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Cashew often referred to as ‘wonder nut’ is among the majorly used cash crops in various processed food products. The cashew nut butter is made from baked or roasted cashews for achieving better texture and taste. Cashews are a rich source of polyunsaturated fatty acids that helps in lowering the low-density lipoproteins (LDL) and boosts the amount of high-density lipoproteins (HDL). Also, cashews are a good source of fibres, antioxidants, vitamins and minerals. Moreover, many manufacturers are introducing new cashew nut butter products in various flavours to draw consumers’ attention, which has fuelled its market growth. For instance, In August 2019, Now Foods, launched Ellyndale Naturals Nutty Infusions range of nut butter in five flavours- Mango Chili Cashew Butter, Ginger Wasabi Cashew Butter, Salted Caramel Cashew Butter, Roasted Cashew Butter and Roasted Almond Butter.
The rise in demand for ready-to-eat snacks among the consumers has positively influenced the cashew nut butter market. Along with its common use on bread as a spread, cashew nut butter could be used as a thickening agent in various sauce, soups and shakes along with enhancing the flavour of the products. The cashew nut butter provides with 12% of the daily fat requirement and 8% of daily saturated fat. The rise in the working population has positively influenced the consumption rate of cashew nut butter in the form of a healthy snack. Thus, these factors cumulatively drive the cashew nut butter market.
The major factor that fuels the growth of the cashew nut butter market is the increase in consumers’ demand for plant-based ingredients. The rise in the vegan trend has nudged the consumers to shift towards plant-based spreads such as cashew nut butter. The consumers are replacing dairy-based spreads with nut butter as they are rich in nutrients and are delicious. Thus, these factors have driven the global cashew nut butter market.
Key Market Driver -
Increase in Demand for Non-Dairy, Plant-based Products
Key Market Restraint -
Fluctuating Prices of the Raw Material
The fluctuations in the raw material prices act as a major restraint in the growth of cashew nut butter market. The changes in the climatic conditions affect the cultivation and production of cashews that are used for the production of various snacks and other processed food products. Further, the taxes and transportation charges of cashews lead to an increase in the overall price of the end-products.
The key companies operating in the global cashew nut butter market are, Hormel Foods Corporation, Nuteva, Betsy's Best, Inc., Bliss Nut Butters, Pip & Nut Ltd., East Wind Nut Butters, Jivaorganic Foods, Once Again, Funky Nut Co., and Woodstock Foods.
The cashew nut butter market is segmented by type, form, application, and geography. The sodium-free type of the cashew nut butter segment is accounted for holding the major share as they are consumed more compared to the regular variant. The sodium-free cashew nut butter contains 26% of the daily value of sodium which makes it healthier.
The creamy cashew nut butter is leading the form segment due to its rich, smooth and naturally sweet taste. The crunchy cashew nut butter segment is expected to witness significant growth in the upcoming years due to its crunchy texture that enhances the mouthfeel of the product.
The cashew nut butters are widely used as spreads in the breads, dressings and dips. The utilization of cashew nut butter in bakery products like cookies and cakes due to its ease of formulation and as a replacement to peanut butter would fuel the growth of bakery application. Furthermore, people having allergies to peanuts also prefer cashew nut as alternative nut butter.
Asia Pacific region is growing at a higher rate due to the presence of countries such as India and Vietnam, who are the leading producers and consumers of cashews in the world. Additionally, the raw material availability in the region helps in the production of cashew nut butter and other derived products. Many cashew nut butter manufacturers are setting up their bases in countries such as India due to the favourable climatic conditions and labour availability. Moreover, the large export of cashews to the developed countries also helps in generating more revenues. Thus, these factors support the high growth of Asia-Pacific cashew nut butter market.
North America is the dominant market for the cashew nut butter due to rising consumer preference towards non-dairy-based spreads. Further, the increase in the vegan population in the region has also boosted the nut-based butters market. The changing taste preferences of the consumers have nudged them to shift towards trying various food products apart from the conventional variants. This has led them to incorporate other nut-based butters and processed food products. This has aided in regional market growth.
Europe is expected to witness substantial growth in the upcoming years owing to the rise in demand for healthier snacking options and vegetable sources of protein. Countries such as Germany, the U.K., France, Italy and the Netherlands are among the largest importers of cashews in the region, which serve as a raw material in various snacks, bakery, and dairy products. Cashew nut butter is either produced from cashew nuts or in mixtures with other nuts such as peanuts and almonds as consumers are already accustomed to nut spreads and consume it on a regular basis. Thus, it helps to boost the market growth.
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