Cashew Nuts - Procurement Best Practices & Sourcing Strategies

Procurement Market Intelligence Report

Cashew Nuts – Procurement Best Practices & Sourcing Strategies

Cashew Nuts Market – Executive Summary, Market Analysis, Market Monitoring Insights, Industry Analysis, Procurement Insights, Supplier Analysis

1. Executive Summary
1.1. Global Edible Nuts Market
1.2. Market Dynamics of Top Edible Nuts
1.3. Sourcing Strategies for Food Industry
1.4. COVID-19 Impact
1.5. Sourcing Location Watch
1.6. Supplier Watch
2. Market Analysis
2.1. Industry Overview: Edible Nuts
2.2. Regional Analysis
2.3. Market Drivers and Constraints
2.4. Global Production Analysis
2.5. Trade Flow Analysis
2.6. Price & Cost Structure Analysis
3. Market Monitoring Insights
3.1. Price Analysis
3.2. Cost Structure Analysis
4. Industry Analysis
4.1. Porter’s Five Forces Analysis
4.2. Innovations/Technology Trends
5. Procurement Insights
5.1. Procurement Strategy: Best Practices
5.2. Purchasing Process: RFP/RFI Questionnaire
6. Supplier Analysis
6.1. Comprehensive Supplier List
6.2. Supplier Profiling
6.3. Sustainability Initiatives and Best Practices

What is the current market value of the global cashew nuts market, and what growth trajectory has it exhibited in recent years?

The global cashew nuts industry surpassed USD 6.7 billion in 2021, highlighting an upward trend. In addition, the production volume reached 3.95 million metric tons (MMT), pointing to exponential global demand.


What notable trends in the cashew nuts market, particularly regarding clean labeling and fair-trade practices?


A significant trend shaping the market dynamics includes the prevalence of fair-trade and clean labeling practices, with the presence of small to large producers, specifically in major economies such as India.


Who are the leading players in the Cashew Nuts market, and how do they contribute to shaping the industry landscape?


Several players, such as ADM, Rajkumar Impex, Olam, Blue Diamond, and Kailas Cashew Exports, dominate the cashew nuts industry with their quality product offerings, newer innovations, and fulfillment of consumer preferences.


Global Cashew Nuts Market Size


The global cashew nuts market has grown spectacularly in the last several years. According to data from ELINT Market Research, this market had a value of USD 6.7 billion in 2021 and is still increasing. The same year, more than enough cashew nuts were coming to 3.95 MMT (million metric tons). This notion of globalization points explicitly to the dissemination and increasing consumption of this highly popular nut worldwide. The trend highlights the cashew nut’s diverse applications in various cuisines and food products. Rising interest in cashews’ nutritional value and flavor impact has enabled them to gain a position across multiple cuisine traditions.


Fast-rising demand in Asia Pacific is a major factor promoting the cashew nuts market. In fact, according to the research data, between 2017 and 2021, there has been an astonishing five-fold increase in the imports of shelled cashews to China; over that period, there was a total import volume of 28,735 metric tons. This increase in demand is not only a reflection of cashew nuts gaining enormous appeal in the Asian market but also evidence that Asia has proven itself to be an essential powerhouse for this nut. With China playing an important role as a major retailer and source of imports, Vietnam plays a very significant role in the development of the market for cashew nuts in this region. In addition, other notable importers helping to drive demand up in Asia include Japan, Thailand, and India. Collectively, they reflect the growing demand for cashew nuts as a snack or ingredient cooked into a dish by Asians.


Market Definition


The cashew nut (Anacardium occidentale) is a seed from the cashew tree. Cashew nuts are famous for their rich taste and have a range of applications in food processing and the snack industry. Besides their culinary importance, cashew nuts are preferable in numerous industrial processes. The oil extracted from cashew nuts, also known as cashew nut shell liquid (CNSL), has critical industrial applications.


Cashew Nuts Market Drivers


  • Healthy Eating Trends: The increasing recognition of the nutritional benefits of eating cashew nuts high in essential nutrients, healthy fats, and antioxidants has been an important factor behind the market.


  • Rising Vegan Population: Cashew nuts become a popular substitute in vegan diets, a choice that is gaining ever-increasing numbers of followers.


  • Expanding Food Industry: With the development of the food and beverage industry, the use of cashew nuts in snacks, desserts, and sauces has steadily risen, providing a market-driving force.


Cashew Nuts Market Challenges


  • Supply Chain Disruptions: The market suffers from many obstacles in the supply chain system, such as bad weather that affects harvesting and a variety of transportation problems, both domestically and abroad. Global politics also influences trade.


  • Price Volatility: Prices and costs of raw materials, themselves affected by economic growth and cyclical change, put pressure on producers and consumers alike in its effect on the market’s stability.


  • Competition from Alternatives: Cashew nuts are affected by other nuts and snacks vying for consumers ‘attention; market participants must differentiate their products to maintain consumers’ interest.


Cashew Nuts Market Opportunities


  • Innovation in Processing Techniques: The key to developing new opportunities for cashew nut production is advanced processing technology that can improve the quality and flavor of products, maintaining their freshness for a long time and keeping up with customers’ changing eating habits.


  • Expanding Distribution Channels: New and emerging markets plus diversification in channels of distribution offer market players a chance to expand their reach and consumer base.


  • Health and Wellness Trends: With health and wellness taking center stage, market players can turn the rising demand for cashews as a nutritious snack to their advantage.


Cashew Nuts Market Trends


  • Premiumization of Products: Today’s market highlights the trend toward priced and high-quality cashew nut products, such as flavored and organic types, which satisfy consumers looking for something better.


  • Sustainable Practices: As environmental consciousness grows, the need for ethically produced and sustainably sourced cashew nuts has also arisen. Market players follow these eco-friendly trends in their business practices to attract consumers.


Cashew Nuts Market Segmentation


The research report segments the market based on product types, end-use applications, and geographical outlook.


  • Product Type: The research classifies the market into Whole Cashews, Cashew Kernels, and Processed Cashew Products.


  • End-Use Applications: According to end-user applications, the report divides the market into Snack Industry, Culinary Applications, and Nutritional and Dietary Supplements.


  • Geographical Outlook: The research report segments the market into North America, Asia-Pacific, Latin America, Europe, the Middle East and Africa.


Cost Drivers


Comprehending the price dynamics is essential in understanding the cashew nuts market. Maintenance costs related to cashew plants make up 46% of total costs. Furthermore, planting activities (staking) account for an 18% cost structure. For stakeholders in the industry, this insight is crucial for improving production processes and reducing costs.


Cashew Nuts Market Regional Dynamics


The cashew nuts market is a product of the regional dynamics influencing key exporting nations. These nations shape, in turn, the larger picture of world trade. It is essential to understand these nations’ role in production and pricing dynamics for all stakeholders of the complex world of cashews.


  • Key Exporting Countries: On a global scale, Vietnam, India, and the Netherlands are pivotal players in shaping the scene for cashew nuts. Vietnam, in particular, has the edge by exporting 68% of all cashews. India comes in second with an 8% share, and the Netherlands has a 5%. It underlines the significance of these nations in shaping the direction and scale of the global cashew nuts trade.


  • Pricing Dynamics Across Regions: Pricing trends display marked differences between the critical regions due to this interaction between supply and demand, cost of production, and market forces. In India, cashews cost 730–745 INR/kg; in Vietnam, they cost 6 and 7 $/kg. These variations reveal the significance of regional factors in shaping the cost structure. Currency fluctuations, local production conditions, and market forces are some of the various elements that can affect the final price of cashew nuts.


  • Production Contributions and Capacities: Vietnam has become a dominant exporter and the foremost producer of cashew nuts worldwide. Vietnam, which accounts for half of all production worldwide, is essential in keeping up with the rising demand for cashew nuts. India comes close behind at 19%, strengthening the combined core in maintaining and advancing the global cashew nut supply. The interrelationship of nations in the production field highlights that there needs to be planning and strategic cooperation between countries to keep up with the increasing international demand for cashew nuts.


Engagement Models


For players in the industry, engagement models are vital concerns. The contract length is usually 6 to 12 months, while the type of contract varies with the particular edible nut. It also depends on the edible nut and how seasonal it is. The procurement and supply chain processes require intelligence.


Cashew Nuts Market Players:


A major force shaping the cashew nuts market is the role of more prominent players who understand how to make it grow and maintain its competitiveness. Top firms in this sector are Olam, Blue Diamond, ADM, Rajkumar Impex, Kailas Cashew Exports etc. These industry leaders make their significant presence felt through high quality and market innovation.

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