Market Trends of Asia-Pacific Cashew Industry
Increased Cashew Application in Food Industry to boost the Market
- Cashews are an extremely diverse form of nuts that provide a host of benefits and have a lot of nutrients filled in them. Their benefits range from preventing heart disease, improving muscle and nerve health, reducing the risk of diabetes (especially type 2 diabetes), working as a cancer chemopreventive agent, and promoting the development of important red blood cells (RBCs), which help transport oxygen to all parts of the body, reducing the risk of anemia, boosting bone and oral health, preventing the occurrence of gallstones, and boosting the immune system. Due to these benefits, consumers are using it daily in the region and globally, thus driving the cashew industry.
- In addition, cashews are used in the confectionery industry; mainly, pieces and bits of cashew nuts are used to produce chocolate snacks and chocolate-coated whole cashews. It is also used in cuisines, especially in Asia, including sweets, household preparations, etc. Cashew nut consumption in China has constantly been increasing over the years. China's demand is increasing, but the quantity offered by Vietnam is less because the importers have stricter requirements on quality.
- At the same time, not many sources of the commodity meet their requirements in Vietnam. Chinese buyers are mainly interested in cheaper varieties, such as broken and diced cashews, mainly because the product is increasingly used in the confectionery industry, where cashew kernels are less frequently used in the country.
- India consumes large quantities of cashew nuts locally. According to the International Nuts and Dried Fruit Council (INDFC), India consumes around 30% of the domestic production of cashew nut kernels. Also, India is the largest consumer of cashew kernels, accounting for around 30% of the total world consumption.
- According to Food and Agriculture Organization (FAO), due to the increase in consumption, production is also increasing in the region, with 1.6 million metric tons in 2021, which is an increase compared to the previous year.
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India and Vietnam Dominate the Cashew Production in the Region
- India and Vietnam are among the largest producers of cashews globally, with one-third of the cashews being used for domestic consumption and the rest for export, according to the Food and Agriculture Organization (FAO). Vietnam and India process more than 80% of the world's total cashew crops.
- India is one of the world's leading producers, processors, and exporters of cashews. Cashew production in India expanded from 703 thousand tons in 2020 to 738 thousand tons in 2021. This has positioned the country as a major producer worldwide, thus boosting the market in the coming years.
- The production of cashews is increasing year-on-year due to the high demand for export and low processing cost in Vietnam, allowing Vietnam to remain the most prominent shelled and in-shell cashew importer. In 2018, Vietnamese cashew production accounted for 266.4 thousand metric tons, which reached 399.3 thousand metric tons by 2021, as per Food and Agriculture Organization (FAO). Since 2016, this has been the highest volume of production recorded in the given timeline and is further expected to grow huge.
- The ability to export cashew nuts to Europe is facilitated by food safety certification along with reliable and regular laboratory testing because Vietnam and India are the two most challenging current rivals for new cashew nut suppliers. Due to their extensive output and mechanized processing techniques, Vietnamese and Indian businesses can maintain low cashew nut prices. This will strengthen the market in the countries and grow during the forecasting period.
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