Cashew Milk Market

Market Overview:

The global cashew milk market size reached US$ 111.4 Million in 2023. Looking forward, IMARC Group expects the market to reach US$ 179.3 Million by 2032, exhibiting a growth rate (CAGR) of 5.43% during 2024-2032. The rising popularity of milk alternatives with similar texture and flavor profile of traditional dairy milk, the widespread preference for vegan and plant-based diet, and growing prevalence of lactose intolerance and milk allergies in individuals are some of the major factors propelling the market.

Cashew milk is a non-dairy alternative to traditional cow's milk that is derived from cashew nuts. It is a plant-based beverage that offers a creamy and nutty flavor, making it a popular choice for individuals adopting lactose-free dairy-free options or following a vegan diet. It is made by blending cashew nuts with water and straining the mixture to remove any solids. The end product is smooth and can be consumed as a beverage. It is extensively used in cooking, or added to coffee, tea, as additive. Cashew milk also offers potential health benefits, thereby making it a preferred choice for consumers adopting alternatives to dairy milk.

The global market is majorly driven by the rising popularity of milk alternatives with similar texture and flavor profile of traditional dairy milk. In line with this, rapid product utilization for preparing coffee, baking, and cooking on the commercial scale is also creating lucrative opportunities in the market. Moreover, growing environmental concerns among the masses is resulting in an augmenting demand for environmentally sustainable milk alternatives with fewer resources and greenhouse gas emissions, which is fueling the market. In addition to this, continual product innovation and the introduction of new flavor variations such as chocolate, vanilla, and unsweetened options by the manufacturers are creating a positive market outlook. Furthermore, the easy product availability across online and offline organized retail platforms ensuring easy accessibility for consumers is impacting the market positively.

Cashew Milk Market Trends/Drivers:

Increasing health-conscious consumer base:

With a growing emphasis on health and wellness, plant-based milk alternatives are becoming increasingly popular among consumers. As compared to cow's milk, cashew milk has gained immense popularity as a healthier alternative. In addition to providing a lower calorie content, it is ideal for individuals with lactose intolerance or milk allergies. Natural origins and lower fat content of cashew milk make it a healthier option for health-conscious consumers who monitor calorie intake and overall wellness. This has led to a considerable increase in the uptake of cashew milk, especially among the health-conscious consumers.

Rising popularity of vegan and plant-based diets

The increasing adoption of vegan and plant-based diets is significantly influencing the demand for dairy-free milk alternatives on the global scale. A growing number of people are adopting a vegan lifestyle or opting for plant-based dietary choices, which has led to a substantial increase in the need for milk substitutes. Due to its versatility and rich flavor, it can be used as a direct substitute for cow's milk in a variety of applications, including beverages, cooking, and baking. Due to its compatibility with vegan and plant-based diets, cashew milk has widely become a popular alternative to traditional dairy products.

Growing prevalence of lactose intolerance and milk allergies in individuals

As a result of lactose intolerance and milk allergies, individuals have turned to non-dairy alternatives for their nutritional needs. A dairy-free alternative to milk that doesn't compromise taste or texture, cashew milk provides a dairy-free alternative for those with lactose intolerance or milk allergies. One of its primary benefits for individuals with lactose intolerance is its inherent low lactose content. This enables them to savor a milk-like beverage without digestive discomfort. Furthermore, cashew milk provides a smooth consistency and a delightful nutty taste, making it a suitable alternative for individuals with milk allergies. Due to its capacity to cater to individuals with lactose intolerance and milk allergies, cashew milk has emerged as a highly desirable alternative.

Cashew Milk Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global cashew milk market report, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on product type, packaging and distribution channel.

Breakup by Product Type:

• Plain
• Flavoured
   

 Flavoured segment dominates the market

The report has provided a detailed breakup and analysis of the market based on the product type. This includes plain and flavoured. According to the report, flavoured represented the largest segment.

The augmenting demand for taste variety and indulgence among consumers are resulting in an increased popularity of flavoured cashew milk options. The introduction of numerous flavors such as chocolate, vanilla, and fruit flavors to cater to diverse consumer preferences. In addition to this, the emergence of flavor combinations and seasonal editions gain a competitive edge among consumers seeking unique taste experiences, which is fueling the growth of the segment. Additionally, aggressive marketing campaigns by product manufacturers targeting specific consumer segments, such as children or individuals with dietary needs, is further propelling the segment.

On the other hand, the dairy-free trend fuels the demand for plain cashew milk as more consumers are adopting plant-based dairy milk alternatives for lactose intolerance and specific dietary preferences. Plain cashew milk is mostly preferred for its perceived nutritional benefits, such as low calories, cholesterol-free, and rich in vitamins, minerals, and antioxidants. Additionally, the mild flavor and creamy texture also make it a versatile ingredient to be widely used in a number of dishes as well as a standalone beverage.

Breakup by Packaging:

• Cartons
• Bottles
• Others
   

Bottles dominate the market

The report has provided a detailed breakup and analysis of the market based on the packaging. This includes cartons, bottles, and others. According to the report, bottles represented the largest segment.

Cashew milk companies are increasingly prioritizing sustainable packaging, thereby appealing to eco-conscious consumers. The premium positioning of milk in bottles results in higher product sales for the consumers with a preference for luxurious dairy-free options. Additionally, bottles offer convenience for at-home use, ensuring freshness and easy pouring, which is creating a positive outlook for the segment.

Cashew milk in cartons, on the other hand, offers enhanced portability, catering to on-the-go consumers seeking a lightweight and resealable option. With extended shelf life ensured by the packaging materials and sealing techniques, cartons maintain the freshness of cashew milk for a longer duration while meeting the quality expectations. Moreover, the graphic designs and brand messaging on cartons contribute to brand visibility and effective marketing, thereby driving the segment growth.

Breakup by Distribution Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Online
   

Supermarkets/Hypermarkets hold the largest share in the market

A detailed breakup and analysis of the market based on the distribution channel has also been provided in the report. This includes supermarkets/hypermarkets, convenience stores, and online. According to the report, supermarkets/hypermarkets accounted for the largest market share.

The main factors that are driving the growth of this segment are the varied product assortment, offering a diverse range of brands, flavors, and packaging options. Additionally, their competitive pricing, achieved through economies of scale and bulk purchasing power targeted towards value-conscious shoppers is creating lucrative opportunities in the segment. Also, various promotional activities and well-designed displays in dedicated sections further enhance consumer awareness and encourage trial purchases of cashew milk within these retail spaces, thereby providing an impetus to the segment.

On the other hand, convenience stores capitalize on quick purchases by strategically locating themselves and providing 24/7 accessibility for consumers seeking immediate access to cashew milk. In addition to this, they offer single-serve packaging options, appealing to those desiring portion control or wanting to experiment with different flavors. By prominently displaying cashew milk near checkout counters or high-traffic areas, convenience stores stimulate impulse buying through the convenience factor, innovative packaging, and promotional incentives, thereby fueling the segment growth.

Furthermore, online platforms are preferred due to the provision of more choices, including specialty and imported varieties typically not found in physical stores. With home delivery services, online retailers provide convenience by bringing cashew milk directly to the doorsteps of the consumer, which contributes to increased sales through online channels. Additionally, the presence of genuine customer reviews and recommendations available on online platforms help consumers make informed decisions and influence them to try specific cashew milk brands or flavors, which is impacting the segment positively.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest cashew milk market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. 

North America held the biggest market share since the region is witnessing a considerable rise in the demand for plant-based alternatives to dairy products. This can be attributed to various factors such as increasing health concerns, growing incidences of lactose intolerance, environmental consciousness, and ethical considerations.

In line with this, the augmenting popularity of the product as a healthier option due to its lower calorie content, absence of cholesterol, and potential health benefits associated with cashews is leading to higher sales in the region. The growing health and wellness trend among the masses in the region is further fueling the demand.

Moreover, the presence of a significant population following vegan and vegetarian lifestyles has contributed to the preference for cashew milk as a plant-based alternative. As a result, numerous manufacturers and brands have expanded the availability in retail stores, supermarkets, and online platforms, while also investing in marketing efforts to raise awareness across the region.

Competitive Landscape:

The top players in the market are focusing on product innovation by introducing new flavors, organic or unsweetened options, and fortified versions with added nutrients. In addition to this, the major companies are investing heavily in marketing campaigns to target specific consumer segments such as vegans and lactose-intolerant individuals. They are also focusing on expanding their distribution channels through strategic partnerships with retailers, supermarkets, and online platforms. The prominent players are also leveraging graphic and informative packaging and featuring organic and non-GMO certifications and using environmentally friendly materials to expand their consumer base. Additionally, the major companies are offering competitive pricing compared to other plant-based milk alternatives through optimizing production processes, efficient sourcing of cashews, and negotiating favorable deals with suppliers.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Danone
• Dream (SunOpta Inc.)
• Elmhurst Milked Direct LLC
• Forager Project LLC
• Pacific Foods of Oregon LLC (Campbell Soup Company)
• Plenish Cleanse Ltd. (Britvic plc)
• RITA Food & Drink Co. Ltd.
• Rude Health Foods Limited
• The Hain Celestial Group Inc

Recent Developments:

• In July 2022, Danone launched their Dairy and Plants Blend infant formula, to cater to parents seeking vegetarian and flexitarian alternatives for their babies. This plant-based vegan formula helps ensure the complete fulfillment of essential nutritional needs of an infant.
• In April 2021, Dream from The Hain Celestial Group was acquired by SunOpta for $33 Million. Almost 50% of brand’s product portfolio is currently produced by SunOpta, and with the acquisition, SunOpta aims to accelerate the growth of its plant-based foods and beverages segment.
• In June 2019, Elmhurst Milked Direct LLC announced an expansion to their plant-based Hemp Creamer product line. In addition to the existing Original Hemp Creamer, the company has introduced new flavors such as French Vanilla, Hazelnut, and Golden Milk.

Cashew Milk Market Report Scope:

Key Questions Answered in This Report:

• How has the global cashew milk market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global cashew milk market?
• What is the impact of each driver, restraint, and opportunity on the global cashew milk market?
• What are the key regional markets?
• Which countries represent the most attractive cashew milk market?
• What is the breakup of the market based on the product type?
• Which is the most attractive product type in the cashew milk market?
• What is the breakup of the market based on the packaging?
• Which is the most attractive packaging in the cashew milk market?
• What is the breakup of the market based on the distribution channel?
• Which is the most attractive distribution channel in the cashew milk market?
• What is the competitive structure of the global cashew milk market?
• Who are the key players/companies in the global cashew milk market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the cashew milk market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global cashew milk market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the cashew milk industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.