India Cashew Market Set to Cross $3.31 Billion by 2033 on Rising Consumption

India’s cashew industry is witnessing steady and sustainable growth, driven by evolving consumer preferences, expanding export markets, and increasing awareness around health and nutrition. Once considered a festive indulgence, cashews are now becoming a daily dietary staple across urban and semi-urban households.

According to Renub Research, the India cashew market is projected to grow from US$ 2.28 billion in 2024 to US$ 3.31 billion by 2033, registering a CAGR of 4.25% from 2025 to 2033. This growth reflects both rising domestic consumption and India’s continued dominance in the global cashew trade.

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Market Overview: A Key Pillar of India’s Agro Economy

India is one of the world’s largest producers, processors, and exporters of cashew nuts. The industry contributes significantly to rural livelihoods and agro-based exports, with production exceeding 0.8 million tonnes annually across approximately 0.7 million hectares.

Major cashew-producing states include:

• Maharashtra

• Andhra Pradesh

• Odisha

• Karnataka

• Tamil Nadu

• Kerala

The sector supports nearly 1.5 million workers, particularly in farming and processing, making it a vital source of employment in coastal and rural regions.

India’s leadership in cashew processing is especially notable, with hubs like Kollam in Kerala historically serving as global centers for processing and export.

Renub Research Insights: Market Size and Forecast

Renub Research highlights a stable growth trajectory for the India cashew market, underpinned by both domestic and international demand.

Key insights include:

• Market expected to reach US$ 3.31 billion by 2033

• CAGR of 4.25% during the forecast period

• Strong export demand from countries such as the United States, UAE, and Japan

• Increasing domestic consumption driven by health-conscious consumers

The market’s expansion reflects a balance between traditional consumption patterns and modern dietary trends.

Growth Drivers: What’s Powering the Market

1. Changing Consumption Patterns

Cashews are no longer limited to festive occasions—they are becoming an everyday snack in Indian households. The rise of organized retail, supermarkets, and e-commerce platforms has made cashews more accessible than ever.

Consumers are incorporating cashews into:

• Daily snacks

• Indian gravies and desserts

• Plant-based and vegan recipes

Ready-to-eat and flavored variants are further boosting demand, particularly among younger consumers and urban populations.

2. Product Innovation and Value Addition

Innovation is reshaping the cashew industry in India. Companies are introducing a wide range of value-added products to cater to diverse consumer preferences.

Popular innovations include:

• Flavored cashews (masala, honey-roasted, chili)

• Organic and chemical-free variants

• Cashew-based products such as milk, butter, and snack bars

These products appeal to health-conscious and vegan consumers, expanding the market beyond traditional segments.

3. Rising Health and Wellness Awareness

Cashews are increasingly recognized as a nutrient-rich superfood. They are packed with:

• Healthy fats beneficial for heart health

• Essential minerals like magnesium, zinc, and copper

• Vitamins such as B6 and E

Studies suggest that regular nut consumption can significantly reduce the risk of heart disease, further boosting demand.

As consumers shift toward clean-label and nutritious foods, cashews are gaining popularity both in India and globally.

4. Strong Export Demand

India exports cashew kernels to over 60 countries, with major markets including:

• United States

• United Arab Emirates

• Japan

• Netherlands

• Saudi Arabia

The country’s reputation for quality processing and diverse product offerings makes it a preferred supplier in global markets.

Export growth continues to be a major driver of industry expansion.

Challenges: Key Issues Facing the Industry

Outdated Processing Technology

A significant portion of India’s cashew processing sector still relies on traditional, labor-intensive methods. This results in:

• Lower productivity

• Higher labor costs

• Inconsistent quality

In contrast, countries like Vietnam have adopted advanced automation, improving efficiency and competitiveness.

Labor Shortages and Skill Gaps

The industry faces a growing shortage of skilled labor, particularly in processing activities such as shelling and peeling. Younger workers are increasingly reluctant to take up these physically demanding roles.

This has led to:

• Rising labor costs

• Reduced operational efficiency

• Delays in production

Addressing these challenges will be critical for sustaining growth.

Regional Insights: Key Producing States

Maharashtra

Maharashtra contributes nearly 25% of India’s cashew production, supported by favorable coastal conditions in regions like Ratnagiri and Sindhudurg.

However, the state faces challenges such as:

• Climate variability

• Pest infestations

• Dependence on imported raw cashews

Efforts are underway to expand cultivation and promote value-added products like cashew apple juice and wine.

Kerala

Once a global leader, Kerala’s cashew industry is now grappling with declining production and raw material shortages.

Key challenges include:

• Reduced cultivation area

• High operational costs

• Closure of processing units

However, initiatives such as importing raw cashews and partial mechanization aim to revive the sector while preserving employment.

Other Key States

States like Andhra Pradesh, Odisha, Karnataka, and Tamil Nadu continue to play a significant role in production, contributing to India’s overall supply chain.

Global Competition: The Vietnam Factor

Vietnam has emerged as a formidable competitor in the global cashew market. With highly automated processing systems, the country has become the world’s largest exporter of cashew kernels.

In 2024 alone, Vietnam exported over 730,000 tons of processed cashews, generating $4.37 billion in revenue.

India, while strong in production and processing, must accelerate modernization to maintain its competitive edge.

Market Segmentation

By Production (States)

• Maharashtra

• Andhra Pradesh

• Odisha

• Karnataka

• Tamil Nadu

• Kerala

• Others

By Export (Countries)

• UAE

• Netherlands

• Japan

• Saudi Arabia

• Vietnam

• Others

Competitive Landscape: Key Players

The India cashew market includes a mix of organized players and regional processors.

Leading companies include:

• Wonderland Foods

• Kalbavi Cashews

• Britannia Industries Limited

• Haldirams

These companies are focusing on:

• Expanding product portfolios

• Strengthening distribution networks

• Investing in branding and packaging

Emerging Trends Shaping the Market

Rise of Plant-Based Alternatives

Cashew-based dairy alternatives such as milk and cheese are gaining popularity among vegan and lactose-intolerant consumers.

Premiumization

Consumers are increasingly willing to pay more for high-quality, organic, and flavored cashew products.

Value Chain Integration

Companies are investing in end-to-end supply chains, from farming to processing and branding.

Strategic Recommendations

Invest in Modern Processing Technology

Automation can improve efficiency, reduce costs, and enhance product quality.

Expand Value-Added Product Lines

Diversifying into innovative products can increase margins and attract new consumers.

Strengthen Export Competitiveness

Improving quality standards and supply chain efficiency will help India maintain its global leadership.

Future Outlook: Steady and Sustainable Growth

The India cashew market is expected to grow steadily through 2033, supported by both domestic demand and export opportunities.

Key future trends include:

• Increased adoption of high-yield cashew varieties

• Expansion of processing infrastructure

• Greater focus on sustainability and organic farming

These developments will help the industry navigate challenges and unlock new growth opportunities.

Final Thoughts

India’s cashew market represents a unique blend of tradition and transformation. While the industry continues to rely on its strong agricultural base and global reputation, it is also evolving to meet modern consumer demands.

With a projected market size of US$ 3.31 billion by 2033, the sector offers significant opportunities for growth and innovation. However, addressing structural challenges such as outdated processing methods and labor shortages will be essential for long-term success.

As health trends, product innovation, and export demand continue to shape the market, India’s cashew industry is well-positioned to strengthen its role as a global leader in the years ahead.