Global Cashew Nutshell Liquid Market Overview
The Cashew Nutshell Liquid Market Size was estimated at 5.07 (USD Billion) in 2022. The Cashew Nutshell Liquid Industry is expected to grow from 5.49(USD Billion) in 2023 to 11.2 (USD Billion) by 2032. The Cashew Nutshell Liquid Market CAGR (growth rate) is expected to be around 8.24% during the forecast period (2024 - 2032).
Key Cashew Nutshell Liquid Market Trends Highlighted
The Cashew Nutshell Liquid Market witnessed a surge in demand, largely attributed to its unique properties and extensive applications across various industries. The market is driven by the growing demand for cashew nuts, which generate a significant amount of CNSL as a byproduct. The rising popularity of CNSL in the production of friction materials, fire retardants, and paints and coatings contributes to its market growth.Key opportunities lie in the exploration of CNSL applications in the food and beverage industry, cosmetic and personal care products, and pharmaceutical formulations. The market also presents opportunities for sustainable manufacturing practices to minimize environmental impact and enhance the quality of CNSL.Recent trends in the cashew nutshell liquid market include the development of bio-based materials from CNSL, the incorporation of CNSL into composite materials, and the use of CNSL as a renewable source of energy. The increasing awareness of the environmental benefits of CNSL and the rising demand for eco-friendly products drive these innovations.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Cashew Nutshell Liquid Market Drivers
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Rising Demand for Cashew Nuts and Derivatives
One of the reasons why the Cashew Nutshell Liquid Market Industry has been developing rapidly is the increasing popularity of cashew nuts and their products, including, for example, cashew butter, cashew milk, and cashew cheese. These tendencies result from the fact that cashews are rich in essential elements, such as protein, fiber, and healthy fats, which stimulate the expansion of their consumption. Additionally, the increasing popularity of plant-based diets and the increased interest in the health-related properties of these nuts also promote their growth.Since cashew nut shell liquid is a byproduct of the raw material, the growth of the demand for the nuts is compensated by the expansion of the demand for the liquid.
Technological Advancements in Cashew Processing
Advancements in processing technologies used during cashew extraction are the dominant reasons for the cost-effectiveness and efficiency achieved in the process. For example, a pilot-plant scale investigation of the ultrasonic extraction of a CNSL from a cashew nutshell target with different solvents. Furthermore, supercritical carbon dioxide and ultrasonic extraction are being developed as advanced technologies to improve the quality and yield of the liquid, and also reduce the cost of production.
Growing Applications in Various Industries
More and more industries are discovering cashew nutshell liquids to find potential applications. The latter includes the cosmetic, pharmaceutical, and chemical industries. In drawing production, cashew nutshell liquid is used as a natural emollient and moisturizer. Such a type of liquid is harming the environment less than other chemical substances. In addition, chemical applications employ cashew nutshell liquid as a raw material for the production of bio-based chemicals.In the pharmaceutical industry, it is considered to act as an anti-inflammatory or antifungal.
Cashew Nutshell Liquid Market Segment Insights
Cashew Nutshell Liquid Market Grade Insights
There are two categories by Grade in the Cashew Nutshell Liquid Market – Technical Grade and Acid Grade. The Technical Grade segment had the maximum market share in 2023, and it represented over 60% of the Cashew Nutshell Liquid Market revenue. This grade is majorly used for manufacturing a range of friction materials, which include brake linings and clutch facings, as the Technical Grade of cashew nutshell liquid mortars possesses a higher coefficient of friction and dimensional stability. The Acid Grade segment is expected to witness the fastest Compound Annual Growth Rate during the forecast period as its demand for the production of high-quality paints, varnishes, and other surface coatings is increasing.The market growth is a consequence of a rising adoption of cashew nut as a dietary supplement along with the increasing applications of cashew nutshell liquid in various industries. The rising automotive and aerospace sectors are also contributing to the market growth as cashew nut shell liquid is used as a friction modifier and heat-resistant material, respectively.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Cashew Nutshell Liquid Market End-Use Insights
The Cashew Nutshell Liquid Market for End Use was blocked as Industrial Applications and Consumer Applications. Industrial Applications were then blocked as Friction Material, Foundry Chemicals, Oil Industries, Cosmetics and Pharmaceuticals, and the rest of the other industrial applications. It is estimated that Friction Materials is the biggest segment of the Cashew Nutshell Liquid Market, accounting for approximately 35% of the Cashew Nutshell Liquid Market Revenue in 2023. The requirement for friction materials is driven by an increasing availability of automotive and other vehicles and also a growing demand for friction materials from emerging countries.Foundry Chemicals is the second biggest segment of the Cashew Nutshell Liquid Market, with a market share of approximately 28 % in 2023. The increasing number of greenfield and brownfield projects, both internationally and nationally, is estimated to support the segment’s growth. Oil Industries is the third biggest segment of the Cashew Nutshell Liquid Market, with a market share of approximately 20% in 2023. The increasing demand for bio-based lubricants is expected to drive the global market for this segment. Cosmetics and Pharmaceuticals is a segment with around 12% of market share in 2023.The segment can be supported by an increasing customer base for organic and natural cosmetics and personal care products. Other Industrial Applications was the smallest segment of the Cashew Nutshell Liquid Market, with approximately 5% of the market share. The other industrial applications include paint, coatings, and adhesives.
Cashew Nutshell Liquid Market Distribution Channel Insights
The Cashew Nutshell Liquid Market is segmented by distribution channel into direct sales, distribution partners, and online marketplaces. Direct sales accounted for the largest share of the market in 2023, and this trend is expected to continue through 2032. The growth of the direct sales channel can be attributed to the increasing popularity of online shopping and the convenience it offers to customers. Distribution partners accounted for the second-largest share of the market in 2023, and this channel is expected to grow at a steady pace over the forecast period.The growth of the distribution partners channel can be attributed to the increasing number of retail stores and the growing popularity of private label products. Online marketplaces accounted for the smallest share of the market in 2023, but this channel is expected to grow at the fastest pace over the forecast period. The growth of the online marketplace channel can be attributed to the increasing popularity of online shopping and the convenience it offers to customers.
Cashew Nutshell Liquid Market Application Insights
Cashew Nutshell Liquid Market segmentation by Application presents insights into the various industries utilizing Cashew Nutshell Liquid (CNSL). The industry segment, comprising brake linings and pads, clutch facings, foundry products, and lubricants, is estimated to account for a significant portion of the Cashew Nutshell Liquid Market revenue, valued at USD 2.23 billion in 2023. Brake linings and pads are key components in automotive braking systems, and CNSL is widely employed due to its high friction coefficient and heat resistance.Clutch facings, used in vehicle transmissions, also utilize CNSL for its friction-enhancing properties. Other notable segments include molding compounds, corrosion inhibitors, adhesives and sealants, and paints and coatings. Molding compounds, used in the production of electrical components and automotive parts, benefit from CNSL's electrical insulation and flame retardant properties. Corrosion inhibitors, employed to protect metal surfaces, utilize CNSL's film-forming abilities. Adhesives and sealants leverage CNSL's strong bonding characteristics, while paints and coatings incorporate CNSL for its water resistance and UV stability.The increasing demand from these industries is expected to drive market growth for CNSL in the coming years.
Cashew Nutshell Liquid Market Extraction Method Insights
The Cashew Nutshell Liquid Market is segmented based on the extraction method into solvent extraction, mechanical extraction, and chemical extraction. Solvent extraction is the most widely used method, accounting for over 60% of the Cashew Nutshell Liquid Market revenue. This method involves using a solvent, such as hexane or ethanol, to dissolve the cashew nutshell liquid from the cashew nutshell. Mechanical extraction, which involves using a mechanical press to extract the liquid, is a less common method due to its lower efficiency.Chemical extraction, which involves using chemicals to dissolve the cashew nutshell liquid, is also a less common method due to its potential to produce harmful byproducts. The Cashew Nutshell Liquid Market is expected to grow at a CAGR of 8.24% from 2023 to 2032, driven by increasing demand from the food and beverage, cosmetics, and pharmaceutical industries.
Cashew Nutshell Liquid Market Regional Insights
Regionally, APAC is expected to account for the largest share of the market in 2023. The region is home to major cashew producing countries such as India, Vietnam, and Indonesia, which collectively account for over 75% of global cashew production. The demand for cashew nut shell liquid in APAC is driven by its increasing use in the production of bio-based products such as lubricants, coatings, and adhesives. North America and Europe are also significant markets for cashew nutshell liquid, driven by the growing demand for eco-friendly and sustainable products.South America and MEA are expected to witness steady growth in the market, supported by the increasing adoption of cashew nutshell liquid in various industries.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Cashew Nutshell Liquid Market Key Players And Competitive Insights:
The major players in the Cashew Nutshell Liquid Market, a slew of companies, are concentrating on adopting an extreme acquisition and merger policy to amplify their global presence and uphold their position. In addition, these players are actively enhancing their production capacity to satisfy the rising demand for Cashew Nutshell Liquid. One of the paramount competitive strategies implemented by the major players to upsurge their market presence is partnering and collaborating with the other stakeholders within the Cashew Nutshell Liquid Market industry. These partners can be joint ventures, research and development agreements, and technology partnerships. By having the involved parties on board, the leading players within the Cashew Nutshell Liquid Market will become stronger as they combine their expertise and resources to innovate quickly and outdo the competition.To add on, one of the paramount competitive strategies implemented by the top players within the Cashew Nutshell Liquid Market is investing a sizeable amount of money in research and development in order to introduce the innovative Cashew Nutshell Liquid-based goods and applications. These major players will, therefore, buoy their products by producing goods that are imaginatively dissimilar, in concurrence with the requirements of the customers. Olam International is a major player in the Cashew Nutshell Liquid Market. This is an agribusiness conglomerate that is established in Singapore. The company has a big global presence with over 60 countries having their operations. It is a large supplier of cashew nuts and cashew nut shell liquid and has a well-established supply chain that sources and delivers the cashew nutshell liquid to its customers globally. It is concerned about sustainability, and there are many initiatives aiming at reducing climate impact and improving the livelihoods of smallholder farmers. Arkema is one of the major players in the Cashew Nutshell Liquid Market. This is a French chemical company that is the leading producer of specialty chemicals. It has a well-entrenched experience in the development and production of bio-based materials. The company is responsible for many varied applications, including the use of Cashew Nutshell Liquid-based products, such as coatings, adhesives, and plastics. It is also committed to research and development, and Arkema is a relentless investor in new technologies that will help enhance the performance and sustainability of the textiles.
Key Companies in the Cashew Nutshell Liquid Market Include:
- Koster Keunen
- RoosterRock Renewable Ventures
- Cashew Resources International
- Sandoz
- Phoenix Chemicals
- Novacarb
- Huntsman Corporation
- Cardolite
- Arkema
- Shree Pushkar Chemicals Fertilizers Ltd.
- UD Chemicals
- ICL Israel Chemicals
- Vencore Specialties
- Emerald Specialties
Cashew Nutshell Liquid Market Industry Developments
The Cashew Nutshell Liquid Market is projected to reach USD 11.2 billion by 2032, exhibiting a CAGR of 8.24% during the forecast period (2024-2032). Rising demand for cashew nutshell liquid (CNSL) in various industries, including automotive, aerospace, and construction, is a key driver of market growth. CNSL is a natural resin derived from cashew nutshells and is used in the production of friction materials, paints, coatings, and adhesives. Increasing environmental concerns and the growing popularity of bio-based materials are also contributing to the market's expansion. Asia-Pacific is expected to dominate the market throughout the forecast period, with major production hubs in India, Vietnam, and Indonesia. Strategic partnerships and acquisitions are among the key strategies adopted by market players to strengthen their position.
Cashew Nutshell Liquid Market Segmentation Insights
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Cashew Nutshell Liquid Market Grade Outlook
- Technical Grade
- Acid Grade
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Cashew Nutshell Liquid Market End Use Outlook
- Friction Materials
- Foundry Chemicals
- Oil Industries
- Cosmetics and Pharmaceuticals
- Other Industrial Applications
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Cashew Nutshell Liquid Market Distribution Channel Outlook
- Direct Sales
- Distribution Partners
- Online Marketplaces
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Cashew Nutshell Liquid Market Application Outlook
- Brake Linings and Pads
- Clutch Facings
- Molding Compounds
- Foundry Products
- Lubricants
- Corrosion Inhibitors
- Adhesives and Sealants
- Paints and Coatings
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Cashew Nutshell Liquid Market Extraction Method Outlook
- Solvent Extraction
- Mechanical Extraction
- Chemical Extraction
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Cashew Nutshell Liquid Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
5.07(USD Billion) |
| Market Size 2023 |
5.49(USD Billion) |
| Market Size 2032 |
11.2(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
8.24% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Koster Keunen, RoosterRock Renewable Ventures, Cashew Resources International, Sandoz, Phoenix Chemicals, Novacarb, Huntsman Corporation, Cardolite, Arkema, Shree Pushkar Chemicals Fertilizers Ltd., UD Chemicals, ICL Israel Chemicals, Vencore Specialties, Emerald Specialties |
| Segments Covered |
Grade, End Use, Distribution Channel, Application, Extraction Method, Regional |
| Key Market Opportunities |
1 Rising demand from the automotive industry2 Growing popularity of personal care products3 Increasing use in industrial applications4 Surge in health-conscious consumers5 Expansion in emerging markets |
| Key Market Dynamics |
Increasing demand for biobased adhesives Rising popularity of cashew milk Growing awareness of environmental sustainability Technological advancements in extraction processes Expanding applications in cosmetics and pharmaceuticals |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
As of 2023, the Cashew Nutshell Liquid Market is valued at approximately USD 5.49 billion.
The Cashew Nutshell Liquid Market is projected to reach USD 11.2 billion by 2032, exhibiting a CAGR of 8.24% from 2024 to 2032.
The Asia-Pacific region is expected to dominate the Cashew Nutshell Liquid Market throughout the forecast period due to the increasing demand for cashew nuts and the presence of major cashew-producing countries such as India and Vietnam.
Cashew Nutshell Liquid finds applications in various industries, including the production of friction materials, brake linings, adhesives, paints, and coatings.
Key players in the Cashew Nutshell Liquid Market include Cardolite Corporation, Elementis Plc, and SI Group.
The increasing demand for cashew nuts, the rising use of Cashew Nutshell Liquid in friction materials and adhesives, and the growing awareness of the environmental benefits of Cashew Nutshell Liquid are driving the growth of the market.
Challenges faced by the Cashew Nutshell Liquid Market include the availability of substitutes, the volatility in the prices of raw cashew nuts, and the stringent regulations regarding the use of Cashew Nutshell Liquid.
Opportunities for growth in the Cashew Nutshell Liquid Market lie in the increasing demand for eco-friendly materials, the expansion of the automotive industry, and the growing awareness of the health benefits of Cashew Nutshell Liquid.
The Cashew Nutshell Liquid Market is expected to witness significant growth in the future due to the increasing demand for sustainable and eco-friendly materials, the growing awareness of the health benefits of Cashew Nutshell Liquid, and the expansion of the automotive industry.
Key trends shaping the Cashew Nutshell Liquid Market include the growing demand for bio-based materials, the increasing use of Cashew Nutshell Liquid in automotive applications, and the development of new technologies for the extraction and processing of Cashew Nutshell Liquid.
