Pulses, while still a niche segment within the broader grains and oilseeds market, are showing promising potential for growth due to rising global demand, according to an analysis by Vito Martielli, Senior Analyst at Rabobank. Despite their relatively small production scale compared to major grains like corn, wheat, and rice, pulses are becoming increasingly significant in both emerging and developed markets.

Global pulse production is estimated at around 100 million metric tons annually, a figure that pales in comparison to corn (1.2 billion metric tons) or wheat (800 million metric tons). The pulse market is dominated by key crops such as chickpeas, dry peas, and lentils, which together account for 40% of total global pulse production. Chickpeas are primarily produced in India, while dry peas and lentils are cultivated in a more fragmented manner across five major countries.

Global production of key pulses, ranked by major exporters, 2021/22-2024/25 (Source: IGC, RaboResearch 2024)

Martielli identifies two major factors driving the increasing demand for pulses: Their role as a cheap and vital source of protein in emerging markets, and their growing popularity in developed countries as a key ingredient in plant-based meat and dairy substitutes. This dual demand has led to a 29% increase in global pulses trade since 2015, with the trade volume expected to reach approximately 21 million metric tons in 2024.

The analysis also notes the emergence of new players in the global pulses trade. “Russia has increased its share of dry peas exports. Argentina is now a key exporter of different kinds of beans. Turkey has become a major hub in the Middle East and North Africa region for first-degree processing and pulses distribution. Egypt is the largest buyer of fava beans globally.”

Global traded volumes, 2024 estimates (20.8m metric tons in total) (Source: IGC, RaboResearch 2024)

Martielli highlights the sustainability benefits of pulses, noting their nitrogen-fixing properties, which are crucial for rebuilding soil fertility. Pulses also enhance soil structure through their deep root systems, increasing water-holding capacity and soil aeration. These attributes make pulses an excellent rotational or cover crop, contributing to increased soil biodiversity and microbial activity.

However, Martielli also points out the challenges facing the pulses market, particularly the lack of market transparency. “Unlike grains, pulses are not (yet) considered commodities, and there are still barriers to entry in this niche industry. 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. These factors will help this growing niche industry to reach its full potential,” he highlighted.

Martielli concludes that while the pulses market remains a niche, its potential for growth is significant. As demand continues to rise and new market players emerge, addressing the challenges of market transparency and price volatility will be crucial for the industry’s future success.