Nepal: Areca Nut Market 2024

Areca Nut Market Size in Nepal

In 2022, after two years of growth, there was significant decline in the Nepalese areca nut market, when its value decreased by -8.4% to $X. Overall, consumption, however, continues to indicate a relatively flat trend pattern. As a result, consumption reached the peak level of $X. From 2016 to 2022, the growth of the market remained at a lower figure.

Areca Nut Production in Nepal

In value terms, areca nut production expanded notably to $X in 2022 estimated in export price. Over the period under review, production, however, enjoyed a moderate expansion. The growth pace was the most rapid in 2015 when the production volume increased by 553% against the previous year. Areca nut production peaked at $X in 2016; however, from 2017 to 2022, production remained at a lower figure.

In 2022, the average areca nut yield in Nepal fell to X tons per ha, shrinking by -3.6% on the year before. In general, the yield indicated notable growth from 2012 to 2022: its figure increased at an average annual rate of +2.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, areca nut yield increased by +9.9% against 2019 indices. The pace of growth was the most pronounced in 2015 with an increase of 300% against the previous year. The areca nut yield peaked at X tons per ha in 2017; however, from 2018 to 2022, the yield failed to regain momentum. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2022, the total area harvested in terms of areca nuts production in Nepal reduced notably to X ha, which is down by -16.9% against the previous year. Over the period under review, the harvested area saw a relatively flat trend pattern. The growth pace was the most rapid in 2020 when the harvested area increased by 53% against the previous year. Over the period under review, the harvested area dedicated to areca nut production attained the peak figure at X ha in 2014; however, from 2015 to 2022, the harvested area stood at a somewhat lower figure.

Areca Nut Exports

Exports from Nepal

Areca nut exports from Nepal reduced remarkably to X tons in 2016, which is down by -50% compared with 2015. Over the period under review, exports saw a sharp setback. Over the period under review, the exports hit record highs at X tons in 2015, and then declined sharply in the following year.

In value terms, areca nut exports reduced dramatically to $X in 2016. In general, exports recorded a dramatic downturn. Over the period under review, the exports hit record highs at $X in 2015, and then shrank markedly in the following year.

Exports by Country

India (X tons) was the main destination for areca nut exports from Nepal, with a approx. 100% share of total exports.

From 2015 to 2016, the average annual growth rate of volume to India stood at -50.0%.

In value terms, India ($X) also remains the key foreign market for areca nuts exports from Nepal.

From 2015 to 2016, the average annual rate of growth in terms of value to India stood at -50.1%.

Export Prices by Country

The average areca nut export price stood at $X per ton in 2016, approximately mirroring the previous year. Over the period under review, the export price recorded a relatively flat trend pattern. As a result, the export price attained the peak level and is likely to continue growth in the immediate term.

As there is only one major export destination, the average price level is determined by prices for India.

From 2015 to 2016, the rate of growth in terms of prices for India amounted to -0.1% per year.

Areca Nut Imports

Imports into Nepal

After two years of growth, overseas purchases of areca nuts decreased by -14.6% to X tons in 2022. Over the period under review, imports saw a drastic downturn. The pace of growth was the most pronounced in 2014 when imports increased by 55%. As a result, imports attained the peak of X tons. From 2015 to 2022, the growth of imports failed to regain momentum.

In value terms, areca nut imports declined sharply to $X in 2022. In general, imports recorded a abrupt setback. The growth pace was the most rapid in 2014 when imports increased by 74% against the previous year. As a result, imports reached the peak of $X. From 2015 to 2022, the growth of imports remained at a lower figure.

Imports by Country

In 2022, Indonesia (X tons) constituted the largest supplier of areca nut to Nepal, with a 51% share of total imports. Moreover, areca nut imports from Indonesia exceeded the figures recorded by the second-largest supplier, Thailand (X tons), more than tenfold. Malaysia (X tons) ranked third in terms of total imports with a 0.8% share.

From 2012 to 2022, the average annual rate of growth in terms of volume from Indonesia stood at -13.6%. The remaining supplying countries recorded the following average annual rates of imports growth: Thailand (-27.7% per year) and Malaysia (-25.1% per year).

In value terms, Indonesia ($X) constituted the largest supplier of areca nuts to Nepal, comprising 50% of total imports. The second position in the ranking was held by Thailand ($X), with a 3.9% share of total imports. It was followed by Malaysia, with a 0.8% share.

From 2012 to 2022, the average annual rate of growth in terms of value from Indonesia stood at -7.9%. The remaining supplying countries recorded the following average annual rates of imports growth: Thailand (-27.9% per year) and Malaysia (-22.3% per year).

Import Prices by Country

In 2022, the average areca nut import price amounted to $X per ton, shrinking by -5.8% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +3.7%. The pace of growth appeared the most rapid in 2015 when the average import price increased by 26%. The import price peaked at $X per ton in 2021, and then shrank in the following year.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was India ($X per ton), while the price for Thailand ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by India (+7.6%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform