Cashew nuts market in Southern Asia

Earlier Report Observations

From 2018 to 2020, the cashew nut market in Southern Asia contracted. A reduction in the basic tariff on raw cashews from 5% to 2.5% and a cut in GST from 12% to 5% in 2018 facilitated import and processing, supporting supply. However, supply chain disruptions following the COVID-19 pandemic in 2020 led to transport and logistics delays, reducing availability and pulling down production and overall market volume.

The market rebounded from 2021 onward. Continued government support through initiatives like MIDH and RKVY promoted high-yielding varieties and expanded cultivation in both traditional and non-traditional states, boosting domestic output. Simultaneously, strong domestic demand driven by festivals such as Diwali and growing health consciousness among consumers increased consumption of cashews as a nutritious snack, driving market growth through 2023.

In 2024, raw cashew imports surged by 27% in the third quarter to meet high festive-season demand. New local players and brands emerged with differentiated products and customized packaging, adding dynamism to the market. Climate change effects, including heatwaves and floods, began impacting yields, while rising energy and fuel costs increased processing and logistics expenses.

Production cashew nuts in Southern Asia

In kind, 2017-2020, K t

Top producers of cashew nuts, 2017-2020

World map of production of cashew nuts, 2017-2020

Cashew nut production in Southern Asia has declined for the second year in a row. In 2020, the region produced 737 thousand tons of cashew nuts, marking a 5.3% decrease compared to the previous year. Looking at the period from 2017 to 2020, production fell by 3.7%, which translates to an average annual decline of 1.3%. The highest production level was recorded in 2018 at 862 thousand tons, with the largest year-on-year increase of 12.6% also occurring that year. In contrast, the most significant drop happened in 2019, when production decreased by 9.7%.

Annual dynamics of production in Southern Asia in kind, 2017-2020, K t

Exports cashew nuts from Southern Asia

Exports in kind, t

The export market for cashew nuts from Southern Asia showed considerable volatility during the observed period. Exports reached their peak in 2017 and hit their lowest point in 2020, with a dramatic 11.8-fold difference between these years. In 2020, Southern Asia exported 64 tons of cashew nuts, representing an 84.8% decline from the previous year. The largest increase occurred in 2019, when exports surged by 120.3%.

Annual dynamics of product's exports from Southern Asia in kind, 2017-2020, t

From 2017 to 2020, Southern Asia's cashew nut exports were distributed across a wide range of buyers. Vietnam was the largest destination, accounting for 30.7% of exports in volume, followed by the United Arab Emirates at 7.7% and the Netherlands at 2.6%. Together, these three countries made up 41.0% of total exports, while the remaining 59.0% was spread among numerous other countries with smaller but still notable shares.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Southern Asia in kind, 2017-2020

Exports in value, K $ US

The value of cashew nut exports from Southern Asia has fallen for the third consecutive year. In 2020, exports totaled 665 thousand US dollars, a 46.1% drop compared to 2019. Over the four-year period from 2017 to 2020, export value declined by 78.4%, with an average annual decrease of 40.0%.

Annual dynamics of product's exports from Southern Asia in value, 2017-2020, K $ US

Between 2017 and 2020, the top buyers of cashew nuts from Southern Asia in value terms were Vietnam, with 15.9% of exports, the United Arab Emirates at 12.0%, and the Netherlands at 9.9%. However, their combined share was only 37.9% of total export value, indicating a highly diversified market structure with many other countries contributing smaller portions.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Southern Asia in value, 2017-2020

Imports cashew nuts to Southern Asia

Imports in kind, t

Cashew nut imports into Southern Asia rose significantly in 2020, reaching 6 466 tons, which represents a 45.9% increase from the previous year. Over the period from 2017 to 2020, imports grew by 59.2%, averaging an annual growth rate of 16.8%. The largest decline during this time was recorded in 2019, when imports fell by 5.3%.

Annual dynamics of product's imports to Southern Asia in kind, 2017-2020, t

The import structure for cashew nuts in Southern Asia from 2017 to 2020 was highly diversified. Vietnam was the largest supplier, accounting for 14.5% of imports in volume, followed by Indonesia at 5.9% and the United Arab Emirates at 3.9%. Together, these three countries contributed just 24.3% of total imports, with no single country dominating the market.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Southern Asia in kind, 2017-2020

Imports in value, K $ US

The value of cashew nut imports into Southern Asia has increased for the third year in a row. In 2020, imports amounted to 35 428 thousand US dollars, up by 48.7% compared to 2019. From 2017 to 2020, import value rose by 77.3%, with an average annual growth rate of 21.0%.

Annual dynamics of product's imports to Southern Asia in value, 2017-2020, K $ US

In value terms, the import structure for cashew nuts in Southern Asia from 2017 to 2020 reflects a diverse set of trading partners. Vietnam led with 30.5% of import value, followed by the United Arab Emirates at 12.0% and Indonesia at 4.5%. Collectively, these three accounted for 47.0% of total imports, while the remaining 53.0% was distributed among numerous smaller markets.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Southern Asia in value, 2017-2020