India Cashew Market- Trend Analysis & Forecasts

Market/ Product Overview

India has historically been regarded as the global hub for cashew processing and trade, with a highly developed industry that dates back to the early twentieth century. The country currently cultivates cashew across 1.1 million hectares of agricultural land, producing around 760 thousand MT of raw cashew nuts in the 2024–25 season, according to industry estimates. Despite being the world’s second-largest producer after Vietnam, India remains the largest consumer market for cashew kernels, with domestic consumption estimated at ** thousand MT annually, reflecting strong demand from households, confectionery manufacturers, and snack producers.

The value of India’s cashew industry, including production, processing, and downstream products such as roasted kernels and flavored snacks, is estimated at US$ ** billion in 2025, and it is expected to surpass US$ ** billion by 2032 if current demand trends continue. India processes ** million MT of raw cashew nuts annually, including both domestic production and imported raw nuts from countries such as Côte d’Ivoire, Tanzania, Benin, Ghana, and Guinea-Bissau. The processing sector alone employs more than 1 million workers, making the cashew industry one of the most labor-intensive agro-processing sectors in the country.

Cashew cultivation is largely concentrated in Maharashtra, Kerala, Karnataka, Andhra Pradesh, Odisha, and Tamil Nadu, which together account for more than 85% of national output. Maharashtra leads production with ** thousand MT annually, followed by Andhra Pradesh and Odisha. Productivity in India averages 700–800 kg per hectare, which remains lower than Vietnam’s 1,300 kg per hectare, highlighting the scope for yield improvement through improved varieties and better orchard management.

Growing urbanization, increasing disposable income, and the expansion of organized retail have further strengthened the domestic market for premium nuts and healthy snacks. The Indian snack market alone was valued at US$ ** billion in 2024, with cashews representing one of the fastest-growing premium segments. As consumer awareness around nutrition rises, cashews—containing **% protein and 44% healthy fats—are increasingly marketed as a healthy snack alternative, supporting sustained demand growth across metropolitan and tier-two cities.

Significance of India in Global Cashewnut Supply Chain

India plays a critical role in the global cashewnut supply chain as both a processing powerhouse and a major consumer market. Globally, annual production of raw cashew nuts is estimated at around ** million MT, with Vietnam, India, Côte d’Ivoire, and Tanzania collectively accounting for **% of global output. While Vietnam dominates kernel exports with shipments exceeding ** thousand MT annually, India continues to remain one of the largest processors of imported raw cashew nuts, processing **% of globally traded raw nuts.

Historically, India pioneered industrial cashew processing in the 1920s, with the establishment of export-oriented processing units in Kerala’s Kollam region, which remains one of the world’s most recognized cashew processing hubs. Even today, India processes ** million MT of raw cashew nuts annually, including domestic production and imports, producing ** thousand MT of cashew kernels. A substantial portion of these kernels is consumed domestically, reflecting India’s position as the largest single-country market for cashews.

India also plays a vital role in value addition, producing a wide range of cashew products including roasted kernels, flavored snack nuts, cashew butter, cashew milk, and cashew-based confectionery. The global plant-based dairy alternatives market, valued at around US$ 30 billion in 2024, has created new opportunities for cashew-based beverages, which are gaining popularity among health-conscious consumers.

Furthermore, India’s extensive trade relationships with African raw cashew producers make it a key intermediary in global supply chains. African countries such as Côte d’Ivoire produce more than 1 million MT of raw cashew nuts annually, and a large portion of this production historically flowed to Indian processors before the rise of Vietnamese processing dominance. Despite increased competition, India continues to remain a central node linking African raw nut suppliers with global consumer markets.

India Cashew Supply & Demand Trend

The supply dynamics of the Indian cashew market are shaped by domestic production limitations and strong processing demand. India produces ** thousand MT of raw cashew nuts annually, but the processing industry requires ** million MT of raw nuts, creating a significant supply gap. As a result, India imports between ** thousand MT and ** million MT of raw cashew nuts each year, primarily from African nations such as Côte d’Ivoire, Benin, Ghana, and Tanzania.

Domestic demand for cashew kernels in India has grown significantly over the past decade. In 2015, India consumed ** thousand MT of cashew kernels, but by 2024, consumption had increased to ** thousand MT, representing a growth rate of 4.2% annually. Festivals, weddings, and gifting traditions significantly influence demand patterns, with nearly 35–40% of annual sales occurring during the festive season between October and December.

The processing sector remains highly fragmented, with more than 3,500 processing units operating across India, ranging from small cottage units to modern mechanized plants. However, labor shortages and rising wage costs have increased processing expenses. In traditional manual processing units, labor accounts for nearly 30–35% of the total cost of processing, while mechanized plants have reduced this to around 15–18%, encouraging modernization across the industry.

Global demand for cashew kernels has also increased steadily, with global consumption estimated at ** thousand MT in 2024, compared with 700 thousand MT in 2015. While India remains a major exporter, its share in global kernel exports has declined from over 40% in the early 2000s to around 15–18% today, largely due to the rapid expansion of Vietnam’s highly mechanized processing sector. Nevertheless, India’s strong domestic market continues to absorb a large portion of its processed kernels, stabilizing the industry despite international competition.

India Cashew Market Segmentation

The Indian cashew market can be segmented based on product type, application, and distribution channel. From a product perspective, cashew kernels represent the largest segment, accounting for 85–90% of total market revenue. These kernels are sold in various grades such as W180, W240, W320, and W450, with the W320 grade being the most widely traded due to its balance between size and affordability. Export-grade W320 kernels typically command prices between US$6 and US$8 per kilogram depending on global supply conditions.

The roasted and flavored cashew segment has emerged as one of the fastest-growing categories, driven by the expansion of modern retail chains and e-commerce platforms. This segment accounted for **% of India’s cashew consumption in 2024, compared with just 8% in 2015, reflecting a shift toward convenience foods and packaged snacks. Leading brands have capitalized on this trend by introducing innovative flavor combinations targeting urban consumers.

Another emerging segment is cashew-based dairy alternatives, including cashew milk, cashew yogurt, and vegan cheese. Although still relatively small, this segment has grown at **% annually in India since 2021, driven by rising vegan and lactose-intolerant consumer populations. The global plant-based milk market exceeded US$ 20 billion in 2024, creating significant opportunities for cashew-based beverages.

From an application perspective, household consumption represents the largest demand segment, accounting for **% of total cashew consumption in India. The food processing sector, including confectionery, bakery, and dairy products, accounts for **% of demand, while institutional buyers such as hotels and restaurants contribute the remaining share.

In terms of distribution channels, traditional wholesale markets continue to dominate the industry, accounting for **% of total sales. However, modern retail and online platforms are gaining traction, with e-commerce sales of nuts growing at **% annually since 2020. This shift reflects broader changes in consumer purchasing behavior as digital grocery platforms expand their reach across Indian cities.

India Cashew Trade (Export & Import) Trend

India remains a significant participant in global cashew trade despite increasing domestic consumption. The country exports ** thousand MT of cashew kernels annually, generating export revenues of US$ ** million. Major export destinations include the United States, United Arab Emirates, Netherlands, Japan, and Saudi Arabia, which collectively account for **% of India’s cashew kernel exports.

At the same time, India is one of the world’s largest importers of raw cashew nuts. Annual imports exceed 900 thousand MT, with Côte d’Ivoire alone supplying more than 35% of India’s raw cashew imports. Other key suppliers include Tanzania, Benin, Ghana, and Guinea-Bissau, reflecting the growing importance of African production in global supply chains.

Import tariffs and trade policies also influence market dynamics. India imposes relatively low import duties on raw cashew nuts, typically around 2.5–5%, to ensure adequate supply for domestic processors. In contrast, export incentives such as the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme provide financial support to exporters by refunding certain embedded taxes.

However, competition from Vietnam has significantly reshaped global trade patterns. Vietnam exported more than 520 thousand MT of cashew kernels in 2024, capturing nearly 55% of global market share, compared with India’s 15–18% share. Despite this shift, India continues to retain strong trade relationships with traditional buyers, particularly in the Middle East and Europe.

Influence of India in Global Cashew Price

India continues to influence global cashew prices due to its dual role as a major processor and a large consumer market. Historically, Indian exporters played a key role in determining benchmark prices for cashew kernels, particularly for the widely traded W320 grade, which serves as the global reference price. Export prices for W320 kernels fluctuated between US$5.5 and US$10 per kilogram between 2018 and 2024, reflecting supply shortages and changing demand conditions.

In 2024, average export prices for Indian cashew kernels were estimated at US$ 7.2 per kilogram, slightly lower than the peak of US$ 9.5 per kilogram recorded in 2018, when supply disruptions in Africa tightened global markets. Wholesale prices in India’s domestic market typically range between INR 700 and INR 1,000 per kilogram, depending on grade and quality.

India’s large domestic consumption base also helps stabilize global demand during periods of market volatility. When export demand weakens, Indian traders often redirect kernels to the domestic market, which absorbs **% of the country’s processed cashew production. This internal demand cushion has historically prevented severe price collapses during periods of oversupply.

Future Outlook

The India cashew market is expected to witness steady expansion through 2032, driven by rising domestic consumption, product innovation, and expanding distribution channels. Industry analysts project the market to grow at a CAGR of around **% between 2025 and 2032, with market value potentially exceeding US$ ** billion by the end of the forecast period. Improvements in plantation productivity, increased mechanization in processing, and the growing popularity of plant-based foods are likely to further strengthen India’s position in the global cashew industry while supporting long-term supply chain resilience.