The South American Cashew Market is projected to register a CAGR of 5.2% during the forecast period (2021-2026). Covid-19 has a direct and negative impact on the cashew market. The lockdown restrictions in the country have disrupted the demand for cashew nuts due to the lack of purchasing power resulting from reduced income. The value chain of the cashew market is affected negatively as a result of a disrupted distribution channel that tends to lower the end-products of cashew nuts in the market. This demand for cashew is expected to continue increasing as it is stimulated by the continuing trend towards healthier nutrition and a strong preference for sustainably-produced foods and fueled by the rapidly increasing request for snack products is driving the market. South America is globally regarded as the place of origin of cashews. Major cashew growing countries in the region are Brazil, Chile, Colombia, and Bolivia, amongst others. The United States and the other North American countries are the major cashew trade partners of South America. The largest importing countries in terms of value are Vietnam, India, and the United States.
Key Market Trends
Increasing Demand from the United States and the European Countries
Brazil is currently focusing on trade events through its Agency for Promotion of Exports and Investments (APEX) for the popularity and growth of its cashew trade. Many small South American countries are focusing on supply-chain development and competitive pricing to boost their export demand. The South American countries like Brazil, Argentina, Chile, and Ecuador possess high potential for trade in the region. Such initiatives are bolstering the trade of country's shelled cashew nuts, while the trade of raw cashew nuts are more or less observed to be the same, as the country is highly dependent on imports of processed cashew nuts rather than in-shell forms.
Growing Cashew Consumption
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. As there is a strong correlation between cashew demand and prices, the price competitiveness of Brazilian exports will always depend on the cashew sector performance. 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.
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