Demand for pulses is growing worldwide – Rabobank

According to a new report from Rabobank, demand for pulses is growing globally, opening up opportunities for new and old players in this market.

Pulses have become an important driver of agricultural sustainability due to their natural properties to improve soil quality and absorb greenhouse gases. However, they remain a highly fragmented niche segment in the global cereals and oilseeds market.

According to a new report from Rabobank, greater market transparency is needed to attract investment in the industry, meet the growing demand for pulses and increase trade volumes.

Vito Martielli, senior analyst for grains and oilseeds at Rabobank, who wrote the report, said demand for pulses globally is driven by two main factors. In emerging markets, pulses are becoming increasingly sought after as an affordable and important source of protein. Meanwhile, in developed countries, pulses are becoming a staple in the growing sector of plant-based meat substitutes and dairy products.

“It should be noted that prices are volatile and the pricing process for pulses is not transparent. In addition, there are few data sources that can provide market insights at a global level. Hence, increasing market transparency will be key to attracting investment in the industry, meeting the growing demand for pulses, and improving trade volumes and market functionality,” Martielli wrote.

Global trade in pulses has grown by 29% since 2015. Between 2015 and 2024, the compound annual growth rate (CAGR) of trade is recorded at 3%. The Rabobank report forecasts that global trade in pulses will reach about 21 million tons in 2024, accounting for 20% of global pulses production.

Peas, chickpeas and lentils are expected to account for 68% of this trade volume, with only a few countries importing and exporting pulses.

As Martielli noted, the global trade landscape is changing, with new key players emerging: “Russia has increased its share of dry pea exports, and Argentina is now a key exporter of various types of beans. Turkey is now the central hub for primary processing and distribution of pulses in the Middle East and North Africa, and Egypt claims to be the world’s largest importer of horse beans. However, unlike cereals, pulses are not (yet) considered a mass consumption commodity, and there are still barriers to entry in this niche industry.”

Tags: Turkey, pulses, pea, Russia, Egypt