Agricultural Product Derivatives - Taiwan

Taiwan

Highlights

The nominal value in the Agricultural Product Derivatives market is projected to reach US$167.20bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.20% resulting in a projected total amount of US$215.50bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.30 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 535.60k by 2029.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Taiwan, known for its technological advancements and manufacturing sector, has been witnessing interesting developments in its Agricultural Product Derivatives market.

Customer preferences: Customers in Taiwan are increasingly showing interest in diversifying their investment portfolios by including Agricultural Product Derivatives. This trend is driven by a growing awareness of the potential returns and risk management benefits offered by these financial instruments.

Trends in the market: In Taiwan, there is a noticeable shift towards the use of Agricultural Product Derivatives as a tool for speculation and hedging. Market participants are leveraging these derivatives to capitalize on price movements in agricultural commodities without directly owning the physical assets. This trend is indicative of a maturing financial market in Taiwan, where investors are becoming more sophisticated in their trading strategies.

Local special circumstances: One of the key factors influencing the Agricultural Product Derivatives market in Taiwan is the government's push towards agricultural modernization and sustainability. This emphasis on improving the efficiency and productivity of the agricultural sector is creating opportunities for market participants to engage in derivative trading based on the performance of local agricultural products. Additionally, Taiwan's strategic geographic location as a trading hub in Asia also plays a role in shaping the dynamics of the Agricultural Product Derivatives market.

Underlying macroeconomic factors: The overall economic stability and growth prospects of Taiwan are contributing to the positive momentum in the Agricultural Product Derivatives market. As the country continues to strengthen its position in the global economy, investors are increasingly looking towards derivative products linked to agricultural commodities as a way to diversify their investments and manage risks. Additionally, factors such as inflation rates, interest rates, and foreign exchange fluctuations play a crucial role in shaping the demand for Agricultural Product Derivatives in Taiwan.

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.