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

United States Cashew Market Trends and Insights

Rising Per-Capita Intake of Cashew Nuts

Tree nut consumption per capita in the United States has increased over the last ten years, with cashews gaining market share as consumers shifted from traditional salty snacks to nutritious alternatives^{[2]Source: United States Department of Agriculture, “Nut Consumption Trends,” usda.gov}. The Food and Drug Administration's health guidance highlighting nuts' cardiovascular benefits has increased household consumption and encouraged retailers to promote cashew snack multipacks. The aging baby boomer population's higher disposable income has driven premium cashew product sales, particularly roasted and seasoned varieties. Health and wellness discussions on social media have normalized regular nut consumption, establishing a sustained growth pattern in the United States cashew market. The combination of cashews with dried fruits and dark chocolate in mixed snack packs has generated significant sales growth in club stores across the country. These consumption patterns have established a strong market foundation beyond demographic expansion.

Surge in Plant-Based Protein Demand

The United States cashew market is experiencing growth driven by multiple factors. Coffee chains are transitioning from almond to cashew-based beverages due to cashew milk's creamier texture and lower allergen risk. The vegan cheese segment is expanding, with specialty supermarkets increasing shelf space for cashew-based shredded and spreadable alternatives. Additionally, United States start-ups are incorporating cashew protein isolates into nutrition bars. Food manufacturers prefer cashews for their neutral flavor profile, which reduces masking requirements compared to pea or soy proteins, maintaining cost competitiveness despite raw material price fluctuations. The market stability is further enhanced by long-term agreements between plant-based food companies and supply-chain financiers, which establish consistent kernel quality specifications. The growing meat-alternative segment benefits from flexible toll-roasting arrangements, optimizing processor capacity utilization.

Government Specialty–Crop Block–Grant Incentives

The United States Department of Agriculture allocated USD 82.3 million in 2024 to support specialty crop research, focusing on mechanized cashew shelling systems and energy-efficient roasting equipment. Land-grant universities partnered with equipment manufacturers to develop machine-vision defect detection systems for small and medium-scale processing facilities, targeting an 18% increase in throughput and a 25% reduction in labor costs. Processors implementing these systems received grant funding for capital expenses, reducing payback periods and encouraging industry-wide technology adoption. The funding also supported research on converting cashew shell liquid into industrial resin, creating additional revenue streams. These initiatives facilitated knowledge transfer and operational improvements across the industry, strengthening domestic processing capabilities and helping offset increased costs from tariffs on imported raw kernels.

Expansion of Foodservice and Snacking Formats

Convenience stores incorporate cashew snack cups into protein boxes, which showed increased sales compared to the previous year. Quick-service restaurants feature cashew-topped oatmeal bowls and cashew-pesto flatbreads as permanent menu items. Private-label cashew products with various flavors, from chipotle to everything-bagel seasoning, increase shelf presence and competitive advantage against branded products. Schools use cashews as an alternative to peanuts to reduce allergy risks, while hospitals provide single-serve roasted cashews to comply with dietary requirements. Food manufacturers invest in flavor-coating equipment and nitrogen-flush packaging to meet demand. These distribution channel developments increase consumer access points and processing capacity in the United States cashew market.

Climatic Constraints in Key Growing Regions

Temperature extremes and irregular rainfall patterns in Vietnam and West Africa reduce cashew yields and kernel sizes, leading to increases in raw nut prices that affect United States import costs. The limited domestic cashew cultivation in the United States provides minimal protection against global supply disruptions. While the industry expands into South American markets, new cashew trees require over 5 years to mature, delaying significant production volumes. Drought conditions increase aflatoxin contamination risks in crops, reducing the available kernel supply and increasing Food and Drug Administration rejection rates at ports. Processors need to maintain larger inventory reserves, which increases working capital requirements and reduces profitability. The persistent nature of climate-related challenges requires investments in agricultural improvements and insurance coverage, increasing operational costs in the United States cashew market.

Chronic Labor Shortages in Shelling Lines

Food manufacturing wages remain lower than general manufacturing wages, making it difficult to recruit workers for repetitive cashew shelling tasks that require fine motor skills. Annual turnover rates exceed industry averages, compelling processing plants to maintain higher staffing levels to manage absenteeism. The uncertainty surrounding immigration visas disrupts established seasonal hiring patterns, while low unemployment rates in processing states increase competition for available workers. Production efficiency decreases as new operators require extensive training in kernel grading protocols, leading to inconsistent throughput. Labor shortages force processors to limit production for specialty customers, affecting new product launches in the United States cashew market. Automation helps address worker shortages, but smaller processing facilities face significant capital investment barriers.

Segment Analysis

By Form: Shelled Segment Leadership and In-Shell Growth Potential

Shelled cashews accounted for 71.5% of the United States cashew market share in 2024. This dominance stems from their widespread use by foodservice operators, plant-based dairies, and snack packagers who require consistent, ready-to-use kernels for efficient production. The segment's growth is supported by technological advancements, including modified-atmosphere pouches that extend shelf life to 14 months and nitrogen-flush jars designed for club stores. The large-scale operations enable processors to secure freight discounts, enhancing price competitiveness. The integration of continuous dry-roast systems with seasoning drums allows quick flavor adaptations to meet retail demands for seasonal offerings. These factors collectively contribute to the expansion of the United States' cashew market size.

In-shell cashews represent a growing niche segment, projected to achieve a 5.0% CAGR through 2030. This growth is driven by specialty grocers, e-commerce platforms, and farmers' markets that focus on premium freshness and traditional cracking experiences^{[3]Source: Food and Drug Administration, “21 CFR 164.110 Mixed Nuts,” fda.gov}. Artisanal roasters offer single-origin products and specialized spice blends, commanding price premiums of up to 28% above shelled cashews. The segment's expansion is further supported by increasing consumer interest in backyard roasting kits and subscription-based direct-to-consumer sales. The format has also gained traction in upscale dining establishments offering tableside cracking experiences. Despite lower throughput, the higher margins enable profitable small-batch operations, diversifying the United States cashew market offerings

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

Geography Analysis

United States demand relies almost entirely on imports, with Vietnam accounting for 89% to 98% of the landed value before the 2025 tariff shift^{[4]Source: Thanh Son, “Reciprocal Tariffs Pressure Vietnamese Cashew Exports,” Vietnamagriculture. nongnghiep.vn}. Gulf Coast and New York-New Jersey ports handle most container arrivals, enabling processors in Illinois and New Jersey to distribute products to population centers within two-day trucking lanes. While domestic production in Hawaii, Florida, and Puerto Rico remains experimental with yields below commercial thresholds, supply security depends on trade relationships and port efficiency. Facility clusters near Chicago and the Central Valley utilize rail connectivity to distribute finished nuts to national retail distribution centers.

The West Coast and Northeast show higher per-capita consumption, driven by plant-based brand headquarters and health-conscious consumers. California's innovation ecosystem supports dairy-alternative start-ups that maintain long-term contracts with local toll roasters, strengthening regional demand. Southeast states experience increased adoption of cashew-based sauces and topping blends in casual dining, driven by tourism and diverse culinary influences. Mid-Atlantic metropolitan stores maintain higher numbers of unique cashew stock-keeping units compared to the national average, indicating strong retail competition.

In 2025, trade policy changes, including a 46% tariff on Vietnamese kernels and 26% on Indian kernels, have altered landed cost structures. Importers are diversifying suppliers toward India and emerging African processors in Côte d'Ivoire, who export semi-processed kernels for final roasting in the United States. This diversification reduces single-country risk but increases logistical complexity, requiring coordinated cold-chain and multi-port entry capabilities. Companies are implementing bonded warehouse solutions in Panama for trans-shipping mixed nut loads to improve the United States Customs and Border Protection clearance efficiency. These adaptations help maintain supply continuity in the United States cashew market.