Areca Nut Market: Current Analysis and Forecast (2021-2027)

Areca nut, which is also known as betel nut, is the seed obtained from areca palm. It is an essential commercial fruit in Southeast Asia. The escalating demand for areca products, including pan, scented supari, and pan masala across countries like India, the U.S., Sri Lanka, Nepal, Thailand, Singapore, and others proliferates the areca nut market growth. Moreover, areca nuts comprise approximately 15% of fat that can be extracted and used in confectionery products. Also, the refined fat of the areca nut is hard in comparison to that of cocoa butter. Therefore, it can be extensively used for blending. This factor offers a lucrative opportunity to the manufacturers and is expected to propel market growth in the forthcoming years.

The extract of areca nut exhibits properties of strengthening the muscle. Hence, it plays a vital role in stroke recovery. The water extract of the areca nuts holds anti-microbial activity and works towards some strains of oral bacteria. Therefore, chewing an areca nut can protect teeth from the cavity and avert dental plaque. However, the regular consumption of areca nut can lead to severe diseases like throat & mouse cancer, which might hamper the market growth in the future.

Based on the product, the market is bifurcated into Scented Supari, Tannin, and Pan Masala. Of these three, the demand for scented supari is likely to increase significantly during the forecast period. It is being widely consumed in countries like India. The major producers of scented supari are China, India, Brazil, the US, Turkey, and Zimbabwe. Consumption of scented supari, especially in developing countries, is projected to increase due to the rapidly surging global population and trade liberalization.

Based on the color, the market is bifurcated into white and red areca nuts. The white areca nut is produced by harvesting the fully ripe nuts and then exposing them to the sun for about 2 months for drying purposes. After this, the shells on the areca nuts are removed and are referred to as supari. On the other hand, red areca nut is produced by harvesting the green areca nut, boiled, and then its external husk is removed. The final product is called chikni supari.

For a better understanding of the market adoption of Areca Nut, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, and Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, Indonesia, Bangladesh Rest of Asia-Pacific), and Rest of World. In 2020, the Asia Pacific region held the largest share of the global Areca Nut Market. This is primarily due to the robust presence of areca nut manufacturers and suppliers in the Asia Pacific countries, including India and China. Moreover, the soaring consumption of areca nuts in different processed foods is likely to contribute to the areca nut market growth.

Some of the major players operating in the market are Swastika International, GM Group, Rubyndo, Sri Vinayaka Betelnut Traders, Shri Ganesh Prasad Traders