Healthy Cashew Craze Sweeps the Globe
The year 2023 has witnessed a resilient surge domestically and globally for cashews. What fuels this fervor? It’s the growing adoration for cashews as a health-conscious snack. The rising tide of nutritional awareness, especially in Western markets, has propelled cashews into the limelight as a favored choice among health-conscious consumers seeking wholesome snacking alternatives.
Fluctuations Amidst the Pandemic Echoes
Yet, this robust demand has not been without its share of challenges. Lingering echoes of the Covid pandemic have reverberated through the cashew markets, influencing consumer spending patterns and disrupting global supply chains. The Chairman of Beta Group sheds light on the topic. He notes that while nutritional cognizance uplifts the demand, external factors such as COVID-19’s lingering impacts contribute to market fluctuations.
The pricing in the cashew industry has experienced a whirlwind of volatility. Challenges within the supply chain, such as increased logistics costs and production inefficiencies, have cast shadows on the stability of cashew prices. Abnormalities in weather conditions across key cashew-producing regions like West Africa and Southeast Asia have also stirred ripples, impacting crop yields and influencing global supply and prices. Experts further emphasize the role of geopolitics, underscoring how trade policies and international relations involving major cashew-exporting nations play a pivotal role in shaping price trajectories.
India’s Flavorful Evolution
Turning our gaze to India, experts highlight a noteworthy transformation in cashew consumption patterns. The market has witnessed a swift shift, with flavored assorted cashew products claiming an expanding share in the retail domain. However, challenges loom as the local population favors lighter, budget-friendly snacks for on-the-go munching. Despite this, India proudly stands as the world’s largest consumer of cashews, processing nearly half of the global cashew kernels and devouring 40% of the worldwide output.
Prospects and Predictions for 2024
Looking into the crystal ball for 2024, traders project a steady market with limited downside risks. The anticipation that substantial price jumps are only possible if there’s a dramatic twist in the supply chronology. However, experts strongly believe 2024 prices will surpass the lows in Q2/Q3 of 2023.
In recent years, the comfortable supply of cashews is attributed to the utilization of built-up oversupply. The short-term outlook doesn’t hint at a significant increase in supply. On the flip side, uncertainties linger about the impact of El Niño on the 2024 crop, especially in regions like Vietnam and Cambodia.
The demand for this humble yet mighty kernel is on an upward trajectory. The blend of health-conscious choices and global market trends paints a picture of resilience and growth. The cashew’s journey in 2024 promises to be a steady ascent driven by demand, supply, and external forces.
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