India Cashew Market Report by Cashew Production Market - By States, Cashew Export Market - By Countries and Companies Analysis 2026-2034

India Cashew Market is expected to reach US$ 3.32 Billion by 2034 from US$ 2.28 Billion in 2025, with a CAGR of 4.26% from 2026 to 2034. Growing health consciousness, rising disposable incomes, and strong export demand are key growth drivers for the India cashew market, as consumers increasingly prefer nutrient-rich snacks and value-added nut products, while processors expand capacity and modern trade distribution nationwide.

India Cashew Industry Overview

India is a major centre for cashew processing and consumption, producing a substantial share of global cashew kernels and exporting significant volumes of finished products. Domestic consumption continues to rise as consumers opt for healthier snacking choices, supported by the expansion of modern retail and e-commerce channels. Cashews hold an important place in traditional Indian cuisine and are widely used in confectionery, bakery products, and emerging dairy alternatives. Government initiatives aimed at expanding cashew cultivation, improving farmer productivity, and promoting mechanised processing enhance industry competitiveness. Additionally, innovations such as flavored, roasted, and plant-based cashew products are expanding market reach across demographics.

The India cashew market’s growth is fueled by increasing health consciousness, with consumers shifting toward nutrient-rich, plant-based snacks. Cashews are rich in monounsaturated fats and minerals, aligning with wellness trends and driving demand in urban and semi-urban areas. Expanding domestic processing capacity, supported by government horticulture schemes and mechanisation policies, has strengthened the value chain and helped improve kernel quality and supply reliability. Growing exports to international markets, including the Middle East and North America, also stimulate revenue growth and incentivise producers to scale operations. Rapid penetration of modern retail and online distribution further enhances market reach and consumer access.

Recent Developments in India Cashew Market

• In November 2025, experts from the Indian Council of Agricultural Research (ICAR) introduced automated cashew-nut separation tools aimed at boosting processing efficiency and lowering labor demands. By enhancing throughput and improving pre-processing quality, the technology is expected to benefit both small and large cashew processors while supporting India’s broader efforts to modernize its cashew value chain and strengthen its global competitiveness.
• In February 2025, the Cashew Board of India launched an e-tender system for procuring raw cashew nuts from producing states. As part of this initiative, Kerala established a support price of USD 1.32 per kg to improve farmer incomes and reduce reliance on imports.
• In August 2024, the Indian Institute of Science introduced a new water-soluble surfactant derived from cashew nutshell liquid, expanding the industrial potential of cashew-processing by-products.

Growth Drivers for the India Cashew Market

Health-Driven Demand & Snack Innovation

Rising health consciousness and snacking trends are key drivers in India’s cashew market. Consumers increasingly seek nutrient-rich options, which has prompted product innovation within the country. In October 2024, MILMA unveiled Cashew Vita Powder - a cashew-based health drink developed with the Kerala State Cashew Development Corporation and CFTRI, offered in flavours like pista, chocolate, and vanilla. This represents a shift toward functional cashew-derived foods that appeal to wellness-oriented buyers. As demand grows for protein-rich and alternative beverages, such launches help position cashews beyond traditional snacking. With modern retail and e-commerce expanding reach, these value-added formats attract urban and young consumers, supporting broader category growth and deeper market penetration.

Flavoured & Premium Cashew Products in India

Product diversification and flavour innovation are expanding cashew demand in India’s growing snack sector. Domestic consumer preference is shifting toward premium, taste-driven formats that combine nutrition with indulgence. In January 2025, Prospect Consumer Products launched its DriFrutz gourmet snack range - a retail line that includes Crispy Roasted & Salted, Bold Peri Peri, and Rich Cheese cashew and mixed nut snacks tailored for urban consumers. This launch reflects how Indian brands are moving beyond traditional plain cashews into gourmet and flavour-enhanced products that appeal to modern palates. By positioning cashews as a versatile premium snack option, companies strengthen consumer engagement and justify higher price points, helping to increase overall consumption. As demand for innovative, on-the-go healthy snacks grows, such product introductions drive category growth and elevate cashew’s presence in mainstream retail and e-commerce.

Utilising Cashew Apples & Value-Added Expansion

Beyond kernels, innovation in cashew apple products is broadening the usage spectrum, creating new growth pathways. Researchers at the ICAR-Directorate of Cashew Research (DCR) have developed value-added cashew-apple products in May 2026 - including liquid sweeteners, beverages, jams, jellies, and functional snacks - to utilise the often-discarded fruit. By transforming by-products into consumer-ready goods, this innovation boosts overall industry value and enhances income for growers and processors. As sustainability and upcycling trends gain traction among Indian consumers, cashew apple-derived offerings could unlock new retail segments and promote year-round cashew engagement beyond nut kernels, supporting long-term market growth.

Challenges in the India Cashew Market

Heavy Dependence on Imported Raw Cashew Nuts

India’s cashew processing industry faces a structural challenge due to its strong dependence on imported raw cashew nuts. Domestic production is not sufficient to meet the growing demand from processors, which forces mills to rely on imports, mainly from African countries. This creates uncertainty in raw material availability, as supply is influenced by climatic conditions, export policies, and geopolitical factors in producing regions. Any disruption in exporting countries directly impacts Indian processors, leading to irregular supply cycles and procurement difficulties. In addition, import dependency reduces bargaining power for Indian buyers, often resulting in higher input costs. Smaller processing units are particularly affected as they lack financial strength to absorb price fluctuations. This imbalance between domestic production and processing capacity continues to remain a long-term constraint for the industry’s stability and competitiveness.

Low Mechanisation and Labour-Intensive Processing Structure

Another major challenge in the Indian cashew sector is its heavy reliance on manual labour and slow adoption of modern processing technology. A large portion of cashew shelling, peeling, grading, and sorting is still done manually, making the process time-consuming and inconsistent in quality. This labour-intensive structure limits production efficiency and increases operational costs compared to more mechanised global competitors. Seasonal labour shortages further disrupt processing cycles, especially during peak harvest periods. Additionally, many small and medium processors lack the capital required to invest in advanced machinery and automation systems. This prevents them from scaling operations or meeting strict international quality standards. As global buyers increasingly demand uniform quality and faster turnaround times, India’s limited mechanisation becomes a competitive disadvantage, affecting both export potential and profit margins for processors across major cashew-producing states.

Maharashtra Cashew Market

Maharashtra remains India’s largest cashew-producing state, with output around 1.99 lakh tonnes in 2025, contributing roughly one-fourth of national production. The Konkan belt - Sindhudurg, Ratnagiri, and Raigad - forms the core cultivation zone due to favourable coastal climate and red laterite soils. According to recent horticulture estimates, the state continues to lead despite climate variability and labour constraints. Maharashtra also has a strong cashew processing ecosystem with export-oriented units linked to Mumbai and nearby ports. Government initiatives focus on orchard rejuvenation, high-yield variety plantation, and farmer support under horticulture missions. However, productivity remains dependent on monsoon stability, and ageing plantations reduce long-term yield efficiency. The state is also exploring value-added cashew processing to strengthen rural income and improve export competitiveness in global markets like the Middle East and Europe.

Tamil Nadu Cashew Market

Tamil Nadu is an established cashew-growing state in India’s peninsular region, ranked among the top producers and exporters nationally. According to Ministry of Agriculture data, Tamil Nadu cultivated cashew over approximately 176.44 thousand hectares, producing about 86.2 thousand metric tonnes of raw cashew nuts in fiscal year 2025-2026.

Furthermore, to boost cultivation, production, and processing, the Tamil Nadu government established a dedicated Cashew Board in 2025, allocating ₹10 crore for technical support, pest management, farmer training, processing infrastructure, and welfare programs. The state has also played a role in cashew value chains supplying kernels for domestic consumption and exports. With increasing emphasis on productivity and reduced reliance on imported raw nuts, Tamil Nadu’s cashew sector is pivoting toward higher yields and organised marketing.

Karnataka Cashew Market

In 2025, Karnataka produced over 77,900 tons of cashews, with Udupi, Dakshina Kannada, and Uttara Kannada being the leading producing regions. These areas provide ideal circumstances for the highest quality cashews because they have lateritic soil, enough rainfall, and ideal humidity. Even the western parts of Karnataka have a greater yield rate than the majority of cashew growing regions. But Karnataka also has challenges with pests and illnesses, quality processing, and sustaining yield under older plants. To guarantee increased cashew production, the government is assisting farmers with data, improved technology, and incentives.

Odisha Cashew Market

Odisha is the third-largest cashew-producing state in India, with production of around 1,21,300 tonnes, contributing over 16% of the national output. Key production regions include Ganjam, Koraput, Rayagada, and the northern coastal belt, where favourable agro-climatic conditions support cashew cultivation. The state also benefits from forest fringe areas, which contribute to the production of high-quality cashews through natural agro-ecological systems. Cashew farming in Odisha is strongly linked to tribal agriculture and forest-based livelihoods, making it an important socio-economic crop for rural communities. However, the sector faces critical challenges such as improving harvesting practices, reducing post-harvest losses, ensuring timely supply of quality seedlings, maintaining soil health, and strengthening market linkages. Enhancing processing infrastructure and value addition is essential for improving farmer income and increasing Odisha’s competitiveness in both domestic and export cashew markets.

Andhra Pradesh Cashew Market

Andhra Pradesh is a significant contributor to India’s cashew industry, producing around 1,27,200 tonnes in 2025, accounting for approximately 17% of total national cashew output. The major producing districts include Srikakulam and Visakhapatnam, which dominate cultivation and supply due to favourable agro-climatic conditions. The coastal regions benefit from high humidity and sandy to lateritic soils, which support better cashew growth and kernel quality. Andhra Pradesh also has a relatively well-developed cashew processing ecosystem, particularly in northern coastal clusters, supporting both domestic supply and export-oriented trade. However, the sector faces challenges such as inconsistent raw nut quality, inadequate post-harvest handling infrastructure, and drying inefficiencies, which impact overall yield and kernel recovery. Strengthening supply chain efficiency, improving processing infrastructure, and standardising quality practices are essential for enhancing competitiveness and sustaining long-term growth in the state’s cashew sector.

India Cashew Market Segmentation

Cashew Production Market

• Maharashtra
• Andhra Pradesh
• Orissa
• Karnataka
• Tamil Nadu
• Kerala
• Others

Cashew Export Market

• UAE
• Netherland
• Japan
• Saudi Arabia
• Vietnam
• Others

All companies have been covered with 5 Viewpoints

• Overviews
• Key Person
• Recent Developments
• SWOT Analysis
• Revenue Analysis

Company Analysis:

• Wonderland Foods
• Kalbavi Cashews
• Britannia Industries Limited
• Haldirams