Agricultural Product Derivatives - Asia

Asia

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$13.56tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.95% resulting in a projected total amount of US$14.94tn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.01 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$12.32tn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 2.03bn by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Agricultural Product Derivatives market in Asia is experiencing a surge in interest and activity, driven by various factors shaping the market landscape.

Customer preferences: Customers in Asia are increasingly turning to Agricultural Product Derivatives as a way to diversify their investment portfolios and hedge against volatility in the financial markets. The potential for high returns and the opportunity to speculate on price movements are also attracting investors looking to capitalize on the dynamic nature of the market.

Trends in the market: In China, the Agricultural Product Derivatives market is witnessing significant growth, fueled by the country's large agricultural sector and increasing demand for risk management tools. The introduction of new derivative products and trading platforms is further boosting market participation and liquidity. Additionally, the government's support for the development of agricultural futures is driving innovation and expanding the range of available instruments. In India, the market for Agricultural Product Derivatives is evolving rapidly, with a growing number of participants including farmers, traders, and institutional investors. The introduction of options contracts and electronic trading platforms is enhancing market efficiency and accessibility. Moreover, the integration of technology in trading processes is streamlining operations and attracting a younger demographic of investors to the market.

Local special circumstances: In Japan, the Agricultural Product Derivatives market is characterized by a strong regulatory framework and a focus on investor protection. The presence of established commodity exchanges and strict oversight by regulatory authorities ensure market integrity and transparency. Additionally, the market benefits from a culture of risk aversion among investors, driving demand for derivative products as a means of managing financial exposure.

Underlying macroeconomic factors: The growth of the Agricultural Product Derivatives market in Asia is also influenced by broader macroeconomic trends, such as fluctuations in commodity prices, currency movements, and global trade dynamics. Economic policies, geopolitical developments, and environmental factors can impact market sentiment and drive demand for derivative instruments as tools for risk management and speculation. Overall, the Agricultural Product Derivatives market in Asia is poised for continued expansion and innovation as market participants adapt to evolving conditions and seize opportunities for growth.

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.