Market Trends of North America Peas Industry
Growing Demand for Pea Protein
With consumers being more conscious about their health, the demand for healthy and low-fat food has increased globally, and this has motivated the intake of vegan diets among health-conscious people. The growing trend of veganism worldwide is also fueling plant protein-based products in countries such as the United States and Canada.
Peas have played a significant role in overcoming challenges associated with protein-energy malnutrition in developing and under-developed countries, thereby driving the growth of the yellow peas market globally. Thus, the rush to introduce new products based on plant protein and a spike in demand due to rising vegetarians in several countries boosted the growth of the yellow peas market in the study period.
The growing demand from consumers and an increasing focus on non-GMO and gluten-free products are expected to stimulate the pea protein market and drive its growth. The cost of organic pea protein is strongly driven by the product's manufacturing method, the qualities of the obtained product, and the demand for textured pea protein in meat processing creating a huge opportunity for pea protein ingredients.
Increasing Export Demand of Peas from United States and Canada
Liberalization of the US-Mexico Dry Bean Trade, as part of the North American Free Trade Agreement (NAFTA), has enabled the US dry bean producers to export their products to other North American countries, aiding the dry bean exports from the United States to Mexico and Canada.
The total export of peas from Canada to the world in 2021 was 2.76 million metric ton, a decrease of 28.1% from 2020, owing to the decrease in Canadian dry pea production by 50.8% between 2020 and 2021. The average price is expected to be sharply higher than in 2020-2021 due to lower global supply and decreased carry-out stocks in Canada. The major export markets for Canadian peas are Southeast Asian countries, such as China, Japan, Bangladesh, Sri Lanka, and Central and South America.
The total global export of the United States in 2021 was 0.21 million metric ton, down by 6.6% from the previous year. According to the US Department of Agriculture, the area seeded to dry peas in the United States declined by 3% between 2020 and 2021 to about under 1.0 million acres, largely due to higher abandonment and lower yields in the country. More than 70% of the total US dry pea production is exported to India, China, and Spain for food and feed processing. The United States ranks eighth in the global import of peas.
