Market Trends of Asia-Pacific Wheat Industry
The Increasing Demand for Wheat Protein
- The demand for wheat protein is increasing due to growing health consciousness among consumers and its use as an alternative to meat products. Additional factors, such as increased protein intake by athletes for muscle gain and strength improvement, drive the wheat protein market, encouraging wheat production in this region.
- The animal feed industry has been a significant user of wheat proteins, particularly vital wheat gluten, due to its functionality as a binder and alternative to fish- and animal-based feeds. Vital wheat gluten is a protein-rich powder obtained from wheat flour through a process of washing the dough with water until the starch and other components are removed, leaving behind a concentrated form of wheat protein.
- Companies prioritize product innovations and partnerships as crucial strategies to strengthen their market position. For instance, in 2023, Equii, a food technology startup launched Equii complete protein and added fiber bread in two new varieties: Premium Classic Wheat and Fiber, and Premium Multi-Grain and Fiber. According to Equii, each slice of the new bread contains 4 grams of dietary fiber and 8 grams of protein.
- The prevalence of health issues and disorders such as diabetes, high cholesterol, and hypertension is increasing across all age groups. Growing awareness about healthy living and nutritional food has led consumers to prefer organic and natural products. This shift has resulted in an increased demand for wheat protein. Consequently, wheat production in the region rose from 372.9 million metric tons in 2021 to 385.4 million metric tons in 2023, according to FAO. These factors have contributed to the growth of the regional wheat protein market value.
China is the Largest Producer of Wheat
- In the Asia-Pacific region, China ranks second to India in wheat cultivation area, with 31.1 million hectares dedicated to the crop. However, China leads in wheat production, attributed to advancements in seed technology, widespread availability of high-quality seeds, and improved farming practices. China's average yield of 6.5 metric tons per hectare significantly surpasses the regional average of 3.9 metric tons per hectare, demonstrating its agricultural efficiency. As a result, China's wheat production reached 138.2 million metric tons in 2023, highlighting its substantial output in the wheat sector.
- Wheat constitutes a significant portion of the Chinese diet, representing 40% of the country's annual grain consumption. During the forecast period, farmers are anticipated to increase wheat cultivation to address the production and demand gap resulting from the Ukraine-Russia conflict. Consequently, factors such as rising farmer incomes are projected to propel the growth of the wheat segment throughout the forecast period.
- Annually, over 95% of wheat in China is sown in autumn. The crop is extensively cultivated in the Yellow and Huai River valleys, where it is rotated with maize. Sumai 3, a key wheat variety chosen by breeders for its desirable traits, is utilized worldwide to enhance scab resistance. Consequently, the cultivation of varieties resistant to major infestations is anticipated to increase.
- China, although the largest wheat producer in Asia, continues to import substantial quantities of wheat to meet domestic demand. In 2023, China's wheat imports reached approximately USD 4.3 billion, an increase from USD 3.7 billion in 2022, indicating a trend likely to continue in the future. This import necessity stems from China's large population and growing demand for diverse food products, including high-quality wheat varieties for baking and food processing.