Market Insights & Analysis: Global Grains Market (2023-28)
The Global Grains Market is projected to grow at a CAGR of around 4.2% during the forecast period, i.e., 2023-28. The market has consistently grown due to changing dietary patterns, sustainable agriculture practices, and overall economic growth & urbanization. Grains, encompassing essential crops like wheat, corn, rice, barley, oats, and more, play a significant role in the world's caloric requirements and serve as a staple in numerous diets, which us among the major factors booming the demand.
This market is shaped by various factors, including crop yields, weather patterns, trade regulations, and consumer demand, all of which exert influence on its dynamics. Besides, grains have found extensive applications in numerous other industries, including animal feed, biofuels, and food processing, further aiding in market growth.
As a crucial component of the global food and agricultural industry, the grain market is poised for substantial growth in the coming years, swiftly pushed by the prevailing food crisis across the world. The Global Report on Food Crises 2023, published by Food Security Information Network (FSIN), revealed that around 258 million people across 58 countries faced acute food insecurity.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|Regions Covered||North America: US, Canada, Mexico|
|Europe: Germany, The UK, France, Spain, Italy, Rest of Europe|
|Asia-Pacific: China, India, Japan, South Korea, Australia, Rest of Asia-Pacific|
|South America: Brazil, Argentina, Rest of South America|
|Middle East & Africa: UAE, Saudi Arabia, South Africa, Rest of MEA|
|Key Companies Profiled||Archer Daniels Midland, Ardent Mills, Bartlett Milling Co., LP, Baystate Milling, Bunge, California Family Foods, Cargill Incorporated, Clarkson Grain , Essential Organic Ingredients , Farmers Rice Milling Company , Glencore International, Global Grains & Ingredients Ltd, Louis Dreyfus, The Powell Group [Farmers Rice Mill], Viterra, Other|
|Unit Denominations||USD Million/Billion|
This alarming situation has created an urgent need to address food security concerns, leading to renewed efforts to improve crop yields in order to feed populations worldwide. These efforts involve the adoption of modern breeding technologies like gene editing, improved water and fertilizer supplies, and enhanced farmer management skills, thereby creating lucrative opportunities for market players.
In addition, the market has received financial assistance from reputable entities, facilitating a speedy response to the crisis. For instance, in September 2022, the Asian Development Bank (ADB) announced its plans to fund a comprehensive program of support to the Asia-Pacific region, amounting to at least $14 billion over 2022-2025. Through this initiative, the ADB aims to enhance long-term food security by bolstering food systems against the impacts of climate change and biodiversity loss.
According to the International Grain Council, global grain output is projected to rebound and reach a record 2,294 million metric tons for the year 2023-24. Furthermore, total consumption, including food, feed, and industrial uses, is estimated to reach 2,302 million metric tons, with a 2% increase. In particular, Maize and sorghum crops are expected to experience a surge, while wheat and barley production may witness a decline in the same year.
Global Grains Market Driver:
Intensifying Sustainable Agriculture Paired with Technological Advancements- Increasing consumer awareness and demand for sustainable and organic food products have driven the growth of the organic grains market. To meet these demands, farmers are adopting sustainable practices, including precision agriculture, conservation techniques, and organic farming. Organic grains command premium prices in the market.
Similarly, technological advancements in agriculture, including precision farming techniques, improved seeds, and crop management practices, have increased grain productivity majorly. Adopting genetically modified (GM) crops has also significantly enhanced yields and addressed challenges such as pests and diseases, thereby facilitating market growth.
Global Grains Market Possible Restraint
Reduced Grain Supplies Arising from Ongoing Russia–Ukraine War: The blockades in the Black Sea area have created ripple effects throughout the global supply chain, causing delays in grain shipments. The region serves as a crucial transportation route for grain exports, and disruptions in this area have hindered the timely movement of commodities to their intended destinations.
As a result, the market faces logistical challenges, with increased shipping costs, longer delivery times, and potential bottlenecks at ports. These supply chain vulnerabilities have further exacerbated the impact of reduced grain supplies, amplifying the strain on the grains market globally. Moreover, the dependence of several Asian countries on the Russia-Ukraine area for corn, soybeans, and wheat, particularly as animal feed components, intensifies the challenge for the market for grains worldwide.
Global Grains Market (2023-28): Segmentation Analysis
The Global Grains Market study from MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the analysis, the market has been further classified as:
Based on Product,
Among others, Corn or Maize has emerged as the prominent grain in the market, garnering the highest market share. This can be primarily attributed to its diverse applications and significant economic impact, making Maize an indispensable commodity worldwide. Moreover, with an extensive utilization in various products like corn flour, corn syrup, cornmeal, corn oil, and cornstarch as a primary ingredient, the Maize has become a preferred choice for food manufactures over the past few years, solidifying its position in food and beverages industry.
Similarly, its high nutritional content and availability make it an ideal feed for livestock, poultry, and aquaculture, extending its significance to the animal feed industry, where it serves as a crucial component in feed formulations. Further, corn is widely utilized in ethanol production, addressing the growing need for renewable energy sources. Distilled from corn starch, ethanol serves as an environmentally friendly biofuel.
Other than these, it finds application in various industrial sectors, including the manufacturing of bioplastics, adhesives, solvents, and chemicals. Additionally, corn holds a significant position in international trade, with countries relying on imports to meet domestic demands. Despite price volatility influenced by factors like weather conditions and global demand, the market players engage in risk management strategies to mitigate risks, further solidifies corn's position within the grains market.
Based on Type,
Conventional grains acquired the largest market share in the historical period. The dominance can be attributed to their affordability and widespread use in staple food production. They are produced using traditional farming practices with synthetic inputs, prioritizing high yields and cost efficiency.
On the other hand, organic grains are gaining traction due to shifting consumer preferences for healthier and more sustainable food options. They are cultivated using sustainable methods without synthetic inputs, appealing to health-conscious consumers. Although they have lower yields, yet, the demand for organic grains is steadily growing.
Global Grains Market (2023-28) Regional Projection
Geographically, the Global Grains Market expands across:
Among other regions, Asia-Pacific is projected to witness the fastest growth owing to numerous factors such as population growth, limited agricultural land, and changing import trends. With the substantial surge in its imports in recent years, developing countries have become more active in the grain trade. China, in particular, has emerged as a significant grain importer, attempting to feed a substantial share of the global population with minimal agricultural land.
However, China's reliance on wheat imports makes it particularly vulnerable to geopolitical events affecting major grain exporters. For instance, Russia's invasion of Ukraine, a significant shipper of grains like barley, corn, and wheat, has had repercussions for China. As a result, China's state stockpiling company has been compelled to purchase newly harvested wheat for national reserves at record prices. Notably, Vietnam, India, and the United Arab Emirates have also emerged as notable importers during this period, contributing to the globalization of the grain trade, subsequently, the market expansion.
Global Grains Industry Recent Developments
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Frequently Asked Questions
A. The Grains Market is projected to grow at a CAGR of around 4.2% during 2023-28.
A. Intensifying sustainable agriculture paired with technological advancements is likely to drive the Grains Market further during the projected time frame.
A. The prominent players anticipated to stiffen the competition globally are Archer Daniels Midland, Ardent Mills, Bartlett Milling Co., LP, Baystate Milling, Bunge, California Family Foods, Cargill Incorporated, Clarkson Grain, Essential Organic Ingredients, Farmers Rice Milling Company, Glencore International, Grains & Ingredients Ltd, Louis Dreyfus, The Powell Group (Farmers Rice Mill), and Viterra.
A. Corn is anticipated to emerge as an area of remunerative opportunities for the leading players in the Grains Market during the forecast period.
A. Globally, Asia-Pacific would provide lucrative prospects for the Grains Market in the coming years.
A. Reduced grain supplies arising from ongoing Russia–Ukraine war may impede the growth of the Grains Market during 2023-28.
Global Grains Market Research Report (2023-2028) - Table of Contents