Areca nuts market in Myanmar

Earlier Report Observations

The domestic areca nut market in Myanmar contracted over the 2018-2021 period, falling from 185 thousand tons to 123 thousand tons as exports grew to peak at 107 thousand tons in 2021. This export rise occurred despite India's imposition of a 40% tariff on Myanmar imports in 2018, which aimed to protect local farmers from cheaper shipments. The COVID-19 pandemic in 2020 further disrupted supply chains while reinforcing traditional at-home consumption patterns across Southeast Asia.

A sharp reversal began in 2022, with market volume jumping to 198 thousand tons and then to 249 thousand tons in 2023. This expansion was fueled by a dramatic drop in exports, which plummeted to 56 thousand tons in 2022 and just 15 thousand tons in 2023 after India introduced a 100% import duty to block inferior-quality areca nuts. At the same time, Myanmar's production increased, reaching 264 thousand tons in 2023, aided by consumer shifts toward higher-quality and processed products.

Underlying these movements, cultural demand for areca nuts remained resilient, supported by traditional practices in Myanmar and the region. Crop diseases like fruit rot and bud rot periodically constrained supply, while technological advances helped address farm labor shortages. Global health concerns about areca nut's carcinogenic properties spurred regulatory discussions, though no major policy changes were implemented in Myanmar during the period.

Production areca nuts in Myanmar

In kind, 2017-2020, K t

Myanmar was one of the world's top producers of areca nuts from 2017 to 2020, ranking third globally by production volume during this period.

Top producers of areca nuts, 2017-2020

World map of production of areca nuts, 2017-2020

In 2020, Myanmar produced 225.8 thousand tons of areca nuts, showing little change from the previous year. Over the period from 2017 to 2020, production grew by 10.7%, which translates to an average annual increase of 3.4%. The highest production level was recorded in 2018 at 226.0 thousand tons, with the largest year-on-year increase of 10.8% also occurring that year. In contrast, 2019 saw the most significant decline, with production dropping by 0.5%.

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

Exports areca nuts from Myanmar

Exports in kind, t

Areca nut exports from Myanmar grew for the third year in a row in 2020, reaching 70 080 tons. This represented a sharp increase of 48.1% compared to the previous year. From 2017 to 2020, exports surged by 144.9%, averaging an annual growth rate of 34.8%.

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

Between 2017 and 2020, India was the primary destination for Myanmar's areca nut exports, accounting for 89.4% of the total volume shipped. The remaining exports were distributed among other countries.

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

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

Exports in value, M $ US

The export market for areca nuts in value terms showed an unstable trend from 2017 to 2020. Exports reached their lowest point in 2017 and peaked in 2018, with a 3.9-fold difference between these years. In 2020, exports amounted to 111.7 million US dollars, a slight decrease of 1.7% from 2019. The highest value was recorded in 2018 at 129.7 million US dollars, which marked the largest increase of 293.2% year-on-year. The most significant decline occurred in 2019, with exports falling by 12.4%.

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

During the 2017–2020 period, the export structure in value terms was highly concentrated, with India alone making up 96.2% of total export flows.

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

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

Imports areca nuts to Myanmar

Imports in kind, t

Import volumes of areca nuts into Myanmar were volatile from 2017 to 2020. Imports hit their lowest point in 2020 and peaked in 2018, with a 1 470-fold difference between these years. In 2020, imports totaled 1 ton, a substantial increase of 295.8% compared to 2019.

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

From 2017 to 2020, Indonesia and Thailand dominated Myanmar's areca nut imports in volume, together accounting for 99.9% of total import flows.

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

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

Imports in value, M $ US

The import market in value terms exhibited volatility over the observed period. Imports reached their lowest level in 2020 and their highest in 2018, with a 158-fold gap between these years. In 2020, import value came to 0.0 million US dollars, reflecting a significant improvement of 273.1% from 2019.

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

Between 2017 and 2020, two countries—Indonesia and Thailand—dominated Myanmar's areca nut imports in value terms, jointly representing 99.5% of total import flows.

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

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