Agribusiness banking specialist, Rabobank, has released its Pulse check: global pulse industry trends and outlook report, revealing the global pulse sector is being transformed by changing consumer preferences, import demand and production patterns.
The bank’s RaboResearch division stated the market is being driven by increased use as an ingredient in innovative food products, as well as changing trade flows and geopolitics – with some markets shifting towards using pulses as a versatile ingredient, well beyond alternative meat products.
Source: Rabobank
The report stated that in Australia pulses remain a niche food, but they are being increasingly featured in innovative food products in Europe and North America, where plant-based protein is being used as a food ingredient more often.
RaboResearch senior grains and oilseeds analyst, Vitor Pistoia, said the use of pulses as food ingredients had gained attention in Australia in recent years, driven by growing interest in healthy eating, ethical and religious factors and innovation within the food industry.
“Recent food consumption statistics indicate pulses have yet to have a significant impact on the Australian diet, with pulses accounting for less than one per cent of the country’s daily per capita protein supply between 2018 and 2023,” said Pistoia.
“This suggests pulses remain a niche food domestically, and their use in mainstream food products is still in its early stages here.”
There have been efforts made to boost the industry recently with the Grains Research and Development Corporation (GRDC), industry collaborators, and the Victorian government investing a combined $13 million into new plant protein research last year.
An industry report released by Food Frontier in August also suggested with the right strategy, Australia could leverage its strengths in crop production, research, and manufacturing to establish itself as a premium supplier of provenance-led plant protein ingredients.
Key global market drivers
The Rabobank Outlook stated that there are several other factors currently impacting the global pulse market, in addition to the new market signals coming from food innovation. Once dominated by a few key exporters, the sector is becoming increasingly competitive.
“Traditional exporters like Australia and Canada now face mounting competition from Russia and shifting demand from major importers, such as India and China,” said Pistoia.
“Trade barriers, tariffs and diplomatic tensions are redrawing global supply lines, with Turkey emerging as a pivotal hub connecting producers and consumers across continents. Policy initiatives, such as the EU Protein Strategy and India’s self-sufficiency program, are aiming to address structural deficits with the goal of reducing import dependency.”
The report stated demand from India – the world’s largest producer, consumer and importer of pulses – remains particularly significant to the global market, with the country likely to remain a major pulse importer over the medium term.
With population and income levels on the rise in the country, pulse consumption is expected to continue to grow in coming years, sustaining the country’s role as a key driver of global demand.
Although demand is currently on the rise, the report noted the global pulse market was characterised by high volatility, due to concentrated production, fragmented demand, reactive trade policies and opaque price discovery.
“The absence of a futures market creates a challenging environment for both buyers and sellers to manage price risk,” it stated.
Australian market and future
The report stated that the Australian pulse sector is expanding, but remains highly export-oriented and sensitive to global demand shifts.
Pistoia said production in Australia has seen notable expansion in recent years, driven by both local and overseas factors. These have included a push to diversify cropping programs following China’s tariffs on barley and a boost to pulse prices after India’s removal of import duties.
“Locally, improvements in the performance of varieties and in agronomic practices, including enhanced weed control, has further supported growth. While rising input costs, particularly for nitrogen, also encouraged farmers to diversify into pulses,” he said.
“Pulses are likely to remain a strategic choice for Australian growers due to their favourable margins compared with wheat and barley, and their long-term benefits in crop rotation, such as nitrogen fixation.”
Assuming stable demand from South Asian countries and average seasonal conditions, Pistoia said Australia’s annual lentil production could reach 2.2 million tonnes in 2029, while annual chickpea production could grow to 1.2 million tonnes, and faba beans to 1 million tonnes.
The report stated the main risks and opportunities for Australia’s export-oriented pulse industry lie in fluctuating global demand and competition. In recent years, nearly 95 per cent of Australian lentil production was exported, as was 90 per cent of chickpeas and faba beans.
Pistoia said Australia had mitigated logistical risks in pulse exporting in recent years by shifting a portion of exports from containers to bulk shipping.
“This has reduced Australia’s exposure to disruption and shipping price shocks, such as those seen during the recent drought impacting the Panama Canal and periods of piracy on the Red Sea.”
