Cashew Nutshell Liquid Market Projected to Reach $979.8 Million by 2031

The global market for Cashew Nutshell Liquid (CNSL) is projected to reach $979.8 million by 2031, an increase from $568.5 million in 2026. The market is expected to grow at a Compound Annual Growth Rate (CAGR) of 11.50% between 2026 and 2031.

Growth in the CNSL market is attributed to rising demand for bio-based materials and advancements in processing technologies. CNSL is increasingly used to develop high-performance products such as resins, coatings, and specialty chemicals, offering sustainable alternatives to petroleum-derived products. Its ability to enhance material durability, chemical resistance, and thermal stability supports its use in automotive components, coatings, construction materials, and industrial applications.

Europe dominated the market in 2025, accounting for a 38.8% share. The friction materials segment is anticipated to be the fastest-growing product type with a CAGR of 13.43%. Coatings represented the largest application segment in 2025, holding a 28.2% market share.

Key players identified in the market include Cardolite Corporation, Palmer International, and Golden Cashew Products. Expanding industrialization and the demand for bio-based materials in emerging economies are creating further opportunities for CNSL manufacturers globally.