Global Processed Cashew Market to Reach USD 11.0 Billion by 2036 as African Processing Shift Redefines Global Supply Chains

The global processed cashew market is entering a decade of structural transformation. Valued at USD 6.3 billion in 2026, the industry is projected to reach USD 11.0 billion by 2036, expanding at a CAGR of 5.8%.

According to the latest industry outlook by Future Market Insights, growth is structurally underpinned by two powerful forces: sustained global snacking demand and a geographic realignment of processing capacity from Asia to West Africa.

Data from the Food and Agriculture Organization (FAO) indicates that global tree nut consumption has expanded at an average 4.2% annually over the past decade, with cashews steadily gaining share due to their versatility across plant-based formulations, confectionery, bakery, dairy alternatives, and protein-enriched snacks.

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The Structural Pivot: From Exporting Raw Nuts to Capturing Processing Margins

For over two decades, Vietnam and India dominated global kernel processing. However, West African governments are now enforcing raw cashew nut (RCN) export restrictions to mandate in-country value addition.

Benin's April 2024 raw nut export ban has already resulted in record domestic processing volumes. In January 2026 alone, Benin reported 50,000 tons of processed kernels. The country's flagship processor, Benin Cashew SA, secured financing to build five new processing plants in the Glo-Djigbe Industrial Zone.

Simultaneously, Ivory Coast processed approximately 600,000 tons in 2025, representing nearly 40% of its national output. West African processing volumes surged 51% year-on-year in 2025, confirming that origin-country industrialization is no longer aspirational-it is operational.

FMI analysts project Vietnam's share of global kernel output could decline from roughly 65% to below 50% by 2032 as African capacity scales.

Consumption Engine: Plant-Based Snacking and Functional Nutrition

The demand side of the equation remains equally strong. Processed cashews are increasingly positioned as:

• Plant-based protein sources
• Heart-healthy snack alternatives
• Premium clean-label ingredients
• Functional inclusions in protein bars and powders

Protein bars and powders currently account for 35.2% of end-use share in 2026, reflecting the alignment between plant-based diets and convenient nutrition formats.

Cashew-based ingredients are also expanding into dairy alternatives, including cashew milk and spreads, as well as premium confectionery applications.

Category Leadership: Sliced and Diced Formats Gain Prominence

Within product types, sliced and diced cashews command a 32.1% share in 2026. Their consistent sizing and texture make them highly preferred in:

• Bakery and confectionery
• Gourmet foodservice
• Cereals and granola
• Salad toppings and culinary garnishing

Whole kernel grades such as W180, W210, W240, and W320 continue to dominate export markets, but value-added formats are growing faster due to integration into packaged food manufacturing.

Regional Performance Snapshot

United States (3.9% CAGR): Premiumization and clean-label positioning drive growth in nut butters, organic snacks, and dairy alternatives.

Germany (4.7% CAGR): Sustainability and transparent sourcing influence purchasing decisions across retail channels.

India (6.1% CAGR): Rising integration into traditional sweets and modern protein products supports domestic processing expansion.

In February 2026, India's Union Budget proposed high-value crop status for cashews in coastal areas to stimulate production and infrastructure development.

Processed Cashew Market Key Metrics (2026-2036)

• Industry Size (2026): USD 6.3 Billion
• Industry Value (2036): USD 11.0 Billion
• Compound Annual Growth Rate (CAGR): 5.8%
• Fastest Structural Shift: West African Processing Expansion
• Primary Growth Driver: Plant-Based Snacking & Origin-Country Value Addition
• Source: Future Market Insights proprietary forecasting model based on raw nut production volumes, kernel recovery rates, and origin-country processing capacity expansion pipelines.

Navigating Constraints: Supply Concentration and Price Volatility

Despite strong demand fundamentals, the industry remains vulnerable to:

• Climatic variability
• Labor shortages
• Political trade policies
• Raw nut price volatility

Production remains concentrated in India, Vietnam, and Ivory Coast. Weather shocks or policy shifts can significantly disrupt supply chains and compress processor margins.

Vietnam's 2025 export revenue reached record highs; however, industry analysts have raised concerns over heavy reliance on imported raw nuts from Cambodia and Africa-what some refer to as the "processing paradox."

Competitive Landscape: Scaling Capacity and Strategic Alliances

The competitive landscape is characterized by a dual structure:

Organized players (40% market share):
Shivam Cashew Industry, Grau Nuts, Mineral & General Co. Ltd., Petrow Food Group, Proventus Agrocom Group, and others.

Unorganized regional processors (60% share):
Small and mid-scale operators catering to local markets and niche dietary demands.

Strategic investments in automated shelling, grading, and packaging technologies are reshaping operational efficiency. Additionally, sustainability-linked sourcing programs are emerging as brand differentiators in Europe and North America.

The Outlook: A Decade of Geographic Realignment

By 2036, processed cashews will be less defined by traditional export hubs and more by origin-country industrial ecosystems. As African governments continue enforcing value-addition mandates and infrastructure investments mature, processing margins are expected to shift closer to cultivation zones.

FMI opines that the coming decade will represent the most significant geographic restructuring in the processed cashew market in over 30 years.

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Frequently Asked Questions (FAQs)

1. What is driving growth in the processed cashew market?
Growth is driven by rising plant-based snacking demand, protein-rich product innovation, and origin-country processing mandates in West Africa.

2. Which region is witnessing the fastest structural transformation?
West Africa, particularly Benin and Ivory Coast, due to export bans on raw cashew nuts and large-scale processing investments.

3. What are the most popular processed cashew formats?
Sliced and diced formats lead in food manufacturing, while whole kernel grades remain strong in exports.

4. How is the competitive landscape structured?
The industry features organized multinational processors and a large base of regional players focused on domestic and niche markets.

5. What challenges could impact market expansion?
Raw nut price volatility, climate risks, labor constraints, and shifting trade regulations remain key risks.

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This release was published on openPR.