Commodity Services Market

Owing to benefits such as better price-risk management, centralized marketplace, neutral, secure and transparent trade mechanisms, high standard quality parameters and trade regulations and market efficiency, commodity services are experiencing rapid adoption, thus fostering progress in global commodity service market

With a CAGR of 8.74% from 2022 to 2028, the size of the global market for commodity services increased from USD 3770.2 billion in 2022 to USD 6232.4 million in 2028.

Covid-19 Impact & Market Status

All markets around the world have been impacted by the devastating effects of coronavirus and each industry is experiencing its unique set of challenges. One market that is taking on enormous pressure from COVID-19 is the global commodity services market. The global commodity services market and the market participants are dealing with unprecedented disruptions. At the same time, for market fortification and survive in the market the market players are coming with new strategies like producers watching their core products overtaken which were previously seemed to be secondary products. For example, the metal and agricultural commodities have seen increased growth and may see good growth in the forecast span. The key factors for global commodity services market regaining momentum is smooth consumption, increasing demand from countries that depend on exports of commodities, business coming back to normal operations due to ease in lockdown restrictions.

Most importantly, the developing countries are taking faster response measures against the pandemic. It is therefore helping public health interventions, smooth flow of critical supplies and equipment thus helping boost global commodity services market.  

This report focuses on understanding the progressive growth of the global commodity services market, current state of the market, investment & growth opportunities, challenges, risks, forecasts, and more such insights about the global commodity services market which has witnessed a remarkable change in the past decade.

Agricultural Commodity Services Segment is the Most Attractive Segment

The global Commodity Services market is classified into metal, energy, agricultural, livestock, meat, and others on the basis of type. Among these, the agricultural commodity service segment held the largest market share of global commodity services market and is estimated to record the fastest CAGR in the forecast years and witness more demand owing to factors like increasing population, growth in total cultivated areas, increased worldwide demand for various types of food products, increase in financial activities, and financialization of agricultural raw material.

Producers Segment to Remain Atop

The global Commodity Services market is classified manufacturers, consumers, investors, traders, business entities, producers on the basis of entity. Among these, the producers segment accounted for maximum revenue of the global Commodity Services market.  

North American Region to Witness Huge Investments

North America is the most mature market in the global Commodity Services market and earns a substantial market share of the global Commodity Services market. Presence of strategically situated state-of-the art commodity traders across North America like Bunge Limited, Archer Daniels Midland, Cargil, and others, trade expansion, high per capita consumption, immense resources and high productivity of countries like US and Canada majorly contribute to the highest market share of global Commodity Services market. Furthermore, foreign trade than any other region is more in US and Canada. On other hand considerable rise in internal as well as external trade account for the North America’s dominating role in the global Commodity Services market. Europe and APAC are also growing rapidly with similar dynamics in global commodity services market. Interestingly, APAC is likely experience rapid growth in global commodity services market due to highly contributing countries like India and China.

The need for organized market that provides an organized and guaranteed mechanism for aggregating and selling of all the commodity exchange products more efficiently and more effectively has accentuated the reliance on commodity services.

Rapid exchange of commodities throughout the world and on a massive scale such as metal, energy, agricultural, livestock, meat etc and the like are fostering remarkable progress in the global commodity service market.

Advantages such as potential for inflation protection, high volatility considering international price scenarios, price stability, continuous flow of the commodities from producers to consumers and manufacturers, efficient economy, liquidity, more opportunities for producers and users to hedge their operations encourage further adoption. 

Commodity service market is a marketplace wherein economic goods such as metal, natural gas, petrol, agricultural, livestock, meat etc commodities which are mass produced are actually bought and sold to the consumers and manufacturers. The unique characteristic of commodity service is that it makes easy to connect to buyers and sellers. Commodity service also acts as leverage for hedging and speculation and is a good alternative for investor who is not happy with equity market.

Factors such as private sector initiatives seeking to tap potential value, population growth and improvements in living standards are some key factors boosting the global commodity service market.

However, smaller profit margins diminishing brand name, instability of commodity prices, continuing trade tensions are some major concerns likely to hamper the global commodity service market. Furthermore, COVID-19 impact signalling positive long-term demand for commodities, climate accelerating electrification of vehicles and decarbonisation of power leading to increased demand for commodities, increased competition, oil price wars, population growth, and improvements in living standards are anticipated to be growth opportunity to the global commodity services market.

The major and largest contributors in global Commodity Services market are Louis Dreyfus Group, Bunge Limited, Archer Daniels Midland, Gunvor, National Commodity & Derivatives Exchange Limited, Cargill, Mercuria Energy Group, Trafigura, Glencore, Vitol, Salam Investment, Noble Group, Wilmar International, and Olam International among others.  These companies are trading globally in commodities services and dominate the global Commodity Services market as physical distribution, logistics, and distribution are at the core of the companies.

Latest Innovations in the Global Commodity Services Market: a Snapshot

National Commodity and Derivatives Exchange (NCDEX), online commodity and derivative exchange, India in May 2020 launched Agridextrading. Agridextrading is launched with an aim to leverage market participation. Most importantly, this online trading platform is useful for the traders, suppliers, and other business entities, institutional investors, and enterprises associated with agriculture related trading operations that allow them to hedge their risks in agricultural commodities. 

Commodity Services Market Scope

Key Segments of the Global Commodity Services Market

Type Overview, (USD Million)

• Metal
• Energy
• Agricultural
• Livestock
• Meat
• Others

Entity Overview, (USD Million)

• Investors
• Consumers
• Manufacturers
• Traders
• Business entities
• Producers

Regional Overview, (USD Million)

North America

• U.S
• Canada

Europe

• Germany
• France
• UK
• Rest of Europe

Asia Pacific

• China
• India
• Japan
• Rest of Asia Pacific

South America

• Mexico
• Brazil
• Rest of South America

Middle East and South Africa