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Key Takeaways
- Almonds and cashews require vast resources to grow and process for consumption, increasing the costs that are then passed along to you.
- Cashews require tropical environments for ideal growing. Climate stress makes these regions more difficult to work in.
- Tariffs on countries producing cashews—and growing global demand for almonds, which are mainly grown in the U.S.—raise costs as well.
Why Almonds and Cashews Cost More To Grow Than Most Snacks
One of the most important determinants of how cashews or almonds—or almost any good that you buy at the grocery store—are priced is the cost to grow and process those foods. Not only do higher production costs typically lead to higher prices for consumers, but the cost of production is a critical factor for farmers determining how to prioritize their crops and operations each year.
As it turns out, almonds and cashews are costly and labor-intensive to produce. California produces about 80% of the world’s supply of almonds, for example. The cost of California farmland for almond orchards has risen dramatically in recent decades. On top of that, so too have the costs of irrigation and fertilizer, not to mention labor-associated expenses.
Why This Matters
While almonds and cashews make for a nutritious snack, they can be a costly addition to your grocery basket. Knowing the factors behind their pricing can help you make more informed choices about what goes in your pantry.
Cashews Are Hard To Process—And That Cost Adds Up
The situation may be even worse for cashews. Processing cashews—that is, bringing them from where they grow on the tree all the way to where you can buy them at the store—is a complex and multistep process involving cooking or roasting, shelling, drying, peeling, and more. Some steps in the process are still done by hand, making cashews an extremely labor-intensive commodity to produce.
Fast Fact
Every cashew grows inside a fruit. To get to the nut, you have to hand-pick it out of the fruit. The shell contains a poisonous oil that isn’t pleasant to touch, partly because the cashew is in the same family as poison ivy.
To make things even tougher, cashew trees require a specific type of tropical climate to flourish, meaning that cashews can only be grown in certain parts of the world. Add in political instability, weather fluctuations, costs associated with importing and exporting, and limited overall production volume, and you have a recipe for expensive cashew nuts.
Climate Stress Is Pushing Nut Prices Higher Over Time
Climate change has likely already contributed to an increase in almond and cashew prices, and it is almost certain to continue to do so going forward. Both of these crops require significant amounts of water to produce, making sustainability a concern.
At the same time, increases in global demand for cashews and almonds have put producers in the difficult position of needing to boost production while also navigating climate issues. Although they have so far been successful in this goal, it may be difficult to continue to meet demand in the years to come. As an example, the cashew market is projected to expand at a compound annual growth rate of 6.74% through 2031, when it could be worth more than $14.6 billion globally, up from $10.6 billion in 2026.
Trade and Import Costs Are Adding Another Layer to the Price You Pay
For a commodity like almonds, which are grown primarily in the U.S. but consumed all over the world, the impact of trade trends on the prices domestic consumers pay can be significant.
Import costs are affecting the price of cashews for American consumers. At various times in the past year, broad tariffs on goods coming from cashew-producing countries like Brazil have threatened to immediately and significantly increase the cost of these products for U.S. customers. Tariffs aside, a potential increase in import costs over time may make an already-expensive good even costlier.
