India’s cashew industry is entering a new phase of transformation, driven by changing consumer preferences, value-added products, and policy support, with the market projected to reach $3.31 billion by 2033.

According to industry estimates, the Indian cashew market, valued at $2.28 billion in 2024, is expected to grow at a compound annual growth rate (CAGR) of 4.25% over the next decade. By 2026, the sector is projected to reach approximately $2.46 billion, reflecting steady expansion as demand strengthens both domestically and globally.

Shift Toward Health and Everyday Consumption

A key driver of growth is the evolving role of cashews in consumer diets. Once considered a festive or occasional snack, cashews are increasingly being positioned as a daily superfood. Rising demand for plant-based alternatives, including cashew milk and cheese, as well as for protein-rich snack products, is driving higher consumption.

Industry projections suggest that domestic consumption could account for nearly 40% of the total market share by 2027, signaling a significant shift toward internal demand.

Policy Support and Strategic Focus

Government support is further accelerating the sector’s growth. In the 2026 Union Budget, cashews were designated as a “high-value crop,” reinforcing efforts to strengthen domestic production, reduce import dependency, and upgrade processing infrastructure.

This policy direction reflects India’s ambition to enhance its position in the global cashew value chain while retaining more value within the domestic economy.

Challenges Remain Amid Growth

Despite strong momentum, the industry continues to face several structural challenges. Labor shortages in traditional processing hubs such as Kerala are pushing the need for increased automation, while competition from Vietnam’s highly efficient processing model remains a key concern.

Additionally, India’s heavy reliance on imported raw cashew nuts—currently around 60%—poses ongoing risks to supply chain stability. Efforts are underway to gradually reduce this dependency and strengthen domestic sourcing.

A Transition Toward Premium Value

Industry analysts note that the real value in India’s cashew sector lies in its transition from a bulk-commodity business to a premium, branded-products market.

As the industry evolves, stakeholders—including investors, processors, and consumers—are closely watching whether India can successfully balance growth, competitiveness, and self-reliance in the coming years.

With demand rising and structural changes underway, India’s cashew sector is poised to play an increasingly important role in the global agri-food landscape.

Reference Chairman@Beta Group