17/11/2025
The global pulse market is experiencing a significant shift – driven by increased use as an ingredient in innovative food products, as well as changing trade flows and geopolitics – Rabobank says recently-released research.
In its Pulse check: global pulse industry trends and outlook report, the bank’s RaboResearch division says the transformation in the global pulse sector is being influenced by a range of factors, including changes in consumer preferences, import demand and production patterns.
Pulses in some markets are shifting from being primarily a staple food to “become a versatile ingredient used well beyond alternative meat products”, the report says.
And these changes are happening against a broader backdrop of market volatility and geopolitical challenges.
“Pulses are increasingly featured in innovative food products, especially in Europe and North America, where plant-based protein is being used as a food ingredient more often, for example in snacks and pasta,” the report says.
For some regions though – including in Australia – pulses remain a niche food, the report says.
RaboResearch senior grains and oilseeds analyst Vitor Pistoia said the use of pulses as food ingredients had gained attention in Australia in recent years, “driven by growing interest in healthy eating, ethical and religious factors and innovation within the food industry”.
“However recent food consumption statistics indicate pulses have yet to have a significant impact on the Australian diet,” he said, “with pulses accounting for less than one per cent of the country’s daily per capita protein supply between 2018 and 2023. “This suggests pulses remain a niche food domestically, and their use in mainstream food products is still in its early stages here.”
Key global market drivers
In addition to the “new market signals” coming from food innovation, there are several other factors currently impacting on the global pulse market, the Rabobank Outlook says.
Once dominated by a few key exporters – such as Australia and Canada – the global pulse market is becoming increasingly competitive, it says.
“Traditional exporters like Australia and Canada now face mounting competition from Russia and shifting demand from major importers, such as India and China,” Mr Pistoia said.
“Trade barriers, tariffs and diplomatic tensions are redrawing global supply lines, with Turkey emerging as a pivotal hub connecting producers and consumers across continents.”
Many regions – most notably the EU, the United Kingdom and India – have a structural deficit in pulses, the report says, relying on imports to meet domestic demand. “Policy initiatives, such as the EU Protein Strategy and India’s self-sufficiency program, are aiming to address these deficits with the goal of reducing import dependency,” Mr Pistoia said.
The report says demand from India – the world’s largest producer, consumer and importer of pulses – remains particularly significant to the global market, with the country likely to remain a major pulse importer over the medium term.
Mr Pistoia said with population and income levels on the rise in India, pulse consumption is expected to continue to grow in coming years, sustaining the country’s role as a key driver of global demand.
The Outlook report noted the global pulse market was characterised by high volatility due to a number of factors, including concentrated production, fragmented demand, reactive trade policies and “opaque price discovery”. “The absence of a futures market creates a challenging environment for both buyers and sellers to manage price risk,” it said.
Australia
In Australia, RaboResearch says, the pulse sector is expanding, but remains highly export-oriented and sensitive to global demand shifts.
Pulse production in Australia has seen notable expansion in recent years, Mr Pistoia said, driven by both local and overseas factors. These have included a push to diversify cropping programs following China’s tariffs on barley and a boost to pulse prices after India’s removal of import duties.
“Locally, improvements in the performance of varieties and in agronomic practices, including enhanced weed control, has further supported growth. While rising input costs, particularly for nitrogen, also encouraged farmers to diversify into pulses,” he said.
Assuming stable demand from South Asian countries and average seasonal conditions, Mr Pistoia said, Australia’s annual lentil production could reach 2.2 million tonnes in 2029, while annual chickpea production could grow to 1.2 million tonnes and faba beans to 1.0 million tonnes.
The main risks and opportunities for Australia’s export-oriented pulse industry are in its exposure to fluctuations in global demand and competition, the report said. In recent years, nearly 95 per cent of Australian lentil production was exported, as was 90 per cent of chickpeas and faba beans.
Mr Pistoia said Australia had mitigated logistical risks in pulse exporting in recent years by shifting a portion of exports from containers to bulk shipping. “This has reduced Australia’s exposure to disruption and shipping price shocks, such as those seen during the recent drought impacting the Panama Canal and periods of piracy on the Red Sea.”
He said pulses were “likely to remain a strategic choice for Australian growers due to their favourable margins compared with wheat and barley, and their long-term benefits in crop rotation, such as nitrogen fixation”.
RaboResearch Disclaimer: Please refer to Australian RaboResearch disclaimer here
Rabobank Australia & New Zealand Group is a part of the international Rabobank Group, the world’s leading specialist in food and agribusiness banking. Rabobank has more than 125 years’ experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness. Rabobank is structured as a cooperative and operates in 38 countries, servicing the needs of more than nine million clients worldwide through a network of more than 1000 offices and branches. Rabobank Australia & New Zealand Group is one of Australasia’s leading agricultural lenders and a significant provider of business and corporate banking and financial services to the region’s food and agribusiness sector. The bank has 87 branches throughout Australia and New Zealand.
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