Cashew Nut and Its Byproducts Business: A Complete Guide to a Profitable Agro-Processing Venture

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:

1. Drying raw cashew nuts
2. Roasting or steaming
3. Shelling and peeling
4. Grading and quality inspection
5. 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