Cashew Milk Market Assessment, By Form [Powder, Liquid], By Flavor [Flavored, Unflavored], By Sweetness [Sweetened, Unsweetened], By Formulation [Organic, Conventional], By Packaging [Bottles, Cartons, Pouches], By End-user [Households, Commercial], By Di

Cashew Milk Market Assessment, By Form [Powder, Liquid], By Flavor [Flavored, Unflavored], By Sweetness [Sweetened, Unsweetened], By Formulation [Organic, Conventional], By Packaging [Bottles, Cartons, Pouches], By End-user [Households, Commercial], By Distribution Channel [Convenience Stores, Grocery Shops, Internet Retailing, Supermarkets/Hypermarkets, Others], By Region, Opportunities, and Forecast, 2017-2031F

Global cashew milk market was valued at USD 101.5 million in 2023 and is expected to reach USD 185.52 million in 2031, with a CAGR of 7.83% for the forecast period between 2024 and 2031. The market is driven by versatile uses of cashew milk, growing demand for dairy-free products, and evolving tastes and preferences of consumers.

Cashew milk is a great plant-based protein source for vegans, vegetarians, and other diets because of its high protein content. Its versatility stems from its buttery taste, creamy texture, and nutritional value, which make it favorable for baking, cooking, and creating recipes in addition to drinking raw milk. Cashews provide many advantages to both consumers and manufacturers, regardless of whether they are consumed alone or used in a cashew-based product such as cashew milk.

Cashew milk makes a thick and creamy base for smoothies, coffees, and teas, making it a dairy-free milk substitute. Due to its silky texture, it's perfect for creating dairy-free ice creams, cheeses, yogurts, and creamy sauces. It helps in giving a rich mouthfeel to these dishes. Moreover, cashew milk tastes great as a reviving and wholesome drink. It is a popular substitute for dairy products because of its adaptability to be used in both savory and sweet dishes. It improves the flavor and texture of a wide range of food items.

Consumers looking to gain and maintain muscle mass select the brand with a higher protein concentration level. On the contrary, customers choose unsweetened or low-calorie cashew milk to help them lose weight. For instance, in September 2022, Vietnam-based Vinapro Group launched its cashew milk range, Richer Milk, in three variants, including cashew milk without sugar. The other two variants were cashew milk and barley cashew milk. The range was the country’s first cashew milk produced using native cashew nuts.

Growing Lactose-intolerant Population Drives Market Growth

The growing number of people intolerant to lactose is a catalyst for the growth of the cashew milk market. The lactose malabsorption rate in the world is around 65%. Lactose intolerance is caused by lactose malabsorption. People grappling with lactose intolerance seek alternatives to traditional dairy products, fuelling the demand for dairy-free options such as cashew milk, which has a creamy texture and is a nutritious alternative.

People managing lactose intolerance are drawn to cashew milk's nutritional profile, which includes several minerals, vitamins, and healthy fats. Manufacturers are innovating and expanding their product offerings to align with the ongoing trend and capitalize on it, fueling the growth of the cashew milk market. In September 2022, a new plant-based, lactose-free, and low-calorie milk, Arummi Cashew Milk, was launched in Indonesia. The product was available online as well as offline through premium grocery stores.

Versatile Applications of Cashew Milk Fuel the Demand

Various culinary creations and beverage mixtures use cashew milk as a staple ingredient due to its rich and creamy texture and mild, sweet flavor. While baking cakes, muffins, and cookies, cashew milk adds thickness and moisture. Cashew milk is also a great dairy-free alternative in custards and puddings. Adding it to savory dishes like soups and sauces enhances their flavor and texture without compromising on the flavor and aroma of other ingredients. Apart from the kitchen, the beverage industry uses cashew milk as a base for preparing various types of smoothies, shakes, and cocktails. In October 2023, Elmhurst Milked Direct LLC expanded its unsweetened plant-based milk range by introducing Milked Coconuts & Cashews made using whole buttery cashews and rich coconut cream. The unsweetened product has a smooth thickness and can be used as a base in various other recipes.

Innovation to Drive the Market Growth

Innovation in the form of new product development, providing a wide range of options to customers, drives the demand for cashew milk in the market. Manufacturers are continually working on developing products catering to the evolving tastes and preferences of the consumers. Unique formulations, flavors, and packaging appeal to consumers and add to the market's growth. For instance, in September 2022, Z Natural Foods launched Organic Matcha Green Tea Cashew Milk powder, containing organic cashew milk along with organic matcha green tea and organic barley grass. The product claims to be rich in nutrients like calcium, amino acids, and omega-3 fatty acids.

Health-conscious consumers seek such incorporation of cashew milk into their favorite products to have access to the nutritional benefits of cashews.

North America Dominates the Market

North America held the dominant position in the global cashew milk market in 2023. The major driver behind the dominance is growing health awareness among people leading to increased demand for dairy alternatives. Cashew milk has gained abundant traction in the markets of the United States and Canada. With manufacturers expanding their product portfolios by innovating with flavors and formulations, the consumption of cashew milk in North America is the highest across the globe. In February 2023, US-based Clean Juice launched organic cashew milks made using USDA certified organic ingredients. The product has plenty of heart-healthy proteins and fats and low sugar levels, targeting the health-conscious consumers in the region.

Future Market Scenario (2024 – 2031F)

Growing prevalence of lactose intolerance and dairy allergies are expected to drive the market in the future, with people preferring cashew milk as a better and more nutritious dairy alternative.

Evolving consumer preferences for unique formulations, flavors, and packaging types will compel the manufacturers to produce such products, attracting a wider audience.

Clean product trend, transparent labelling, and ethical production practices are expected to gain a competitive approach.

Key Players Landscape and Outlook

Global cashew milk market holds a dynamic landscape with several key players introducing innovative products and shaping the outlook of the industry. Prominent players hold major market share by working on product diversification, expanding their product portfolios with a variety of cashew milk products, and making sustainability efforts. Innovation and portfolio expansion is the essence of the market, enabling competitors to expand and maintain their respective market shares. Strategic acquisitions and mergers shape the market outlook positively with companies offering new products and entering new markets.