Demand for pulses is increasing around the world, providing opportunities for new and old pulse market players, a new report by Rabobank states.
Pules have become an important factor in making agriculture more sustainable due to their natural soil-enhancing and greenhouse gas-absorbing properties.
However, they still remain a highly fragmented niche segment within the global grains and oilseed space.
According to the new report, more market transparency is needed to attract investment to the industry, meet the growing demand for pulses, and improve trade volumes.
Vito Martielli, senior analyst grains and oilseeds for Rabobank who wrote the report, said there are two major factors driving demand for pulses globally.
In emerging markets, pulses are increasingly sought after as an affordable and essential protein source.
Meanwhile, in developed nations, pulses are becoming a staple in the burgeoning plant-based meat and dairy substitute sectors.
Mr Martielli said: “Prices are volatile and there is a lack of transparency in the price discovery process. In addition, there are few sources of data to provide market insights at a global level.
“Consequently, creating more market transparency will be the key to attracting investment to the industry, meeting the growing demand for pulses, and improving trade volumes and market functionality.”
Since 2015, the global trade of pulses has seen a remarkable 29% increase. Between 2015 and 2024, the trade's compound annual growth rate (CAGR) is pegged at 3%.
By 2024, Rabobank's report anticipates that global pulse trade will hit around 21 million metric tons, representing 20% of the world's pulse production.
Dry peas, chickpeas, and lentils are expected to make up 68% of this trade volume, and there are only a few countries active in the import and export of pulses.
However, the landscape of global trade is evolving, with new key players emerging, the report explains.
Russia has increased its share of dry peas exports, while Argentina is now a key exporter of different kinds of beans.
Turkey is now a central hub for first-degree processing and distribution of pulses in the Middle East and North Africa, while Egypt has claimed the title of the world's largest fava bean importer.
Unlike grains, pulses are not (yet) considered commodities, and there are still barriers to entry in this niche industry, the report concludes.
