LONDON--(BUSINESS WIRE)--SpendEdge has been monitoring the global wheat market and the market is poised to experience spend growth of more than USD 12 billion between 2019-2024 at a CAGR of over 1% during the forecast period. Request Free Sample Pages.
Read the 131-page research report with TOC and LOE on "The Global Wheat Market – Procurement Intelligence Report, Pricing Outlook in Geographies that include APAC, North America, South America, and MEA, and insights into best practices to optimize procurement spend.”
Vegan products and plant-based protein substitutes are gradually becoming the essential components in the daily diet of consumers. This consumption trend is triggering the frequency of R&D activities to develop plant-based proteins. This is acting as one of the key factors that are driving the demand growth in the global wheat market. Animal feeds industry is exhibiting a high rate of adoption of protein derived from wheat and are using it in animal food supplements. This is contributing to spend growth in this market.
The consumers in the APAC countries are developing an affinity towards wheat-based products such as instant noodles and bakery products. This is catering to spend growth in the wheat market in APAC. Europe houses some of the major wheat-producing countries which are substantiating the dominance of this region in the global market. Wheat consumption in Europe is being majorly driven by the demand for wheat proteins from the food processing industry. This is because wheat protein performs various functions, such as foaming, film formation, dough conditioning, whipping, aeration, adhesion, tenderizing, and structure enhancement, in manufacturing food products such as bread crumbs, cereal extract, pasta, and baked foods.
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Insights into the market pricing trends
Unfavorable meteorological conditions result in uncertainty in crop yield and can also result in losses. To tackle such risks, wheat suppliers are adopting improved wheat varieties that are tolerant or resistant to extreme weather conditions, pests, and diseases. However, this is adding to their production costs which is impacting the overall wheat market price.
- Volume-based pricing is the most widely adopted pricing model in the global wheat market where buyers can gain higher price negotiation opportunities with an increase in their procurement volumes.
What are the strategies to adopt to optimize procurement spend in this market?
The wheat price trends imply a substantial increase in the market price through the forecast period. In view of this, this procurement intelligence report has listed the top wheat suppliers, SLA agreement insights, and the selection and negotiation strategies that buyers must undertake to achieve optimal procurement in this market.
Adopt the spot market strategy
In this strategy, buyers have direct contact with wheat suppliers and get immediate possession of the commodity in the predefined quality set by the buyer. The strategy offers commodities at a negligible lead time and minimizes inventory costs as no storage is required if the purchase is tightly coordinated with production needs.
Engage in a forward purchasing mechanism
Buyers are advised to implement this strategy to secure commodities for future production. The strategy requires buyers to project their future quantity requirements to wheat suppliers. Essentially, the adoption of this strategy aids buyers to reduce price risk by hedging spot-market purchases in the future markets.
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Some of the key topics covered in this report are:
- Wheat market spend segmentation by region
- Total cost of ownership analysis in the wheat market
- Regional spend opportunity for wheat suppliers
- Wheat suppliers cost structures
- Wheat pricing models analysis
- Wheat procurement best practices
- Category management objectives
- Cost saving opportunities in the wheat market
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