Cashew Milk Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Global Cashew Milk Market Trends and Insights

Health and wellness trends

As shoppers increasingly prioritize balanced nutrition, they're gravitating towards low-cholesterol, nutrient-rich beverages, positioning cashew milk as a standout dairy alternative. A survey revealed that 47% of British adults aged 18-34 transitioned to plant-based drinks mainly for health benefits. In a bid to rival or even outdo dairy milk, brands are enriching their products with calcium, vitamin D, and vitamin B12, all while keeping the ingredient list concise. Responding to market demands, brands are rolling out fortified cashew milks, enhanced with added proteins, vitamins, and minerals. A case in point: in March 2024, Califia Farms unveiled its Zero-Sugar Barista Blend Cashew Milk, tailored for coffee aficionados. This variant not only boasts superior frothing capabilities but also champions a clean-label recipe devoid of added sugars, catering to both functional and health-centric consumer preferences. Additionally, ongoing clinical studies linking nut consumption to heart health bolster consumer confidence. Retailers are capitalizing on these health attributes, spotlighting them through shelf tags and e-commerce filters, thereby amplifying the visibility of cashew milk in the market.

Rising lactose intolerance and milk allergies

As consumers increasingly seek creamy, nutritious, and dairy-free alternatives, the global cashew milk market is witnessing a surge, largely driven by the rising prevalence of lactose intolerance and milk allergies. Health authorities estimate that around 65% of adults globally grapple with lactose intolerance. This statistic has led many, especially in regions like Asia, Africa, and parts of Europe, to steer clear of traditional cow’s milk. Unlike soy or almond counterparts, cashew milk boasts a natural creaminess, eschewing the need for thickeners, a feature that resonates with shoppers wary of stabilizers. With East and Southeast Asia recording the highest rates of lactose intolerance, the region's demand for cashew milk is robust. Nut-based drinks are gaining traction in elimination diets, thanks to endorsements from medical professionals, seamlessly ushering new consumers into the cashew milk fold. Responding to this burgeoning demand, product innovations for 2024–2025 have been tailored to this expanding audience. A case in point: Califia Farms unveiled its Barista Blend Cashew Milk in March 2024, a product crafted for coffee frothing, directly targeting lactose-intolerant café-goers.

Expansion of vegan and plant-based diets

As global preferences shift and institutions lend their support, the rise of vegan and plant-based diets has significantly propelled the cashew milk market. The momentum is undeniable: in January 2025, a staggering 25.8 million individuals took part in Veganuary, underscoring the mainstreaming of plant-based diets. Highlighting this trend, the Good Food Institute reported that U.S. sales of plant-based foods reached an impressive USD 8.06 billion for the year ending December 3, 2023^{[1]The Good Food Institute," U.S. retail market insights for the plant-based industry", www.gfi.org}. Echoing this sentiment, a 2023 survey by the Federal Association of the German Food Trade (BVLH) revealed that 62% of German respondents purchased plant-based products primarily for environmental and climate benefits^{[2]Federal Association of the German Food Trade (BVLH), "Plant-Based Diet - Results of a Representative Population Survey" www.bvlh.net}. Notably, this concern was echoed by 70% of younger respondents aged 18 to 29. With a health-conscious and environmentally aware consumer base, the plant-based movement has positioned cashew milk favorably. Its creamy texture, mild flavor, and clean-label appeal make cashew milk a favorite among vegans, flexitarians, and those with lactose intolerance.

Clean-label preferences

Consumers are increasingly scrutinizing ingredient lists, showing a clear preference for products devoid of gums and artificial sweeteners. Start-ups like MALK have capitalized on this trend, boasting an impressive 91% annual sales growth with their minimalist three-ingredient formula: filtered water, organic cashews, and sea salt. This shift towards transparency and simplicity is not just a consumer-driven movement; it's receiving backing from governmental bodies. For instance, the FDA's 2023 draft guidance on plant-based milk labeling underscores the importance of clear nutrient content and transparency, a nod to the rising prominence of clean-label brands. In alignment with this trend, major brands are rolling out revamped cashew milk products in 2024–2025. Elmhurst 1925 is championing unsweetened, two-ingredient recipes devoid of emulsifiers, Califia Farms is broadening its "simple and organic" cashew line to include just three to four ingredients, and MALK Organics is debuting additive-free, shelf-stable organic cashew milks.

High raw material costs

Global cashew milk producers grapple with rising production costs and shrinking margins, primarily due to the volatile prices of their key ingredient: cashew nuts. These price fluctuations stem from seasonal variations, labor challenges, and supply chain disruptions, all of which have led to reduced production rates and, consequently, heightened raw material costs. For context, the Food and Agriculture Organization reported that global production of in-shell cashew nuts in 2023 was around 3.93 million metric tons, nearly identical to the output of the prior year^{[3]Food and Agriculture Organization, "Production of cashew nuts (in shell) worldwide" www.fao.org}. The annual harvest cycle, spanning from February to May, compounds this volatility. Manufacturers, aiming to capitalize on in-season low prices, often stockpile supplies. However, this comes at a cost: potential quality degradation and storage expenses that are 8-12% higher. Conversely, sourcing outside the harvest window can command premiums ranging from 18-25%. These dynamics mean that the cost structure for cashew milk producers is 14-19% steeper than that of their oat or almond counterparts, hindering the market's expansion.

Complex and costly processing methods

To achieve creaminess without nut grit, cashew milk undergoes a double-step homogenization and enzyme-assisted extraction. While heat treatments can deactivate natural cashew allergens, they also risk dulling the flavor. This has led to a shift towards high-pressure processing, seen as a gentler alternative. Furthermore, cashew milk processing diverges from traditional dairy methods. It demands a series of intensive steps: soaking, grinding, fine homogenization, stabilization, and either pasteurization or UHT/aseptic treatments. These steps are crucial for managing particulates and the high-viscosity nature of nut slurries. Such rigorous processing not only escalates capital expenditures but also heightens risks of failure, reduces yields, and amplifies quality control needs. These challenges are especially pronounced for smaller-scale producers. Take MALK Organics, for example. They launched their shelf-stable Cashew MALK in Q1 2024, pricing it at a premium (~USD 6.99 SRP) to counterbalance the elevated processing costs. This premium pricing underscores a broader industry challenge: rising expenses in ingredients, labor, and logistics limit pricing flexibility, making it tough to compete with more affordable plant milks.

Segment Analysis

By Product Type: Flavor innovation widens appeal

In 2024, unflavored cashew beverages commanded a dominant 69.87% share of the cashew milk market, thanks to their versatility in both culinary and coffeehouse settings. Shoppers view this neutral SKU as an essential pantry item, seamlessly enhancing both sweet and savory dishes. Premium coffee outlets favor unflavored cashew milk for crafting microfoam, perfect for latte art, underscoring its professional appeal. However, while unflavored cashew milk remains dominant, its growth has plateaued, especially in mature markets.

On the other hand, flavored cashew milk is set to grow at a robust 7.10% CAGR. Brands are targeting younger consumers, emphasizing indulgence while aligning with wellness aspirations. Limited-edition flavors, like Califia Farms’ Key Lime Colada and Strawberry Crème, not only offer unique experiences but also command higher price points. To maintain clean-label integrity, manufacturers are turning to natural flavorings and fruit purées. Social media's vibrant visuals are boosting trials and cross-selling. Additionally, seasonal offerings allow retailers to refresh their shelves, keeping the cashew milk market dynamic during festive times.

By Nature: Organic certification unlocks value

In 2024, conventional variants accounted for 87.43% of sales, underscoring their price sensitivity and extensive supermarket reach. While conventional cashew milk reigns supreme in the global market due to its affordability and widespread availability, organic cashew milk is emerging as the fastest-growing segment, fueled by heightened health and environmental consciousness. The widespread stocking of conventional products in supermarkets, convenience stores, and online platforms has made them easily accessible to mainstream consumers, propelling the segment's growth.

Though organic cashew beverages currently occupy a smaller market share, they are poised to grow at a robust 7.94% CAGR through 2030. Health-conscious consumers are increasingly willing to pay a premium of 20–30% for beverages bearing the USDA or EU organic seals. In 2024, South Korea's consumption of organic beverages reached 14.8 million, up from 14 million in 2023 (Global Organic Trade Guide). Despite organic cashew orchards still being a minor fraction of the total, their three-year transition period poses supply constraints. Brands like MALK are setting themselves apart by prominently showcasing batch codes and farm-origin details, emphasizing transparency. In response, retailers are curating dedicated organic plant-based sections in the dairy aisle, boosting visibility and endorsing the premiumization of the cashew milk market.

By Packaging Type: Sustainability pressures reshape choices

In 2024, cartons captured a leading 37.43% revenue share, bolstered by Tetra Pak and SIG solutions that facilitate ambient storage and recycling. Aseptic cartons, lauded for their extended shelf life, portability, affordability, and strong branding appeal, resonate with both consumer and regulatory preferences. Research from Germany underscores this trend: 83% of shoppers deem full recyclability as "important or very important" and show a preference for brown, low-plastic cartons. This highlights the pivotal role of environmental credentials in driving carton usage for plant-based milks. Furthermore, experts from SIG and Tetra Pak assert that aseptic cartons are the go-to choice for plant-based dairy alternatives. They offer resource-efficient material usage, extended shelf stability, and a spacious canvas for natural, minimalist branding—elements crucial to the allure of cashew milk.

Pouches are set to register an 8.12% CAGR, capitalizing on their lightweight and portable nature. Brands are strategically targeting gym enthusiasts and school lunch programs with single-serve flexible packs designed to minimize spillage. Life-cycle assessments reveal these pouches produce up to 35% lower greenhouse gas emissions compared to cartons. Companies are keen to highlight this eco-friendly advantage, using on-pack QR codes that link to detailed impact dashboards. While glass bottles maintain their foothold in the specialty market, the institutional foodservice sector is experimenting with bag-in-box solutions as a strategy to reduce plastic waste. Overall, packaging innovation stands out as a key differentiator in the competitive cashew milk market.

Note: Segment shares of all individual segments available upon report purchase

By Distribution Channel: Omnichannel strategies emerge

In 2024, retail outlets dominated the cashew milk market, accounting for 59.10% of its size. Supermarkets, dedicating four to five linear feet to plant-based milks, played a pivotal role. Major brands, including Silk (Danone), Elmhurst, and Forager Project, capitalized on these retail avenues, ensuring a robust shelf presence, frequent promotions, and premium packaging, all underpinned by a well-organized supply chain. The retail sector's supremacy is further enhanced by the surge in e-commerce, with online platforms poised for significant growth through 2025, offering cashew milk from both mainstream and niche producers.

Foodservice sectors, encompassing cafés, restaurants, and corporate catering, are set to grow at a 7.30% CAGR. This growth is driven by menu strategies that elevate cashew lattes to be on par with dairy counterparts. Operators appreciate the milk's steaming capabilities and its subtle flavor that pairs well with espresso. In a move highlighting the industry's evolution, Califia Farms has acquired Uproot's dispenser technology, hinting at a pivot towards bulk formats that minimize single-use packaging. Convenience stores are expanding their grab-and-go cashew drink selections to cater to commuters. Meanwhile, institutions like universities are entering long-term supply contracts, further embedding cashew milk into the market beyond just retail outlets.

Geography Analysis

North America led with 41.16% of global revenue in 2024, underpinned by high purchasing power, established specialty retail, and clear FDA guidance on plant-based labeling. Penetration reached 41% of US households, and premium average selling prices cushion manufacturer margins. Canadian consumers mirror US trends, with cashew milk’s natural sweetness resonating among families seeking low-sugar diets. Mexico’s middle class is expanding demand for affordable private-label cashew beverages, prompting regional retailers to source from US co-packers to bridge supply gaps.

Asia-Pacific is forecast to record a 7.53% CAGR, making it the fastest-growing cashew milk market through 2030. China’s large lactose-intolerant population values attribute-rich plant milks, while e-commerce giants feature cashew products in health-food festivals. Japan showcases innovation through Asahi Group’s “Like Milk,” a cashew-free yeast-based drink that still raises category awareness. India serves as a major kernel processor yet retains nascent domestic consumption owing to price sensitivity; pilot projects supplying metro cafés indicate latent upside as unit economics improve. Southeast Asian nations such as Thailand are introducing barista-grade cashew options in specialty coffee shops, capitalizing on tourism’s return.

Europe maintains steady mid-single-digit growth, fueled by ethical consumerism and stringent sustainability standards. Retailers in Germany and the Nordics require FSC-certified cartons, nudging brands toward traceable packaging. South America’s opportunity centers on Brazil, where local cashew cultivation provides cost-effective input for nascent plant-based dairy makers. The Middle East and Africa region remains emergent but is seeing increased interest from hospitality groups that cater to international travelers, offering cashew milk in breakfast buffets and specialty cafés, thereby incrementally raising awareness and building a foundation for broader cashew milk market adoption.