Wheat gluten market in MERCOSUR

Earlier Report Observations

Between 2018 and 2020, the wheat gluten market volume in MERCOSUR grew from 25 611 tons to 27 653 tons, while production more than doubled from 2 357 tons to 3 663 tons. This expansion was supported by increased wheat production across the region, particularly in Argentina and Paraguay, which supplied more raw material for processing. Favorable trade agreements within MERCOSUR facilitated the movement of wheat and its derivatives, and a temporary reduction in Argentine export duties in 2019 helped maintain raw material availability.

Market volume peaked at 30 369 tons in 2021, even as production dipped to 3 406 tons, because imports surged to 26 963 tons. Adverse weather conditions, including droughts and frosts in Brazil, reduced local wheat harvests, increasing reliance on regional imports. By 2022, technological advances in gluten processing improved purity and lowered costs, aiding a production recovery to 3 743 tons, though total market volume softened to 29 612 tons due to lower import volumes.

Production continued to rise, reaching 3 898 tons in 2023, but the overall market volume declined to 27 839 tons as imports fell further. Expanded wheat cultivation in Paraguay and Uruguay boosted regional raw material supply, supporting gluten output. Throughout the period, growing consumer adoption of gluten-free products in Latin America spurred sector innovation, while core demand for wheat gluten remained steady for traditional food applications.

Production wheat gluten in MERCOSUR

In kind, 2017-2020, t

Top producers of wheat gluten, 2017-2020

World map of production of wheat gluten, 2017-2020

MERCOSUR's wheat gluten production has increased for the second consecutive year. In 2020, production reached 3,663 tonnes, marking a robust 17.3% increase compared to 2019. Over the period from 2017 to 2020, production grew by 35.4%, with a compound annual growth rate of 10.6%. The lowest production level was recorded in 2018 at 2,357 tonnes, which also saw the largest decline of 12.9%. In contrast, the largest increase occurred in 2019, with a 32.5% rise.

Annual dynamics of production in MERCOSUR in kind, 2017-2020, t

Exports wheat gluten from MERCOSUR

Exports in kind, t

The market exhibited volatility during the observed period. Exports peaked in 2017 and reached their lowest point in 2018, with a 26,650-fold difference between these years. In 2019, MERCOSUR exported 1 tonne of wheat gluten, representing a dramatic year-on-year increase of 1,683.2%. The minimum export volume was recorded in 2018 at 0.1 tonnes, which also experienced the largest decline of 100.0%.

Annual dynamics of product's exports from MERCOSUR in kind, 2017-2020, t

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from MERCOSUR in kind, 2017-2020

Exports in value, K $ US

The market showed signs of volatility over the observed period. Export values fluctuated significantly, with a 7,533-fold difference between the high in 2017 and the low in 2018. In 2019, wheat gluten exports from MERCOSUR amounted to 2,000 US dollars, indicating a dramatic rise of 353.5% compared to the previous year. The minimum value was recorded in 2018 at 400 US dollars, which also saw the largest decline of 100.0%.

Annual dynamics of product's exports from MERCOSUR in value, 2017-2020, K $ US

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from MERCOSUR in value, 2017-2020

Imports wheat gluten to MERCOSUR

Imports in kind, t

Wheat gluten imports into MERCOSUR have increased for the third consecutive year. In 2020, imports stood at 23,990 tonnes, showing no material difference compared to 2019. Over the period from 2017 to 2020, imports grew by 33%, with a compound annual growth rate of 10.0%.

Annual dynamics of product's imports to MERCOSUR in kind, 2017-2020, t

From 2017 to 2020, the largest suppliers of wheat gluten to MERCOSUR in volume terms were Belgium (25.3% of imports), Germany (19.7% of imports), and the Netherlands (15.8% of imports). Together, these three countries accounted for 60.9% of total imports.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to MERCOSUR in kind, 2017-2020

Imports in value, K $ US

MERCOSUR's wheat gluten import value declined for the second consecutive year. In 2020, imports stood at 35,891,000 US dollars, indicating a drop of 9.4% from the previous year. Between 2017 and 2020, imports increased by 23.6%, equating to an annualized growth rate of 7.3%. The highest value was recorded in 2018 at 40,197,000 US dollars, which also saw the largest increase of 38.4%.

Annual dynamics of product's imports to MERCOSUR in value, 2017-2020, K $ US

From 2017 to 2020, the leading destinations for wheat gluten imports to MERCOSUR in value terms were Belgium (25.0% of imports), Germany (19.6% of imports), and the Netherlands (16.0% of imports). Collectively, these three countries accounted for 60.6% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to MERCOSUR in value, 2017-2020