The wheat Market is expected to grow at a high CAGR during the forecasting period (2022-2029).
Wheat is the most widely cultivated cereal crop in the world, with China being the largest producer and fourth-largest exporter of grain in the world.
Wheat has come to be a firm favorite grain because of the diversity it provides in culinary applications.
Demand for bread was stimulated by the introduction of hard wheat and new milling techniques that changed the quality of the flour. As hard wheat has a higher protein content, they were better suited for making bread than soft wheat.
On the other side, the weather continues to affect global wheat production. According to U.S. Wheat Associates in 2018, global wheat production falls to the lowest level in 5 years at 733 million metric tons (MMT), down 3% from the record high of 758 MMT.
This downturn is, unfortunately, led by decreasing supplies in historical wheat exporters may act as a roadblock to the growth of the market.
The global wheat market is bifurcated into Durum Wheat and Bread Wheat. Of these, Bread wheat holds a significant share of the market owing to its protein content.
Hard wheat has more protein, including more gluten, which makes it purposeful to bake bread, while soft wheat has a much lower protein content, which when milled produces ‘cake flour’ for sweet biscuits and cakes.
Furthermore, durum wheat is used in the manufacture of pasta while the other type is used to produce most other wheat-based foods.
Geographically, the global wheat market is segmented into Asia-Pacific, North America, Europe, South America, and RoW. Among all the regions, Asia Pacific accounted for the largest consumer of wheat in 2017.
China plays a vital role in shaping grain market dynamics across the world. Around 126 million metric tons of wheat are produced by the country per year, on a land area of 24 million hectares.
Wheat serves as one of the staple foods of the Chinese population, accounting for 40% of the grain consumption in this country.
Wheat is cultivated extensively in the Yellow River and Huai River Valleys of China, where the crop is rotated with maize. Meanwhile, along with and around the Yangtze River Valley, it is instead more commonly turned with rice.
Furthermore, Russia is the largest global exporter of wheat, regarding volume, and it exported around 71.0 million metric tons of grain in 2018.
Russia is taking initiatives to extend its market for grain in the developing economies of Asia, which typically import their grain necessities from different parts of the world.
One of the key players in the market is Glencore International. ADM (Archer Daniels Midland), Bunge, Cargill, Inc., Louis Dreyfus Company.
There are numerous small and mid-size players in individual countries which also contribute to the overall market. Manufacturers are introducing new formats to enhance their sales volume which has been decreasing especially in developed regions such as South America and Western Europe.
In 2018, Mohali-based National Agri-Food Biotechnology Institute (NABI) has signed MoUs with four companies for seed and wheat-based product generation for ‘colored wheat’ developed by the institute which is rich in nutraceuticals.
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