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Wheat Market by Type (Hard Red Winter (HRW), Hard Red Spring (HRS), Soft Red Winter (SRW), White Wheat, Durum Wheat, Others) by Application (Feed, Food, Industrial, Others) - Growth, Future Prospects And Competitive Analysis, 2016 - 2028

Wheat is one of the most widely grown and consumed food grains worldwide. Wheat has remained staple food for more than half of the population worldwide. The global trade in Wheat is higher than any other crop. At present, global wheat production stands at above 775 million tons. In terms of production, Wheat is second to only maize. Wheat has remained a significant part of human food and a major contributor of carbohydrates as well as vegetable protein. Wheat is a widely grown cereal around the world. Major countries producing wheat grains include China, India, Russia, Ukraine, the U.S., Canada, Brazil, Kazakhstan, etc. 

wheat-market

The global Wheat market is expected to witness a CAGR of 1% during the forecast period. The revenue generated by the worldwide Wheat market in 2021 was over USD 378,000 million and is expected to generate revenue worth USD 405,000 million in 2028. The incremental growth opportunity offered by the global Wheat is estimated to be USD 2.75 trillion between 2022 and 2028.    

Interesting Facts about Wheat Industry

  • Russia and Ukraine are the leading exporters of Wheat to the world
  • Worldwide wheat production reached over 775 million tons in 2021
  • China is the largest producer as well as consumer of Wheat, followed by India
  • While European Union tops the chart when it comes to per capita consumption of Wheat
  • Russia – Ukraine is likely to affect the wheat supply and may trigger the price rise
  • The total area under wheat cultivation is around 220 million hectares
  • The global average wheat yield is 3 tons per hectare

Increasing Population 

As the global population rapidly approaches eight billion markets, the demand for food grains is increasing rapidly. Especially, Wheat is a staple food for people in several countries across the Asia Pacific and Europe. The growing population demands an increasing volume of Wheat as it is one of the most affordable sources of carbohydrates, dietary fiber, and nutrient and vegetable protein for most of the population. The Asia Pacific is a host of the 4.5 billion population and consumes most of the total wheat production. Despite being the leading producer in the world, China is listed among the top five importers of Wheat. China consumed almost 148 million tons of Wheat in 2021, followed by India with 104 million tons of consumption in the same year.  

Hard Red Winter (HRW) Dominates the Demand

Hard Red Winter (HRW), Hard Red Spring (HRS), Soft Red Winter (SRW), White Wheat, and Durum Wheat are significant types of wheat grain consumed around the world. Hard Red Winter (HRW) held over 40% share in the total volume of Wheat produced as well as consumed in 2021. Feed, Food, Industrial, and Others are major applications of Wheat. Food application held over 50% share in 2021. In contrast, industrial applications are also proliferating due to the increasing adoption of Wheat as a raw material in the production of malt, starch, gluten, alcohol, etc. In comparison, the food processing industry also reports increasing demand for Wheat for biscuits, pasts, bakery products, noodles, pasta, cakes, cookies, snacks, etc.  

Large Area Under Wheat Cultivation

Globally, over 220 million hectares of land are under wheat cultivation. Global wheat yield per hectare is just over 3 tons per hectare. However, wheat yield is relatively high in Europe, North America, and South America against the Asia Pacific. The primary reason behind the low yield in the Asia Pacific is the diminutive size of agricultural lands and lack of awareness among farmers regarding the use of fertilizers & crop protection chemicals, in addition to the lack of irrigation facilities. In 2021, world wheat production reached over 770 million tons. China will lead the wheat production with over 130 million tons in 2021. While India was in the second position with almost 98.5 million tons, followed by Russia with the production of 86 million tons in the same year. U.S., France, Germany, Australia, Ukraine, Pakistan, and Canada are other leading Wheat producing countries among the top 10 wheat-producing countries worldwide.

Russia – Ukraine War to Have Severe Impact on Global Wheat Supply 

Despite enormous production, China and India are not among the top 10 exporters of Wheat. Russia and Ukraine are leading exporters of Wheat to many countries in Africa, Asia Pacific, and Europe. Russia and Ukraine collectively held around one-third share of wheat export globally. As war broke up between Russia and Ukraine, the wheat supply chains of Ukraine have badly affected. Moreover, the Ukraine government has also posed a ban on the export of any food grain, and many of their ports have stopped functioning. Secondly, Russian Wheat is available for export. However, various sanctions by the U.S. and European Union on trade with Russia have worsened the wheat supply situation on a global level. For instance, the dismissal of Russian banks from the SWIFT payment system has created a lot of hurdles to accomplishing any trading activity with Russia.

Moreover, increasing pressure from U.S. and NATO countries to stop trading with Russia has remained a significant concern for Wheat importing nations. Egypt, Turkey, European Union, Japan, China, Indonesia, Nigeria, Philippines, Bangladesh, Brazil, Algeria, Iran, etc., are leading wheat importers from Russia and Ukraine. The current war has badly affected the Wheat supply to the aforementioned countries. Almost 125 countries import Wheat, most of which rely on imports from Russia and Ukraine. In a long-lasting war between Russia and Ukraine, the global wheat supply will receive a massive blow.      

How Russia and Ukraine War Can Benefit Other Countries 

Canada and U.S. can find an opportunity to increase the list of countries for their wheat export as the supply from Russia and Ukraine is affected. Canada and U.S. collectively held over 25% share in the total wheat export volume in 2021. However, the matching export volume from Russia and Ukraine will be nearly impossible to reach for them in the next few years. This situation is expected to trigger Wheat prices in countries that rely on imports. France and Australia are expected to play an essential role in keeping Wheat export intact for the smaller countries.

Cargill, ADM, Roquette Frères, The Tereos Group, Tate and Lyle PLC, and AGRANA Beteiligungs-AG are leading suppliers of wheat grain around the world. However, their share is meager as the market is highly fragmented, and many domestic and local players are operating in the industry.

Frequently asked questions about global Wheat industry

Unlike other industries, COVID 19 has little or no impact on Wheat market with negligible of no decline in market size

Asia Pacific is the largest regional market with highest share in the total volume of Wheat consumed in 2021

Huge population and growing demand from food industry is major factor fuelling the demand for wheat around the world

Hard Red Winter (HRW) segment dominated the Wheat market in 2021 with over 40% share

Food segment was the largest application of Wheat in 2021 with over 50% share

Wheat Report Scope

Report Attribute Details
Market Value in 2021 USD 378,000 million
Market Value in 2028 USD 405,000 million
CAGR 1% between 2021 and 2028
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
Report coverage Market Size Valuation, Share Analysis and Growth Rate by Segments such as Type and Application, Company Share, Competitive Landscape and Trends Analysis
Segments covered

Type

Hard Red Winter (HRW)

Hard Red Spring (HRS)

Soft Red Winter (SRW)

White Wheat

Durum Wheat

Application

Feed

Food

Industrial

Others

Major Players Analysed Cargill, ADM, Roquette Frères, The Tereos Group, Tate and Lyle PLC and AGRANA Beteiligungs-AG
Cost of the Report Write us at [email protected]
Choose License Type
Budget Buying
Executive Summary - Brief Global Market Size - Current & Forecast
Regional Market Size - North America
Country Market Size - US
Company Profile – 1
Trusted By
Godaddy
Published Date:  Mar 2022
Category:  Food & Beverage
Report ID:   60519
Report Format:   PDF
Pages:   132
Rating:    4.5 (16)
Delivery Time: 24 Hours to 48 Hours   
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