Vietnam Cashew Market Analysis by Mordor Intelligence
The Vietnam cashew market size reached USD 3.3 billion in 2025 and is projected to expand at a 9.5% CAGR to USD 5.2 billion by 2030. Favorable government credit lines, rising global demand for plant-based snacks, and steady inflows of raw nuts from Cambodia position the Vietnam cashew market for sustained value growth. Processors are upgrading optical grading lines to cut kernel breakage, while exporters capture traceability premiums in the European Union. Regional competition from emerging African processors is intensifying, but Vietnamese firms still control more than 80% of global kernel exports, which is supported by the entrenched processing capacity. Technology-driven productivity gains and direct-to-consumer e-commerce channels are widening margin opportunities for small and medium-sized enterprises in the Vietnamese cashew market.
Key Report Takeaways
- By form, shelled kernels held 86.8% of the Vietnam cashew market share in 2024, while in-shell cashews are projected at a 12.3% CAGR through 2030.
Vietnam Cashew Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Favorable government re-investment funds | +2.1% | Nationwide with focus on Binh Phuoc and Dong Nai | Medium term (2–4 years) |
| Rapid adoption of optical grading lines | +1.8% | Southeast and Central Highlands | Short term (≤ 2 years) |
| Surge in global plant-based snack demand | +1.5% | Export markets in United States, European Union, and China | Long term (≥ 4 years) |
| Rising European Union traceability premiums | +1.2% | Export-oriented processors | Medium term (2–4 years) |
| Expansion of Vietnam-Cambodia raw supply | +1.4% | Border provinces and Southeast processing hubs | Medium term (2–4 years) |
| Growth of e-commerce export channels | +0.9% | Nationwide tech-enabled SMEs (Small and Medium Enterprises) | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Favorable Government Re-Investment Funds
In March 2025, the Ministry of Agriculture’s VND 100 trillion (USD 4.2 billion) credit program is lowering capital costs for equipment upgrades, cold storage, and traceability solutions across the Vietnam cashew market[1]Source: Government News Office, “Triển khai chương trình tín dụng trên 100 nghìn tỷ đồng với lĩnh vực nông, lâm, thủy sản,” baochinhphu.vn. Commercial banks such as Vietcombank have earmarked VND 15 trillion (USD 644 million) to finance cashew processors, accelerating mechanization and food-safety certification. Funding access helps smaller factories comply with European Union sustainability standards and secure USD 150 per metric ton premiums, improving cash flow resilience. Provincial authorities in Binh Phuoc are piloting bonded warehouses that cut customs clearance times and reduce inventory costs. These fiscal incentives sustain the long-run competitiveness of the Vietnam cashew market amid tightening global compliance norms.
Rapid Adoption Of Optical Grading Lines
AI-enabled optical sorters nowadays identify defective kernels with 95% accuracy, decreasing breakage by 3–4% and lifting export prices in the Vietnam cashew market. Processors deploying collaborative robots like ABB GoFa cobots achieve packing speeds of 35–36 bags per minute. Companies are implementing deep learning algorithms capable of classifying cashews into multiple quality grades using low-cost camera systems, addressing traditional labor shortages while improving productivity. The adoption of collaborative robots, exemplified by Dan D Pak's deployment of ABB GoFa cobots achieving 35-36 bags per minute packing speeds, demonstrates scalable automation solutions for medium-sized processors. This technological shift enables Vietnamese processors to maintain competitive advantages against emerging African processing capacity while meeting stringent international quality standards.
Surge In Global Plant-Based Snack Demand
Global snack brands are scaling cashew purchases to satisfy vegan and lactose-free product lines, pushing kernel imports from Vietnam up 8% in H1 2025. Western retailers highlight cashews’ healthy fat profile and flavor versatility, bolstering volume growth in the Vietnam cashew market. Vietnamese processors respond with roasted, flavored, and portion-controlled formats that command higher shelf prices. Co-branding partnerships with international snack companies deepen market penetration and lock in long-term purchase contracts. Plant-based dairy alternatives further diversify demand, cushioning processors from cyclical snack trends.
Rising European Union Traceability Premiums
European regulations have established pricing structures that incentivize supply chain transparency and sustainability compliance. According to the General Department of Customs, Cambodia's cashew nut imports to Vietnam increased by 34% in volume and 26% in value in 2024 compared to the previous year [2].Source: General Department of Customs, “Vietnam’s Raw Cashew Imports from Cambodia Up 34% in 2024,” customs.gov.vn Vietnam imported nearly 790,000 metric tons of raw cashew nuts from Cambodia, valued at over USD1 billion, in the first seven months of the year. Vietnamese exporters have developed direct relationships with Cambodian and Laotian suppliers to ensure product traceability from farms to processing facilities. The pricing structure encourages long-term contract farming agreements, which help stabilize raw material costs while meeting European sustainability requirements, providing competitive advantages to compliant processors.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Intensifying farm labor shortages | -1.9% | Binh Phuoc and Dong Nai | Short term (≤ 2 years) |
| Climate-driven pest pressure spike | -1.6% | Central Highlands and Cambodian supply zones | Medium term (2–4 years) |
| Heavy reliance on imported raw nuts | -1.3% | Processing centers nationwide | Long term (≥ 4 years) |
| Volatile ocean-freight container costs | -1.1% | Cat Lai, Cai Mep, and Haiphong ports | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
Intensifying Farm Labor Shortages
Rural demographic shifts are constraining processing capacity expansion and driving up operational costs across Vietnamese cashew facilities. Seasonal labor costs in Binh Phuoc province have increased 15% year-over-year due to aging farmer populations and rural-to-urban migration patterns [3]Source: Ministry of Agriculture and Rural Development, “Labor Costs in Binh Phuoc Cashew Processing 2024,” agroviet.gov.vn. The pinch is acute during peak harvest and shelling periods, forcing processors to defer shipments or pay overtime premiums. To mitigate disruptions, firms accelerate automation projects and partner with vocational schools to upskill local workers. Robotics adoption, however, demands high upfront capital and robust maintenance capabilities that strain smaller operators. Persistent shortages could cap capacity additions and slow output growth even as global demand rises.
Climate-Driven Pest Pressure Spike
Erratic rainfall and higher humidity foster fungal infections that cut Vietnamese yields up to 12% and lower premium grade ratios. Similar conditions in Cambodia ripple through import volumes, raising kernel procurement risks in the Vietnam cashew market. Processors hedge by maintaining higher inventories and diversifying supply agreements across multiple origins. Research collaborations explore drought-tolerant and pest-resistant cultivars, and cultivar deployment takes seasons to scale. Climatic volatility may prolong raw nut price spikes, squeezing processor margins.
Segment Analysis
By Form: Shelled Kernels Anchor Value Creation
Shelled kernels hold 86.8% of the market share in 2024, as Vietnam focuses on value-added processing instead of raw nut exports. This specialization allows processors to achieve higher margins while serving various end-use applications, from snacking to industrial food ingredients. The kernel segment's growth reflects advances in grading and packaging systems, enabling Vietnamese processors to compete on quality. Companies now use AI-powered classification systems that distinguish between W180, W210, W240, and W320 grades with 95% accuracy, reducing manual labor and improving consistency.
In-shell cashews are anticipated to grow at a 12.3% CAGR through 2030, supported by international certification requirements and consumer willingness to pay sustainability premiums. This segment primarily serves domestic consumption and specialty export markets where traditional formats hold cultural value. The segment maintains strong supply relationships with major food manufacturers who require consistent quality and reliable delivery schedules that smaller processors cannot provide.
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Geography Analysis
The Southeast region maintained a significant share of the Vietnamese cashew market in 2024, driven by Binh Phuoc's extensive network of over 1,400 processing plants and its strategic location near Ho Chi Minh City's ports. Provincial authorities are implementing bonded warehouse facilities to expedite customs processing, thereby improving working capital efficiency for small and medium-sized enterprises. The region's established industrial zones, including Xuyen A Industrial Park, continue to attract snack and ingredient manufacturers who integrate operations with kernel processors.
The Central Highlands region demonstrates the strongest growth through agricultural diversification programs that apply coffee farming expertise to cashew cultivation. The region's advantages include lower land costs and favorable climate conditions for new cashew varieties with improved kernel-to-shell ratios. International investors are establishing primary processing facilities near farming areas, reducing transportation losses and improving farmer profitability. Government extension services support quality improvement through integrated pest management training, reducing quality variations in the Vietnamese cashew market.
The Mekong Delta utilizes its logistics infrastructure to transport kernels through Can Tho port. In flood-prone areas, investments in elevated drying yards and solar hybrid dryers help reduce post-harvest losses. The Red River Delta and Northern Mountainous regions maintain specialized roles in producing premium kernels known for distinct flavor characteristics. This regional distribution reduces dependency on single processing centers and spreads employment opportunities across rural areas.
Recent Industry Developments
- April 2025: The State Bank of Vietnam launched a VND 100 trillion (USD 4.2 billion) credit program for agriculture, forestry, and fishery sectors, with major banks including Vietcombank scaling participation to VND 15 trillion to support cashew processing modernization and capacity expansion.
- February 2023: The Cashew Nut Association of Cambodia (CAC) and the Vietnam Cashew Association (Vinacas) have signed a memorandum of understanding (MoU), allowing Cambodian farmers to sell directly to Vietnamese processing plants and bypass the traditional brokers.
- September 2022: Vinapro has launched Richer Milk, the first cashew milk line in Vietnam, made with 100% premium Vietnamese cashew nuts and natural flavor.
Vietnam Cashew Market Report Scope
Cashew nuts are edible kidney-shaped nuts rich in oil and protein. They are either roasted or shelled before being eaten. Oil extracted from the shells is used as a lubricant in the production of plastics.
The study analyzes the cashew market scenario in Vietnam. The Vietnamese cashew market report covers an extensive analysis of production(volume), consumption(volume and value), import(volume and value), export(volume and value), and price trend analysis. The report offers market size and forecasts in terms of value (USD) and volume (metric tons) for all the above segments.
By Form
| In-shell |
| Shelled (Kernels) |
By Geography
| Production Analysis |
| Consumption Analysis |
| Import Analysis |
| Export Analysis |
| Price Trend Analysis |
| By Form | In-shell |
| Shelled (Kernels) | |
| By Geography | Production Analysis |
| Consumption Analysis | |
| Import Analysis | |
| Export Analysis | |
| Price Trend Analysis |
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Key Questions Answered in the Report
What is the current value of the Vietnam cashew market?
The Vietnam cashew market size stands at USD 3.3 billion in 2025.
How fast is the market anticipated to grow through 2030?
It is projected to post a 9.5% CAGR, reaching USD 5.2 billion by 2030.
Which product form dominates sales?
Shelled kernels lead with 86.8% market share in 2024.
What technology trends are reshaping processing efficiency?
AI-enabled optical grading lines and collaborative packing robots are cutting breakage and labor costs.
Which export destination is growing the fastest?
China became the largest destination in H1 2025, absorbing 83,100 tons of kernels, a 45% value increase year over year.
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