UTRECHT, THE NETHERLANDS — While pulses are a niche market compared to other major grains, the increasing global demand and trade means there are opportunities for new and existing market players, according to a report from Rabobank.

Pulses, which include chickpeas, dry peas and lentils, also have the potential to be a “star” in the drive to make agriculture more sustainable because of their natural soil-enhancing and greenhouse gas-absorbing properties, said Vito Martielli, senior analyst-grains and oilseeds, and report author.

Global pulse production is estimated at 100 million tonnes, with chickpeas, dry peas and lentils accounting for 40% of that total.

Trade in pulses has increased 29% since 2015. In 2024, global pulse trade is expected to reach 21 million tonnes, according to the International Grains Council.

Two major factors are driving demand for pulses: increasing consumption in emerging markets as a key and cheap source of protein, and increasing consumption in developed countries with pulses being a central ingredient in plant-based meat and dairy substitutes, the report said.

New market players are emerging in global trade. Russia increased its share of dry peas exports and Argentina is now a key exporter of various varieties of beans. Turkey is a central hub for first-degree processing and distribution of pulses in the Middle East and North Africa. Egypt is the world’s largest fava bean importer.

But, Martielli said market transparency is needed to increase trade and attract more investments. Pulses are not yet considered commodities and there are still barriers to entry in this niche industry.

“Prices are volatile and there is a lack of transparency in the price discovery process,” Martielli said. “In addition, there are few sources of data to provide market insights at a global level. Consequently, creating more market transparency will be the key to attracting investment to the industry, meeting the growing demand for pulses, and improving trade volumes and market functionality.”

These factors will help this growing niche industry to reach its full potential, he said.

Pulses could also play a role from a sustainability point of view.

They are nitrogen-fixing plants and are therefore important for rebuilding soil fertility. In addition, pulses have the capacity to mobilize phosphorous and other nutrients essential to the soil.

Pulses enhance soil structure, as their deep root system increases pore space and cohesion in the soil, increasing water-holding capacity and soil aeration, according to the report.