Cashew Nuts: Product Description and Global Distribution

Cashew nuts are kidney-shaped seeds that develop at the bottom of the pseudocarp, or “false fruit,” of the cashew tree, scientifically known as Anacardium occidentale. This pseudocarp, commonly referred to as the cashew apple, houses the true seed, a kidney-shaped drupe. Inside this drupe is the soft, white kernel, the raw cashew nut, which is the edible product consumed worldwide.

The process of obtaining the edible cashew nut begins with harvesting the nut still inside its hard shell. This shell contains a caustic phenolic resin known as Cashew Nut Shell Liquid (CNSL), which is toxic to humans and must be removed before consumption. The extraction process involves applying heat or steam to soften the shell, making it easier to remove. The kernel, which constitutes approximately 20% of the total weight of the fruit, is extracted after this treatment and is the product that reaches retail shelves.

The cashew tree is native to northeastern Brazil but is now grown in various regions globally, especially in Africa, Asia, Latin America, and the Caribbean. At least 46 countries cultivate cashews, with West Africa, India, Vietnam, and countries like Ivory Coast and Cambodia standing out in production. Despite Africa being responsible for over half of global cashew production, many producing countries lack processing capabilities, resulting in the export of unprocessed cashew nuts to countries like Vietnam and India, where the shelling and packaging are carried out.

According to the International Nut and Dried Fruit Council (INC), global cashew production has been on a continuous rise, reaching 1.09 million tons in the 2022-2023 season. This steady growth reflects the increasing demand for cashews, which have become an important source of healthy fats, proteins, and fiber for European consumers.

Production Process

The production process of cashews involves several critical steps. First, the nuts are sun-dried after being harvested, which reduces the moisture content of the shell to 8-10%. The nuts are then stored under dry, cool, and well-ventilated conditions to preserve their quality.

Subsequently, cashews undergo various processing stages, including preparation for shelling (cleaning, drying, steaming, or roasting), shelling (manual or automatic), and sorting by color and size before being packaged. In more advanced processing regions, such as Vietnam, cashews are processed using large-scale automated machinery. 

However, in African countries, processing is often more limited and largely relies on manual methods. This disparity in processing capabilities between different producing countries impacts both the quality and cost of cashews, which directly influences the European market.

Global Distribution and European Market

The global distribution of cashews is dominated by African and Asian producing countries, with Vietnam and India as the primary exporters. However, the growing processing capacity of African countries like Ivory Coast is altering market dynamics. 

Ivory Coast, for instance, has significantly increased its exports to Europe, surpassing India in export volume in 2022. This shift indicates a change in trade trends, with African countries gaining ground as key cashew suppliers, particularly due to investments in processing capabilities and support from international funds.

The distribution landscape reflects both the opportunities and challenges facing cashew exporters in Europe, especially in terms of sustainability and supply chain transparency. As European consumer demands evolve, suppliers must adapt to new quality, traceability, and sustainable practices.

The European Cashew Nut Market

Europe has firmly established itself as the leading market for cashew nuts, accounting for approximately 40% of global cashew nut import value in 2022. This growth is driven by increasing awareness of the health benefits of cashews, including their content of healthy fats, protein, and fiber, making them a popular option in healthy diets.

Factors Driving the European Market

One of the primary factors contributing to the high demand for cashews in Europe is the strong interest in “healthy snacking.” As consumers look for alternatives to traditional snacks, cashews are positioning themselves as a healthier option compared to products like potato chips or processed snacks. Additionally, the growing popularity of vegan and lactose-free diets has led to an increase in demand for products such as cashew butter and plant-based beverages, further fueling this growth.

However, fluctuations in cashew prices, driven by factors such as harvest conditions in producing countries, can influence imports and demand. Despite these variations, the long-term trend remains positive, with import growth rates averaging 6.1% annually between 2018 and 2022.

Import Distribution
The European cashew nut market is dominated by several key importing countries. Germany is the largest importer of cashews in Europe, followed by the Netherlands, the United Kingdom, France, Italy, and Spain. Below is the distribution of cashew nut imports in Europe for 2022:

Germany, Netherlands, and United Kingdom remain the leading importers, accounting for the highest share of total European imports.

Opportunities in European Countries

Several European countries represent key markets with high potential for the growth of cashew nut imports. The main importers and consumers in Europe include Germany, the Netherlands, the United Kingdom, France, Italy, and Spain. Below, we analyze the countries with the most significant opportunities in the cashew market.

Germany: The Largest Cashew Market in Europe

Germany is the largest importer of cashews in Europe, with an import volume of nearly 59,000 tons in 2022. Furthermore, Germany serves as an important re-export hub for cashews to other European countries, with 38% of its imports directed to other destinations within Europe.

The trend in Germany is moving towards organic products, which offers a significant opportunity for suppliers offering certified organic cashews. The German market also demonstrates a strong interest in Fair Trade products, providing an additional layer of opportunity for exporters who can meet these standards.

Netherlands: A Key Commercial Hub

The Netherlands is the second-largest importer of cashews in Europe, with an import volume of around 57,600 tons in 2022. Like Germany, the Netherlands serves as an essential re-export center, especially to Germany and France. This country also has a growing demand for sustainable cashews, supported by initiatives like the Sustainable Nut Initiative (SNI), making it a prime market for suppliers focused on sustainability.

United Kingdom and France: High Consumption Markets

The United Kingdom, with 23,000 tons of imports in 2022, is the second-largest consumer of cashews in Europe. In this market, there is an increasing demand for cashews in products like nut butters, fruit and nut bars, and plant-based beverages.

France is also a key market for cashews, importing 16,121 tons in 2022. In France, the trend toward sustainability and organic products is driving the consumption of cashews, particularly in products like cashew milk and healthy snacks.

Italy and Spain: Accelerated Growth

Italy and Spain are experiencing rapid growth in cashew nut imports. In 2022, Italy imported 13,428 tons, while Spain imported 13,130 tons. Both countries have seen a significant increase in demand due to the growing preference for cashews in Mediterranean cuisine, especially as a substitute for pine nuts in traditional recipes like pesto.

Here is a summary table of cashew nut imports in these countries in 2022:

These data show that countries like Germany and the Netherlands continue to dominate the cashew market, but other countries such as the United Kingdom and Spain are experiencing accelerated growth in the consumption of these nuts.

Trends Offering Opportunities in the European Cashew Nut Market

The increasing demand for healthy snacking is one of the key drivers behind the growth of cashew nut consumption in Europe. As consumers become more health-conscious, nuts like cashews are seen as a better alternative to traditional snacks such as chips or processed foods. Cashews are also popular in vegan diets, as they are rich in proteins and can be used in various products like nut butters, milk, and snacks, catering to lactose-intolerant and plant-based consumers.

Another growing trend is the shift toward less processed foods. European consumers are looking for natural and minimally processed products, and cashews fit this demand perfectly. With the rise of clean-label products and a growing preference for whole foods, cashew nuts are increasingly marketed as a healthy, unprocessed snack option. This trend opens opportunities for suppliers to meet the demand for simple, high-quality cashews with no added sugars or preservatives.

Sustainability is also a major focus in the European market. As consumers become more aware of environmental and ethical concerns, the demand for sustainably sourced cashews is rising. Companies that can offer certified sustainable products, such as Fair Trade or organic cashews, are more likely to succeed in the competitive European market. With initiatives like the European Green Deal pushing for sustainability in food production, cashew suppliers focusing on ethical sourcing and transparent supply chains are poised to capitalize on this trend.

Sustainability and Ethical Sourcing

Sustainability and ethical sourcing have become crucial factors in the European cashew nut market. Consumers are increasingly concerned about the environmental and social impact of the products they purchase, leading to a rising demand for ethically sourced cashews. Initiatives like the European Green Deal, which promotes sustainability in food production, are pushing companies to adopt more sustainable practices. This trend is particularly relevant in the cashew industry, where production often takes place in developing countries.

For suppliers looking to enter the European market, obtaining certifications such as Fair Trade or organic can provide a significant competitive advantage. These certifications ensure that the products meet specific environmental and social standards, which is increasingly important for European consumers. The focus on sustainability also extends to packaging, with more companies opting for environmentally friendly materials to align with consumer preferences.

Furthermore, investing in local processing in producing countries is becoming more common. By sourcing cashews directly from farmers and processing them closer to where they are grown, companies can reduce their carbon footprint and support the local economy. This approach also helps ensure fair wages for farmers and improves the livelihoods of communities involved in cashew production.

Conclusion

The European market for cashew nuts presents a wealth of opportunities driven by consumer trends toward healthy snacking, sustainability, and ethical sourcing. With increasing demand for plant-based products and minimally processed foods, cashews are well-positioned to continue their growth as a popular ingredient in snacks, dairy-free alternatives, and health-conscious foods. Moreover, the growing awareness of sustainability and ethical production practices in Europe highlights the importance of traceable, certified sourcing for suppliers looking to capitalize on this demand.

Germany, the Netherlands, and the United Kingdom are key markets for cashew imports, offering significant potential for both established and emerging suppliers, particularly those from African countries who are investing in local processing and sustainable practices. As the market evolves, companies that prioritize quality, transparency, and sustainability will be best positioned to succeed in the competitive European landscape.

In conclusion, the future of the European cashew nut market looks promising, with strong growth expected in the coming years. By aligning with consumer preferences for health, sustainability, and ethical sourcing, cashew suppliers can take advantage of the expanding market and contribute to a more responsible and sustainable global cashew industry.