Cashew Nutshell Liquid Market is Segmented By Type (Natural, Technical), By Product (Phenol-Formaldehyde (PF) Resins, Epoxy Modifiers & Resins, Epoxy Curing Agents, Surfactants, Polyols & NCO Blocking Agents, Friction Materials, the Others), By Application (Adhesives, Coatings, Foams & Insulation, Laminates, Friction Linings, Personal Care, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Overview
The report on global cashew nutshell liquid market size, shares, recent trends, competitive intelligence, and future market outlook and the market is estimated to boost at a CAGR of 7.80% during the forecast period 2023-2030.
Cashew nut shell liquid is a highly viscous liquid found inside cashew nutshell and is a major agricultural byproduct obtained during cashew nut and apple production. Natural CNSL is a blend of phenolic compounds with aliphatic side chains of 70% anacardic acid,18% cardol, and 5% cardanol. Cashew Nutshell Liquid can be extracted using a variety of methods such as solvent extraction, mechanical extraction, hot oil process, vacuum distillation, or supercritical fluids processes. For extraction, primarily hot-oil and local roasting is used, in which the CNSL streams out of the shell. High temperatures are commonly used to decarboxylate anacardic acid, yielding cardanol.
Market Scope
| Metrics | Details |
| Market CAGR | 7.80% |
| Segments Covered | By Product, By Type, By Application, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | Asia Pacific |
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Market Dynamics
The growing demand for bio-based products in various industry verticals will drive the market. However, the volatile raw material prices and availability of substitutes could be a major market restraint.
Growing demand for bio-based products in various industry verticals
The generation of petrochemicals can result in carbon emissions and the production of hazardous environmental consequences. As a result, several ecologically friendly and non-hazardous product lines are being produced. The development of bio-based solution synthesizers is due to the aforementioned factor. Bio-based products can meet a wide range of client demands and have fewer carbon footprints. Innovative goods have been created due to the increased public knowledge of the value of biodegradable products. By creating new goods and technology that customers want in these shifting times, manufacturing companies continuously adjust to changing requirements. Thus the growing demand for bio-based products in various industrial verticals could be a major market driver for the global cashew nutshell market.
The volatile raw material prices and availability of substitutes
Raw material prices and availability are critical factors for producers in deciding the pricing structure of their product lines. Plastic resins, industrial inorganic chemicals, synthetic rubbers, inorganic chemicals, and refined petroleum products are among the raw materials used by cashew nutshell liquids. The major chunk of these raw materials is petroleum-based variants susceptible to commodity price fluctuations.
Furthermore, since the CNSL market is dominated by synthetic derivative product alternatives that are cheap to fabricate, CNSL manufacturers must focus on producing large quantities of bio-based products to encounter large markets and overcome change barriers. The key market sectors are developing technology to produce CNSL with higher performance at a fair price.
COVID-19 Impact on Market
Because the production of the cashew nutshell liquid has been disrupted, industrial-scale synthesis of cashew nutshell liquid requires massive machinery, large-scale industrial reagents, and skilled workers. During the pandemic, industry lockdowns and social distancing requirements severely hampered production. Further, the global lockdown imposed by the COVID-19 pandemic hampered both the supply of raw materials necessary to manufacture cashew nutshell liquid and the supply of finished products. As a result, the demand-supply dynamics in the cashew nutshell liquid market were severely impacted. Lockdowns and a lack of raw materials in end-user industries reduced overall activity in these application sectors, lowering the demand for cashew nutshell liquid as raw materials. However, the global cashew nutshell liquid market has the potential to grow tremendously, accelerated by the growth prospects shown by the pharmaceutical, agrochemical, and rubber industries and a paradigm shift toward environmental-friendly products.
Market Segmentation Analysis
The global cashew nutshell liquid market is classified based on type, product, application, and region.
The polyols & NCO blocking agents sector in the CNSL market is expected to grow due to an emphasis on minimizing VOC content
CNSL polyols are water-resistant and less sensitive to moisture during isocyanate curing. Therefore, polyurethane systems with lower VOC content and better moisture sensitivity could be easily manufactured by employing the respective technology. The polyols & NCO-blocking agents sector in the CNSL market is expected to grow due to an emphasis on minimizing VOC content. Environmental standards will also benefit the market.
Market Geographical Share
Easy raw material availability and volatile price coupled with environmental regulations drive the Asia-Pacific cashew nutshell liquid market
Because of the easy supply of raw materials and emerging industries, as well as the increasing demand for CNSL as an alternative to unsaturated phenols, Asia-Pacific dominates the regional segment. The region is expected to grow as the economy expands and domestic demand for organic exports and products rises. Environmental rules and volatile raw material prices positively impact the Asia-Pacific cashew nutshell liquid market.
Market Companies and Competitive Landscape
In terms of global and local producer numbers and strengths, the global cashew nutshell liquid market is niche yet competitive due to the presence of major players such as Cardolite Company, Palmer International, Senesel, Sri Devi Group, LC BUFFALO, Golden Cashew Products, Muskaan, Shivam Cashew Industry, Adarsh Industrial Chemicals, and K2P Chemicals. The market is fragmented and pivotal market stakeholders use market tactics such as mergers, acquisitions, product launches, contributions, and collaborations to gain a competitive advantage and recognition in their respective markets.
Cardolite
Overview: Cardolite is a major producer and developer of cashew nutshell liquid-derived specialty chemical products. Cardolite products are made from cashew nutshell liquid (CNSL), a non-food chain, annually renewable biomaterial. Cardolite provides polyols, surfactants, NCO-blocking agents, and diluents for adhesives, polyurethane coatings, elastomers, textiles, and foams. Cardolite epoxy products form the foundation of paint formulations that protect assets from the harshest environments and Cardolite friction product lines are used in brake pad formulations. Cardolite strives to provide the highest quality of service to the most demanding global customers, with a strong emphasis on research and development, global support, and manufacturing. The company was founded in 1984 and is currently headquartered in Pennsylvania, U.S.
Product Portfolio:
- Renewable Polyols and Diols: Diols and polyols derived from Cashew Nutshell Liquid (CNSL) are viable options for palm oil polyols in applications such as flexible and rigid foams. Because of the aromatic rings in their backbone, CNSL diols typically improve the fire resistance properties of foams. Furthermore, because of their hydrophobic nature, CNSL diols minimize property change due to water exposure.
The results of tests conducted on a pour-in-place rigid foam formulation show that CNSL-derived diols are also suitable choices for rigid foams. At comparable densities, CNSL diol NX-9203 demonstrated faster reactivity and higher mechanical properties than palm oil polyols. The NX-9203-based formulation used less catalyst (potential cost savings), but both formulations used the same isocyanate index.
Key Development:
- Cardolite introduced NX-9212, a new polyether diol made from liquid cashew nutshell, on April 14, 2021. Low viscosity NX-9212 enables low or zero VOC polyurethanes and simple handling. The respective diol is ideal for creating UV resistance systems and has a light hue. NX-9212 displayed good compatibility with various polyurethane constituents, including other diols like polybutadiene diol, as has been the case with other CNSL diols. It is advised to utilize NX-9212 for making prepolymers with either aliphatic or aromatic isocyanates. Based on NX-9212, polyurethanes exhibit great elongation, minimal moisture sensitivity, and excellent hydrolytic stability. NX-9212 is a fantastic choice for usage in polyurethanes, TPU, PUD, and other applications.
