Agricultural Product Derivatives - Sweden

Sweden

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$121.20bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.93% resulting in a projected total amount of US$154.10bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.24 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 468.80k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Agricultural Product Derivatives market in Sweden is experiencing a significant evolution driven by various factors.

Customer preferences: Customers in Sweden are increasingly leaning towards agricultural product derivatives as a means of diversifying their investment portfolios and hedging against market volatility. The appeal of these financial instruments lies in their potential for high returns and the opportunity to speculate on price movements without owning the physical commodities.

Trends in the market: One notable trend in the Swedish Agricultural Product Derivatives market is the growing interest in derivatives linked to key agricultural commodities such as wheat, barley, and oats. This trend is fueled by the country's strong agricultural sector and the importance of these commodities in the local economy. Additionally, there is a rising demand for more sophisticated derivative products that offer tailored risk management solutions to investors and agricultural businesses.

Local special circumstances: Sweden's unique environmental regulations and sustainable farming practices are shaping the Agricultural Product Derivatives market in distinct ways. Investors are increasingly looking for derivatives that align with the country's focus on sustainability and ethical sourcing. This has led to the development of specialized ESG (Environmental, Social, and Governance) derivatives that cater to the preferences of Swedish investors.

Underlying macroeconomic factors: The stability of the Swedish economy, coupled with favorable government policies and a robust regulatory framework, is creating a conducive environment for the growth of the Agricultural Product Derivatives market. Additionally, the country's strong emphasis on innovation and technology in agriculture is driving the development of advanced derivative products that cater to the evolving needs of market participants.

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.