From a massive billion-yuan industry to a 'sales restriction' ultimatum, the small betel nut is experiencing unprecedented turmoil. On September 10, 36-year-old singer Fu Song passed away from oral cancer, having repeatedly stated that his illness was caused by chewing betel nuts and warning netizens to 'stay away from betel nuts.' This incident once topped Weibo's hot search. It is this event that has pushed betel nuts back into the spotlight. Indeed, behind the billion-yuan output value, betel nuts are beginning to 'quit addiction' amid controversy. 01
The Ups and Downs of Betel Nut History
In fact, betel nut is a genuine import; its origin is not China but Southeast Asia. Historical records mention the introduction of betel nut into China, as seen in Sima Qian's 'Records of the Grand Historian' from the Han Dynasty. According to these records, Emperor Wu of Han conquered Nanyue and used betel nut to ward off miasma among his troops. After the victory, he built the Fuli Palace in Xi'an and planted many southern trees, including betel nut. This shows that betel nut appeared in mainland China at least 2,000 years ago during the Han Dynasty. Over time, betel nut cultivation gradually moved southward, and now it is widely grown in tropical regions such as Yunnan, Hainan, and Taiwan. Among these, Hainan is China's major betel nut producer, accounting for over 95% of the national output. Wanning in Hainan is even known as the 'Hometown of Chinese Betel Nut.' After being introduced to China, betel nut gradually transformed from a medicinal substance to a recreational food, especially popular in Lingnan and Xiangtan, Hunan, where it became an essential item in hospitality and wedding customs. However, betel nut has always been controversial. In 2003, the World Health Organization classified betel nut as a Group 1 carcinogen. In 2017, the China Food and Drug Administration released a complete list of carcinogens, listing betel nut as a Group 1 carcinogen. Recently, singer Fu Song passed away from oral cancer, and before his death, he left the words 'stay away from betel nuts,' bringing the carcinogenic nature of betel nut back to consumers' attention. The controversy has reignited. Jianxing Town in Nanchong, Sichuan Province issued a notice requiring all food operators to immediately remove from shelves and stop selling betel nut and betel nut products with food packaging and labels. In addition to Nanchong, market supervision bureaus in Yiwu, Zhejiang, and Nanchang, Jiangxi, have also reported bans on betel nut sales. However, a few days later, the Betel Nut Association of Hainan Province, a major producing province, urgently issued a 'Notice on the Development of Hainan's Betel Nut Industry in Recent Years,' calling for protection of the industry chain. According to the notice, Hainan supplies 95% of the country's betel nut, and millions of farmers rely on it for their livelihood. The industry is currently upgrading, having established local quality standards, and deep-processed products differ from 'Hunan betel nut.' A staff member of the Food Circulation Safety Supervision and Management Division of the Zhejiang Provincial Market Supervision Administration stated that local betel nut cannot be sold in the name of food, rather than a 'ban on sales.' From a 'comprehensive ban' to a 'ban on selling in the name of food,' betel nut has seen a turning point. This controversy may be a reshaping of the betel nut industry. 02
Why Is It Still Expanding Despite Such Risks?
Before reshaping, one thing must be acknowledged: betel nut is highly addictive. Many long-distance truck drivers use the rhyme 'Betel nut plus cigarettes, boundless power' to endorse betel nut. The refreshing effect of betel nut provides consumers with a good excuse to consume it, seemingly natural and logical. The once-popular variety show 'Street Dance of China 4' sparked controversy due to its betel nut advertisements. In the show, contestants danced while promoting 'Kouwei Wang' betel nut products, with subtitles reminding, 'Although betel nut refreshes, don't over-chew.' @Kouwei Wang Betel Nut also promoted on its official Weibo: 'How can such a joyful thing as dancing be paused by fatigue? Grab a pack of Kouwei Wang for a quick refresh.' Refreshing is the biggest selling point of betel nut and the biggest demand of consumers. What ingredient provides the refreshing effect? Arecoline, found in betel nut, stimulates the adrenal glands to produce more adrenocortical hormones, making people feel happy and energetic; it also has medicinal effects, such as poisoning intestinal parasites, increasing intestinal peristalsis, constricting bronchi, and slowing heart rate. Today, more than 200 drugs in China contain this ingredient. However, arecoline is as addictive as nicotine in cigarettes, and every medicine has side effects. Like cigarettes and alcohol, it is classified as a Group 1 carcinogen by the World Health Organization. But even though betel nut has carcinogenic potential, it is essentially 'a willing victim and a willing perpetrator,' and some consumers even 'knowingly take risks.' Look at every pack of cigarettes: it says 'Smoking is harmful to health.' Alcohol-related diseases like hypertension and hyperglycemia are common every year, especially among men over 50 who smoke and drink; 99% of them have these underlying conditions, yet the purchasing power of cigarettes and alcohol continues to rise and fall, never ceasing. △Image source: Internet So, let's examine why betel nut makes people 'hurt but happy' from three dimensions: communication scenarios, consumption scenarios, and transaction scenarios. 1. Communication Scenario: In fact, betel nut is a specialty product of Hainan. According to data from Hainan Daily in October 2020, as of the end of 2019, betel nut was an important source of income for 2.3 million farmers in Hainan, accounting for 41.37% of the province's agricultural population. Betel nut has developed into the second-largest crop in Hainan after rubber, and it is also the raw material supply base for Hunan's betel nut industry. Hunan people love to chew betel nut, but the province does not produce it; they need to purchase it from Hainan. It is said that Hunan people learned to chew betel nut to relieve fatigue during wartime. Currently, Hunan is the second-largest producer and consumer of betel nut in the country. In the era of television media, betel nut appeared in various variety shows, including Hunan Satellite TV entertainment programs, with numerous product placements. During that time, when television was the dominant medium, the industry developed rapidly, and several influential betel nut brands emerged. Later, with the rise of e-commerce, major e-commerce platforms and live-streaming influencers continuously advertised, with slogans like 'refreshing' and 'energizing' everywhere, and betel nut quickly spread across the country. 2. Consumption Scenario: As mentioned earlier, betel nut has a strong refreshing effect, similar to the advertising slogans of functional drinks like Red Bull and Dongpeng Special Drink: when tired or sleepy, external stimulation is needed to relieve fatigue and enhance performance. Therefore, consumers such as mountaineers, those working overtime, long-distance truck drivers, and manual laborers have clear needs and scenarios for betel nut. Moreover, many betel nut products on the market now include new flavors like goji berry betel nut (which doesn't burn the mouth) and popping candy betel nut, tailored for young people who value health and experience. It is evident that betel nut is becoming younger. Given its natural addictiveness, its audience is stable, consumption scenarios are clear, and it has even become a 'social tool' like cigarettes. In 2020, two bus drivers in Yueyang, Hunan, simultaneously stopped their buses on the main road, reached out their arms, and exchanged betel nuts, sending the local driving 'betel nut socializing' to the hot search. According to the 2011 'Epidemiological Study on Edible Betel Nut in Hunan,' the rate of betel nut chewing among Hunan residents was 38.42%, meaning that nearly 4 out of every 10 Hunan people chew betel nut. 3. Transaction Scenario: Although in September 2021, the National Radio and Television Administration issued a notice prohibiting the promotion and sale of betel nut and its products through radio, television, and online audiovisual programs—the first national-level ban on betel nut advertising—betel nut channels still cover major supermarkets, especially in Hunan, where despite numerous brands and fierce competition, sales remain far ahead. According to market research data, in 2020, Kouwei Wang Group's sales reached 25.5 billion yuan. In the high-end betel nut market above 50 yuan, 'Hecheng Tianxia' under Hunan Kouwei Wang Group holds over 70% market share, meaning that for every ten packs of high-end betel nut sold, seven come from Kouwei Wang. Some tobacco and liquor stores and convenience stores place betel nut in prominent positions at the entrance or near the cash register, making it easy to grab and purchase, with a natural sales logic. Many comprehensive supermarkets also run promotions like buy-one-get-one-free and prize-winning activities, increasing the purchase of betel nut. Clearly, betel nut addresses these three scenarios, and from a product perspective, it is a good product. Therefore, Hainan and Hunan, as the largest betel nut exporters, have begun to spread nationwide. By 2021, when the National Radio and Television Administration officially banned betel nut and its products from advertising on radio, television, and online audiovisual programs, the national betel nut industry had reached a considerable scale—according to Qichacha data, there were 26,000 betel nut-related enterprises. Among them, Hunan had the most with 15,600, followed by Hainan with 6,918 and Fujian with 888. 03
Betel Nut 'Quitting Addiction'
Individual problems are not surprising, but when they become common problems, they need to be viewed from a higher dimension. Health and safety are the fundamentals of a product; any product that ignores this is irresponsible. So this controversy may be beneficial for the betel nut industry. As early as 2020, the State Administration for Market Regulation revised the 'Food Production License Classification Catalog,' which did not include 'edible betel nut,' meaning betel nut is no longer managed as food and cannot be issued a 'Food Production License.' This time, with the explicit ban on selling in the name of food, the trend of de-foodification of betel nut is becoming increasingly clear. The Hunan Betel Nut Association issued a red-header document to the Zhejiang Market Supervision Bureau titled 'Report on the Situation of Hunan's Betel Nut Industry.' It mentioned that the Hunan Market Supervision Administration and the Hunan Betel Nut Industry Association have required relevant enterprises to upgrade product packaging, removing 'Food Production License Number' and food-related content from outer packaging; modifying product names, standard names, and warning content; and adding warnings such as 'Discourage minors from chewing.' From the product packaging of betel nut products provided by Hunan Huangye Industrial Co., Ltd., significant changes have indeed occurred. The product name has been changed from 'edible betel nut' to 'refined betel nut,' and the words 'Discourage minors from chewing; do not sell betel nut to minors' have been added. In addition, in terms of sales channels, production enterprises require merchants to display food and non-food areas separately, and food specialty stores cannot sell betel nut products. Some experts also suggest: regulate betel nut in the same way as tobacco, and sales should include hazard warnings. This would be similar to tobacco, where every cigarette pack says 'Smoking is harmful to health.' Betel nut 'quitting addiction' is on the way. As long as the demand, the people, and the scenarios exist, the market will not disappear. But reshaping is inevitable. In the current era of health supremacy, the billion-yuan industry must break this shackle to continue developing. Although this controversy will have some impact on the industry, it is only temporary. Each rectification means the industry becomes more standardized and products safer, because for consumers, health is paramount. For distributors, bringing healthy products to consumers is the key. Therefore, we should still have confidence in the betel nut industry. What distributors need to do is follow industry rules and wait for the flowers to bloom. -END-