The Beginning of 2025: A Comprehensive Overview of the Cashew Market and Promising Forecasts

Market Overview

The first month of 2025 marks a pivotal moment for the global cashew industry, presenting both promising opportunities and significant challenges. According to reports from the Vietnam Cashew Association (VINACAS) and the International Nut and Dried Fruit Council (INC), the cashew market is experiencing stable growth driven by strong demand in key markets such as the United States, Europe, and China.

1. Steady Demand Growth

• United States and European Markets:

Demand for cashews has increased by 5-8% compared to the same period last year, according to INC. Value-added products such as salted roasted cashews and chocolate-coated varieties are leading sales. Europe accounts for more than 35% of global import value, with Germany and the Netherlands being the top markets.

• Chinese Market:

Ahead of the Lunar New Year, China’s import demand is expected to grow significantly, with an estimated increase of 15-20% compared to December 2024, as reported by the China Nuts Association.

2. Pressure from Raw Material Supply

• Raw Cashew Nut (RCN) Supply Challenges:

Low stock levels at the end of 2024 and increasing global logistics challenges are creating upward pressure on raw material supply chains, according to Cashew Info.

• Logistics Costs:

While freight costs have eased slightly, logistics expenses continue to pose challenges for exporters, especially in Asia.

3. Competition from African Markets

• Growth in Africa:

Côte d’Ivoire, the world’s largest RCN producer, is expected to further increase production this year. Ghana and Nigeria are investing heavily in processing infrastructure, enhancing their competitiveness against Vietnam.

• Challenges for Vietnam:

Vietnam relies on imports for over 70% of its raw cashews, making domestic businesses dependent on foreign supplies and exposing them to supply chain volatility.

4. Strategic Responses from Businesses

• Value-Added Products:

Companies like SVC are focusing on developing value-added products, such as organic cashews and specialty-flavored options, to cater to high-end markets. Organic products are seeing significant growth in markets like Japan and Europe, where sustainability and health consciousness are key drivers.

• Enhancing Quality:

International certifications such as BRC, HACCP, and ISO remain essential for competing in major markets like the U.S. and Europe.

5. Opportunities in January 2025

Demand for cashews is expected to remain strong throughout the month, driven by major markets like the U.S., Europe, and emerging regions. The Middle East and South America are showing increased interest in premium and processed cashew products, opening up new opportunities for exporters.

Conclusion

January 2025 is a crucial time for cashew businesses to refine strategies and leverage the growing demand in major markets. While challenges such as raw material supply and competition from Africa persist, Vietnamese companies like SVC can succeed by innovating, enhancing product value, and prioritizing sustainable development.

Sources:

• Vietnam Cashew Association (VINACAS)

• International Nut and Dried Fruit Council (INC)

• Cashew Info

• China Nuts Association

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SVC INTERNATIONAL JSC
Email: thanh@svc.vn
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