Wheat Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| CAGR | 5.31 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
Wheat Market Analysis
The Wheat Market size is estimated at USD 161.12 billion in 2023, and is expected to reach USD 208.69 billion by 2028, growing at a CAGR of 5.31% during the forecast period (2023-2028).
- Wheat is one of the key global commodities in terms of acreage and tradeable value and is a staple in household diets. Many factors affect wheat prices, including climate, yields, oil prices, lagged prices, and imports. In addition to gradually and consistently increasing global wheat demand, these market drivers are posited to impact world prices and food security.
- Approximately 21% of the world's food depends on annual wheat crop harvests, which often have relatively low stocks. The developing countries, mostly net wheat importers, consume 77% of the total global wheat production. Accordingly, wheat accounts for approximately 24% of food commodities imported by developing countries.
- The wheat market is much more dispersed than other grain markets, and the countries of the former Soviet Union represent a relatively small share of that market. Hence, the wheat trade restrictions result in a 4% increase in global prices. Wheat has seen a minimal direct impact from the outbreak of the pandemic across the world. As an essential food alongside its staple by-products, flour and bread, any price change minimally affects the demand.
- Countries like the United States, Canada, Australia, China, France, and Russia are major players worldwide in intense wheat trade activities. Hence, over the long term, the increased food security, focus on trade initiatives, and increased participation of the major producing countries are anticipated to drive the growth of the wheat market during the forecast period.
Wheat Market Trends
Increasing Area Under Wheat Production Across the World
- Wheat is one of the principal cereal grains produced and consumed globally. It is grown on more land area than any other commercial crop and continues to be the most important grain food source for human consumption. This is likely because wheat can be cultivated in many areas with heterogeneous weather, elevation, or soil types.
- According to the Food and Agriculture Organization (FAO), the global wheat production in 2021 accounted for 770.9 million metric tons, and the global area harvested under wheat in 2021 accounted for 220.8 million hectares.
- Accordingly, Asian countries like China, India, and Australia, European countries like Russia, France, and Germany, and North American countries like the United States and Canada are the major wheat producers globally. Despite the increase in wheat production over the past few decades, developing countries have continued to import two-thirds of all the world's wheat trade flows, owing to the increased domestic demand.
- However, the demand for wheat has been relatively high and stable in North Africa and the Middle East, South Asia, East and Southeast Asia, South America, and Sub-Saharan Africa. Hence, the increased domestic and international demand for wheat, increased consumption, and increased area under wheat production are anticipated to drive the market studied during the forecast period.
Asia-Pacific is Leading the Market
- In Asia-Pacific countries like India and China, wheat production has seen an increasing trend over the last few years. In India, the growth of the wheat market is driven by the major progressive policies implemented by the government. For instance, in 2022, the Indian government announced a ban on wheat exports, effective immediately, due to the sudden spike in global wheat prices and the resulting food security risks to India.
- The decision to ban exports results from the smaller-than-expected wheat harvest, rising food inflation, and low government wheat procurement under its minimum support price (MSP) program, which affects the Government of India's ability to supply wheat under its domestic food assistance/security programs.
- In Asia, grain consumption has increased more than 30% over the past 10 years as people diversified their diets. Wheat-based foods have become nearly as popular as rice due to the growing demand for flour and bread. Wheat production in China has significantly increased due to favorable weather conditions, input availability among farmers, and increased investment from the government. However, instances such as the Ukraine war have resulted in food risk as there has been a sharp decrease in wheat exports from Ukraine and Russia, which are major wheat-producing regions.
Wheat Market News
- January 2023: According to the Indian Institute of Wheat (IIW)and Barley Research, wheat production in India is set to increase in 2023 as all-time high prices prompted farmers to expand planting areas and opt for high-yielding varieties so that the production could rise to 112 million tons.
- February 2022: Groupe Limagrain released the first CoAXium soft white winter wheat varieties, which will be more easily adapted to the Pacific-North West environment than previously available varieties.
- July 2021: BASF introduced Ideltis as the seed brand name for its future hybrid wheat to enable higher and more stable performance in yield and quality for farmers.
Wheat Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Value Chain Analysis
4.1.1 Value Chain Overview
4.1.2 Price Mark Ups in the Value Chain
4.1.3 Stakeholder Analysis
4.1.4 Issues and Challenges in the Value Chain
5. MARKET OPPRUTUNITIES AND FUTURE TRENDS
Wheat Industry Segmentation
Wheat is a cereal grass of the genus Triticum and family Poaceae, cultivated widely for its seed and cereal grain, which is the major staple food in the region. The 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 wheat value chain analysis report offers the value chain overview, price markups in the value chain, stakeholder analysis, and issues and challenges in the value chain.
The market sizing has been done in value terms in USD for all the abovementioned segments.
Wheat Market Research FAQs
What is the current Wheat Market size?
The Wheat Market is projected to register a CAGR of 5.31% during the forecast period (2024-2029)
Which is the fastest growing region in Wheat Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Wheat Market?
In 2024, the Asia-Pacific accounts for the largest market share in Wheat Market.
What years does this Wheat Market cover?
The report covers the Wheat Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Wheat Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Wheat Industry Report
Statistics for the 2024 Wheat Value Chain Analysis market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Wheat Value Chain Analysis analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
