The demand for protein-rich legumes, such as beans, chickpeas and lentils, is increasing worldwide, according to a recent report by Rabobank. As a result, international trade is growing and production is increasing in various countries. However, the market could develop better, the bank believes. The condition is that the market for legumes becomes more transparent.
According to the bank, interest in legumes is growing because legumes naturally improve the soil and remove emissions from the air. This aspect is generating enthusiasm in developed economies in particular. In those economies, there is particular interest in meat substitutes made from the protein-rich crops. Popularity is also growing in emerging markets. However, the popularity of the whole legume is being fueled there by its position as a cheap source of protein.
Growth market
As a result, international trade in pulses is increasing. Since 2015, global exports have increased by 29%. According to the bank, annual growth is 3%. In 2024, the bank expects that 21 million tons of pulses will be exported annually. That is 20% of all protein-rich pulses produced in a year. Dried peas, chickpeas and lentils are doing particularly well. On average, exports of these categories increased by 68%.
The increased demand is attracting new markets. For example, the production of Russian dried peas has increased significantly and the Argentinean production of all kinds of beans has increased significantly according to Rabobank. The cards are also being reshuffled in the field of processing. For example, Turkey has developed into a central processor for beans that are consumed in the Middle East and North Africa.
Lack of transparency
Despite the growth, however, according to Rabobank, potential remains untapped. A lack of transparency is holding back trade, the bank believes. Due to a lack of public data, the market for protein-rich legumes is not a commodity market despite its size. According to the Bank's analysts, this is holding back investment potential. If the market were to become more transparent, it could, according to the bank, outgrow its current niche position.