Areca Nut Market Overview: Areca nut is the fruit produced from the palm trees of South East Asia. Although, the production of areca nut is dependent on the geographic and climatic conditions of the region. Thus, the price fluctuations are majorly dependent on the production of the areca nut. The areca nuts are consumed not only for chewing with betel leaf, but also for various rituals in South East Asia Pacific countries. India is the largest consumer and producer of areca nut in the world. As high consumption of areca nut causes severe health problems, the market for areca nut has attained maturity in the global market.

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Areca Nut Market Dynamics:

Areca nut is majorly influenced by weather conditions in the production area, government policies, the growth of consumer industries, government policies for consumer industries and a few others. The regular consumption of areca nut causes severe diseases such as throat cancer and mouth cancer. Due to a significant number of people affected by the consumption of areca nut, the Indian and several governments have posed various regulations over the areca nut production and consumer industries. This fact has restrained the market for areca nut. Also, the increasing awareness among people regarding healthy life style and severe effects of areca nut have resulted into a barrier for areca nut market. As the pre-bearing age of the palm trees is between 5 to 8 years, and only 5% of them result into seed set, the cultivation of areca nut consumes a lot of time. The time required for cultivation of areca nut and required environmental conditions such as minimum 70% humidity restrains the market at the supplier end.

Areca Nut Market Segmentation:

The areca nut market can be segmented on the basis of areca nut processing as

Chali (ripe sun-dried nuts)
Red boiled (tender or mature nuts)
The areca nut market can be segmented on the basis of various regional varieties of the areca nut as

Indian varieties
South Kanaka (South Kanara, Karnataka)
Thirthahali (Maland, Karnataka)
Rotha (Costal Maharastra)
Mettupalayam (Mettupalayam, Tamil Nadu)
Kahikuchi (North East India)
Mohitnagar (West Bengal)
Non-Indian varieties
Mangala (China)
Sumangala (Indonesia)
Sree Mangala (Singapore)
Areca Nut Market Regional Outlook:

The Asia Pacific is the largest market of areca nuts in the world, with more than 90% of the global market share. India is the largest producer, as well as consumer of areca nut. India is responsible for more than half of the global production of areca nut and still imports various verities from other countries in large volume.

The major export destinations of India includes several Asia Pacific countries, along with a small share of U.A.E., U.S. and U.K. Due to relaxation offered by the Indian government on the import duty, the import of areca nut from Bangladesh has grown to around three times. India, Bangladesh, Indonesia, Thailand, Sri Lanka and Myanmar, all together are responsible for serving the almost complete demand for areca nut. The Asia Pacific market of areca nut is well established, while several government regulations and awareness among people have resulted in the maturity of the market. MEA region, especially Sub-Saharan Africa provides a small market to the areca nuts. All the facts and figures stated above indicate a concentrated market of areca nut in South East Asia Pacific countries, while a weak market in other regions of the globe.

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Areca Nut Market Key Players:

Some of the key players in the areca nut market are

GM group
Surya Exim
Biotan Pharma
Shri Ganesh Prasad Traders
Marlene Traders Co., Ltd.
Viet D.E.L.T.A Industrial Co., Ltd