Cashew Nut Shell Liquid (CNSL) Market Size, Share, Growth, and Industry Analysis, By Type (Raw and Technical), By Application (Coating Industry, Automotive and Fuel Industry), and Regional Insights and Forecast to 2034

Last Updated: 07 August 2025
SKU ID: 30051385

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CASHEW NUT SHELL LIQUID (CNSL) MARKET OVERVIEW

The global Cashew Nut Shell Liquid (CNSL) Market size was USD 0.53 billion in 2025 and is projected to touch USD 1.01 billion by 2034, exhibiting a CAGR of 7.43% during the forecast period.

Multipurpose by-products of the cashew industry can be named as cashew nut shell liquid (CNSL). The nut itself has thin husk of about 1/8 inch, inside which lies a soft honey combed structure containing a dark reddish brown viscous liquid. CNSL undergoes all the typical phenol reactions, and CNSL aldehyde condensation products and CNSL-based phenolic resins are employed in a variety of applications, including surface coatings and adhesives. Various polyamines synthesized from CNSL are used curing agents for epoxy resins. CNSL and its derivatives have been used as antioxidants, plasticizers, and processing aids for rubber compounds, modifiers for plastic materials, and used to provide oxidative resistance in sulfur-cured natural rubber products. The holding stock is also added to rubber gum stock or nitrile rubber for better improvement of processability, mechanical properties, and crack and cut resistance properties in the vulcanizates.

CNSL undergoes all possible phenol reactions, and CNSL aldehyde condensation products and phenolic resins based on CNSL find usage in a variety of applications like surface coatings and adhesives. CNSL is used for preparation of different polyamines used as curing agents for epoxy resins. CNSL and its derivatives have been used as antioxidants, plasticizers and processing aids for rubber compounds, modifiers for plastic materials and used to provide oxidative resistance in sulfur-cured natural rubber products. It is also added to rubber gum stock or nitrile rubber to improve the processability, mechanical properties and resistance to crack and cut damage in the vulcanizates. As a result of the growing use of CNSL as a substitute for unsaturated phenols, the CNSL market is set to grow globally.

GLOBAL CRISIS IMPACTING CASHEW NUT SHELL LIQUID (CNSL) MARKET

Depreciating Demand due Manufacturing Halts and Supply Chain Feebleness

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Lockdowns, border restrictions and travel bans really affected the supply of raw cashew nuts from major exporters, such as West Africa, to processing hubs like India and Vietnam, which caused a shortage of nuts and delays by having logistical bottlenecks. Factory closures coupled with reduced sales on consumer spending have caused major slowdowns in the construction, automotive, and personal-care industries, thereby reducing the demand for CNSL. Shortages of raw materials involved increased costs and diminished production capacity. Many processing units either shut down or operated at meager levels, delaying product deliveries and facing high operational costs.

LATEST TRENDS

Escalating Demand for Bio-Based and Eco-Friendly Chemicals to Exasperate the Market Sales

CNSL is non-edible and renewable, having superior thermal stability; thus, it has a potential replacement for petrochemicals in resins, coatings, and adhesives. The rising footprints in the either increased or reduced carbon in factories and green chemistry, along with growing interest in ESG objectives across industries, is boosted by demand for CNSL products. Eco-friendly products are sought after in cashew nut shell liquid market, and thus companies are all the more focusing on "green chemistry". One of the major ingredients from various constituents of cashew nutshell liquid for personal care products which include ointments, skincare, haircare, creams, gels, and other cosmetic products are surfactants-based ingredients. The industries are becoming more and more aware of biodegradable raw materials and eco certifications. Natural or renewable ingredients in products are indirectly increasing demand for industrial CNSL.

CASHEW NUT SHELL LIQUID (CNSL) MARKET SEGMENTATION

By Type

On the differential basis of type, the market is sectioned into raw and technical.

  • Raw: Obtained directly from mechanical pressing or roasting of cashew nut shells, it appears as dark, viscous liquid containing a mixture of anacardic acid, cardol, cardanol, and several other phenolic compounds.
  • Technical: Refined from raw CNSL through thermal treatment or chemical distillation, it is usually enriched with cardanol content and is more consistent in composition and properties than raw CNSL.

By Application

On the differential basis of application bifurcation, the market is fragmented into coating industry, automotive and fuel industry.

  • Coating Industry: CNSL, especially technical-grade cardanol, is used to formulate anti-corrosive coatings, marine and industrial protective paints, epoxy and phenolic resins and UV-resistant finishes. Demands for bio-based coatings are surging because of environmental regulation.
  • Automotive: CNSL derivatives (mostly cardanol-based resins) are used in the production of clutch facings, rubber compounding, brake linings, adhesives, sealants, and coatings for vehicle parts.
  • Fuel Industry: With an increasing focus on biofuel innovations and low-emission transportation, the CNSL-based lubricants for marine fuel applications gained favor due to their high viscosity and bio-origin.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Multiplying Applications in Various End-Use Industries to Rodent the Product Manufacturing

The most common demand sources in the cashew-based brakes lining, clutch facing, and friction material applications are their biodegradability, thermal resistance, and cost-effectiveness. CNSLs build epoxy resins and surface coatings, which resist corrosion, UV, and water. CNSL will take off in insulation and laminates owing to its dielectric properties. Products made from CNSL are competitively priced vis-a-vis synthetic resins and polymers due to lower feedstock costs and local availability in some markets. It decreases leverage on petroleum-based inputs which is more relevant in times of oil price volatility.

Adhesives and Coatings Applications to Incubate the Market Growth

CNSL market has the full efficiency of growth supported by the wide applications in various sectors, like adhesives, friction materials, and lubricants. Its benefits, such as excellent thermal stability, water resistance, and low viscosity, make this raw material one of the best for applications in these sectors. Some of the recent trends in the market are the increasing application of CNSL-based adhesives in the automotive and construction sectors, the emergence of eco-friendly friction materials for automotive brake pads and clutches, and the advent of bio-plastics obtained from CNSL as a substitute for conventional plastics.

Restraining Factors

Environmental Safety and Concerns with Regulatory and Certification Gaps to Limit the Market Growth

One critical limitation within the CASHEW NUT SHELL LIQUID (CNSL) market share is the regulatory and certification gaps and environmental safety and concerns. The absence of global standard certifications (REACH, USDA BioPreferred, etc.) for many CNSL materials hampers entry into regulated markets. Without a clearly defined standard, industries may not want to incorporate CNSL into sensitive product lines (like medical devices and electronics). Traditionally, heat application or solvent extraction has been employed in CNSL extraction; this could mean fume release and alternative safety hazards to workers. Absence of standard eco-friendly processing routes, especially in the case of small-scale operations, could dent CNSL's perceived attractiveness in clean production environments.

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Extended Applications in Beauty and Personal Care Segment to Reciprocate the Market Growth

Opportunity

The driving factor for the personal care industry at present is increasing population coupled with changing modern lifestyles; hence, increased spending on better products according to these trends is expected to boost cashew nutshell liquid market growth. Organized retail industries are gaining momentum in emerging economies such as India, Brazil, and China, contributing to the personal care market growth in developing economies and hence in cashew nutshell market growth.

As a result of modernization, personal care is the fastest-growing application segment in the cashew nutshell liquid market. CNSL is used for the preparation of surface-active agents and non-ionic. There is an association with a hydrocarbon group as well as a hydrophilic phenolic group in the structure. Modified due to these reasons-the structures have improved ion exchange capabilities, such as the sulphonic acid group.

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Lack of Public Awareness and Limited Infrastructure in Some Regions to Deprive Up the Market Growth

Challenge

A number of industrial sectors are using CNSL far below what would be expected if synthetic petrochemical alternatives functioned. Many potential end-users do not have specific technical knowledge with respect to CNSL and its strengths; the result is sluggish penetration into the market outside of select niches, like coatings or friction materials.

Inadequate CNSL extraction and refinement industries both in Africa and some parts of Southeast Asia impede local value addition, increasing the ability to export raw CNSL rather than manufacture high-value downstream products.

CASHEW NUT SHELL LIQUID (CNSL) MARKET REGIONAL INSIGHTS

  • Asia Pacific

The Asia-Pacific region held the largest cashew nut shell liquid (CNSL) market share globally, supported by the ready availability of the raw material, the existence of well-developed end-user industries, and increasing demand for CNSL as an alternative to unsaturated phenols. Asia-Pacific is characterized by rapid growth, available raw materials at low production costs, and increasing demand from the emerging economies. The Asia-Pacific region thus dominated the cashew nutshell liquid market due to the easy availability of the raw material, together with emerging industries and increasing demand for the CNSL as an alternative to unsaturated phenols. Growth of the market is expected because of the favorable economic conditions, rising domestic demand for bio-based products, and exports. Environmental regulations and fluctuating raw materials prices favorably impact the cashew nutshell liquid market.

  • North America

The North American region is considered to be the second market for industrial and automotive applications is developing steadily parallel to bio-based aspirations and further innovation through researches. The increasing demand from the industries in North America for CNSL is due to standing as the second most dominating region. The USA and Canada have been the major markets of this region, and increasing investments in research & development are also an important driver of growth; U.S. companies are undertaking most of the advanced research on CNSL, looking for new applications within the realms of thermal insulation and plasticizers.

  • Europe

Because of stringent sustainability regulations and demand in coatings, friction materials, and specialty chemicals, Europe ranks first in terms of consumption value. Europe leads the research and development of CNSL for coatings, automotive brake systems, and specialty polymers with very high demand for biosourced resins, adhesives, and friction materials due to stringent environmental regulations (e.g., REACH). Countries like Germany and the UK are also leading the market in CNSL application innovations in coatings and industrial products.

KEY INDUSTRY PLAYERS

Major Market Players Embrace Procurement Techniques to Remain Competitive

Market players are locked in in intense competition utilizing procedures such as item development, quality upgrade, competitive estimating, and successful branding. With shoppers progressively favoring economical items, these players are emphasizing the utilize of common and eco-friendly materials such as cotton and bamboo. They are particularly centering on propelling modern items custom fitted for unmistakable applications, tending to the different requests within the market. Moreover, there's a solid accentuation on improving delicateness and generally item quality.

A few market players are endeavoring to convey a sumptuous encounter through predominant plans and quality. Competitive techniques incorporate cost wars, advancements, and collaborations with retailers, all of which play significant parts in their market situating. Online nearness and client surveys hold expanding impact over customer choices. The market competition is multi-faceted, including item separation and key market situating. 

List Of Companies Profiled

  • K Subraya Anantha Kamath and Sons (India)
  • Palmer International (U.S.)
  • K2P Chemicals (India)
  • Shivam Cashew Industry (India)
  • Cardolite (U.S.)
  • Sri devi group (India)
  • Senesel (Poland)
  • Muskaan (India).

KEY INDUSTRY DEVELOPMENTS

  • November 2024: K2P chemical Launches Innovative Bio-Based Epoxy Hardener for Sustainable Construction K2Pc Chemicals proudly announces the launch of a new bio-based epoxy hardener.

REPORT COVERAGE

The market is characterized by seriously competition, with various players competing for showcase share. The competitive scene incorporates a blend of built-up companies and rising new companies, each advertising a run of instruments with shifting highlights and capabilities. The showcase is driven by development, with companies ceaselessly improving their items to supply way better client involvement, more precise approval, and integration with other advancement apparatuses. The competitive competition is assisted escalates by the presence of both free and paid apparatuses, catering to distinctive fragments of clients.

Cashew Nut Shell Liquid (CNSL) Market Report Scope & Segmentation

Attributes Details

Market Size Value In

US$ 0.53 Billion in 2025

Market Size Value By

US$ 1.01 Billion by 2034

Growth Rate

CAGR of 7.43% from 2025 to 2034

Forecast Period

2025-2034

Base Year

2024

Historical Data Available

Yes

Regional Scope

Global

Segments Covered

By Type

  • Raw
  • Technical

By Application

  • Coating Industry
  • Automotive
  • Fuel Industry

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