Cashew nuts are enjoying increasing popularity all around the globe. The top three cashew-consuming countries – India, the United States of America and Germany – are on three different continents. Cashews accounted for 17 per cent of world tree nut production in 2019/20, making it the third most popular tree nut after almonds and walnuts (International Nut and Dried Fruit Council Foundation, 2020). Cashew nuts are consumed in a variety of forms, including as salty or sweet snacks and as ingredients in desserts and savoury dishes, or are further processed into cashew butter or as ingredients in a variety of spreads, sauces, bars and drinks. Increasing demand for these products led global cashew production to more than double between 2000 and 2018.

This report takes stock of the global cashew market and gives an overview of cashew production, trade patterns and policies. It also highlights opportunities for the cashew sector, to foster value addition and diversification in cashew-growing countries, and its potential contribution to the achievement of the Sustainable Development Goals.

The cashew tree (Anacardium occidentale L.) is a tropical evergreen that originated in the semi-arid coastal areas of north-eastern Brazil. In the sixteenth century, traders from Portugal introduced the cashew tree to India and Mozambique and from there it spread further across tropical regions of Africa and Asia. Initially, cashew trees were planted to combat soil erosion in coastal areas, since they are fast-growing, tolerate salinity and thrive on sandy soils. Today, cashew trees are used primarily for cashew nut production in 46 countries across Africa, Asia and Latin America and the Caribbean.

Cashew trees typically bear fruit after three years and produce mature yields after seven or eight years. The economic lifespan of cashew trees is 20–25 years, after which yields begin to drop. The true fruit of the cashew tree is the cashew nut, which is attached to the bottom of a swollen stalk, known as the cashew apple (figure 1). The part commonly known as a cashew nut is the kernel, which is protected by a thin skin (testa) and a thicker outer shell. The latter contains an acidic oil, cashew nut shell liquid (CNSL), which is a key by-product of cashew nut production, with a variety of uses.

Cashew nuts became popular in Europe and the United States at the beginning of the twentieth century, spurring commercial, export-oriented cashew plantation. Today, the bulk of cashew nuts are grown in Africa and Asia, with a relatively small share of global production in Latin America and the Caribbean. All 46 countries producing cashew nuts on a significant scale are developing countries, with 18 of the least developed countries among them. However, not all cashew-growing countries participate in the global value chain in an equal manner. In particular, the majority of cashew nuts grown in the least developed countries are exported as raw nuts before deshelling, which takes place mainly in two countries: India and