Wheat Market Analysis
Spend growth in this market has the potential to touch a value of over USD 12 billion with spend momentum accelerate at a CAGR of more than 1% between 2019-2024. Vegan food products and substitutes for meat products are gradually becoming popular among consumers. This is increasing the demand for plant-based protein sources which is being catered by increasing R&D activities to develop plant-based proteins. This is creating an exponential demand in the global wheat market. Protein derived from wheat is considered as a necessary component in animal feeds which is contributing to spend growth in the wheat market.
Top Spending Regions in the Wheat Market
High demand for instant noodles and bakery products and the functionalities of whet proteins in the food processing industry are some of the spend accelerators in the wheat market across the key geographies.
APAC
The gradual impact of westernization on diet is creating the demand for wheat-based products such as instant noodles and bakery products. The rise in income level is leading to an increase in the consumption of bread and high-value foods that contain wheat. This is also driving the demand in the wheat market in the region.
Europe
Europe is home to some of the major wheat-producing countries which are France, Germany, the UK, Italy, Spain, and Portugal. Wheat consumption in Europe is being majorly driven by the demand for wheat proteins from the food processing industry. This is because wheat protein performs various functions, such as foaming, film formation, dough conditioning, whipping, aeration, adhesion, tenderizing, and structure enhancement, in manufacturing food products such as bread crumbs, cereal extract, pasta, and baked foods.
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What are the Key Price Trends in this Market?
- Production of wheat is typically dependent on weather conditions. Unfavorable weather conditions result in uncertainty in crop yield. To avoid such uncertainties, what suppliers are adopting improved wheat varieties that are tolerant or resistant to extreme weather conditions, pests, and diseases. However, this is driving their production costs which is impacting the overall wheat market price.
- Owing to the energy-intensive nature of wheat processing and packaging, a rise in energy prices in various countries will increase the OPEX of suppliers. According to the wheat price trends, this will lead to an increase in the market price.
- Volume-based pricing is the most widely adopted pricing model in the global wheat market where buyers can gain higher price negotiation opportunities with an increase in their procurement volumes.
Download the free sample of this report to know what the key wheat procurement best practices that you must adopt to address price dynamism in this market.
Insights Offered in this Wheat Market Report
- Global and regional spend potential for the wheat market for the period of 2019-2024
- Supplier relationship management practices in the wheat market
- Supplier margins and selection criteria in the wheat market
- Top wheat suppliers and their cost structures
- Top wheat suppliers in the US and their cost structures
- Wheat market spend analysis in the US
- Wheat price trends, and forecasts
- Cost drivers influencing the wheat price
Insights into Wheat Supply Market
- Regional wheat suppliers have higher bargaining power over their buyers than their global counterparts, as they have a better knowledge of the regional market conditions. Also, most of the regional players are vertically integrated, having their own wheat fields and mills with huge processing capacities. Further, these players get considerable subsidies from governments in different regions that are aimed at improving crop yields.
- The wheat supply market is highly fragmented in major wheat-producing areas. Therefore, buyers can negotiate on terms such as pricing by leveraging their procurement volume to maximize their cost savings. In addition, buyers can procure wheat during the harvest season, when the price is relatively stable, to attain cost savings.
- Buyers are advised to engage with wheat suppliers who have warehouses located in the vicinity of their operations. This helps buyers reduce the overall logistics cost. Buyers can also consider pooled procurement of wheat during small purchases as it helps reduce the overall shipping costs.
Insights into Some of the Leading Wheat Suppliers
This wheat market procurement intelligence report has enlisted the top suppliers and their cost structures, SLA terms, best selection criteria, and negotiation strategies for the top wheat suppliers. The top wheat suppliers highlighted in this report include:
- Archer Daniels Midland Co.
- Cargill Inc.
- Louis Dreyfus Co. BV
- Bunge Ltd.
- Olam International Ltd.
- Wilmar International Ltd.
Criteria to select suppliers in this dynamic wheat market is subject to change based on the day-to-day market outlook. Get a free demo of our procurement platform to gain immediate access into real-time insights to the changing suppliers selection criteria.
