Global Cashew Milk Market by Type (Flavored and Plain), Distribution Channel (Online, Supermarket, and Convenience Stores), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032

Cashew Milk Overview

Cashew milk is a popular non-dairy beverage made from whole cashews and water. It is a dairy-free and vegan-friendly option commonly used as a substitute for cow's milk. It has a creamy, rich consistency and is loaded with vitamins, minerals, healthy fats, and other beneficial plant compounds. To make cashew milk, raw cashews are soaked in water, then blended and strained to extract a creamy liquid. The resulting milk is smooth, slightly sweet, and has a nutty flavor.

Cashew milk is often used as a dairy substitute for individuals who are lactose intolerant, have dairy allergies, or follow a vegan or plant-based diet. It can be used in coffee or tea, and included into various recipes, such as smoothies, baked goods, sauces, and soups. Compared to cow's milk, cashew milk generally has fewer calories, less protein, and a different nutritional profile. It typically contains healthy fats, vitamins, and minerals (such as magnesium and copper), and may be fortified with additional nutrients like calcium and vitamin D to enhance its nutritional value.

Global Cashew Milk Market Analysis

The global cashew milk market size was $61,865.30 thousand in 2022 and is predicted to grow with a CAGR of 10.1%, by generating a revenue of $154,856.10 thousand by 2032.

Source: Research Dive Analysis

COVID-19 Impact on Global Cashew Milk Market

The pandemic led to increased consumer awareness of health and wellness, with many individuals seeking out products recognized as healthier alternatives. This trend has been beneficial for the plant-based milk industry, including cashew milk. With lockdowns and restrictions in place, more people started cooking and eating at home. This shift increased the demand for plant-based alternatives, such as cashew milk, as consumers explored different recipes and options for homemade meals. The pandemic impacted global supply chains, which affected the availability of raw materials and ingredients needed for cashew milk production. These disruptions caused temporary shortages and price fluctuations. Restaurants, cafes, and other foodservice establishments faced closures or reduced operations due to lockdown measures. This decline in the foodservice sector had a negative impact on the demand for cashew milk products typically used in commercial food preparation. The pandemic accelerated the growth of e-commerce and home delivery services. Therefore, many cashew milk brands and retailers expanded their online presence to meet the increase in demand for home-delivered plant-based products.

Rising Demand for Plant-Based Milk Alternatives to Drive the Market Growth

Increasing consumer awareness regarding the health benefits of plant-based diets has been a major growth driver for the cashew milk market. Furthermore, lactose intolerance is a common condition where individuals have difficulty digesting lactose, the sugar found in dairy milk. Dairy allergies are also prevalent among certain individuals. Individuals are preferring cashew milk as a suitable alternative that does not contain lactose or dairy proteins and allowing them to enjoy a milk-like beverage without experiencing adverse reactions. Many people are adopting healthier lifestyles and choosing plant-based or vegan/vegetarian diets for a number of reasons, including ethical, environmental, and health concerns. Moreover, plant-based milk options provide a large range of nutrients and can cater to various dietary preferences. The cashew milk market has experienced significant innovation and product development, resulting in improved taste and texture. Manufacturers have focused on enhancing the sensory attributes and functionality of cashew milk, making it more comparable to dairy milk in terms of taste and versatility. This has attracted additional consumers to try plant-based milk alternatives and incorporate it into their diets.

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Limited Consumer Awareness to Restrain the Market Growth

Cashew milk is a relatively newer entrant in the plant-based milk category compared to almond milk or soy milk. These alternative milk options have been available for a longer period and have gained more widespread recognition and consumer familiarity. Cashew milk, being newer, may face challenges in terms of consumer acceptance and adoption. Many consumers are already aware of the benefits associated with almond milk or soy milk, such as being lactose-free, low in calories, and suitable for people with dietary restrictions or allergies. However, the specific benefits and attributes of cashew milk may not be well-known to the general public. Without sufficient knowledge about its nutritional advantages, consumers may be less inclined to try cashew milk as an alternative. Therefore, limited consumer awareness regarding cashew milk is anticipated to hamper the cashew milk market revenue growth in the upcoming years.

Increasing Health-Conscious Consumers to Drive Excellent Opportunities

Cashew milk is often perceived as a healthier option compared to traditional dairy milk. It is naturally lactose-free, cholesterol-free, and low in saturated fats. With the rising interest in plant-based diets and increasing lactose intolerance or milk allergies, the demand for dairy milk alternatives has been growing. Cashew milk, as a plant-based and dairy-free option, has gained popularity among consumers looking for non-dairy milk alternatives. Many consumers are becoming more health-conscious and are actively seeking healthier beverage options. Cashew milk is often considered a healthier alternative to dairy milk due to its lower calorie content, lower saturated fat levels, and absence of cholesterol. The market can target health-conscious consumers by emphasizing the nutritional benefits of cashew milk. Cashew milk is not only used as a beverage but also finds applications in various culinary uses such as cooking, baking, and as a dairy substitute in recipes. Its creamy texture and neutral taste makes it a versatile ingredient for both sweet and savory dishes. Manufacturers can explore this versatility and promote cashew milk as a multi-purpose ingredient to attract consumers looking for healthy cooking and baking alternatives. Cashew milk can cater to niche markets such as vegan, vegetarian, and gluten-free consumers. It can be positioned as an alternative for individuals with specific dietary requirements or restrictions, providing them with a nutritious and tasty option. The cashew milk market has great potential for growth due to increasing consumer demand for specialized dietary needs and rising health-consciousness.

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Global Cashew Milk Market Share, by Type, 2022

Source: Research Dive Analysis

The plain sub-segment accounted for the highest market share in 2022. Cashew milk in its natural state, with no added flavors or additives, is growing in popularity among customers. This is due to people's demand for a clean and pure cashew milk experience, which allows them to appreciate the natural taste and creamy texture of cashews. The plain type cashew milk provides a diverse base for a variety of culinary applications such as beverages, smoothies, desserts, and baking. Its simplicity and neutrality make it an excellent alternative for people looking for a simple and unadulterated cashew milk option. The plain sub-segment, with its expanding market domination, continues to boost the overall growth and expansion of the cashew milk industry.

Global Cashew Milk Market Size, by Distribution Channel, 2022

Source: Research Dive Analysis

The supermarket sub-segment accounted for the highest market share in 2022. There is a growing trend of consumers seeking plant-based alternatives to dairy milk. Cashew milk is one of the options that has gained popularity due to its creamy texture, nutty flavor, and nutritional benefits. Supermarkets cater to this demand by stocking a variety of plant-based milk alternatives, including cashew milk. Many consumers are becoming more health-conscious and are looking for healthier options when it comes to their food and beverage choices. Cashew milk is often perceived as a healthier alternative to dairy milk due to its lower calorie content, lower fat content, and absence of cholesterol. Supermarkets leverage this consumer preference by offering a range of healthier alternatives, including cashew milk. Cashew milk is free from lactose, which makes it suitable for individuals who are lactose intolerant or have dairy allergies. Supermarkets recognize the need to cater to these specific dietary requirements and ensure they stock a variety of milk alternatives, such as cashew milk, to provide options for customers with specific dietary needs. Supermarkets provide a convenient shopping experience for consumers, offering a one-stop destination for a wide range of products, including cashew milk. They are easily accessible and have well-established distribution networks, ensuring that products are readily available to customers. This accessibility contributes to the growth of the supermarket segment in the cashew milk market.

Global Cashew Milk Market Size & Forecast, by Region, 2022-2032 ($Thousand)

Source: Research Dive Analysis

The North America cashew milk market generated the highest revenue in 2022. Consumers in North America are becoming more health-conscious and are actively seeking alternative plant-based milk options. Cashew milk is considered as a nutritious and dairy-free alternative to cow's milk, making it a popular choice among health-conscious individuals in the region. The rising number of vegans, vegetarians, and individuals with lactose intolerance or dairy allergies in North America has boosted the demand for non-dairy milk alternatives, including cashew milk. Cashew milk has gained popularity due to product innovation by various food & beverage companies. Manufacturers are introducing a variety of flavors and fortified versions of cashew milk, such as chocolate, vanilla, and unsweetened options, to cater to different consumer preferences. Cashew milk is widely available in North America through various retail channels, including supermarkets, specialty stores, and online platforms. The ease of accessibility and distribution has contributed to its growing market presence. Effective advertising and marketing campaigns highlighting the benefits of cashew milk, including its nutritional profile, dairy-free nature, and versatility in cooking and baking, have played a role in driving consumer awareness and demand in the North America market.

Competitive Scenario in the Global Cashew Milk Market

Investment and agreement are common strategies followed by major market players. In December 2021, Forager Project launched a new line of organic plant-based cheeses called Cheeseworks. The dairy-free cheeses include queso fresco, jack, shredded mozzarella, parmesan, and jack. Using Forager Project's probiotic cashew milk yoghurt as the base, the company said the product could perform like regular cheese when it comes to melting and stretching.

Source: Research Dive Analysis

Some of the leading cashew milk market players are WhiteWave Foods Company LLC, Blue Diamond Growers, Edward & Sons Trading Co., Earth's Own Food Company Inc., Nutty life, LLC., Cashew Dream, Danone SA, Alpro, Proveg International, and TheGentleNut.