Areca Nut Market Research Report – Forecast till 2032

Global Areca Nut Market Research Report Information By Type (Red, White Arecanut), By Product (Scented Supari, Tannin, Pan Masala) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032

ID: MRFR/F-B & N/10973-HCR | 128 Pages | Author: Pradeep Nandi | February 2024         

Global Areca Nut Market Overview


Areca Nut Market Size was valued at USD 0.815 Billion in 2022. The Areca Nut market industry is projected to grow from USD 0.85575 Billion in 2023 to USD 1.264 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.00% during the forecast period (2023 - 2032). Raising awareness of the areca nut's health benefits and growing popularity of smokeless tobacco products are the key market drivers enhancing the market growth.


Global Areca Nut Market Overview


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Areca Nut Market Trends



  • Rising demand from developing countries is driving the market growth


Market CAGR for areca nut consumption in India is increasing due to their use in traditional customs and consumption in various forms. The use of these nuts in betel leaves with various flavors is expanding the country's market for areca nuts. They are prepared in a variety of ways, including fresh, dried, baked, boiled, roasted, and cured. Areca nuts, either raw or processed, are commonly used with tobacco. These are also widely used in industrially produced products such as gutka and pan masala. These factors are also expected to increase India's imports.


The price of tender areca nuts reached an all-time high in 2021 due to a sharp decline in production caused by various diseases affecting areca nut palms. Due to the heavy rain, areca nut palms are prone to diseases such as fruit rot, bud rot, and yellow leaf disease. The shortage in the arrival of the commodity due to a decline in yield and the huge demand for the product in the market, particularly in Karnataka, was the primary reason for the crop's sudden price increase. Consequently expected, all of these factors, combined with decreased domestic production due to disease and steadily rising demand, resulted in increased commodity imports.


Technology is being used in a variety of ways to boost the efficiency and productivity of the areca nut industry. For example, farmers are using drones to monitor their crops and detect pests and diseases early on. Sensors are used from processors to ensure that areca nuts are dried and cured to the correct specifications. Organic products are becoming more popular as consumers become more aware of their health and environmental benefits. Areca nut-based food products, such as areca nut biscuits and chocolates, are also becoming increasingly popular. Such items provide an easy and affordable way to consume areca nuts. The organization are also less harmful than traditional areca nut products, such as gutkha and pan masala, which are frequently mixed with tobacco and other toxic substances.


In 2022 government permitted the import of 17,000 metric tonnes of green areca nut from Bhutan via LCS Jaigaon (INJIGB), subject to a valid registration certificate issued by the Directorate General of Foreign Trade (DGFT). Areca nut is increasingly being used in traditional medicine in India and other Asian countries. It is thought to have a variety of medicinal properties, including aiding digestion, boosting the immune system, and relieving pain. Thus, driving the Areca Nut market revenue.


Areca Nut Market Segment Insights


Areca Nut Type Insights


The Areca Nut market segmentation, based on type includes red, white arecanut. The white arecanut segment dominated the market, accounting for 65% of market. White areca nut is thought to be more visually appealing than red areca nut. It is lighter in color and has a smoother texture. White areca nut is also considered to have a better taste than red areca nut. It is less bitter and has a more subtle flavor.


Areca Nut Product Insights


The Areca Nut market segmentation, based on Product, includes scented supari, tannin, and pan masala. The pan masala category generated the accounting for over 50%. Pan masala is very popular in India and other Asian countries. In addition, over 200 million Indians are estimated to consume pan masala on a regular basis. Pan masala is available in a variety of flavors and varieties. It makes it appealing to a wide range of consumers. Pan masala is reasonably priced, making it accessible to a wide range of consumers. The pan masala industry invests heavily in marketing and advertising.


Figure 1: Areca Nut Market, by Product, 2022 & 2032 (USD Billion)


Areca Nut Market, by Product, 2022 & 2032


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Areca Nut Regional Insights


By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America region is the dominant region in the areca nut market. In addition, the Asian population in North American region is rapidly expanding which increases the demand for areca nut products in North American region.


Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Figure 2: ARECA NUT MARKET SHARE BY REGION 2022 (USD Billion)


ARECA NUT MARKET SHARE BY REGION 2022


Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Europe Areca Nut market accounts for the second-largest market share due to the European consumers are more aware of the health risks associated with areca nut consumption. Further, the German Areca Nut market held the largest market share, and the UK Areca Nut market was the fastest growing market in the European region.


The Asia-Pacific Areca Nut Market is expected to grow at the fastest CAGR from 2023 to 2032. The growing popularity of smokeless tobacco products is boosting the demand for areca nut. Areca nut is believed to have a number of health benefits, such as improving digestion and boosting the immune system. Moreover, India Areca Nut market held the largest market share, and the Indian Areca Nut market was the fastest growing market in the Asia-Pacific region.


Areca Nut Key Market Players & Competitive Insights


Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Areca Nut market, grow even more. The areca nut market is also facing increased competition from other smokeless tobacco products, including nicotine pouches and e-cigarettes. These products are gaining popularity among consumers are perceived to be less harmful than areca nut products. The competition to develop more environmentally friendly and sustainable farming techniques because the cultivation of areca palms can have negative environmental effects, such as deforestation and soil degradation, with important market developments including public Awareness, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Areca Nut industry must offer cost-effective product.


Creating novel and cutting-edge products, such as flavored areca nut products and food items made with areca nuts in the Areca Nut industry to benefit clients and increase the market sector. In recent years, the Areca Nut industry has offered Investing in brand building activities to create a strong brand presence in the market. Major players in the Areca Nut market, including PT. RUBY PRIVATINDO, SRI VINAYAKA BETELNUT TRADERS, THE CAMPCO LTD., GM GROUP, SWASTIKA INTERNATIONAL, SHRI GANESH PRASAD TRADERS, VIETDELTA INDUSTRIAL CO., LTD, and others, are attempting to increase market demand by investing in research and development operations.


Ruby Privatindo was founded in 1998 In Indonesia, one of the major areca nut-producing nations in the world, there is a reputable business called PT. Ruby Privatindo. The business exports and processes areca nuts, primarily for foreign markets. PT. Ruby Privatindo is a significant player in the international areca nut market, specialising in the procurement, processing, and export of premium areca nuts. The business contends with both domestic and foreign competitors in this market. Due to the nature of its business, PT. Ruby Privatindo places a high priority on maintaining product quality and safety in order to satisfy the needs and expectations of various markets. In addition to its core business of supplying food and agricultural commodities, PT. Ruby Privatindo is also involved in a number of other activities.

Sri Vinayaka Betelnut was founded in 1990 and Traders is an Indian company that primarily operates in the betel nut industry. The company are involved in the sourcing, processing, and distribution of areca nuts, which are widely used in a variety of traditional and contemporary Indian products. The company's main operations are based in India, which has a sizable consumer market for betel nut-based products. Sri Vinayaka Betelnut Traders specializes in the supply and distribution of areca nuts to manufacturers of traditional and modern products such as pan masala, chewing tobacco, and others. Areca nuts are frequently used as a key ingredient in these products. The company operates in the Indian market, where betel nut-based products are culturally and socially significant. Sri Vinayaka Betelnut sources its betel nuts from the finest plantations in India and processes them using state-of-the-art technology to ensure the highest quality.


Key Companies in the Areca Nut market include



  • RUBY PRIVATINDO

  • SRI VINAYAKA BETELNUT TRADERS

  • THE CAMPCO LTD.

  • GM GROUP

  • SWASTIKA INTERNATIONAL

  • SHRI GANESH PRASAD TRADERS

  • VIETDELTA INDUSTRIAL CO., LTD


Areca Nut Industry Developments


In 2022: In 2022, Surya Exim acquired a majority stake in PT. Rajawali Agro, an Indonesian areca nut producer.


In 2021: GM Group acquired a majority stake in Biotan Pharma, an Indian areca nut-based products company.


Areca Nut Market Segmentation


Areca Nut Type Outlook



  • RED

  • WHITE ARECANUT


Areca Nut Product Outlook



  • SCENTED SUPARI

  • TANNIN

  • PAN MASALA


Areca Nut Regional Outlook



  • North America

    • US

    • Canada



  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific



  • Rest of the World

    • Middle East

    • Africa

    • Latin America



Report Scope:

Report Attribute/Metric Details
Market Size 2022 USD 0.815 Billion
Market Size 2023 USD 0.85575 Billion
Market Size 2032 USD 1.2643 Billion
Compound Annual Growth Rate (CAGR) 5.00% (2023-2032)
Base Year 2022
Market Forecast Period 2023-2032
Historical Data 2018- 2022
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Type, Product, and Region
Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled PT. RUBY PRIVATINDO, SRI VINAYAKA BETELNUT TRADERS, THE CAMPCO LTD., GM GROUP, SWASTIKA INTERNATIONAL, SHRI GANESH PRASAD TRADERS, VIETDELTA INDUSTRIAL CO., LTD
Key Market Opportunities ·         Increasing awareness of the health benefits of areca nut
Key Market Dynamics ·         Growing demand from developing countries




Frequently Asked Questions (FAQ) :

The Areca Nut market size was valued at USD 0.815 Billion in 2022.

The market is projected to grow at a CAGR of 5.00% during the forecast period, 2023-2032.

North America had the largest share in the market.

The key players in the market are General PT. RUBY PRIVATINDO, SRI VINAYAKA BETELNUT TRADERS, THE CAMPCO LTD., GM GROUP, SWASTIKA INTERNATIONAL, SHRI GANESH PRASAD TRADERS, VIETDELTA INDUSTRIAL CO., LTD

The WHITE ARECANUT category dominated the market in 2022.

The store based had the largest share in the market.

Key Questions Answered

  • Global Market Outlook
  • In-depth analysis of global and regional trends
  • Analyze and identify the major players in the market, their market share, key developments, etc.
  • To understand the capability of the major players based on products offered, financials, and strategies.
  • Identify disrupting products, companies, and trends.
  • To identify opportunities in the market.
  • Analyze the key challenges in the market.
  • Analyze the regional penetration of players, products, and services in the market.
  • Comparison of major players’ financial performance.
  • Evaluate strategies adopted by major players.
  • Recommendations
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