The World Health Organization’s recently released tobacco trends report reveals a continued decline in tobacco use globally. But as the world grows aware of the health risks associated with tobacco, the exponential growth of Areca Nut – known as supari in Hindi – continues unabated.
Areca Nut is the seed of the Areca catechu palm tree and is the fourth most common psychoactive substance used by over 10 per cent of the world population. Areca Nut is chewed raw or in processed forms (boiled, roasted, fermented), alone or with tobacco combined with slaked lime, flavours, and spices like cardamom, saffron, cloves or wrapped in betel leaf (pan).
‘Oral Cancer Prevention of the IARC Handbooks of Cancer Prevention Series Volume 19’, released by the International Agency for Research on Cancer (IARC) in November 2023, reported that the risk of oral cancer is higher for individuals who used Areca Nut and Pan (betel quid) as opposed to those who consumed chewing tobacco. Flavoured Areca Nut products, like scented supari, pan masala, and gutkha, which are often sold as mouth fresheners, are in heavy demand in many parts of the world, especially South Asia.
Areca Nut is interpreted as a relatively safe alternative to chewing tobacco. With increasing globalisation and human migration, Areca Nut-containing formulations are becoming increasingly popular outside Asia. And leading manufacturers are investing heavily in aggressive promotional activities and celebrity endorsements on television and social media to expand their product portfolio.
Despite clear evidence of its adverse health outcomes, global Areca Nut production has grown exponentially in the last 15 years – from 1,086,449 tonnes to 2,434,584 tonnes (a 124 per cent increase).
According to the IMARC Group’s latest report, India’s pan masala market reached a value of about Rs 44,973.0 crore in 2023 and is expected to touch Rs 62,067.7 crore by 2032, exhibiting a compound annual growth rate (CAGR) of 3.8 per cent between 2024-2032.
Technavio has been monitoring the Areca Nut market in the Asia Pacific Region. The analyst’s latest report, published in January 2024, reveals that this market size is poised to grow by USD 3.94 billion, at a CAGR of 6.59% between 2023 and 2028. India, Bangladesh, and Sri Lanka are the largest Areca Nut markets. In India alone, 223.79 million people (about 24 per cent of the adult population) consume Areca Nut in some form or the other, thus leading the market with a share of over 64 per cent, followed by Bangladesh (14 per cent).
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Factors responsible for boosting Areca Nut market
- Technical advancements in cultivation
The emergence of precision farming, advanced equipment, multiple cropping systems, integrated plant health management, and the development of several modern technological value-added products have led to a significant boost in Areca Nut production. From 1961 to 2016, the area under Areca Nut cultivation in India nearly tripled, while the quantum of production increased five times.
- High demand from pan masala makers and innovation in Areca Nut products
Increasing consumption of pan masala is driving the market growth between 2022-2027. Retail vendors and small manufacturers of gutkha and flavoured silver-coated supari, in a large informal sector, are potential Areca Nut buyers. Numerous innovative variants sold in pouches or sachet packs, made of eco-friendly material or foil and retaining the aroma of pan masala for a longer time, are fuelling the growth of the Areca Nut market.
- Prevalence of clean labelling and fair-trade practices
Uniform tax and penal provisions in the Areca Nut sector are bringing an increasing number of buyers into regulated markets. In the pre-GST era, to avoid taxes, a section of buyers would stay away from organised markets and fulfil their requirements through off-market transactions with growers and agents. In a way, GST helps streamline the Areca Nut market, bringing more buyers, sellers as well as start-ups into the organised market while reducing off-market transactions.
- Growing prominence on online platforms
With the growing prominence of Areca Nut-containing products on platforms like Amazon, Flipkart, India Mart etc, demand is expected to go from US $834 million in 2022 to 1,438.2 million in 2032 – at a CAGR of 5.6 per cent.
- Cultural beliefs, social misconceptions, and lack of awareness about carcinogenic potential
Unlike tobacco and alcohol, whose detrimental effects on human health have been extensively recognised, the danger posed by Areca Nut has not gained adequate coverage in the media and scientific community. Areca Nut is still socially acceptable, especially among women from rural India, where smoking is considered offensive.
- Weak Enforcement of Regulatory Policies
India is the largest consumer and producer of Areca Nut in the world. The Cigarettes and Other Tobacco Products Act 2003 regulate tobacco products while the Food Safety and Standards Regulation 2011 prohibits the manufacturing and selling of products containing Areca Nut and tobacco.
However, there is no regulatory framework for Areca Nut products that do not contain tobacco. Regulations like the new GST regime, where Areca Nut attracted 5 per cent GST as against 2 per cent VAT earlier, have made them minimally expensive. This has restrained the Areca Nut market to an extent. But it is also true that most governments and politicians are reluctant to check the growth of the industry due to its economic contributions or to appease an electorate that comprises largely of Areca Nut farmers.
Globally, the WHO Framework Convention on Tobacco Control (FCTC) provides evidence-based guidelines for reducing tobacco use. Unfortunately, similar systematic global or regional surveillance does not exist for Areca Nut products. Activists and researchers around the world have been demanding that Areca Nut be included in the FCTC, but to no avail.
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The causes behind a booming Areca Nut economy, particularly in the Asia-Pacific Region, are clearly multifaceted. Technical innovations in Areca Nut production, heavy demand for flavoured variants and easy availability on e-commerce sites are some of the primary reasons for this unabated growth.
Strategic measures, like higher taxes on Areca Nut products, cutting tax benefits or exemptions under the tax regime, increasing minimum import price, and increasing awareness among people regarding adverse health effects, can help cull the sale and production of these products.
But it will be an uphill task, considering that the custom of Areca Nut chewing is deeply ingrained in some Indian societies and generates massive profits. There is an urgent need to generate public awareness about the carcinogenicity of Areca Nut and sensitise policymakers and regulatory bodies to initiate campaigns against Areca Nut use and addiction.
Alpana K Gupta is a research consultant at the Centre for Health, Innovation and Policy, while Ravi Mehrotra is the founder of the organisation. Views are personal.
(Edited by Zoya Bhatti)