Home / Food & Beverage / 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 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

Published Date: Mar 2022
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Report ID: 60519
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Report Format: PDF
Food & Beverage
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Pages: 132
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Rating: 4.5 (16)

Global Wheat Market: A Study of Changing Market Dynamics, Growth, Future Prospects, and Russia – Ukraine War impact Analysis, 2016 – 2028

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

wheat-market

Global Wheat market is expected to witness CAGR of 1% during the forecast period. The revenue generated by the global Wheat market in 2021 was over USD 378,000 million and 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 to 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 come to per capita consumption of wheat
  • Russia – Ukraine was is likely to affect the wheat supply and may trigger the price rise
  • Total area under wheat cultivation is around 220 million hectares
  • Global average of wheat yield is 3 tons per hectare

Increasing Population

As the global population rapidly approaching towards eight billion market, the demand for food grains is increasing at a rapid pace. Especially, wheat is staple food for people in several countries across Asia Pacific and Europe. Ever increasing population is demanding increasing volume of wheat as its one of the most affordable sources of carbohydrate, dietary fibre, nutrient and vegetable protein for vast majority of population. Asia Pacific is host of the 4.5 billion population and consume vast majority of total wheat production. Despite being leading producer in the world, China is listed among top five importers of wheat. China consumed almost 148 million tons of wheat in 2021 follow by India with 104 million tons of consumption in the same year.   

Hard Red Winter (HRW) Dominate the Demand

Hard Red Winter (HRW), Hard Red Spring (HRS), Soft Red Winter (SRW), White Wheat and Durum Wheat are major types of wheat grain consumed around the world. Hard Red Winter (HRW) held over 40% share in 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. While, industrial applications are also growing at a rapid pace owing increasing adoption of wheat as a raw material in the production of malt, starch, gluten, alcohol, etc. While, food processing industry is also reporting increasing demand for wheat for the biscuits, pasts, bakery products, noodles, past, cakes, cookies, snacks, etc.   

Large Area Under Wheat Cultivation

Globally, over 220 million hectares of land is under wheat cultivation. Global wheat yield per hectare is just over 3 tons per hectare. However, wheat yield is quite high in Europe, North America and South America as against Asia Pacific. Major reason behind the low yield in Asia Pacific is small size of agriculture lands and lack of awareness among farmers regarding use of fertilizers & crop protection chemicals in addition to lack of irrigation facilities. In 2021, world wheat production reached over 770 million tons. China leads the wheat production with over 130 million tons in 2021. While, India was second position with almost 98.5 million tons followed by Russia with 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 top 10 wheat producing countries worldwide.

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

Despite of huge production, China and India are not among 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, wheat supply chains of Ukraine have badly affected. Moreover, Ukraine government has also posed ban on export of any food grain and many of their ports have stopped functioning. Secondly, Russian wheat is available for export, however, various sanctions by U.S. and European Union on trade with Russia has worsened the wheat supply situation on global level. For instance, dismissal of Russian banks from SWIFT payment system has created lot of hurdles to accomplish any trading activity with Russia. Moreover, increasing pressure from U.S. and NATO countries to strop trading with Russia has been remained major factor of concern for wheat importing nations. Egypt, Turkey, European Union, Japan, China, Indonesia, Nigeria, Philippine, Bangladesh, Brazil, Algeria, Iran, etc. are leading importers of wheat from Russia and Ukraine. Current war has badly affected the supply of wheat to aforementioned countries. Almost 125 countries import wheat and most of them rely on import from Russia and Ukraine. In the event of long-lasting war between Russia and Ukraine, the global wheat supply will receive massive blow.       

How Russia and Ukraine War Can Benefit Other Countries  

Canada and U.S. can find opportunity in increasing 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 total volume of wheat export in 2021. However, matching volume of export from Russia and Ukraine will be nearly impossible to reach for them in the next few years. This situation is expected to trigger the prices of wheat in countries that totally rely on import. France and Australia are expected to play important 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 very low as the market is highly fragmented and large number of 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
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