Southern Asia: Areca Nut Market 2024

Areca Nut Market Size in Southern Asia

For the fifth consecutive year, the South Asian areca nut market recorded growth in sales value, which increased by 0.2% to $X in 2022. Over the period under review, consumption, however, showed resilient growth. The level of consumption peaked in 2022 and is likely to continue growth in years to come.

Areca Nut Production in Southern Asia

In value terms, areca nut production expanded remarkably to $X in 2022 estimated in export price. Over the period under review, production, however, showed significant growth. The growth pace was the most rapid in 2013 when the production volume increased by 134%. The level of production peaked at $X in 2020; however, from 2021 to 2022, production stood at a somewhat lower figure.

The country with the largest volume of areca nut production was India (X tons), comprising approx. 76% of total volume. Moreover, areca nut production in India exceeded the figures recorded by the second-largest producer, Bangladesh (X tons), fourfold.

In India, areca nut production expanded at an average annual rate of +8.0% over the period from 2012-2022. The remaining producing countries recorded the following average annual rates of production growth: Bangladesh (+3.3% per year) and Sri Lanka (+6.8% per year).

In 2022, the average yield of areca nuts in Southern Asia declined modestly to X tons per ha, with a decrease of -2.4% compared with 2021 figures. The yield figure increased at an average annual rate of +1.2% over the period from 2012 to 2022; the trend pattern remained relatively stable, with somewhat noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2018 when the yield increased by 12% against the previous year. Over the period under review, the areca nut yield reached the maximum level at X tons per ha in 2021, and then reduced modestly in the following year. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2022, approx. X ha of areca nuts were harvested in Southern Asia; declining by -3.3% compared with the year before. Overall, the harvested area, however, enjoyed a remarkable increase. The most prominent rate of growth was recorded in 2020 with an increase of 26%. The level of harvested area peaked at X ha in 2021, and then contracted in the following year.

Areca Nut Exports

Exports in Southern Asia

Areca nut exports soared to X tons in 2022, growing by 174% against the previous year. In general, exports continue to indicate strong growth. The growth pace was the most rapid in 2014 with an increase of 264%. The volume of export peaked in 2022 and is expected to retain growth in years to come.

In value terms, areca nut exports soared to $X in 2022. Over the period under review, exports showed significant growth. The most prominent rate of growth was recorded in 2014 when exports increased by 328%. Over the period under review, the exports reached the maximum in 2022 and are likely to see gradual growth in years to come.

Exports by Country

In 2022, India (X tons) was the largest exporter of areca nuts, comprising 64% of total exports. It was distantly followed by Sri Lanka (X tons), achieving a 36% share of total exports.

From 2012 to 2022, the biggest increases were recorded for India (with a CAGR of +37.2%).

In value terms, the largest areca nut supplying countries in Southern Asia were Sri Lanka ($X) and India ($X).

Among the main exporting countries, India, with a CAGR of +29.5%, saw the highest rates of growth with regard to the value of exports, over the period under review.

Export Prices by Country

The export price in Southern Asia stood at $X per ton in 2022, declining by -41.7% against the previous year. In general, the export price, however, posted a remarkable increase. The growth pace was the most rapid in 2013 when the export price increased by 77% against the previous year. Over the period under review, the export prices reached the maximum at $X per ton in 2021, and then declined remarkably in the following year.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Sri Lanka ($X per ton), while India amounted to $X per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Sri Lanka (+14.7%).

Areca Nut Imports

Imports in Southern Asia

In 2022, purchases abroad of areca nuts increased by 133% to X tons, rising for the third year in a row after five years of decline. Overall, imports recorded a perceptible expansion. Over the period under review, imports hit record highs at X tons in 2014; however, from 2015 to 2022, imports stood at a somewhat lower figure.

In value terms, areca nut imports surged to $X in 2022. In general, imports continue to indicate a remarkable increase. As a result, imports reached the peak and are likely to continue growth in the immediate term.

Imports by Country

India represented the largest importer of areca nuts in Southern Asia, with the volume of imports accounting for X tons, which was near 72% of total imports in 2022. Bangladesh (X tons) ranks second in terms of the total imports with an 18% share, followed by Pakistan (8.6%).

India was also the fastest-growing in terms of the areca nuts imports, with a CAGR of +31.5% from 2012 to 2022. At the same time, Bangladesh (+1.5%) displayed positive paces of growth. By contrast, Pakistan (-16.2%) illustrated a downward trend over the same period. From 2012 to 2022, the share of India increased by +72 percentage points.

In value terms, India ($X) constitutes the largest market for imported areca nuts in Southern Asia, comprising 76% of total imports. The second position in the ranking was taken by Bangladesh ($X), with a 19% share of total imports.

From 2012 to 2022, the average annual growth rate of value in India amounted to +40.1%. The remaining importing countries recorded the following average annual rates of imports growth: Bangladesh (+1.3% per year) and Pakistan (-13.9% per year).

Import Prices by Country

In 2022, the import price in Southern Asia amounted to $X per ton, shrinking by -19.6% against the previous year. Overall, the import price, however, posted a remarkable increase. The pace of growth appeared the most rapid in 2018 when the import price increased by 111%. Over the period under review, import prices reached the peak figure at $X per ton in 2021, and then shrank rapidly in the following year.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Bangladesh ($X per ton), while Pakistan ($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 (+6.6%), while the other leaders experienced mixed trends in the import price figures.

Source: IndexBox Platform

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