew milk, cheese, and yogurt, which have gained traction among health-conscious and vegan consumers.

Challenges

• Supply Chain Disruptions and Price Volatility: The market faces important challenges due to supply chain disruptions and price volatility, largely stemming from its reliance on imports from West African and Southeast Asian countries. The U.S. Department of Commerce reported in 2024 that logistical issues, including port congestions and shipping delays, have led to a substantial increase in the cost of cashew imports compared to the previous year. These disruptions not only affect pricing but also lead to inconsistencies in product availability.
• Consumer Price Sensitivity: Despite the growing popularity of cashews, the relatively high cost compared to other nuts like peanuts and almonds poses a challenge in penetrating price-sensitive market segments. A 2024 survey by the USDA revealed that majority of consumers consider cashews to be a premium product and are hesitant to purchase them regularly due to their higher price point. This price sensitivity limits the market's growth potential, especially among lower-income households.

Government Initiatives

• FDA's Labeling Regulations for Nut-Based Products: In 2024, the FDA introduced new labeling regulations for nut-based products, including those containing cashews, to ensure transparency and consumer trust. These regulations mandate clear labeling of nutritional content, origin of the nuts, and any processing methods used. The aim is to empower consumers to make informed choices, particularly in the growing market for plant-based and vegan products. The implementation of these regulations has led to increased consumer confidence in cashew-based products.
• Environmental Protection Agency (EPA) Initiatives on Sustainable Sourcing: The EPA, in collaboration with the USDA, launched an initiative in 2024 focused on promoting sustainable sourcing practices within the U.S. nut industry. This program provides incentives for companies that adopt eco-friendly farming practices and ensure fair trade certifications for their cashew suppliers. The initiative has resulted in a substantial increase in the number of cashew products in the market that are labeled as sustainably sourced.

USA Cashew Market Future Outlook

The USA Cashew Market is expected to witness substantial growth by 2028, driven by increasing consumer demand for healthy snacks and the continued expansion of cashew-based product offerings.

Future Market Trends

• Increased Adoption of Sustainable Packaging Solutions: As environmental concerns continue to influence consumer behavior; the USA cashew market is likely to witness a shift towards sustainable packaging solutions. By 2028, it is projected that majority of cashew products will be sold in eco-friendly packaging, such as biodegradable or recyclable materials. This trend will be driven by both consumer demand for sustainable products and government regulations aimed at reducing plastic waste
• Innovation in Cashew Processing Technologies: Advances in cashew processing technologies are expected to enhance the quality and variety of cashew-based products available in the market by 2028. Innovations such as cold-pressing and fermentation techniques are anticipated to improve the nutritional profile and taste of cashew products, making them more appealing to a broader range of consumers.