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
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.
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.
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?
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
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.
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
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