The Africa cashew market is projected to witness a CAGR of 4.5% in terms of production for the forecast period (2021-2026).
COVID-19 pandemic had massively affected the cashew market. The prices of raw cashews which were already going low and under pressure due to excess supply in the previous few years got tumbled after processing units got slowed and closed due to repeated nation-wide lockdowns. As majority of the country's produce is exported, the export sector got affected due to restrictions on trade movements that in return led to a supply crunch in importing countries. The delay in the global supply chain and reduced consumer demand had dampened the market.
The country of Côte d’Ivoire is known for registering the highest production of more than 35.0% followed by Benin, Tanzania, and Guinea-Bissau at 11.0%, 10.0%, and 9.0%, respectively. Ghana is the largest importer of cashews in Africa accounting for almost 80.0% of the imports Whereas Côte d’Ivoire leads in terms of exports 36.0% of Africa's export market share.
Key Market Trends
Côte d’Ivoire Leads the Cashew Market
In Africa, Côte d'Ivoire, the country that is leading the cashew market has been experiencing a continuous increase in the production of cashews for the past five years, and it is estimated that production will go up by about 7.0% in the forecast period of the report. In 2019 Côte d'Ivoire recorded a production of 792,678 metric ton of cashew by volume.
An average cashew plant starts bearing fruits after 4-5 years after plantation, and its productivity tends to start declining after 15 years. In Côte d'Ivoire, most cashew trees are relatively young with higher yields, with more than 10.0% of the acreage being less than 10 years in age. The acreage is further expanding with improved and advanced varieties bring planted every year. Owing to higher productions, Côte d'Ivoire is also the highest exporter of cashews in Africa.
Increasing Acreage Under Cashew in Africa
The area under cultivation of cashew in Africa has seen an increasing trend for the past five years. In 2019, as per FAO, 4,704,272 hectares of land was under the cultivation of cashew and it is estimated that the area under cultivation of cashew is going to increase at a CAGR of 4.5% in the forecast period of the report. The deep, well-drained sandy or sandy-loam soil in most parts of Africa is favorable for the cultivation of cashew, and hence, it is driving the production in this region.
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