7 Reasons Why Cashew Nut Export is a Lucrative Business

Cashew nuts are one of the most popular and nutritious nuts in the world. They are rich in protein, healthy fats, minerals, antioxidants, and vitamins. They are also versatile and can be used in various dishes, snacks, desserts, and beverages. Cashew nuts are in high demand globally, especially in developed countries where consumers are more health-conscious and willing to pay a premium for quality products.

Cashew nut export is a lucrative business for many countries, especially in Asia and Africa, where most of the cashew production takes place. According to the World Top Exports website, the global exports of cashew nuts amounted to US$6.3 billion in 2022, a decrease of 15.2% from 2018. However, this decline was mainly due to the COVID-19 pandemic, which disrupted the supply chains and reduced the consumption of cashew nuts. The market is expected to recover and grow in the coming years, as the demand for cashew nuts remains strong and the production increases.

If you are interested in cashew nut export, here are seven reasons why you should consider it:

1. Cashew nut export is a source of foreign exchange and income for many developing countries

Cashew nuts are one of the most valuable agricultural commodities in the world, and they provide a significant amount of revenue for many cashew-producing countries. For example, Vietnam, which is the largest exporter of cashew nuts, earned US$2.7 billion from cashew nut export in 2022, accounting for 42.4% of the total global exports. Ivory Coast, which is the second-largest exporter of cashew nuts, earned US$986.9 million from cashew nut export in 2022, accounting for 15.6% of the total global exports. India, which is the third-largest exporter of cashew nuts, earned US$359.8 million from cashew nut export in 2022, accounting for 5.7% of the total global exports. These revenues help these countries to improve their balance of payments, create employment opportunities, and support their economic development.

2. Cashew nut export is a way to add value to the raw cashew nuts and increase their profitability

Raw cashew nuts (RCN) are the unshelled cashew nuts that are harvested from the cashew trees. RCN have a lower value than shelled cashew nuts, which are the processed cashew kernels that are ready for consumption or further processing. RCN also have a shorter shelf life than shelled cashew nuts, and they require proper storage and handling to prevent spoilage and quality loss. Therefore, exporting RCN may not be as profitable as exporting shelled cashew nuts, which have a higher value and a longer shelf life. By processing RCN into shelled cashew nuts, exporters can add value to their products and increase their profitability. For example, according to the UNCTAD report, the average unit price paid by importers for shelled cashew nuts was US$6,216 per ton in 2022, while the average unit price paid by importers for RCN was US$1,163 per ton in 2022.

3. Cashew nut export is a way to diversify the product portfolio and cater to different market segments and preferences

Cashew nuts can be exported in different forms and grades, depending on the market demand and consumer preferences. For example, cashew nuts can be exported as whole kernels or broken kernels; as raw or roasted; as salted or unsalted; as plain or flavored; as organic or conventional; as white or colored; as small or large; as W180 or W320 (the most common grades of whole kernels); as LWP or SWP (the most common grades of broken kernels); etc. By exporting different types of cashew nuts, exporters can diversify their product portfolio and cater to different market segments and preferences.

4. Cashew nut export is a way to leverage the existing trade agreements and networks with major importing countries

Cashew nuts are traded globally, and there are many existing trade agreements and networks that facilitate their export and import. For example, Vietnam, which is the largest exporter of cashew nuts, has free trade agreements with many major importing countries, such as the European Union, Japan, China, India, Australia, New Zealand, etc. These agreements help Vietnam to reduce or eliminate the tariffs and non-tariff barriers on its cashew nut exports, and to access these markets more easily and competitively. Similarly, other cashew nut exporters can leverage their existing trade agreements and networks with major importing countries to boost their cashew nut exports.

5. Cashew nut export is a way to tap into the growing demand for cashew nuts in emerging markets

Cashew nuts are not only popular in developed countries, but also in emerging markets, where the demand for cashew nuts is growing rapidly. For example, China, which is the fifth-largest importer of cashew nuts, increased its cashew nut imports by 47.8% from 2018 to 2022. Similarly, other emerging markets, such as Brazil, Russia, India, Indonesia, Turkey, etc., are also increasing their cashew nut imports, driven by the rising income levels, urbanization, health awareness, and changing consumption patterns. By exporting cashew nuts to these emerging markets, exporters can tap into their growing demand and potential.

6. Cashew nut export is a way to benefit from the increasing awareness and demand for organic and fair trade cashew nuts

Cashew nuts are not only valued for their nutritional and culinary qualities, but also for their environmental and social impacts. Many consumers are becoming more aware and concerned about the origin, production methods, and sustainability of cashew nuts. They are willing to pay a premium for organic and fair trade cashew nuts, which are certified to meet certain standards of environmental protection, social responsibility, and ethical trading. According to the UNCTAD report, the global market for organic cashew nuts was estimated at US$1.2 billion in 2019, and it was expected to grow at a compound annual growth rate of 7.1% from 2020 to 2027. Similarly, the global market for fair trade cashew nuts was estimated at US$0.2 billion in 2019, and it was expected to grow at a compound annual growth rate of 8.6% from 2020 to 2027. By exporting organic and fair trade cashew nuts, exporters can benefit from their increasing awareness and demand.

7. Cashew nut export is a way to utilize the by-products of cashew processing and generate additional income

Cashew processing not only produces shelled cashew nuts, but also by-products such as cashew nut shell liquid (CNSL), cashew apple juice, cashew apple pulp, cashew apple vinegar, etc. These by-products have various applications and uses in different industries, such as food and beverage, pharmaceuticals, cosmetics, paints and coatings, rubber and plastics, etc. By exporting these by-products of cashew processing, exporters can utilize them and generate additional income.

Cashew nut export is a lucrative business for many reasons. It is a source of foreign exchange and income for many developing countries; it is a way to add value to the raw cashew nuts and increase their profitability; it is a way to diversify the product portfolio and cater to different market segments and preferences; it is a way to leverage the existing trade agreements and networks with major importing countries; it is a way to tap into the growing demand for cashew nuts in emerging markets; it is a way to benefit from the increasing awareness and demand for organic and fair trade cashew nuts; and it is a way to utilize the by-products of cashew processing and generate additional income.

Cashew Nut Export: A Global Overview

Cashew nuts are one of the most popular edible nuts in the world, valued for their rich and nutty flavor and health benefits. They are also a major source of income for many developing countries, especially in Africa and Asia, where they are grown and processed. In this blog post, we will look at some statistics and trends of the global cashew nut export industry, based on data from various sources.

Top Exporting Countries

According to the World’s Top Exports website, the top five exporters of cashew nuts (in shell) in 2022 were:

Vietnam: US$2.7 billion (42.4% of total exported cashews)
Ivory Coast: $986.9 million (15.6%)
India: $359.8 million (5.7%)
Ghana: $304 million (4.8%)
Netherlands: $265.7 million (4.2%)

These five countries accounted for 72.6% of the global cashew nut export value in 2022, which amounted to US$6.3 billion. This was a decrease of 15.2% from 2018, when the total export value was US$7.5 billion. The main reason for this decline was the lower unit price of cashew nuts, which dropped by 7.3% from 2021 to 2022.

Vietnam was the undisputed leader in the cashew nut export market, with a market share of over 40%. Vietnam not only exported raw cashew nuts, but also processed them into kernels, which fetched a higher price. Vietnam also imported cashew nuts from other countries, such as Ivory Coast and India, to meet its domestic and export demand.

Ivory Coast was the second-largest exporter of cashew nuts, and the largest producer in Africa. Ivory Coast exported most of its cashew nuts to Vietnam, India, and the Netherlands, where they were further processed and re-exported. Ivory Coast faced some challenges in its cashew nut industry, such as low productivity, poor quality, and lack of processing facilities.

India was the third-largest exporter of cashew nuts, and also a major consumer. India exported mainly to the United States, China, and the United Arab Emirates. India also imported cashew nuts from Vietnam and Africa to supplement its domestic production, which was affected by unfavorable weather conditions and pest infestations.

Ghana was the fourth-largest exporter of cashew nuts, and also a significant producer in Africa. Ghana exported mainly to Vietnam, India, and Brazil. Ghana had a competitive advantage in its cashew nut industry, due to its high-quality nuts, favorable climate, and supportive government policies.

The Netherlands was the fifth-largest exporter of cashew nuts, and also a major re-exporter in Europe. The Netherlands imported cashew nuts from Vietnam, Ivory Coast, and India, and re-exported them to other European countries, such as Germany, France, and Belgium. The Netherlands had a well-developed logistics and distribution network, which facilitated its trade in cashew nuts.

Top Importing Countries

According to Statista website, the top five importers of cashew nuts (in shell) in 2022 were:

United States: US$1 billion (13% of total imported cashews)
Vietnam: $945 million (12.3%)
Germany: $633 million (8.3%)
Netherlands: $507 million (6.6%)
China: $485 million (6.3%)

These five countries accounted for 42.8% of the global cashew nut import value in 2022, which amounted to US$7.66 billion. This was an increase of 7.88% from 2020, when the total import value was US$7.1 billion.

The United States was the largest importer of cashew nuts, mainly from Vietnam, India, and Brazil. The United States consumed most of its imported cashew nuts as snacks or ingredients for confectionery and bakery products. The United States also had a high demand for organic and fair-trade cashew nuts, which offered higher prices for producers.

Vietnam was the second-largest importer of cashew nuts, mainly from Ivory Coast, India, and Ghana. Vietnam imported raw cashew nuts to process them into kernels for domestic consumption and export. Vietnam had a large processing capacity and low labor costs, which gave it a competitive edge in the global market.

Germany was the third-largest importer of cashew nuts, mainly from Vietnam, Netherlands, and India. Germany consumed most of its imported cashew nuts as snacks or ingredients for confectionery and bakery products. Germany also had a high demand for organic and fair-trade cashew nuts, which offered higher prices for producers.

The Netherlands was the fourth-largest importer of cashew nuts, mainly from Vietnam, Ivory Coast, and India. The Netherlands re-exported most of its imported cashew nuts to other European countries, such as Germany, France, and Belgium. The Netherlands had a well-developed logistics and distribution network, which facilitated its trade in cashew nuts.

China was the fifth-largest importer of cashew nuts, mainly from Vietnam, India, and Brazil. China consumed most of its imported cashew nuts as snacks or ingredients for confectionery and bakery products. China also had a growing demand for organic and fair-trade cashew nuts, which offered higher prices for producers.

Cashew nuts are a valuable commodity in the global market, with a high demand and a complex supply chain. The main players in the cashew nut export industry are Vietnam, Ivory Coast, India, Ghana, and the Netherlands, while the main buyers are the United States, Vietnam, Germany, the Netherlands, and China. The cashew nut industry faces some challenges, such as price volatility, quality issues, and environmental and social concerns. However, it also offers some opportunities, such as value addition, market diversification, and sustainability initiatives.

References:

https://www.who.int/foodsafety/fs_management/No_03_allergy_June06_en.pdf

https://www.eolss.net/Sample-Chapters/C10/E1-05A-45.pdf

https://www.statista.com/statistics/967557/global-leading-exporters-of-cashew/
https://www.statista.com/statistics/744087/cashew-nut-export-value-brazil/
https://oec.world/en/profile/hs/cashew-nuts-fresh-or-dried
https://www.statista.com/statistics/1297203/cashew-nut-exports-from-africa-by-country/

https://www.worldstopexports.com/top-cashews-exports-imports-by-country-plus-average-prices/
https://unctad.org/system/files/official-document/ditccom2020d1_en.pdf
https://blog.exportsconnect.com/top-cashew-exporters-in-india/
https://www.mudraglobal.com/cashew-nut-exporters/

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