Increasing taste for flavoured cashews
The India processed cashew market is projected to register a CAGR of 9.33% during the forecast period (2020-2025), according to a ResearchAndMarkets report.
The cashew kernel market has witnessed a rapid shift in the consumption pattern across India in recent years, primarily due to flavored assorted cashew products occupying an increased share in the retail market space, said “India Processed Cashew Market- Growth, Trends, and Forecast (2020 – 2025)” report released on 23 Mar 2020.
With rising health-consciousness, consumers are preferring to snack healthy, due to which the demand for flavored cashews is rising in India.
However, the cashew market in the country is expected to be hindered as the local population prefers other lighter snacks, available at cheaper prices, for on-the-go snacking.
As of March 2020, more than 3,900 export-oriented processing units are functioning in India under the organized and unorganized sectors, with a cashew processing capacity of 16.43 lakh MT per year, according to the Directorate of Cashew and Cocoa Development India.
The plain/salted cashews segment accounts for major share in the processed cashew market, as the majority of Indian consumers are engaged in the habit of consuming cashews in its plain form for nutrition.
Plain/salted cashews can be consumed in several ways under food/beverage applications on a household basis, which is driving the market for plain/salted cashews across the country.
Increased applications of plain cashew in Indian culinary, especially in desserts, is one of the key factors driving the market.
Consumers in metropolitan cities and towns prefer supermarkets and hypermarkets to purchase their daily essentials. Marketing the plain cashews and flavored cashews through this channel is expected to contribute toward gaining brand visibility.
Moreover, the main strategy followed by hypermarkets and supermarkets is expanding the format into Tier 1 and Tier 2 cities, where they are emerging as major competitors for both unorganized and organized retailers.
The chief cities where these hypermarkets are coming up are Delhi, Pune, Bangalore, Hyderabad, Mumbai, and Chennai.
Moreover, supermarkets and hypermarkets provide attractive offers and discounts to consumers, as they avail discounts on bulk purchases from the manufacturers of energy drinks and other nutritional beverages.
The basic competition among the manufacturers is in terms of quality. The demand for organically-grown nuts has stirred the processors to source their raw cashews from organic farms.
Also, since the Indian mindset of buying is largely dependent on the attractiveness offered by the packaging, the manufacturers are innovating their packaging style to attract the maximum number of individuals towards their product.
The cashews can be availed in sealed vacuum packages with zip-locks, in glass bottles, in tins, and in regular packages. Offering cashews in flavors is yet another strategy adopted by the manufacturers to enter the snack market in the country.
Main market suppliers are: Delicious Cashew Co, Wonderland Foods, Greendot Health Foods Pvt. Ltd (Cornitos), Royal Dry Fruits Pvt Ltd. (Rostaa), Nutty Yogi, Haldirams and Kalbavi Cashews. fiinews.com
