The cashew market in the Asia Pacific is estimated to register a CAGR of 4.8% during the forecast period (2020-2025). More than 80% of the cashew cultivation is done by smallholding farms, ranging in size from 0.5 ha to 5 ha in countries of Asia. Medium and large-scale commercial plantations produce 10-15% of the total production by employing hired laborers. Major cashew nut producing countries in Asia-Pacific are Vietnam, India, Sri Lanka, Indonesia, and the Philippines. The region is the pioneer of cashew trade and cashew processing on the global platform. According to FAO, India and Vietnam were the two major cashew producers, which accounts for 785 thousand tons and 2663 thousand tons, respectively, in 2018. The largest exporting countries in terms of quantities are the Philippines, Indonesia, and Vietnam, which export more than 70%.
Key Market Trends
Consolidating Leadership of Vietnam
According to FAO, Vietnam is the largest producer of cashew globally, which accounts for 2 million ton, with one-third of cashew is used for domestic consumption and rest are used for export. The production of cashew is increasing year on year due to the high demand for export and low processing cost in Vietnam, allowing Vietnam to remain as the most prominent shelled cashew exporter and in-shell cashew importer. In 2018, Vietnam cashew production accounted for 2.6 million ton as compared to 2017, which accounted for 2.1 million ton. Vietnam is carrying out high-density planting, commercial farming, and seed programs to ensure high yields. It also invested heavily in mechanizing the entire cashew processing to save on labour, bringing in consistency and cost competitiveness. In the last eight years, Vietnam has increased its presence to over 85 countries through the export opportunity. It is the largest supplier of cashew to the United States, China, Australia, Canada, and New Zealand.
Indonesia Leads Cashew Export Market in Terms of Value and Volume
Indonesia is the major exporter of cashew in the Asia-Pacific region, accounting for more than 70% of the cashew export to the world. It exports cashew kernels to more than 60 countries, mainly to Thailand, China, Malaysia, Vietnam, India, and Singapore. As per UN Comtrade, the cashew export value amounted to USD 429,614,232 in 2018 up from USD 373,433,160 in 2016, from Indonesia to the rest of the world. The main importers of Indonesian cashews are Vietnam, Sri-Lanka, the United States, Canada, Bangladesh, Philippines, Germany, Russia, and Brazil.
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