North America Wheat Market Size
|Study Period||2018 - 2028|
|Base Year For Estimation||2022|
|Forecast Data Period||2023 - 2028|
|Historical Data Period||2018 - 2021|
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North America Wheat Market Analysis
The North America Wheat Market size is estimated at USD 125.23 billion in 2023, and is expected to reach USD 145.25 billion by 2028, growing at a CAGR of 3.01% during the forecast period (2023-2028).
- Wheat is one of the key global commodities in terms of acreage and tradeable value and is a staple in household diets. Many factors affect wheat prices, including climate, yields, oil prices, lagged prices, and imports. In addition to gradually and consistently increasing global wheat demand, these market drivers are posited to impact world prices and food security. Approximately 21% of the world's food depends on annual wheat crop harvests, which often have relatively low stocks. The developing countries, mostly net wheat importers, consume 77% of total global wheat production.
- Wheat ranks third among United States' field crops in planted acreage, production, and gross farm receipts behind corn and soybeans. In the marketing year 2022, United States farmers produced 1.6 billion bushels of winter, durum, and other spring wheat from a harvested area of 35.5 million acres. Canada remains one of the world's top exporters of high-quality durum. Canada's wheat harvest is about 30 million metric tons on average, about 7 times what Canadians consume.
- Wheat Belt, the part of the North American Great Plains, is the major growing wheat region. The southern area, where hard red winter wheat is grown, includes parts of the states of Kansas, Oklahoma, Texas, Nebraska, and Colorado since this area is hot and dry in summer and is thus well suited to winter wheat. On average, winter wheat production represents approximately 70 percent of total U.S. production. Across the United States, there are six classes of wheat grown. The six classes grown in the United States are hard red winter, hard red spring, soft red winter, soft white, hard white, and durum.
- Growing demand for animal feed and biofuels in North America has led to an increase in wheat production. The massive increase in biofuel production is majorly driven by the very large government subsidies provided in many western countries, which have simultaneously increased the subsidization of biofuel. The federal government is providing subsidies to increase the consumption of biofuels such as wheat ethanol. Some biofuels are cost-competitive with traditional fuels and make a useful addition to gasoline.
North America Wheat Market Trends
Growing Demand for Biofuels and Animal Feed
- Biodiesel can be produced locally in Canada and can provide local economies with a new market for their agricultural products and waste. In Canada, high-yielding wheat-based bioenergy crops are developed to reduce the dependence on petroleum for transportation and reduce greenhouse gas (GHG) emissions. Although wheat represents a part of the production of biofuels in Canada, only 2.9% of the total wheat harvested in Canada is used for bioethanol production, while corn is mainly used. However, the federal government is providing subsidies to increase the production of biofuels such as wheat ethanol, which is expected to drive the wheat market.
- In 2021, the Decision Innovation Solutions (DIS) of the American Feed Industry Association (AFIA), pets and domestic livestock in the United States consumed approximately 284 million metric tons of animal food. The top three feed consumers included beef cattle at 64.5 million metric tons, hogs at 61.8 million tons, and broiler chickens at 60.8 million tons. Iowa, Texas, California, North Carolina, and Minnesota topped the list for the sheer amount of animal food consumed with 28.8 million metric tons, 21.1 million metric tons, 17.5 million metric tons, 16.3 million metric tons, and 14.6 million metric tons, respectively.
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United States Dominates the Market
- Wheat is the principal food grain produced in the United States. The three primary varieties of grain domestically sown are winter wheat, spring wheat, and durum wheat. The country's consumer demand for food products made from wheat flour is relatively stable and largely unaffected by changes in wheat prices or disposable income. According to the United States Department of Agriculture (USDA), the United States wheat highlights included the National Agricultural Statistics Service (NASS) estimate of 34.4 million acres of winter wheat planted for harvest in 2022.
- Although the United States typically produces only about 6-7 percent of the world's wheat, it is a major wheat exporter. However, the country's production was observed at 44,790,360 metric tons in 2021. USDA estimates that farmers have seeded 79% of the 2023 winter wheat crop. United States wheat farmers continue to produce sufficient high-quality wheat supplies to meet domestic and international needs for hundreds of unique baked goods.
- The country's all-wheat feed and residual for 2022 was forecasted to be 30 million bushels lower at 50 million, which triggered the wheat imports to be raised by 10 million bushels at 120 million, up from 95 million in 2021. Kansas, Oklahoma, and Texas are the key producing areas of the Hard Red Winter (HRW) wheat variety which will expand planting areas to elevate the commodity prices.
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North America Wheat Market News
- December 2022: Syngenta launched a new type of wheat developed with complex cross-breeding techniques in the United States to cater to higher-yielding wheat grains for fulfilling global grain supplies.
- May 2021: BASF launched Ideltis, a seed brand name for its future hybrid wheat, to enable higher and more stable performance in yield and quality for farmers and the value chain to meet the nutritional needs in the North American region.
North America Wheat Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain/Supply Chain Analysis
5. MARKET SEGMENTATION
5.1 United States
5.1.1 Production Analysis
5.1.2 Consumption Analysis
5.1.3 Import Analysis (Value and Volume)
5.1.4 Export Analysis (Value and Volume)
5.1.5 Price Trend Analysis
5.2.1 Production Analysis
5.2.2 Consumption Analysis
5.2.3 Import Analysis (Value and Volume)
5.2.4 Export Analysis (Value and Volume)
5.2.5 Price Trend Analysis
5.3.1 Production Analysis
5.3.2 Consumption Analysis
5.3.3 Import Analysis (Value and Volume)
5.3.4 Export Analysis (Value and Volume)
5.3.5 Price Trend Analysis
6. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Wheat Market Research FAQs
What is the study period of this market?
The North America Wheat Market is studied from 2018 - 2028.
What is the growth rate of North America Wheat Market?
The North America Wheat Market is growing at a CAGR of 3.01% over the next 5 years.
What is North America Wheat Market size in 2028?
The North America Wheat Market is valued at 145 Billion USD in 2028.
North America Wheat Industry Report
Statistics for the 2023 North America Wheat market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Wheat analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.