April 2, 2015

Asia’s growing middle class, and the changing tastes and diets that accompany the higher incomes, are causing a jump in demand for wheat-based foods on the market.

By 2030 two thirds of the global middle class, or 3.3 billion people will be living in Asia, and recent analysis indicates that in the coming years, demand for wheat-based foods in the region will continue to increase, creating a boon for traditional exporters such as Australia and the U.S., but also unique challenges to the supply chain as trade flows shift.

Changes in consumption patterns favoring ‘westernized’ foods are already apparent in Asia where the middle class is forecast to grow by six times in the next 20 years, and in the Middle East and Africa where the middle class will grow by between one and a half and two times in the same time period.

Currently in Asia, pasta accounts for a significant percentage of the milled flour market, particularly in Indonesia, however, bread is the fastest growing segment. The ‘westernization’ of consumption patterns is also causing an increase in grain imports to China targeted an increased demand for beer, and as feed for its growing meat industry.

Australia’s wheat industry was deregulated in 2008 giving suppliers greater flexibility to react to changing trends and demand swings in Asia, but the question remains if Australia will be able to meet this demand as it grows over the next 10 to 20 years, giving the opportunity for increased market share to be taken up by other suppliers including exporters in the Black Sea region.

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