US cashew market faces tight supplies
United States shelled cashew imports fell 29 percent in 2025 to 277.3 million pounds, dropping below the 300-million-pound threshold for the first time in 12 years, a July assessment by the US Department of Agriculture’s Economic Research Service (ERS) reveals.
The US produces no commercial cashews and relies entirely on international trade, with suppliers varying dramatically over two decades. India and Brazil accounted for 80 percent of imports between 2000 and 2002, before specialized processing centers propelled Vietnam into the position of primary supplier.
This led to the Asian country accounting for 89 percent of US cashew imports from 2022 to 2024.
However, higher US tariffs on Vietnamese imports, aggressive demand from China and the European Union, and new regulations for cashew processors drove the import volume reduction and elevated unit values, according to the ERS’ Fruit and Tree Nuts Outlook report,
“Policy changes in several African countries affecting in-shell cashew exports further supported global prices and raised raw material costs for Vietnamese processors,” the document noted.
Raw cashew nuts contain urushiol, a corrosive oil also found in poison ivy. To make them safe for consumption, cashews require high-heat steaming or roasting to neutralize the oil before processors split, peel, and dry the nuts.
“A comparative advantage in processing efficiency and labor cost has led countries such as Côte d’Ivoire and Tanzania to historically export large volumes of in-shell cashews to India and Vietnam where nuts are shelled and re-exported or consumed domestically,” the document explains.
Cashew imports will stay constricted
Although US imports recorded a slight year-on-year increase of 11 percent between January and May 2026, volumes remained nine percent below the five-year average.
“Recent earnings reports from two major companies known for branded snack nut products indicated retail margins in early 2026 were pressured by increased fuel costs and trade disruptions for import-dependent commodities,” the report said regarding prices.
ERS analysts project that geopolitical challenges and elevated fuel costs will continue to exert pressure on domestic prices and import volumes through the second half of 2026.
*All photos are referential via Unsplash.
Related stories
Subscribe to our newsletter
