Introduction
The cashew nut and its byproducts business is one of the most profitable and export-oriented business in the agricultural industry. Cashew nuts are widely consumed across the world as a healthy snack and are used extensively in food processing, confectionery, and bakery products.
Here almost every part of the cashew fruit can be converted into valuable byproducts, creating multiple income streams. With growing demand the cashew industry offers long-term growth opportunities.
Global Market Demand for Cashew Nuts
Cashew nuts enjoy strong demand across Asia, Europe, North America, the Middle East, and Africa.
Reasons for Growing Demand
- Increasing consumption of healthy nuts
- High use in vegan and plant-based diets
- Demand from confectionery and bakery industries
- Rising global snack food market
Cashew Nut Products and Byproducts
Cashew processing offers multiple value-added products.
1. Cashew Kernels
Graded whole and broken kernels used as snacks and cooking ingredients.
2. Cashew Apple Products
Juices, syrups, jams, fermented beverages, and health drinks.
3. Cashew Nut Shell Liquid (CNSL)
Used in paints, coatings, resins, and industrial applications.
4. Cashew Shell Cake
Used as fuel in processing units and boilers.
5. Cashew Kernel Powder and Paste
Used in sweets, sauces, and dairy alternatives.
Investment and Startup Cost
Small-Scale Business
- Raw cashew procurement
- Manual or semi-automatic shelling
- Basic drying and packaging
- Automatic shelling and peeling machines
- Grading, roasting, and packaging lines
- Export-grade storage and logistics
Profit Margin and Income Potential
Profitability depends on:
- Quality and grade of cashew nuts
- Level of processing and byproduct utilization
- Market access and branding
Average Profit Margins
- Raw cashew processing: 20%–30%
- Value-added and branded products: 30%–60%
- Export-focused businesses: Higher margins
Cashew Processing Overview
The general cashew processing flow includes:
- Drying raw cashew nuts
- Roasting or steaming
- Shelling and peeling
- Grading and quality inspection
- Packaging and labeling
Packaging and Storage Best Practices
- Use airtight, food-grade packaging
- Protect kernels from moisture and insects
- Vacuum packaging improves shelf life
- Clear labeling builds consumer trust
Legal and Food Safety Requirements
Regulations differ by country, but generally include:
- Food business registration
- Compliance with food safety standards
- Quality and grading certification
- Export licenses and phytosanitary certificates
Marketing and Sales Strategy
Offline Channels
- Wholesale nut markets
- Supermarkets and specialty stores
- Bakery and confectionery manufacturers
Online and Export Channels
- E-commerce platforms
- B2B export marketplaces
- Direct buyer contracts
- Digital branding and content marketing
Challenges and Solutions
High Raw Material Cost
→ Source directly from farmers
Labor-Intensive Processing
→ Gradual automation
Quality Consistency
→ Standardized processing and grading
Growth and Expansion Opportunities
The cashew nut and its byproducts business can expand into:
- Organic and flavored cashew products
- Ready-to-eat snack packs
- Cashew-based dairy alternatives
- Industrial CNSL-based products
