Market Trends of Areca Nuts Industry
Increasing Imports from India
The demand for areca nuts is rising in India due to their usage in traditional customs and consumption in various forms. The usage of these nuts in betel leaves with different flavors is enhancing the market for areca nuts in the country. They are used in various forms, including fresh, dried, baked, boiled, roasted, and cured. Dehusked areca nuts are used in a raw or processed form, generally with tobacco. These are also majorly used in different industrially manufactured products, such as gutka and pan masala. These factors are further expected to increase the imports of India.
In 2021, the price of tender areca nuts reached an all-time high due to a sharp decline in production caused by various diseases affecting areca nut palms. Areca nut palms are susceptible to various diseases, such as fruit rot disease, bud rot, and yellow leaf disease due to the heavy rain. The shortage in the arrival of the commodity, owing to a decline in yield and the huge demand for the product in the market, especially in Karnataka, was the major reason for the sudden spurt in the price of the crop. Therefore, all these factors, coupled with reduced domestic production affected by diseases and the steadily growing demand, led to increased imports of the commodity.
Asia-Pacific Dominates the Market
The growth of the areca nuts market is mainly due to the rising consumption of nuts in both developed and developing countries of Asia-Pacific. The Asia-Pacific region holds about 90% of the market for areca nuts. India is the largest producer and the biggest consumer of areca nuts in the world. Almost all the demand for areca nuts is met by India, Bangladesh, Indonesia, Thailand, Sri Lanka, and Myanmar.
However, the per capita consumption of areca nuts is high in Myanmar, followed by Bangladesh, India, Indonesia, and China. The consumption is further expected to increase in the near future as the consumption of these nuts in different processed foods continues to increase.
Despite the danger to health, the betel-nut industry is booming. In the province, betel nuts are deeply ingrained into the cultural fabric. However, in 2021, China banned the promotion of betel nuts, the addictive seeds of areca palm trees, on television, radio, and online programs because of their cancer-causing risks.
