Cashew Milk Market Size, Share, and Analysis By Product Type (Unflavored/Original and Flavored), By Packaging Type (Cartons, Bottles, and Others), By Distribution Channel (Supermarket/Hypermarket, Specialty Stores, Convenience Stores, Online Retail Stores, and Others), and Regional Forecast, 2025-2032

The global cashew milk market is witnessing significant growth due to the increasing adoption of plant-based diets and plant-based beverage menus in food service industries. Cashew milk is one of the emerging segments of the global plant-based milk market. As it closely resembles the texture of traditional dairy milk, it is becoming more popular. The milk is utilized for smoothies, baked recipes, desserts, and coffee.

The increasing strategic initiatives to boost the global trading of cashew nuts and the improvement of quality are contributing to the growth of the market. Cote d'Ivoire, the world's largest producer of cashew nuts, is involved in strategic collaboration with The World Bank, European Union (EU), and International Monetary Fund (IMF) to optimize value chain processes of cashews and boost international trade capabilities for the product. The supportive investments from the government and infrastructure advancements for producing cashew-based products will positively impact make the easy availability of raw materials. According to the Directorate General of Commercial Intelligence and Statistics, the cashew nut production in India increased from 0.70 million tonnes to 0.77 million tonnes from 2019-20 to 2021-22. As a result, the industry is anticipated to grow at a promising growth rate during the forecast period.

The COVID-19 pandemic significantly impacted various industries worldwide, including the food and beverage industry. The imposition of lockdown resulted in disruptions in transportation and logistics, which largely affected the supply chain. The outbreak of coronavirus disease created health awareness, changed consumers' preferences, and raised the demand for healthier and sustainable alternatives.

Cashew Milk Market Driver

Rising Demand for Dairy-free Alternatives to Boost the Market

The increasing popularity of vegan and dairy-free diets is expected to drive the market growth. Cashew milk can be a healthier alternative for individuals with lactose intolerance, milk allergies, and other sensitivities to dairy products. Cashew milk is widely utilized in various plant-based beverages owing to its calcium richness and low level of fats and sugar content. The growing prevalence of lifestyle diseases, increasing health awareness, and rising expenditure on health-beneficial food products are some of the key factors supporting the market growth.

Cashew Milk Market Restraint

High Production Cost and Volatility in Raw Material Prices to Hamper the Market Growth

The primary challenge for the cashew milk market is the vulnerability of the supply chain. Operational disruption, insufficient infrastructure, climatic change, weak supplier networking, and other issues are responsible for the fluctuations in raw material prices. The high volatility of cashew nut prices further translates into high production costs, which is expected to restrict the growth of the market. 

Cashew Milk Market Opportunity

New Product Launches to Drive the Market in the Upcoming Years

The market holds a dynamic position with the presence of several players introducing innovative products to cater to the growing demand. Some of the companies are actively focusing on the expansion of their production capabilities and enhancing distribution networks to solidify their footprints in the market. For instance, in May 2024, MALK Organics, one of the leading producers of plant-based milk products, expanded its product portfolio by adding new dairy alternative products, such as oat milk, almond milk, and cashew milk. The company aimed to expand its operation in response to the growing demand for cashew milk and other non-dairy alternatives. Increasing industrial investments in product innovation, strategic expansion, and research and development activities are some of the factors set to create lucrative opportunities for the market.

Segmentation

Key Insights

The report covers the following key insights:

• Overview of the Global Plant-based Milk Market


• Supply Chain Analysis


• Regulatory Analysis


• Industry SWOT Analysis


• Key Industry Developments


• Qualitative Analysis Related to COVID-19

Analysis by Product Type

Based on product type, the market is divided into unflavored/original and flavored.

The unflavored/original segment holds the largest market share in the global cashew milk market. The growing adoption of original or unflavored milk in various beverage products such as coffee, tea, dishes, and direct consumption is primarily driving the product demand. Health-conscious consumers are seeking products with original flavor over artificially sweetened or enhanced products, which is further pushing the segment growth.

The flavored segment is anticipated to show significant growth over the upcoming years. The market is witnessing continuous innovation in terms of flavors to cater to diverse consumer preferences. Manufacturers are introducing a wide range of flavors, such as caramel, vanilla, chocolate, and barriers, to meet users' requirements. The increasing demand for products with indulgent taste and growing flavor diversification in the beverage industry are some driving factors positively impacting the segment growth in the near future.

Analysis by Packaging Type

By packaging type, the market is subdivided into cartons, bottles, and others.

The cartons segment holds the largest market share of the global market, owing to its convenience, portability, and extended shelf life. It offers sustainability and a reduced environmental footprint, thereby catering to the consumer base seeking on-the-go options and eco-friendly packaging choices. The low manufacturing cost associated with carton-based packaging is expected to propel the segment growth.

The bottle segment is expected to exhibit significant growth over the upcoming years. The bottle-based packaging eliminates accidental leakages, reducing the wastage of the product. The glass bottle is one of the most widely used segments for beverage packaging as it prevents the chemical contamination of the products stored in it. Similarly, plastic bottles are increasingly preferred for packaging owing to their low weight and durability.

Analysis by Distribution Channel

Based on distribution channel, the market is fragmented into supermarkets/hypermarkets, specialty stores, convenience stores, online retail stores, and others.

The supermarkets/hypermarkets segment is expected to hold the highest revenue share in the market. The segment provides the widespread availability of cashew milk through its robust infrastructure and distribution channels. The marketing and promotional events practiced at supermarkets are attributed to the increasing sales, which is further projected to fuel the segment growth.

The online retail stores segment is projected to expand at the highest growth rate over the forthcoming years. The segment offers consumers a convenient and reliable shopping experience. Manufacturers in the market are collaborating with online merchants to make their products available at various e-portals. Therefore, the increasing consumption of cashew milk due to the emergence of e-commerce platforms is expected to boost the segment growth.

Regional Analysis

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Based on region, the market has been studied across North America, Asia Pacific, Europe, South America, and the Middle East & Africa.

North America is expected to hold the largest market share due to the presence of health-consciousness consumers, growing veganism, and increasing incidences of dairy allergies in the region. The cashew milk has gained remarkable traction in the U.S. and Canadian markets. In February 2023, U.S.-based leading producer of natural juices, Clean Juice, launched its new cashew milk products to the market. The company claims that all these newly launched products are manufactured by using USDA-certified organic ingredients. The products are manufactured using proteins, fats, and low sugar levels to serve the health-conscious consumers in the region.

The Asia Pacific market is anticipated to grow at the highest CAGR over the forecast period with the growing popularity of non-dairy beverages and increasing demand for health-beneficial products in the region. The growing number of people intolerant to lactose has led to the acceptance of non-dairy alternatives. The affluent consumer base seeking health-oriented products coupled with increasing disposable income in developing economies, including China and India, are the factors fueling the growth of the market.

Key Players Covered

The dynamic competition in the market is attributed to the presence of key players involved in product innovation, diversification of product portfolio, strategic partnerships and collaborations, and research and development activities to expand their market share.

The report provides the profiles of the following key players:

• Forager Project (U.S.)


• Plenish (U.K.)


• BalTraWed (Estonia)


• Danone S.A. (France)


• Nayagreens (India)


• ProVeg International (U.S.)


• Campbell’s Soup Company. (U.S.)


• Elmhurst Milked Direct LLC (U.S.)


• PureHarvest (UAE)


• Riverford Organic Farmers Ltd. (U.K.)

Key Industry Developments

• In March 2023, Forager Project, the global producer of plant-based organic products, announced the launch of its new Honey Alternative Cashewmilk Yogurt at Natural Products Expo West. The product is 100% bee-free and utilizes fruit juices and organic cane sugar instead of honey to provide a sweet and distinctive flavor.


• In September 2022, Vinapro Group, a leading manufacturer of agricultural products, launched a new cashew milk product, ‘Richer Milk Vietnam,’ in the Vietnamese market. The company aimed to meet the growing demand for natural products through this development.


• In September 2022, the manufacturer of quality natural foods, Z Natural Foods, LLC., launched a new product, ‘Organic Matcha Green Tea Cashew Milk’. The product contains organic cashew milk, matcha green tea, organic barley grass, and essential nutrients.