India Cashew Market Size and Forecast 2025–2033

India Cashew Market Overview

India’s cashew industry plays a vital role in the country’s agricultural economy, contributing significantly to rural employment, food processing, and export earnings. According to Renub Research, the India Cashew Market is expected to grow from US$ 2.28 billion in 2024 to US$ 3.31 billion by 2033, registering a CAGR of 4.25% during the forecast period 2025–2033. This steady growth is driven by rising health consciousness, increasing domestic consumption, and expanding export opportunities across global markets.

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India is among the world’s largest producers, processors, and exporters of cashew nuts. The country cultivates cashews across approximately 0.7 million hectares, producing more than 0.8 million tonnes annually. Major producing states include Maharashtra, Andhra Pradesh, Odisha, Karnataka, Tamil Nadu, and Kerala, each contributing to the diversity and scale of the industry. Beyond production, India also leads in cashew processing, with clusters such as Kollam in Kerala historically serving as global hubs for kernel processing.

The cashew sector supports livelihoods for nearly 1.5 million people, particularly in rural and coastal regions. A significant proportion of the workforce consists of women, especially in processing units, making the industry socially and economically important. With government-backed horticulture initiatives, improved cultivation practices, and rising consumer preference for nutritious foods, India’s cashew market is positioned for sustainable long-term expansion.

Market Size and Growth Outlook

The growth trajectory of the India cashew market reflects a balanced mix of domestic consumption and export demand. While traditional usage during festivals and special occasions continues, cashews are increasingly becoming a daily dietary component across urban and semi-urban households. Rising disposable incomes, lifestyle changes, and awareness of the nutritional benefits of nuts have transformed cashews into a mainstream snack option.

On the export front, India remains a key supplier of cashew kernels to over 60 countries, with the United States, the United Arab Emirates, Japan, and European nations representing major destinations. Although competition from countries such as Vietnam has intensified, India’s reputation for quality kernels and diversified product offerings continues to sustain its global relevance.

Growth Drivers for the India Cashew Market

Changing Consumption Patterns

Cashews are no longer limited to festive gifting or occasional indulgence. Changing consumption habits, driven by urbanization and modern retail expansion, have significantly boosted demand. The rapid growth of supermarkets, hypermarkets, and e-commerce platforms has made cashews more accessible across income groups and geographies.

Cashews are now widely used in everyday cooking, including gravies, desserts, snacks, and plant-based recipes. Packaged, ready-to-eat cashew products such as roasted, salted, and flavored variants have further increased convenience for consumers. These evolving consumption patterns are driving consistent demand growth, particularly in urban and semi-urban India.

Product Innovation and Value Addition

Product innovation has emerged as a key differentiator in the Indian cashew market. Brands are increasingly focusing on value-added, flavored, and organic cashew products to cater to diverse consumer preferences. Popular offerings include chili-roasted, masala-coated, honey-roasted, and low-sodium variants, which appeal to younger and health-conscious consumers.

Additionally, the rise of plant-based diets has created demand for cashew milk, cashew butter, dairy-free cheese, and protein-rich snack bars. These products are particularly attractive to vegan, lactose-intolerant, and fitness-focused consumers. Innovation not only enhances shelf appeal but also allows companies to command premium pricing, thereby improving profitability across domestic and export markets.

Health and Wellness Trends

Health and wellness trends are significantly shaping the cashew market. Cashews are rich in heart-healthy monounsaturated fats, plant-based protein, dietary fiber, and essential minerals such as magnesium, copper, and zinc. They are also a good source of vitamins B6 and E, which support immunity and metabolic health.

A study published in the British Journal of Nutrition suggests that individuals who consume nuts more than four times a week can reduce their risk of coronary heart disease by up to 37%. Such findings have strengthened cashews’ image as a functional food, increasing their inclusion in daily diets, nutrition bars, and health-focused snack alternatives. As consumers increasingly prefer clean-label and nutrient-dense foods, cashews continue to gain popularity both domestically and internationally.

Challenges in the India Cashew Market

Outdated Processing Technology

Despite its scale, the Indian cashew industry faces challenges related to outdated processing infrastructure. Many small and medium processors still rely on manual methods for shelling, peeling, and grading, resulting in lower productivity, inconsistent quality, and higher labor costs.

In contrast, countries such as Vietnam have adopted advanced automation and mechanized processing systems, enabling higher efficiency and cost competitiveness. The lack of modernization in India limits scalability and poses challenges in meeting rising domestic demand and global quality standards. Without timely investment in modern processing technology, India risks losing further ground in the competitive international market.

Labor Shortages and Skill Gaps

Labor shortages and skill gaps are emerging as critical concerns, particularly in traditional cashew processing hubs. The physically demanding nature of manual processing, coupled with health risks such as skin irritation from raw cashew shells, has discouraged younger workers from entering the industry.

As a result, many processing units face workforce shortages, leading to production delays and increased wage costs. Without targeted skill development programs, improved working conditions, and gradual mechanization, the industry may face long-term operational inefficiencies and reduced competitiveness.

Regional Market Insights

Maharashtra Cashew Market

Maharashtra contributes nearly 25% of India’s cashew production, making it a key player in the national market. Coastal districts such as Ratnagiri, Sindhudurg, and Kolhapur provide favorable climatic conditions for cashew cultivation. However, challenges including pest infestations, climate variability, and reliance on imported raw cashew nuts have limited productivity growth.

To address these issues, the Maharashtra Cashew Board has launched initiatives to expand cultivation by 12,000 hectares over three years, focusing on high-density planting and high-yielding varieties. Efforts are also underway to promote value-added products such as cashew apple juice and cashew wine, which could enhance farmer incomes and reduce dependency on raw nut imports.

Kerala Cashew Market

Once a global leader, Kerala’s cashew industry is currently facing structural challenges. The state produces approximately 83,000 metric tonnes of raw cashew nuts against a demand of nearly 600,000 metric tonnes, resulting in heavy reliance on imports. Declining cultivation area and low productivity of traditional varieties have contributed to this gap.

Women account for nearly 95% of the workforce in Kerala’s cashew processing sector. However, rising operating costs and raw material shortages have led to the closure of several processing units, particularly in Kollam. The Kerala State Cashew Development Corporation (KSCDC) is addressing these challenges through partial mechanization and procurement of raw cashews from African countries to sustain employment and output.

Vietnam Cashew Market: Competitive Landscape

Vietnam remains India’s strongest competitor in the global cashew market. The country has emerged as the world’s largest exporter of processed cashew kernels, exporting over 730,000 tonnes in 2024, generating revenues of approximately US$ 4.37 billion.

Vietnam processes more than 80% of the world’s cashew supply, supported by advanced automation, efficient supply chains, and strong government-industry collaboration. While rising shipping costs and limited domestic raw material availability pose challenges, Vietnam’s dominance continues to shape global pricing and competitive dynamics, influencing India’s export strategies.

India Cashew Market Segmentation

Cashew Production Market – By States

Maharashtra

Andhra Pradesh

Orissa

Karnataka

Tamil Nadu

Kerala

Others

Cashew Export Market – By Countries

UAE

Netherlands

Japan

Saudi Arabia

Vietnam

Others

Company Analysis

All key players are analyzed across four dimensions:

Key Person

Company Overview

Revenue Analysis

Recent Developments & Strategy

Major Companies Covered:

Wonderland Foods

Kalbavi Cashews

Britannia Industries Limited

Haldiram’s

Final Thoughts

The India cashew market is entering a phase of steady and sustainable growth, supported by favorable consumption trends, health-driven demand, and expanding export opportunities. While challenges such as outdated processing technology and labor shortages persist, ongoing government initiatives, product innovation, and value addition are expected to strengthen the industry’s long-term outlook.

With rising domestic consumption, diversification into plant-based and premium products, and strategic modernization of processing infrastructure, India has the potential to reinforce its position as a leading global cashew producer and exporter. As per Renub Research, the market’s journey toward US$ 3.31 billion by 2033 reflects a resilient sector adapting to evolving consumer preferences and global competition.