Areca nuts market in Bangladesh

Earlier Report Observations

The areca nut market in Bangladesh began a sustained expansion from 216 thousand tons in 2018, reaching 376 thousand tons by 2021. This growth was primarily fueled by increasing consumer awareness of the nuts' health benefits, which stimulated demand. To meet this rising consumption, imports rose steadily, while domestic production also increased.

Market volume experienced a temporary contraction to 354 thousand tons in 2022, a decline linked to higher prices that likely dampened immediate consumption. However, the underlying trend of growing health consciousness, including the popularization of consuming soaked areca nuts, supported a recovery to 375 thousand tons in 2023. The COVID-19 pandemic in 2020 introduced general supply chain considerations but did not reverse the market's upward trajectory.

Throughout the period, the market remained largely reliant on imports to supplement domestic output. International price movements and supply chain dynamics directly influenced domestic availability and costs, creating periodic fluctuations within the broader growth trend driven by health-related demand.

Production areca nuts in Bangladesh

In kind, 2017-2020, K t

Between 2017 and 2020, Bangladesh ranked as the world's second-largest producer of areca nuts.

Top producers of areca nuts, 2017-2020

World map of production of areca nuts, 2017-2020

Bangladesh's areca nut production grew for the second consecutive year. In 2020, the country produced 328.6 thousand tons, marking a gradual year-on-year increase of 3.8%. From 2017 to 2020, production rose by 33.1%, which translates to an annualized growth rate of 10.0%. The lowest production level was recorded in 2018 at 215.8 thousand tons. That year also saw the largest decline of 12.6%, while the biggest increase occurred in 2019 with a jump of 46.8%.

Annual dynamics of production in Bangladesh in kind, 2017-2020, K t

Exports areca nuts from Bangladesh

Exports in kind, t

In 2020, Bangladesh exported 22 tons of areca nuts, representing a significant year-on-year increase of 150.3%.

Annual dynamics of product's exports from Bangladesh in kind, 2017-2020, t

From 2017 to 2020, the United States accounted for 80.0% of Bangladesh's total areca nut exports by volume, with the remainder distributed among a variety of smaller markets.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Bangladesh in kind, 2017-2020

Exports in value, K $ US

In 2020, the value of areca nut exports from Bangladesh reached 98 thousand US dollars, showing a sharp year-on-year rise of 74.4%.

Annual dynamics of product's exports from Bangladesh in value, 2017-2020, K $ US

During the 2017–2020 period, the United States dominated Bangladesh's areca nut exports in value terms, capturing 88.6% of the total. The remaining share was divided among several smaller destinations.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Bangladesh in value, 2017-2020

Imports areca nuts to Bangladesh

Imports in kind, t

The import market showed an unstable trend over these years. Imports reached their lowest point in 2018 at 0.1 tons and peaked in 2020 at 17 294 tons, creating a gap of 166 997 times between these two years. In 2020, imports surged by 51.2% compared to the previous year. The largest decline occurred in 2018 with a drop of 93.8%, while the most substantial increase was recorded in 2019, soaring by 11 044 632.5%.

Annual dynamics of product's imports to Bangladesh in kind, 2017-2020, t

From 2017 to 2020, Indonesia, Thailand, and Singapore were the primary sources for Bangladesh's areca nut imports by volume. Indonesia contributed 53.8%, Thailand 23.6%, and Singapore 15.3%, together accounting for 92.7% of total imports.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Bangladesh in kind, 2017-2020

Imports in value, K $ US

The market exhibited volatility during this timeframe. Import values hit a low of 0.2 thousand US dollars in 2018 and a high of 27 000 thousand US dollars in 2020, resulting in a 115 899-fold difference. In 2020, the value of imports climbed sharply by 67.5% year-on-year. The largest decrease was in 2018 at 91.7%, while the biggest increase occurred in 2019, skyrocketing by 6 917 918.6%.

Annual dynamics of product's imports to Bangladesh in value, 2017-2020, K $ US

Between 2017 and 2020, Indonesia, Thailand, and Singapore formed the core group of markets for Bangladesh's areca nut imports in value terms. Indonesia held a 51.6% share, Thailand 26.4%, and Singapore 15.2%, collectively making up 93.3% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Bangladesh in value, 2017-2020