Why is the EU outstripping US in terms of demand for Cashews?

26 May Why is the EU outstripping US in terms of demand for Cashews?

The European Union (EU) is outpacing the United States in cashew demand due to health trends, trade policies, and evolving consumer preferences.

Key Factors Driving EU Cashew Demand

1. Health and Lifestyle Trends: European consumers are increasingly embracing healthier eating habits, with cashews gaining popularity as a nutritious snack rich in healthy fats, protein, and fibre. The rise in plant-based diets has further boosted cashew consumption, as they serve as a versatile ingredient in vegan recipes and dairy alternatives like cashew milk and cheese.
2. Diverse Culinary Applications: Beyond snacking, cashews are incorporated into various European food products, including breakfast cereals, nut spreads, and confectioneries. This versatility has expanded their appeal across different consumer segments.
3. Trade Agreements and Tariffs: The EU-Vietnam Free Trade Agreement (EVFTA) has eliminated tariffs on cashew imports from Vietnam, the world’s leading cashew processor. This has made Vietnamese cashews more competitive in the European market. Conversely, recent U.S. tariffs, including a 46% levy on Vietnamese cashews, have made imports more expensive for American consumers, potentially dampening demand.
4. Sustainability and Ethical Sourcing: European consumers are placing greater emphasis on sustainably and ethically sourced products. Initiatives like the Sustainable Nut Initiative (SNI) and investments in African cashew processing are aligning with these values, encouraging direct sourcing from African countries and enhancing supply chain transparency.
5. Market Growth and Import Patterns: The EU accounts for approximately 40% of global cashew import value, surpassing the U.S., which holds around 28.5%. Countries like Germany, the Netherlands, and the UK are leading importers, with Germany’s imports reaching 67,794 metric tons in 2023, a 13% increase from the previous year.

In summary, the EU’s growing demand for cashews is driven by health-conscious consumer behaviour, favourable trade agreements, and a focus on sustainability, positioning it ahead of the U.S. in the global cashew market.