Wheat Market

The Global Wheat Market is valued at USD 231.6 Million in 2023 and is projected to reach a value of USD 302.5 Million by 2030 at a CAGR (Compound Annual Growth Rate) of 3.89% between 2024 and 2030.

Key highlights

• Asia Pacific dominated the market in 2023, obtaining the largest revenue share of 47.0%.
• The Wholesalers segment dominated the Wheat market with the largest market share of 63.3% in 2023.
• The Food and Beverages segment dominated the Wheat market with the largest market share of 45.7% in 2023.
• The Flour segment dominated the Wheat market with the largest market share of 64.6% in 2023.
• The technological factors consist of the relevant current and future technological innovation. The new and advanced innovations in wheat are favorable for the growth of the market.

Regional Overview

Asia Pacific Dominated Sales with a 47.0% share in 2023. The Asia-Pacific wheat market is a significant player in the global wheat industry, with several countries being key producers, consumers, and importers. Numerous factors, including population growth, shifting dietary tastes, governmental regulations, and worldwide market dynamics, impact this complex and dynamic sector. Government initiatives and trade agreements can impact the wheat market in the Asia-Pacific region. Some nations in the area have implemented policies to boost domestic wheat production, including subsidies and measures for price support. The Asia-Pacific wheat market is also impacted by global market dynamics, such as shifts in demand from significant wheat-importing nations, changes in the price of wheat globally, and weather-related occurrences in significant wheat-producing regions. These elements may impact the region's wheat trade patterns, prices, and availability.

China Wheat Market Overview

The Wheat market in China, with a valuation of USD 44.9 Million in 2023, is projected to reach around USD 60.9 Million by 2030. This forecast indicates a substantial Compound Annual Growth Rate (CAGR) of 4.45% from 2024 to 2030. China has one of the world's largest and most influential wheat markets. In addition to being the world's greatest wheat producer, China is its biggest user and importer of wheat. China produces most of its wheat in the northern provinces of Hebei, Henan, and Shandong. The government plays a critical role in assisting local wheat production through several programs, including subsidies, price support mechanisms, and agricultural reforms. These steps are intended to guarantee national wheat pricing and ensure food security. The dynamics of the international wheat market, changes in meteorological conditions that affect wheat output globally, and major wheat exporting nations' trade policies all impact China's wheat market.

Distribution Channel Overview

In 2023, the Wholesalers segment dominated the market, with the largest share accounting for 63.3% of the overall market. The Wheat market, segmented by the Distribution Channel, includes Supermarkets/Hypermarkets, Grocery Store, Wholesalers, E-commerce platform. Wholesalers are essential wheat distribution routes by serving as a bridge between wheat producers and merchants. Wholesalers can negotiate cheaper pricing by buying large quantities of wheat from growers, which is advantageous to both parties. Due to their lower costs, wholesalers can provide retailers with competitive prices, allowing them to sell wheat to customers at reasonable prices. The economies of scale boost the overall effectiveness and accessibility of wheat distribution realized through the wholesale distribution route. Wholesalers offer a wide range of services to producers and retailers, including volume and cost advantages. They frequently take on the role of aggregators, acquiring wheat from various suppliers and combining it for distribution.

Application Overview

In 2023, the Food and Beverages segment dominated the market, with the largest share accounting for 45.7% of the overall market. The Wheat market, segmented by the Application, includes Household, Dietary supplements, Cosmetics and personal care, Food & Beverages, Pharmaceuticals, and Others. The food and beverage sector uses wheat extensively because it is a versatile and widely grown grain that goes into various goods. With its nutritive richness and versatility, wheat is essential for supplying customers' needs worldwide. Making bread and other bakery goods is one of the main uses of wheat in the food business. The base for many breads, pastries, and baked items is wheat flour, produced by grinding the grain. Wheat is also vital in creating pasta, noodles, and other wheat-based foods. These products are extensively consumed in homes, cafes, and other eating venues. Due to wheat's adaptability, various shapes and textures can be produced to suit various gastronomic preferences. Wheat is also used to make breakfast cereals, snacks, processed goods, and bread and pasta.

Type Overview

In 2023, the Flour segment dominated the market, with the largest share accounting for 64.6% of the overall market. The Wheat market, segmented by the Type, includes Whole/Raw, Flour, and Other types. A powder formed from wheat kernels is known as wheat flour. It is the most widely used wheat variety to make various foods, including crackers, bread, pasta, cakes, and pastries. The wheat kernel is ground into a fine powder to create flour. market is expanding due to rising consumer demand for processed meals and baked goods. Another adaptable item that may be used in many different meals is flour. Another segment is whole/raw is fastest growing segment of forecast period. It is an excellent source of minerals, vitamins, and protein. In addition, whole wheat is a good source of thiamin, riboflavin, niacin, folate, magnesium, and zinc, among other vitamins and minerals.

Key Trends

• In 2023, the wholesaler’s category dominates the market and is projected to witness significant growth in the coming years.
• In 2023, the flour had a major share. Moreover, flour category to witness the fastest growth over the forecast period.
• In 2023, Asia Pacific category had a major share in the market.

Premium Insights

The enhanced rules and regulations by government for wheat industry across the globe are favorable for global market growth. The political and government stability across major developed and developing nations is also estimated to enhance the market demand in the years to come. The steady growth in the demand of wheat industry and increased investments by major companies for the adoption of advanced technologies are presumed to be favorable for market growth. Consumers are aware of the end-use products as well technologically advanced products which will support the growth of the market during the forecast period.

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Market Dynamics

Increasing demand for wheat-based foods

The need for food, especially staple crops like wheat, is anticipated to increase as the world population rises to 9.7 billion by 2050, as predicted by the UN. Wheat is an essential agricultural product since it sustains a sizeable section of the world's population. The increased demand for wheat due to population expansion is a major factor in this increase in output. Urbanization and altered eating habits are further effects of the growing world population. A transition towards a more Westernized diet, which includes a larger intake of wheat-based items, is occurring as more people move to metropolitan areas. The demand for processed as well as convenient foods is rising, especially in developing nations where rising affluence and shifting lifestyles are to blame. Wheat is consumed in various ways outside, just directly through bread and other goods made from wheat. It is a vital part of the livestock business because it is also a crucial ingredient in animal feed. The demand for meat and dairy products rises along with the world population, which drives the need for wheat for animal feed.

Rising demand for biofuels

As a renewable energy source that can help lower greenhouse gas emissions and dependence on fossil fuels, biofuels, particularly ethanol, are becoming increasingly popular. Demand has increased due to the increasing use of wheat and other crops to manufacture biofuels. Government regulations supporting renewable energy and initiatives to combat climate change are projected to fuel the demand for biofuels, which is expected to keep rising. The United States Department of Agriculture (USDA) estimated the production of ethanol made from wheat to have increased significantly from prior years to 4.5 billion liters in 2020. As more nations invest in biofuel infrastructure and work to lower their carbon footprints, this trend is anticipated to continue. Various factors influence the demand for biofuels. First, concern over climate change and the need to lower greenhouse gas emissions is growing. Because they have fewer carbon emissions and can be made from renewable resources, biofuels, such as ethanol made from wheat, provide a more environmentally friendly option to fossil fuels.

Competitive Landscape

The global market is a competitive and fragmented market due to the high presence of players in the market. Only a few companies account for a major market share, and hence, the degree of competition among the suppliers is high as the players in the market are active at global, regional, and country level. Also, the increasing rivalry between the players to obtain the majority of the market share for global has played a major role in intensifying the level of competition. The Major Players are Farmers Grain Company, Wudeli Flour Mill Group, Ardent Mills LLC, Archer Daniels Midland Company, General Mills, Allied Pinnacle Pty, Acarsan Flour, Korfez Flour Mills, George Weston Foods Ltd, Hodgson Mill Inc.

Recent Developments

• In March 2023, Ardent Mills, the top flour manufacturer and ingredient supplier, announced a $3.5 million donation to Kansas State University's Ag Innovation Initiative. Through 2026, this five-year contribution will enhance the grain science department's capacity for expansion, research, and development.
• In January 2023, ADM just introduced the HarvestEdge brand of wheat flour, which offers a selection of flours for various baking uses. The flours are manufactured from premium wheat and ground to a particular consistency to maintain uniformity.

The global Wheat market can be categorized as Distribution Channel, Application, Type and Region.