Global wheat market output for 2022-2023 is estimated to be 783.9 million metric tonnes, says Beroe

The wheat market has been relatively steady because of increased demand for industrial and feed purposes. However, abundant supplies in China, Russia, and India are expected to restrain a sharp increase in wheat prices.

The top five wheat-producing countries account for over 65 percent of the global wheat market, which has increased at a CAGR of 0.46 percent over the past five years.

Due to their extensive arable territory and favorable climatic factors, China and India are the leading two producers of wheat in Asia.

Russia's wheat output has been increasing noticeably for the past six years at a CAGR of 3.7%. However, the U.S. produces less wheat and concentrates more on corn and soybeans.

Supply restrictions caused by the epidemic have contributed to recent price increases. In the US, the cost of producing wheat was about $325.5 per acre in 2022. The cost of producing one metric tonne of wheat in Russia is 220 euros.

The rise in feed consumption in 2021–2022 to 160 million tonnes was about 1.9 percent, which also affected the poultry industry. The meat and poultry industries' resurging demand as well as the comparatively high costs of maize and other feed grains, are the main causes of this.

South and East Asia have significant demand for bread goods from the processed flour industry, with annual demand growth rates of 5.7% and 2.3%, respectively.

The majority of wheat is consumed in the EU. The feed industry is the source of demand, with consumption there increasing by around 10% over the previous five years to 56.5 MMT.

For China, Europe, and Russia, demand is distributed more equally than it is for India, where the food and industrial sectors account for the majority (95 percent) of demand.

Due to rising demand from the food and industrial sectors, Russian exports surged by 10 MMT. Over the past five years, Russia has grown its market share for exports by 10%, expanding at a CAGR of over 25% to surpass the EU and the U.S. as the world's top exporters.

Wheat prices typically trend downward between May and December and upward or downward between January and April, depending on export demand and supply, based on the cycles of crop planting and harvesting.

The top wheat processors, such as Cargill, ADM, Tate & Lyle, Agrana, and Ingredion, occupy about 60–70 percent of the market share. Wheat starch is a major processed commodity that drives the demand for wheat.

Various kinds of wheat starches are produced commercially using the dough method (A-Starch and B-Starch). It is the Martin procedure on a larger scale. The batter method for production is an alternative to the dough process.

Based on estimations of size and market share, providers of wheat starch are divided into three categories. Worldwide firms make up tier 1 with around 20 to 30 percent of the market share, global wheat companies make up tier 2 with about 15 to 20 percent of the market share, and regional companies make up about 45 to 55 percent of tier 3.

The yearly production of wheat starch is expected to be around 6.3 MMT. France, the United States, Germany, the Netherlands, Australia, the United Kingdom, Belgium, Canada, Japan, and China are the main producing nations of wheat starch.

Only around 67 percent of the entire amount of wheat grown worldwide is used for human consumption; the remainder is used to make feed and wheat starch.

Out of the total global wheat production, 72% is ground into flour, which is then used to make products like bread and confections, as well as gluten, protein, and starch. Around 28% of the wheat is ground into middlings, germ, and bran, and only 5% of the world's wheat is processed into wheat starch.

The range of wheat types' starch contents is between 65 and 70 percent. Soft wheat cultivars have a greater starch content than hard wheat types, which have more proteins. Wheat has an average amylose concentration of 22–25 percent, ranging from 17–29 percent. However, the amylose concentration in waxy wheat cultivars is just 1.2-2 percent.

Wheat milling employs cutting-edge technology to enhance equipment usage by minimizing downtime and improving energy consumption. The creation of wheat starches devoid of gluten and the development of genetic wheat cultivars are other areas of innovation.

Although Genetically Modified wheat is rare, research is being done to create novel wheat types. The KansasWheat Innovation Center is investigating the creation of doubled haploid wheat lines, which will hasten the generation of pure lines of wheat and cut the time required to produce wheat varieties by around 50%. The Canadian Triticum-Applied Genomics Project works to create wheat cultivars that produce high yields and have improved stress tolerance.

Innovations in the production process affect the wheat mill's profitability and effectiveness.

For the production of superior flour and semolina from wheat, as well as for the stability of flours, germs, and bran, cutting-edge technology has been created. Automated bagging and other techniques are among the packaging developments.

The manufacturing process may improve to provide products with desirable qualities, including fibre fortification, a narrow calorie distribution, a reduced insulin response, and ease of absorption into formulations. The manufacture of wheat starch devoid of gluten is a significant innovation. The enzyme peptidase is being studied for its possible role in producing gluten-free starch with improved water use efficiency.

Technology enhances the quality and uniformity of flour, increases machine utilization by decreasing downtime, and improves energy efficiency. 

For more such market data, insights, and intelligence check out Beroe LiVE.Ai™.

About Beroe

Beroe is a global SaaS-based procurement intelligence and analytics provider. We deliver intelligence, data, and insights that enable companies to make smarter sourcing decisions – leading to lower costs, reduced risk, and greater profits. Beroe has been a trusted intelligence source for more than 15 years and partners with 10,000 companies worldwide, including 400 Fortune 500 companies.

Learn more about Beroe - https://www.beroeinc.com/

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