North America Wheat Market Size

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.