Dry Peas

Dry Peas Global Market Outlook

• Dry pea growth in 2022 is estimated to be slightly higher compared to 2021, due to the increasing demand and production potential in many regions

• Russia is the highest producer of dry peas as of 2022. Canada is the second major producer of dry peas and also the leading exporter, followed by China

Dry Peas Supply–Demand Analysis

• The global dry peas production is estimated to be around 14 million tons for 2023

• The global dry peas market reached $5 billion in 2022 and is expected to grow at a CAGR of 2.9 percent through 2021–2026.

• In the global dry peas market, north America leads with a larger revenue share followed by Europe with the second-largest revenue share. The adoption of advanced cultivation and processing technologies boosts the markets in the regions.

• North America is the largest market due to the favorable climatic regions, where various commercial varieties of peas such as dry peas, yellow, green, maple, green marrowfat, and Austrian winter peas are grown.

• In the Asia Pacific region, China accounts for the major market growth as China is the global leading producer holding 9 percent of total global production, and the production trend is to be stable for 2023

Global Dry Peas Trade Dynamics

• Dry peas are traded globally in fresh and processed forms. The total value of exports is 2.11 billion USD and increasing by around 12 percent year on year.

• 4.2 million tons of dry peas was exported in 2022 among which 50 percent is from Canada. The export quantity of dry peas from Canada is 2.1 million tons

• Though China is a major producer, China is also a leading importer owing to huge consumption of dry peas and imports of around 1.6 MMT

• The major exporters are Canada, Russia, the US, and Ukraine, followed by France, Lithuania, Belgium, Latvia, Estonia, Kazakhstan, Argentina, Australia, USA, Turkey, Germany

Procurement-Centric Five Forces Analysis: Dry Peas

The suppliers have better negotiation power, as they are fragmented players and volumes are at risk. The intensity of rivalry is medium to high in the dry peas industry, and the players are increasing in the processing sector.

Supplier Power

• The suppliers have higher negotiation power than buyers, as the demand is high.

• The suppliers are fragmented, and volume is small from each buyer

• The suppliers also have the advantage of less production cost owing to cheap raw materials used for cultivation

Barriers to New Entrants

• Barriers for new entrants in dry peas may be medium to high owing to constraints in large-scale availability of raw materials and initial investment requirements for processing.

• The major firms create and maintain competitive advantage through quality, customer service, and consistent supply

Intensity of Rivalry

• Intensity of rivalry is medium to high, as many food processing industries may enter into the processing of peas. The snacks industries are also emerging overall.

Threat of Substitutes

• The threat of substitutes for Dry peas by other foods is medium. There are a wide variety of food substances that can be used in place of Dry peas.

• Chickpeas, mung beans are effective alternatives to Dry peas used commonly. Soybean chunks are another substitute for dry peas.

• All the major substitutes are pulses groups and hence have the same limitations and constraints.

Buyer Power

• The buyers are the food companies. They do not influence the prices as much as the suppliers. The prices are driven by seasonal and fundamental factors as well.

• Based on preferences for specific varieties among consumers, prices may vary among the varieties of dry peas.