2023 unfolded a rollercoaster journey for cashew prices, marked by substantial volatility fueled by supply chain challenges. Despite the ups and downs, the global and domestic demand for cashews remained unwavering, creating a generally bullish atmosphere in the cashew market. The surge in consumer health consciousness has significantly contributed to the heightened demand for cashews, a trend poised to persist in the current year.
Global Appetite for Cashews on the Rise
As health-consciousness spreads globally, the demand for cashew nuts is experiencing a substantial uptick. This is particularly evident in Western countries where awareness regarding the nutritional benefits of cashews is growing. The consumption patterns in these regions are evolving positively, aligning with the surge in demand. However, the delicate balance between supply and demand hinges on the price momentum, presenting a critical factor for the cashew market.
Supply Chain Hurdles and Climatic Quirks
Experts shed light on the hurdles the cashew supply chain faces. The escalation of transportation costs and a decline in production, compounded by uncertainties and unfavourable weather conditions in major cashew-producing countries of West-East Asia, have directly impacted prices. Geopolitical scenarios, encompassing trade policies and global relations, have also played a pivotal role in influencing the dynamics of the cashew business. The competitive terrain and coordinated efforts among significant exporting countries further shape the trajectory of the cashew market.
India’s Cashew Market – Balancing Act
India has emerged as a crucial player in the global cashew trade, witnessing a substantial surge in demand and consumption in recent years. Flavored and sorted cashew products have carved a significant niche in the retail market. However, potential shifts in consumer preferences towards more affordable light snacks are looming on the horizon, which could pose challenges to the cashew business. Despite the hurdles, India remains the largest consumer and processor of raw cashew nuts globally, processing nearly half of the world’s supply. India’s share in the global consumption of processed cashews stands at approximately 40 percent, and the market size is projected to increase from $2,31 billion in 2023 to $2,79 billion in 2028.
The cashew market experienced a tumultuous 2023 marked by price volatility due to supply chain challenges. Despite this, global and domestic cashew demand remained robust, driven by increased health consciousness. The surge in demand is expected to persist, especially in Western countries where awareness of cashew nuts’ nutritional benefits is growing. Supply chain disruptions influenced prices, including rising transportation costs and production declines in major producing countries. The surge in demand, fueled by health-conscious consumers globally, offers a silver lining. As India balances its position as a significant player, challenges loom with shifting consumer preferences.
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