Why Businesses Should Look into Entering Organized Cashew Farming and Processing Industry

In India, cashew which is native of eastern Brazil, has been introduced by Portuguese. Initially it was introduced in Goa and from there it spread to other states. It is mainly grown in the coastal areas of Karnataka, Maharashtra, Goa, Kerala and Tamil Nadu. It is also grown in Odisha, North Eastern states, Chhattisgarh and West Bengal. Unlike many other cash crops such as Cocoa, Cashew doesn’t need rain throughout the year. It requires a drought period of at least 4-5 months. 

It can be grown in any type of soil, but well-irrigated sandy soils are most suitable. It requires a slightly acidic to neutral soil composition (PH level of 5 -7) for best growth. 

Today India has a strong standing as a major player in the global cashew market. The nation stands as the world's second-largest producer and exporter of shelled cashew nuts. The market is driven by growing export prospects, domestic consumption, and growing awareness of healthy eating. 

As per Statista, the market generated a revenue of USD 729 million in 2024 and is expected to grow at a CAGR of 6.9% from 2025 to 2030. India's coastal areas are the primary locations for cashew farming, serving as a crucial economic foundation. It has over 45% of the global cashew market alongside Ivory Coast. 

India produced 1.15 million tonnes of cashews in 2024 over a vast 0.7 million (1.72 million acres) hectares of land. With over a million people employed in processing plants and rural farms, the industry has a substantial economic impact. The cashew value chain typically flows from planting to processing (grading, drying, and shelling) and finally to distribution. 

India's standing as a global cashew powerhouse is expected to further solidify, attributed to its advantageous climate and well-established infrastructure.

 India’s Cashew Export Landscape:

India strongly maintains its leading position in the cashew sector with more than 15% of the world's cashew exports. Cashew kernels account for the country's primary export. However, a small volume of cashew shell oil is additionally exported across international markets. 

Even though the export value decreased by 4.80% from USD 356.32 million in 2023, the volume showed endurance, rising to 79,030.65 MT in 2024.

India's cashews are distributed across 60 nations, demonstrating their global reach. The UAE, Japan, the Netherlands, Saudi Arabia, the United States, Canada, France, Israel, and Italy are some significant export markets with steady demand. With a substantial 34.9% of total exports in 2023, the UAE is by far the biggest importer. 

Netherlands and Japan accounted for a sizeable 10% of India's cashew exports in 2023, with respective values of USD 36 million each. 

 Cashew’s Evolving Competitive Landscape: 

The cashew market in India is a vibrant and highly competitive space with a captivating mix of well-established players, innovative newcomers, and international companies. The market is quickly transforming beyond raw kernels, with an increasing focus on branded and processed products. 

The ongoing shift in the market is attributed to changing consumer preferences and the growth of e-commerce. Dominant players like Alphonsa Cashew Industries are leading the market at the forefront. The brand controls the entire cashew value chain, from farm-gate sourcing across six African sources to in-house processing in 13 Indian facilities.

 Additionally, Delicious Cashew Co. (DCC) has a significant national footprint. 

Furthermore, the market is well represented by Nutraj (VKC Nuts Private Limited), a well-known dry fruit and nut manufacturer. The company sources cashews from both Indian and international cashew-producing regions. 

Royal Dry Fruits Pvt Ltd (Rostaa), a superfood brand, also generated a revenue of USD 4.5 million in 2023. Rostaa is renowned for its premium products, exclusive mixes, and diverse reach to the Middle East, Europe, and South Asia. 

The growth of e-commerce platforms and digitalization has paved the path for brands like Vedaka. This Amazon India’s private label company focuses on quality, freshness, and hygiene in its packaged cashew goods. Nutty Yogi, a foodtech company that practises traditional Indian-inspired snacks, achieved a revenue of USD 1.04 million in 2024. Offering products like cashew butter and crunchy cashews, they promote innovation and healthy ingredients. 

The Lucrative Cashew Sector – Value Chain Analysis & Business Opportunities:

India presents an alluring environment for agribusiness entrepreneurs with its multifaceted value chain from farm to consumer. The process starts with production, where raw cashews are grown by an extensive network of farmers. Raw cashew nuts (RCN) are then processed to yield valuable kernels. Furthermore, it undergoes semi-processing and is then sent to central facilities for vacuum packing, drying, quality control, and final grading.

The distribution is handled by local traders, contract buyers, and export organizations. They make sure that raw and processed cashews get to their final destinations. Upcoming entrepreneurs can capitalize on this lucrative opportunity by developing effective supply chain logistics. India is a global supplier of high-quality cashew kernels, with exports standing at the forefront. Businesses that emphasize global quality standards can achieve great success since cashews are the second most consumed nut worldwide, with a rising demand. 

Lastly, product innovation and health trends are driving an upward trend in consumption. This is where processed foods made from cashews thrive. In addition to the conventional roasted and salted cashews, there is an array of opportunities for value-added products. Plant-based dairy substitutes like vegan yogurts, cashew milk, and cashew cheese are gaining popularity. Demand for innovative offerings like cashew-flavoured butter and cashew-infused bars & snacks has also witnessed a surge. Every stage of India's cashew value chain provides an ideal environment for entrepreneurs to capitalize on. Companies that will prioritize sustainability, quality, and product innovation are poised to profit from this booming market.

The cashew shell oil, which is procured from the shells can also offer a lucrative opportunity to capitalize upon. The shell oil, which is also called CSNL (Cashew Shell Nut Liquid) is used in various paints, varnishes and brake linings. 

How can The India Watch Help?

For enterprises seeking to successfully navigate and excel within the evolving Indian cashew landscape, The India Watch provides specialized market research, feasibility studies, and strategic consulting. Our in-depth insights and advisories can empower you to make informed decisions and achieve sustainable growth. Our bespoke feasibility studies and robust market insights deliver critical data & insights, including:

• Cashew Market Sizing & Growth Projections
• Detailed Competitive Landscape Analysis
• Recent Investments & Key Industry Developments
• Consumer Behaviour Analysis for Cashew Products
• Distribution Channel & Supply Chain Optimization Analysis
• Go-to-Market Strategies
• Sales & Marketing Strategies
• In-depth Regulatory & Policy Insights Relevant to Cashew Processing and Trade
• Location Suitability Analysis for Cashew Cultivation/Processing
• Financial Projections & Risk Assessment for Cashew Ventures
• Addressable Market Size Estimation for Specific Cashew Categories
• Future Growth Roadmap for Cashew Businesses

To explore how our expertise can empower your venture in the Indian cashew market, reach out to us at info@theindiawatch.com