Market Trends of Lentil Industry
Rise in Production of Lentils
With the rising popularity of plant-based protein intake and vegan dietary options, lentils are an excellent option compared to meat products among consumers worldwide. According to FAO, the global production of lentils was 5,948.0 thousand metric ton in 2019, which increased by 12.68% and reached 6,701.9 thousand tons in 2020. Canada, India, Australia, Turkey, United States of America are major lentil producers, accounting for 42.8%, 17.6%, 7.8%, 5.5%, and 5.0%, respectively, in 2020.
India imported around 1,061,305 metric ton of lentils in 2020, valued at USD 580.8 million in the same period. Uttar Pradesh, West Bengal, Bihar, Jharkhand, and Rajasthan are the country's major producing states of lentils. Canada, Australia, United Arab Emirates, and the United States are the major exporters of lentils to India. Canada accounted for 81.5% of the import market value, followed by Australia and the United Arab Emirates in 2020. The import of lentils by the country fluctuated due to their dynamic supply. The import of lentils by India increased due to poor harvest in the crop season 2020-2021. However, the Indian government projected the import of pulses to fall by 50%, which might also negatively impact the lentils import in the upcoming crop season 2021-2022.
North America Holds Largest Market Share of Lentil
The surging production and consumption of lentils in North America, majorly in Canada, is driving the market's growth. Canada holds a significant share in the development of lentils across North America owing to its increasing production and export worldwide. The growing urban population, changing lifestyles, increasing household incomes, and changing consumer tastes and preferences are driving the demand for lentils in North America.
Additionally, as per Agri Canada, in 2021-2022, the area seeded to lentils in Canada is expected to be similar to the previous year at 1.7 million hectares, despite the sharp rise in farmgate lentil prices in the last half of the 2020-21 crop year. Saskatchewan is expected to account for 89% of the lentil area, with the remainder in Alberta and Manitoba. Production is forecasted by Agriculture and Agri-Food Canada (AAFC) to fall to 2.65 metric ton. Supply is expected to fall to 2.8 metric tons due to lower carry-in stocks and production. Exports are expected to be lower than in 2020-21 at 2.4 metric ton. Carry-out stocks are forecast to remain tight at 0.1 metric ton. The average price is forecast to rise from 2020-21 due to lower world supply with higher prices for the top grades and the assumption of a moderate grade distribution.
