The grain market - Italy

The global cereal market, valued at $2.121.6 billion in 2020, is projected to grow at a CAGR of 6.2% to reach $3.853.8 billion by 2030. In 2020, worldwide consumption of cereals was recorded at 759.5 million tons, but the market witnessed a significant downturn due to the COVID-19 pandemic and associated trade restrictions. Italy, a significant producer focusing on corn, durum wheat, soft wheat, and barley, experienced a sharp price increase of 27.8% compared to 2020, largely attributable to pandemic-induced production and transportation challenges. Italian production of corn led at 6,845,000 tons, followed by durum wheat at 3,997,000 tons in 2020. During the same year, Italy's exports favored corn, while durum wheat was least favored for export. The Italian wheat market alone was estimated to be worth approximately €2.62 billion in 2022. On the import-export front, Italian grain exports grew by 60.5% from 2018 to 2022, reaching $1,188.01 million, while imports surged by 83.8% to $6,213.94 million in 2022. Despite the pandemic's adverse effect leading to a temporary price hike and increased volatility, the sector saw a 3.7% rise in spending in 2020, showing a robust demand for cereal and by-products.

Shifting Trends and Consumption Patterns in Italy's

Cereal Market The Italian cereal market reflects a diverse range of consumption patterns and demands, highlighting the cultural significance of grains in the Italian diet. Cereals remain the backbone of Italian agriculture and culinary practices, holding a significant place across various regions and food preferences. In Italy, durum wheat commands attention primarily for its role in semolina pasta production, a staple in Italian cuisine. Despite this, there's been a noticeable reduction in consumption over the past decade, with per capita intake dipping by around 11%. Interestingly, after a brief surge in 2020 due to lockdown hoarding behaviors, the demand for semolina pasta through large-scale retail trade has slightly declined. However, changing consumption habits haven't dampened the Italian market value for wheat, estimated to be approximately between €2.5 and €2.7 billion in 2022. Corn is another significant cereal crop in Italy, taking lead in production over other grains like soft wheat and barley. Yet, the trend is not towards human consumption but directed mainly toward feed production. The bulk of Italy's corn, barley, and soybeans, well above 90%, support the country's robust livestock industry.

Therefore, the geographical distribution of demand for these cereals aligns with the location of major feed mills, predominantly in the central and northern regions of Italy. As far as wheat is concerned, Italians have been steadily consuming less bulk bread in recent years, yet registering an uptick in preference for bread substitutes. A remarkable 67% growth in Italy's restaurant industry in 2022 compared to the previous year indicates a recuperating Ho.Re.Ca. sector, although inflation and rising prices are worth noting as potential disruptors to consumption patterns. The structure of the Italian cereal market is characterized by fragmentation, with myriad small to medium-scale domestic producers. This sprawling collection of farmers has experienced a downward trend, particularly in the number of firms, suggesting a slow but sure consolidation in the industry. For example, corn and durum wheat producers saw a decrease of roughly 14% and 32%, respectively, over a defined period leading up to 2020. Concerning demand drivers, culinary tradition stands out, with pasta, pizza, and focaccia being among the most frequently cooked dishes. Italians tend to favor whole grains, with half of the population consuming whole grains more than twice a week. However, the adoption rate varies by region, with central and southern Italy demonstrating higher consumption rates compared to the north. 

Main Players Shaping the Italian Cereal Market Landscape

The agricultural landscape of Italy's cereal market is characterized by a range of producers that vary in size and specialty. Among the notable players making a significant impact in this sector, several stand out due to their contributions to the production, distribution, and innovation within the market.

Cereals excluding rice

• Socetà Agricola Magnolia Srl - As a substantial player in the cereal market, Socetà Agricola Magnolia has established itself through robust production practices and a focus on both domestic cereal variety cultivation as well as more exotic types that cater to diverse markets.
• Consorzio Maiscoltori Cereal Growers Del Basso Livenza Srl - This consortium is pivotal in the cultivation and production of maize. It brings together numerous producers, allowing for a larger, more unified approach to market demands and ensuring the best cultivation strategies are utilized.
• Duregon M.G.S. Srl - Specializing in cereal grains, Duregon M.G.S. prides itself on premium product quality. Their production techniques are designed to meet the high standards expected by both Italian and international markets. Tenute Del Cerro Spa - Recognized for producing a wide variety of grains, Tenute Del Cerro has made its mark with a combination of traditional practices and modern techniques that emphasize sustainability and quality.
• Limagrain Italia Spa - As a global agricultural cooperative group, Limagrain brings to the table considerable resources and expertise in the genetics and distribution of plant species, including cereals.
• Coop. Difesa Produttori Agricoli Italiani - This cooperative represents Italian agricultural producers. They work to provide a united platform for their members to defend their interests and ensure fair practices across the production and distribution process.

Rice

• Riseria La Pila - La Pila stands tall as a significant producer of Italian rice. With a rich history and dedicated cultivation practices, they focus on bringing high-quality rice to the tables of both local and international consumers.
• Società agricola Ag.Ma S.R.L. - With their production of rice, Ag.Ma S.R.L. caters to a market that appreciates the natural and authentic flavors of Italian agricultural products.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 21/07/2023

Summary and extracts