Treenuts market in Southern Asia

Earlier Report Observations

The treenuts market in Southern Asia, led by India, experienced fluctuating volumes from 2018 to 2023. After a moderate increase to 1 926 thousand tons in 2019, the market contracted to 1 706 thousand tons in 2020. It rebounded strongly to 2 052 thousand tons in 2021, then dipped again to 1 861 thousand tons in 2022 before reaching a peak of 2 219 thousand tons in 2023.

Key factors influenced these movements. In 2021, the export of Ready-to-Eat products, including Pan Masala and betel nuts, accounted for over 56% of such goods, driving production and market volume growth. The nutraceutical trend, with rising health awareness and demand for plant-based alternatives, supported market expansion in 2023. Additionally, severe drought in Karnataka affected arecanut production in 2018, highlighting weather-related volatility, while increased cultivation area and improved practices boosted arecanut output by 39% in 2020-21, contributing to the subsequent recovery.

The market saw structural developments, such as the emergence of makhana (fox nuts) as a new segment due to health-driven demand. Industry initiatives like the import of high-yield walnut and cashew seedlings by the Nut and Dried Fruit Council of India aimed at enhancing domestic production capacity. In 2024, India's peanut exports surged by 42%, solidifying its position as the world's largest exporter, and the MEWA 2024 trade exhibition fostered industry networking, reflecting ongoing dynamism.

Production treenuts in Southern Asia

In kind, 2017-2020, K t

Top producers of treenuts, 2017-2020

World map of production of treenuts, 2017-2020

In Southern Asia, 1 861 thousand tonnes of treenuts were produced in 2020, marking a moderate decline of 9.2% compared to the previous year. Over the period from 2017 to 2020, production fell by 20.4%, with a compound annual growth rate of -7.3%. The largest decrease occurred in 2018, at 17.0%, while the biggest increase was recorded in 2019, at 5.6%.

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

In value, 2017-2020, M $ US

In 2020, the output of treenuts in Southern Asia was valued at 12 291 million US dollars, showing a drop of 4.0% year-over-year. From 2017 to 2020, production value decreased by 28.8%, with a compound annual growth rate of -10.7%. The lowest value was in 2018, at 11 816 million US dollars, which also saw the largest decline of 31.5%. The largest increase occurred in 2019, at 8.4%.

Annual dynamics of production in Southern Asia in value, 2017-2020, M $ US

Exports treenuts from Southern Asia

Exports in kind, K t

The market exhibited volatility during the observed period. Exports of treenuts from Southern Asia reached 257.2 thousand tonnes in 2020, representing an uptick of 30.1% compared to the previous year. The minimum value was recorded in 2018, at 110.6 thousand tonnes, which also saw the largest decline of 44.6%. The largest increase occurred in 2019, at 78.7%. Overall, there was a 2.3-fold variation between the peak in 2020 and the trough in 2018.

Annual dynamics of product's exports from Southern Asia in kind, 2017-2020, K t

From 2017 to 2020, the partner landscape for exports in kind was diverse. China accounted for 13.6% of exports, the United Arab Emirates for 8.8%, and Germany for 5.3%, together forming only 27.8% of total flows. A substantial 72.2% was supplied to many other countries, indicating a wide distribution.

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

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

Exports in value, M $ US

The market showed signs of volatility over the observed period. In 2020, treenuts exports from Southern Asia totaled 1 699 million US dollars, reflecting a steep advance of 37.5% relative to the prior year. The minimum value was in 2018, at 673 million US dollars, which also saw the largest decline of 54.3%. The largest increase occurred in 2019, at 83.5%. Overall, there was a 2.5-fold gap between the peak in 2020 and the trough in 2018.

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

From 2017 to 2020, China, with 16.1% of exports in value terms, Germany with 8.1%, and the United Arab Emirates with 7.2% were among the largest buyers of treenuts from Southern Asia. However, even combined, they represented just 31.4% of total exports, indicating a broadly diversified partner base.

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

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

Imports treenuts to Southern Asia

Imports in kind, K t

After a two-year contraction, imported treenuts volumes in Southern Asia increased. In 2020, imports reached 102.2 thousand tonnes, amounting to a sharp advance of 37.6% compared with 2019. The minimum value was recorded in 2019, at 74.2 thousand tonnes. The largest decline occurred in 2018, at 57.9%. Between 2017 and 2020, imports decreased by 45.4%, equating to an annualized rate of -18.3%.

Annual dynamics of product's imports to Southern Asia in kind, 2017-2020, K t

From 2017 to 2020, Indonesia, with 43.6% of imports in kind, the United States with 6.8%, and Thailand with 5.8% were the main destinations in the geographical breakdown of treenuts imports to Southern Asia, with a combined share of 56.1% of total flows.

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

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

Imports in value, M $ US

After a two-year decline, cross-border shipments of treenuts to Southern Asia increased. In 2020, Southern Asia imported a total of 232 million US dollars of treenuts, up by 57.6% compared to the previous year. The minimum value was recorded in 2019, at 147 million US dollars. The largest decline occurred in 2018, at 46.8%. Between 2017 and 2020, imports decreased by 22%, equating to an annualized rate of -7.9%.

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

From 2017 to 2020, three main markets — Indonesia, the United States, and the United Arab Emirates — together absorbed 54.1% of total imports in value terms of treenuts to Southern Asia.

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

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