Agricultural Product Derivatives - Northern Europe

Northern Europe

The nominal value in the Agricultural Product Derivatives market is projected to reach US$411.30bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.11% resulting in a projected total amount of US$527.60bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.26 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 1.56m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

Amidst the changing dynamics of the financial market, the Agricultural Product Derivatives market in Northern Europe is experiencing notable trends and developments. Customer preferences in Northern Europe are increasingly leaning towards agricultural product derivatives due to their potential for diversification and hedging against market volatility.

Investors are attracted to these instruments for their ability to mitigate risks associated with price fluctuations in the agricultural sector. Trends in the market indicate a growing interest in innovative derivative products tailored to the specific needs of investors in countries like Denmark, Sweden, and Finland. These products offer unique opportunities for market participants to manage their exposure to agricultural commodities effectively.

Local special circumstances, such as the region's strong focus on sustainability and organic farming practices, are influencing the development of agricultural product derivatives. This emphasis on environmentally friendly agriculture is shaping the types of derivative products being offered in the market to align with the values of Northern European investors. Underlying macroeconomic factors, including global trade policies, climate change, and technological advancements in agriculture, are driving the evolution of the Agricultural Product Derivatives market in Northern Europe.

These factors are creating both challenges and opportunities for market participants, prompting them to adapt their strategies to navigate the changing landscape effectively.

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.