Agricultural Product Derivatives - ASEAN

ASEAN

The nominal value in the Agricultural Product Derivatives market is projected to reach US$515.50bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.81% resulting in a projected total amount of US$621.40bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.13 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$12,320.00bn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 4.07m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Agricultural Product Derivatives market in ASEAN is experiencing a significant growth trajectory, driven by various factors shaping the market dynamics in the region.

Customer preferences: Customers in the ASEAN region are increasingly turning to agricultural product derivatives as a means of diversifying their investment portfolios and hedging against market volatility. The derivatives market offers them the opportunity to speculate on price movements of agricultural commodities without owning the physical assets.

Trends in the market: In Indonesia, the demand for palm oil derivatives is on the rise due to the country's position as one of the largest producers of palm oil globally. Investors are leveraging derivatives to capitalize on price fluctuations in the palm oil market. Similarly, in Thailand, the rice derivatives market is gaining traction as stakeholders look for ways to manage risks associated with rice price fluctuations.

Local special circumstances: One of the unique aspects of the Agricultural Product Derivatives market in ASEAN is the region's heavy reliance on agriculture as a significant contributor to the economy. As a result, local market participants, including farmers, traders, and processors, are increasingly using derivatives to protect themselves from adverse price movements in key agricultural commodities.

Underlying macroeconomic factors: The growing population and changing dietary habits in the ASEAN countries are driving the demand for agricultural products, leading to increased trading activities in the derivatives market. Additionally, government policies and regulations play a crucial role in shaping the landscape of the agricultural product derivatives market in the region.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.