Cashews are an energy source that helps us to guard against diseases like cancers, vitamins, nutrition, and antioxidants, which are beneficial for human health. By considering the available raw material, the Cashew Nut Processing Unit can be started anywhere. Cashew nut demand grows day by day and is one of the valuable farm properties that is exported to foreign countries from India. India is one of the world’s leading productivity sectors in the manufacturing, refining, use, and export of cashew nut and cashew nut processing in India.
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This high-value nutrition inspired snack companies to introduce a variety of cassava-driven treats, such as cashew milk that can be drunk readily, as a lactose-free milk replacement. Cashew nuts have also been used more and more recently as an ingredient in spreads and snack bars (especially organic), which boost the overall business of cashews in India.
Key Market Trends and Demand in India
India is almost an export-oriented cashew sector. In the organized and non-organized industries, more than 3,900 processing units were operating in India as of March 2020 with a capacity of cashew processing in 16.43 lakh MT per year, according to the Cashew and Cocoa Development Directorate of India.
The single-salt cashew segment represents the biggest share in the processed cashew industry, as the majority of Indian customers use cashews in their nutrition. Under household food/beverage applications, uncut/salt cashews can be taken in different types, which drives the country’s demand for uncut cashews.
The global cashew market is projected to register a CAGR of 4.6% during the forecast period (2021-2026). In recent years, the demand for cashew kernels has seen a rapid change in India’s consumption trend mainly due to aromatic cashew goods, which take on an ever-growing share in the retail market.
With an increasing awareness of health, customers tend to snack healthily, as flavored cassava demand in India is growing. However, the country’s cassava market is likely to be slowed because the locals favor other light snacks for on-the-spot snacking available at lower prices.
The Cashew Exportation Promotion Council of India (CEPCI) works on promoting cashew nut and cashew nut shell liquid (CSLN) all over the world. More than 70 percent are exported from India. The domestic market also needs two-thirds of overall production, as cashew is India’s most consumable household.
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The largest share of supermarkets/hypermarkets
Consumers in urban and urban areas continue to buy their everyday supplies in supermarkets and hypermarkets. The promotion by way of this medium of basic cashews and toasted cashews is expected to help gain brand visibility. Furthermore, the key approach, led by hypermarkets and supermarkets, extends the format into Tier 1 and Tier 2, where unorganized and organized retailers are the most common rivals.
The chief cities where these hypermarkets are coming up are Delhi, Pune, Bangalore, Hyderabad, Mumbai, and Chennai. Moreover, supermarkets/hypermarkets give enticing sales and incentives to customers, as they avail discounts on bulk sales from the suppliers of energy drinks and other nutritious beverages.
Competitive landscape
Quality is the fundamental rivalry between producers. The market for organically produced noodles has driven processors from organic farmers to produce their raw cassava.
Moreover, since the Indian way of purchasing depends primarily on the attractiveness of packaging, manufacturers innovate their packaging type, attracting as many people as possible to their products. Cashew packets can be used in a zip-lock, glass bottles, in dollars, as well as in standard packages in a sealed vacuum. Cashews are another strategic approach taken by producers for entering the country’s snack market.
Key Players in the Business
- Delicious Cashew Co.
- Wonderland Foods
- Greendot Health Foods Pvt. Ltd (Cornitos)
- Royal Dry Fruits Pvt Ltd. (Rostaa)
- Nutty Yogi
- Haldirams
- Kalbavi Cashews
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