Cashew: From African Farm to Global Market, a Multi-Billion Dollar Journey

Cashew nuts, once a simple luxury, have evolved into a strategic global commodity, driving a multi-billion dollar industry that connects African farmers with Asian factories and markets across Europe and America. This complex commercial network hinges on the journey of this versatile nut, highlighting the economic disparities and emerging opportunities within the global agricultural landscape.

Africa: The Source of Raw Potential

The cashew story begins in Africa, which dominates global production. In 2023,Ivory Coast led the world,producing over 1.04 million tons of cashew, contributing substantially to the global output of more than 3.9 million tons. However, a significant portion of African production is exported as raw material, with limited profits captured despite controlling roughly 55% of the global output. This reliance on exporting unprocessed goods represents a missed chance for value addition.

Asia: The Hub of Value Addition and Profit

Countries like Vietnam and India play a crucial role in transforming raw cashews into high-value, processed products. In 2024 alone, Vietnam exported over 730,000 tons of processed cashews, generating $4.37 billion – a remarkable 20% annual increase. The average price per ton of $6,003 for processed cashews starkly contrasts with the significantly lower prices for raw products, illustrating how Asia captures the majority of the profits through “added value.”

A Growing Global Market

The global cashew market is witnessing substantial expansion.Reports from Straits Research estimate the market’s value at approximately $7.78 billion in 2024, projected to reach $11.67 billion by 2033, with an average annual growth rate of 4.6%. Other industry analyses, such as those from Business Research Insights, forecast even stronger growth, from $8 billion in 2024 to $15.87 billion by 2033, driven by the increasing demand for healthy snacks and plant-based alternatives.

Trade Tensions Reshape the Landscape

Recent trade dynamics have introduced new complexities. In 2025, the United States imposed substantial customs duties of up to 46% on cashew imports from Vietnam, a move that impacted a range of agricultural commodities. This decision significantly affected Ivory Coast, which relied heavily on Vietnam for cashew processing and export. Reuters reported a sharp decline in Vietnamese purchases of Ivorian cashews, falling from 700-800 thousand tons to just 200 thousand, leading to stock build-up and price stagnation within Ivory Coast.

The Push Towards Local Manufacturing

In response to these shifts and to capitalize on value addition, several African nations are making strides towards establishing local cashew processing facilities. Nigeria, tanzania, and Ghana are actively investing in shelling and processing plants, often with support from international organizations and development programs.This strategic move aims to retain the “added value” within the continent, fostering economic growth and creating more sustainable supply chains.

Beyond Nuts: The Expanding Applications of Cashew

The versatility of cashews extends far beyond conventional snacking. their applications now span the production of plant-based milk, cheese, and butter, and also healthy confectionery and cosmetic products for skincare. The market for these cashew-derived products was valued at approximately $3.23 billion in 2024 and is expected to climb to $5.01 billion by 2035, according to SPRICAL Insights.

In essence, the cashew nut serves as a powerful example of how a simple agricultural product can become an integral part of a refined global economy. From the farms of Africa to the processing plants of Asia, and from local markets to international retail shelves, these small nuts facilitate billions of dollars in annual trade. By investing in local manufacturing and distribution innovation, developing countries can unlock significant opportunities within this dynamic and ever-expanding global market.

What factors contribute to Vietnam’s dominance in the cashew kernel export market?

Global Cashew Trade: A Billion-Dollar Network

The rise of Cashew Consumption & Market Value

The global cashew market is a significant force in agricultural trade, consistently exceeding billions of dollars in value. driven by increasing consumer demand for healthy snacks and versatile ingredients, the cashew industry has experienced ample growth over the past two decades. Current estimates place the global cashew market size at over $7 billion,with projections indicating continued expansion. Key drivers include rising disposable incomes in emerging economies and a growing awareness of the nutritional benefits of cashews – a good source of protein, healthy fats, and minerals. This demand fuels a complex international network spanning production, processing, and distribution.

Major Players in Cashew Production

While originating in Brazil, the cashew landscape has dramatically shifted. Today, the primary cashew-producing countries are concentrated in Africa and Asia.

Vietnam: Dominates the cashew kernel export market, accounting for over 50% of global exports.Their success is largely attributed to efficient processing capabilities and strategic investments in technology.

india: A major consumer and processor of raw cashew nuts (RCN). While production is increasing, India heavily relies on imports of RCN from Africa.

Côte d’Ivoire (Ivory Coast): The largest producer of raw cashew nuts, supplying a significant portion of the RCN needed by processing hubs like Vietnam and India.

Tanzania: Another key African producer, experiencing growth in cashew production and increasingly focusing on value-added processing.

Brazil: Historically significant, brazil’s production has declined relative to other nations but remains a notable player.

Nigeria & Benin: Emerging producers with potential for increased output and regional trade.

The Journey of a Cashew Nut: From Farm to Table

The cashew trade isn’t simply about growing nuts; it’s a multi-stage process with distinct economic implications.

1. Harvesting: Cashews grow on cashew apple trees. The nuts are harvested manually, a labor-intensive process.
2. Processing of Raw Cashew Nuts (RCN): This is the most crucial and often challenging stage. RCN contains a caustic shell liquid (CNSL) that must be removed. This is traditionally done through manual shelling, posing health risks to workers. modern processing utilizes automated techniques, improving safety and efficiency.
3. Kernel Extraction & Grading: Once shelled, the cashew kernels are graded based on size, quality, and color.
4. export & Import: RCN and cashew kernels are traded globally. Vietnam and India are the primary importers of RCN, while Vietnam dominates kernel exports.
5. distribution & Consumption: Kernels are distributed to food manufacturers, retailers, and directly to consumers worldwide.

Challenges & Opportunities in the Cashew Supply Chain

The cashew trade faces several hurdles, alongside significant opportunities for growth and betterment.

Price Volatility: RCN prices are susceptible to fluctuations based on weather patterns,political stability in producing countries,and global demand. This impacts farmers’ income and processing margins.

Labor practices & Worker Safety: Conventional cashew processing methods pose health risks due to exposure to CNSL.Promoting safer processing technologies and fair labor practices is crucial.

Infrastructure Deficiencies: In many producing countries, inadequate infrastructure (roads, storage facilities) hinders efficient transportation and storage of RCN.

Value Addition in Origin countries: A key prospect lies in increasing processing capacity within producing countries like Côte d’Ivoire and Tanzania. This creates jobs, boosts local economies, and reduces reliance on exporting raw materials.

Sustainable Farming Practices: Promoting sustainable cashew farming practices – including water conservation, soil health management, and responsible pesticide use – is essential for long-term industry viability.

Traceability & Transparency: Consumers are increasingly demanding transparency in supply chains.Implementing traceability systems allows consumers to verify the origin and ethical sourcing of their cashews.

Cashew Brandy: A Niche but Growing Market

Beyond the snack food industry, cashews are finding applications in other sectors. notably, cashew brandy is gaining recognition. as highlighted by Cashew Shop, cashew brandy, especially from Ghana, offers a unique flavor profile – fruity, nutty, and subtly sweet-sour – achieved through aging in oak barrels. This represents a value-added opportunity for cashew-producing regions.

The Role of Fair Trade & Certifications

Consumers are increasingly seeking ethically sourced products. Fair Trade certifications and other sustainability standards play a vital role in ensuring fair prices for farmers, promoting safe working conditions, and protecting the habitat. Look for certifications like Fairtrade, Rainforest Alliance, and organic labels when purchasing cashews.

Future Trends in the Global Cashew Market

Several trends are poised to shape the future of the cashew trade:

* Increased Automation: Further automation of cashew processing will improve efficiency,reduce costs,and