IndexBox has just published a new report: ‘China – Peas (Dry) – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The Chinese dry peas market is becoming an attractive export destination for overseas suppliers. In 2020, China increased the volume of imports of dry peas by 45%, as the country is actively recovering its livestock reserves after an outbreak of swine fever and is in dire need of crops for animal feed. Against the background of rising grain prices, peas are becoming a more affordable alternative component in animal feed.

Key Trends and Insights

China remains the largest consumer of dry peas in the world with a 35.9% (IndexBox estimates) share of the global market. In 2020, the country’s consumption of dry peas jumped up by 20% due to increased use in animal feed. China continues to actively restore its livestock population after the swine fever epidemic, with the need for feed increasing significantly. Dry peas have become an excellent alternative replacement with the scarcity of corn and other more expensive grains such as soybeans and barley.

China is the second-largest pea-producing country. In 2020, the harvest in the domestic market exceeded the indicators of the previous year by 2.5% and reached 3M tonnes. Despite this, the country’s production cannot fully meet the growing domestic demand, and China remains the world’s leading importer of dry peas. In 2020, the country increased the volume of imports by 45% to 2.9M tonnes. About 94% of imported dry peas are sourced from Canada, and almost all of the remainder comes from the U.S. (4.3%).

In 2021-2022, Ukraine and Russia could challenge those leading suppliers in the Chinese import market, as pea yields are growing rapidly in these countries, and as work is underway on phytosanitary agreements to access the Chinese market.

The growing demand for food products in the context of an increasing population will remain a primary market driver. The demand for feed and fodder in China will further stimulate the market, but as the pig population recovers, the increase in demand in this segment will slow. Taking this into account, the market is expected to grow at an average annual rate of +2.8% and reach 7.7M tonnes by 2030.

Market Size

In 2020, approx. 5.9M tonnes of dry peas were consumed in China, picking up by 20% compared with the previous year’s figure. In general, consumption recorded a resilient expansion.  Over the period under review, consumption attained the maximum volume in 2020 and is expected to retain growth in the near future.

For the third consecutive year, the Chinese dry peas market recorded growth in sales value, which increased by 20% to $10.3B in 2020. In general, consumption posted a strong increase.

China’s Dry Peas Imports  by Country

In 2020, the volume of dry peas imported into China soared to 2.9M tonnes, rising by 45% compared with 2019 figures. In value terms, dry peas imports skyrocketed to $821Min 2020.

In 2020, Canada (2.7M tonnes) was the main supplier of dry peas to China, with a 94% share of total imports. Moreover, dry peas imports from Canada exceeded the figures recorded by the second-largest supplier, the U.S. (125K tonnes), more than tenfold.

The average import price stood at $282 per tonne in 2020, declining by -2.9% against the previous year. Average prices varied noticeably amongst the major supplying countries. In 2020, the country with the highest price was France ($345 per tonne), while the price for Canada ($278 per tonne) was amongst the lowest.

Source: IndexBox Platform