The Cashew Market in Brazil is estimated to register a CAGR of 3.8% during the forecast period (2020-2025). Cashew is a perennial tree that originated in Brazil. Brazil is one of the major producers and exporters of cashew nuts in the world. Although cashew farms are distributed over several states, the Northeast region accounts for over 95% of the Brazilian production, with the largest orchards located in coastal and transition zones of Ceará, Rio Grande do Norte, and Piauí states. Being very sensitive to the increase in price, which is directly passed on to consumers, consumption of cashew is affected by the consumers’ purchasing power. When cashew prices are too high, consumers switch to other nuts or types of snacks. Most cashew kernels are consumed as roasted and salted in snacks, and as ingredients in chocolate and ice cream products. Consumption is actively promoted by scientific research and frequent reports on the health value of nut consumption. Considerable amounts of cashew apples are also consumed fresh or processed.
Key Market Trends
Brazil as Major Producer of Cashew
Brazil is one of the major producers of cashew globally which accounts for 141 thousand tons in 2018 because the demand for Cashew in Brazil is high due to continuous growth, stimulated by the continuing trend towards healthier nutrition and a strong preference for sustainably-produced foods and fuelled by the rapidly increasing request for healthy snack products, which in turn will boost the Brazil Cashew Market during the forecast period. As per FAO, the cashew production in 2018 accounted for 141418 tonnes which has increased from 74568 tonnes in 2016 showing significant growth in the production of Cashew in the region.
Brazil Leads in the Export of Cashews in Terms of Value
Over 14% of the domestic production is exported to all major markets, mostly as natural cashew kernels of all grades and sizes, part of which are bio-products. Export of cashews to other countries is stimulated by the increasing trend in local demand, owing to focus toward healthy nutrition and a strong preference for sustainably-produced foods, and fuelled by the rapidly increasing request for snack products. Given the strong correlation between cashew demand and prices, the price competitiveness of the Brazilian export is expected to depend on the cashew sector performance and facility of adaptation to the consumers’ requirements.
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