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South America Wheat Market Size (2024 - 2029)

The South American wheat market is anticipated to experience growth, driven by significant production in countries such as Argentina, Brazil, Chile, Paraguay, Uruguay, and Peru. Argentina stands out as the leading producer and exporter in the region. The substantial local demand for wheat is expected to contribute to the expansion of the market size during the forecast period.

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Market Size of South America Wheat Industry

South America Wheat Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Market Size (2024) USD 16.42 Billion
Market Size (2029) USD 20.40 Billion
CAGR (2024 - 2029) 4.50 %

South America Wheat Market Analysis

The South America Wheat Market size is estimated at USD 16.42 billion in 2024, and is expected to reach USD 20.40 billion by 2029, at a CAGR of 4.5% during the forecast period (2024-2029).

  • The South American wheat market has transformed significantly in recent years, with the region becoming a key player in global wheat production and trade. Brazil, Argentina, and Chile collectively produced approximately 33.6 million metric tons of wheat in 2023, according to Food and Agriculture Organization (FAO) data. Argentina leads South American wheat production, with its 2023 output reaching 22.1 million metric tons, benefiting from favorable climate conditions, extensive arable land, and advanced agricultural infrastructure.
  • FAO data indicates that South America's wheat production increased by 20.7% between 2020 and 2023. The rising global demand for wheat, driven by population growth and changing dietary patterns, has encouraged South American countries to expand their wheat cultivation. This growth trend is anticipated to continue driving the market during the forecast period.
  • Climate variability and weather patterns have become critical factors affecting South American wheat production. The World Meteorological Organization (WMO) reported that El Niño conditions in 2023 significantly impacted wheat cultivation across the region. Argentina's wheat-growing areas experienced increased rainfall during the crucial growing season, while southern Brazil faced drought periods that affected yield potential.
  • Government and private sector initiatives in the region are estimated to drive market growth in the coming years. For instance, the commercialization of a new genetically modified (GM) wheat variety in Argentina and Brazil in 2024. This drought-resistant variety, HB4, developed by Argentine company Bioceres, incorporates a gene derived from sunflowers. Such innovations, along with the introduction of new products, are projected to significantly boost the market during the forecast period.

South America Wheat Industry Segmentation

Wheat is widely cultivated for its seed and cereal grain. Many species of wheat together make up the genus Triticum, out of which the most widely grown is common wheat (Triticum aestivum). The other major varieties are durum wheat (T. durum) and club wheat (T.compactum). The South America Wheat Market is segmented by Geography (Argentina, Brazil, Chile, and Paraguay). The report includes Production Analysis (Volume), Consumption Analysis (Volume and Value), Import Analysis (Volume and Value), Export Analysis (Volume and Value), and Price Trend analysis for the abovementioned segments. The report offers market size in terms of Value (USD Million) and Volume(Metric Ton)

Geography
Argentina
Production Analysis (Volume)
Consumption Analysis (Volume and Value)
Import Market Analysis (Volume and Value)
Export Market Analysis (Volume and Value)
Price Trend Analysis
Brazil
Production Analysis (Volume)
Consumption Analysis (Volume and Value)
Import Market Analysis (Volume and Value)
Export Market Analysis (Volume and Value)
Price Trend Analysis
Chile
Production Analysis (Volume)
Consumption Analysis (Volume and Value)
Import Market Analysis (Volume and Value)
Export Market Analysis (Volume and Value)
Price Trend Analysis
Paraguay
Production Analysis (Volume)
Consumption Analysis (Volume and Value)
Import Market Analysis (Volume and Value)
Export Market Analysis (Volume and Value)
Price Trend Analysis
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South America Wheat Market Size Summary

The South American wheat market is experiencing a steady growth trajectory, driven by significant production activities in countries like Argentina and Brazil. Wheat, alongside maize, is a staple crop produced on a large scale across the continent. Argentina stands out as the leading producer and exporter of wheat in the region, benefiting from favorable climatic conditions and fertile soil. This has positioned Argentina as a major player in the global wheat export market, with Brazil being one of its largest importers. The local demand for wheat in South America, coupled with Argentina's robust export capabilities, is expected to sustain the market's growth in the coming years.

Despite being the second-largest wheat producer in South America, Brazil faces a unique challenge as it relies heavily on imports to satisfy its domestic consumption needs. The country's strategic import relationship with Argentina, due to the latter's regional export advantages, plays a crucial role in meeting Brazil's demand. Additionally, Brazil is exploring opportunities to enhance its wheat production capabilities through technological advancements and supportive public policies. This potential shift from an importing to an exporting nation could significantly impact the regional wheat market dynamics, fostering further growth and development in the sector during the forecast period.

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South America Wheat Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Domestic Consumption

      2. 1.2.2 Increasing food security policy and Trade initiatives

      3. 1.2.3 Rising Government Initiatives

    3. 1.3 Market Restraints

      1. 1.3.1 Unfavorable Climate Hampering Crop Productivity

      2. 1.3.2 Declining Area Harvested Under Wheat

    4. 1.4 Value Chain Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Geography

      1. 2.1.1 Argentina

        1. 2.1.1.1 Production Analysis (Volume)

        2. 2.1.1.2 Consumption Analysis (Volume and Value)

        3. 2.1.1.3 Import Market Analysis (Volume and Value)

        4. 2.1.1.4 Export Market Analysis (Volume and Value)

        5. 2.1.1.5 Price Trend Analysis

      2. 2.1.2 Brazil

        1. 2.1.2.1 Production Analysis (Volume)

        2. 2.1.2.2 Consumption Analysis (Volume and Value)

        3. 2.1.2.3 Import Market Analysis (Volume and Value)

        4. 2.1.2.4 Export Market Analysis (Volume and Value)

        5. 2.1.2.5 Price Trend Analysis

      3. 2.1.3 Chile

        1. 2.1.3.1 Production Analysis (Volume)

        2. 2.1.3.2 Consumption Analysis (Volume and Value)

        3. 2.1.3.3 Import Market Analysis (Volume and Value)

        4. 2.1.3.4 Export Market Analysis (Volume and Value)

        5. 2.1.3.5 Price Trend Analysis

      4. 2.1.4 Paraguay

        1. 2.1.4.1 Production Analysis (Volume)

        2. 2.1.4.2 Consumption Analysis (Volume and Value)

        3. 2.1.4.3 Import Market Analysis (Volume and Value)

        4. 2.1.4.4 Export Market Analysis (Volume and Value)

        5. 2.1.4.5 Price Trend Analysis

South America Wheat Market Size FAQs

The South America Wheat Market size is expected to reach USD 16.42 billion in 2024 and grow at a CAGR of 4.5% to reach USD 20.40 billion by 2029.

In 2024, the South America Wheat Market size is expected to reach USD 16.42 billion.

South America Wheat Market Report Snapshots

South America Wheat Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)