How has the global cashew nut market shifted amid the Covid-19 pandemic?

global-cashew-nut-market

Cashew nuts are one of the most popular edible nuts available in the market. They are mainly produced by Asian countries and are highly consumed by the U.S. and other European countries. However, due to the current covid-19 pandemic situation, the global cashew nut market has been greatly affected. Here are some notes that Vihaba would love to provide you with.

Cashew nut market overview

global-cashew-market
                        The processing method of Vietnamese raw cashew nuts

The global cashew nut market is projected to register a CAGR of 4.6% during the forecast period (2021-2026). The cashew kernel market witnessed a rapid shift in the consumption pattern across North America and Asia-Pacific in recent years, primarily due to assorted cashew products occupying an increased share in the retail market space. Asia-Pacific is the largest consumer with the growing consumption inclining toward the use of cashew kernels in daily diets and healthy ready-to-eat snacks. The high penetration rate of cashew-based retail manufacturers in the developed and emerging markets and the successful implementation of initiatives in cashew production and processing in Africa are further expected to drive the global cashew market during the forecast period.

In January 2021, the price of Indian cashew exports fluctuated inconsistently compared to the end of December 2020, depending on types. At the port of Tuticorin (India), the export cashew W240 and W320 prices are stable at 3.95 USD/lb and 3.5 USD/lb. Meanwhile, the export price of cashew W450 and SW320 increased 0.2%, to 3.18 USD/lb and 2.88 USD/lb.
According to the Indian Ministry of Commerce, the country’s cashew exports in the first eleven months of 2020 reached 54.66 thousand tons, worth $ 372.48 million, down 26.8% in volume and 29.1% in value over the same period in 2019. The main cashew export markets of India include United Arab Emirates, Vietnam, Netherlands, Japan, Saudi Arabia, Spain and, the United States.

How has the global cashew market been affected by the Covid-19 pandemic?

COVID-19 had a direct and unfavorable impact on the global cashew market. Global lockdown to curb and contain the pandemic adversely affected the distribution channels. Value addition activities were affected as a disrupted distribution channel lowered the availability of end-products of the cashew nut market. Producers from West Africa suffered as they were unable to send cashew to Vietnam and India for processing due to the lockdown. The delays in collection and shipment will ultimately result in lower yields than normal, further reducing the overall kernel supplies.

cashews
              The amount of Vietnamese cashew nuts exported over the months of 2019-2020

Due to the impact of the Covid-19 pandemic, the world economic situation will still face with difficulties in 2021. However, the supply of Vietnamese cashew nuts in 2021 is quite stable. The total cashew area of Vietnam in 2021 will reach 297 thousand hectares, equal to 99.7% compared to 2020; the output of raw cashew nuts reached 360 thousand tons, equaling 107.8% compared to 2020; average yield is 1.29 tons/ha, equal to 107.5% compared to 2020. Meanwhile, the big cashew exporters have had orders for the first quarter of 2021. With the above positive signals, it is forecasted that Vietnam’s cashew exports will be favorable in 2021.

What is the current trend for cashew nut consumption?

cashew-market
                                                  Roasted cashew nuts

There is a global trend that looks favorably at vegan and plant-based diets. People who embrace a plant-based vegan diet prioritize alternative sources of protein, instead of those derived from animals. Especially, the demand for cashews will increase significantly after the pandemic as people will demand more healthy food options which are more beneficial for the body.

In Europe, consumers are willing to spend more for quality foods. Consumers are also looking for new products due to increased health awareness and nutritional facts. Cashew kernels are primarily used in the European market as a roasted-and-salted snacks. Lately, cashew kernel also turns out to be attractive to industrial users and is used for cookies and cereals, and is also promoted as a topping on ice cream. 

Rising Consumption of Cashew as a Healthy Snack

Edible cashews have been used as a snack for a long time. Cashews are also used as one of the main ingredients in preparing various sweet and savory dishes, especially in Asian cuisine. Moreover, nowadays, cashews are used in mueslis, energy bars, cookies, chocolates, and ice creams.
Cashews are known to be high in nutrients, such as copper, which improve bone health, as one ounce of cashew contains 622 micrograms of copper. Nevertheless, cashews have an inflation-driven consumption pattern, as reported by the International Nut and Dried Fruit Council.

 

 

Cashew-kernel
                                                  Raw cashew nuts
Cashews are relatively high in fiber compared to peanuts, and they help gain healthy weight by improving digestive function. Such high-value nutrition has prompted snack manufacturers to launch several cashew-based snacks to meet the demand, such as the ready-to-drink cashew milk, which acts as a lactose-free milk substitute. Due to increasing health consciousness among consumers in the European region, there has been a growing trend of cashew nut consumption. Recently, cashew nuts are also increasingly being used as an ingredient in spreads and snack bars (especially organic), boosting cashews’ consumption overall.

How has the cashew nut market grown?

Increasing demand for flavored cashews and favorable government initiatives are further fueling the consumption of cashew nuts in the African region. Among all the cashew-producing nations, African countries contributed 56.5% to global production, while Asian countries contributed 44%. In the last eight years, Vietnam has been the largest supplier of cashew to the United States, China, Australia, Canada, and New Zealand. 

 

cashew-nut-market
                                       Source: Mordor Intelligence

In the long term, the European market for cashew nuts is expected to show stable growth. This growth is likely to be driven by changes in the consumption patterns of European consumers, including the rising demand for healthier snacking options and vegetable sources of protein. Germany, the Netherlands, United Kingdom, France, Italy, and Spain offer opportunities for developing country suppliers. As Europe’s main importer and consumer of cashew nuts, Germany is an interesting focus market. Germany also provides specific opportunities for organically certified cashew nuts.

Asia-Pacific Dominates the Cashew Market

Asia-Pacific has been a consistent importer of cashew kernels despite the presence of large cashew-producing countries, such as India and Vietnam, in the region. In terms of consumption, Vietnam is the leading country in the world. In 2019, consumption of cashew in Vietnam stood at 2.2 million metric ton. As Vietnam leads in the production of cashews worldwide, it is also a significant exporter of the same to other international markets.
Asia-Pacific is the largest consumer of cashew nuts in the world. In recent years, there has been an increasing interest in the use of cashew nuts in regular diet and healthy ready-to-eat snacks. The rising number of manufacturers producing innovative cashew-based consumables has taken both the young and geriatric consumers by stride; for example, roasted and spice-coated cashew nuts, that appeal to the local palate, were introduced in India. The demand for cashews in Asia has persistently increased as the imports for shelled cashews increased exponentially from 2,317 metric ton in 2016 to 10,771 metric ton in 2018 in China. China leads the region in cashew import, followed by Japan, Thailand, and India, respectively.
consumption-of-cashew
                              Raw cashew nut yields, selected countries
Source: UNCTAD calculations, based on data from the Brazilian Institute of Geography and Statistics, the Competitive Cashew Initiative (ComCashew), the Directorate of Cashewnut and Cocoa Development (DCCD) of India and Viet Nam statistical yearbooks

Faced with the risk of a covid-19 pandemic breaking out in some countries, international borders are closed, making transportation unavailable. So raw cashews do not reach the processing units. However, with the hope that the current situation of covid19 is well controlled, the global consumption of the cashew nut market will be likely to recover positively. With the current cashew market, Vihaba also wishes to play an important role in providing Vietnamese cashew products to the international market. Vihaba is committed to giving our customers the best standard cashew nuts with a variety of types

Leave a Reply

Your email address will not be published. Required fields are marked *