Allied Market Research

2024

Commodity Services Market

Commodity Services Market Size, Share, Competitive Landscape and Trend Analysis Report, by Commodity Type and, by End user : Global Opportunity Analysis and Industry Forecast, 2023-2032

BI : Financial Services

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Author's: | Onkar Sumant
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The commodity services market has experienced tremendous growth globally in recent years. A commodity refers to goods or services used in trading and exchanged with certain other commodities in the market. Primarily, commodities are used as inputs to manufacturing or processing of several goods or services. Commodity services are type of services that allow purchasers or sellers to meet the counterparty to trade a commodity or commodity related investment items. Traditional examples of commodities include gold, crude oil, zinc, lead, silver, natural gas, and cotton. Nowadays, several brokerage firms offer platforms and commodity exchanges to trade commodities instead of physical delivery of commodities.

COVID-19 scenario analysis:

  • The pandemic’s consequent effect of supply chain shutdowns, owing to economic slowdown has affected both demand and supply of commodities. 
  • Economic slowdown has led to the halt of industrial activities and put a toll on industrial commodities such as copper and zinc and metal prices have resulted in muted demand. 
  • On the other hand, gold prices have risen as buyers have sought security amid instability on the capital markets, thus the market is expected to experience demand for gold securities.
  • However, commodities related to transportations are largely impacted, owing to nationwide lockdowns. 
  • Oil prices have steadily declined and demand is set to fall by a record high in 2020. Historic crash of the U.S. crude oil prices to negative pricing has left many Indian commodity brokerages in losses as they provided leverage to clients for trading. 

Top impacting factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis 

Surge in demand for diversifying a portfolio with advance commodities over traditional securities and higher implied volatility in capital markets has enhanced individuals to approach commodity brokering services in the market. These factors fuel the market growth. However, higher competition, higher liquidity risks, and stringent government regulations are some of the factors that hinder the market growth. 
Conversely, rise in financial awareness and less market penetration in emerging countries are expected to provide lucrative opportunities in the coming years. 
The global commodity services market trends are as follows: 

Introduction of agriculture commodity derivatives to flourish the market:

Various new services in the commodity industry are attracting huge customer base for bigger investments. For instance, in India, National Commodity and Derivatives Exchange (NCDEX), one of the largest online trading platforms based on agriculture, launched Agridextrading in May, 2020, to increase market participation. In addition, this trading platform allows traders, suppliers, and organizations of agricultural producers (FPOs), independent growers, institutional investors, and enterprises to hedge their risks in agricultural commodities in the market. 

Rise in trend of gold and coal commodity derivatives in Asian markets:

Launch of new derivatives for commodities has increased market participation in the commodity trading sector, owing to low cost investments. For instance, in January 2020, China's Zhengzhou Commodity Exchange launched rapeseed meal and thermal coal options in the country to provide hedging instruments in the energy sector. Moreover, in India, National Stock Exchange (NSE) introduced option derivative contracts and raised market participation to hedge the risks over commodities traded in the market.  

Key benefits of the report:

  • This study presents analytical depiction of the global commodity services market along with the current trends and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global commodity services market share. 
  • The current market is quantitatively analyzed to highlight the market growth scenario. 
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market. 
  • The report provides a detailed market analysis based on the present and future competitive intensity of the market.  

Questions answered in the commodity services market research report:

  • Who are the leading market players active in the global commodity services market?
  • What would be the detailed impact of COVID-19 on the global commodity services market?
  • What current trends would influence the market in the next few years?
  • What are the driving factors, restraints, and opportunities in the global commodity services market?
  • What are the projections for the commodity services market future that would help in taking further strategic steps?

Commodity Services Market Report Highlights

Aspects Details
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By Commodity Type
  • Metals
  • Energy
  • Agricultural
  • Others
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By End user
  • Business
  • Individuals
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By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Spain, Italy, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

Cargill, Inc., Louis Dreyfus Company B.V., Mercuria Energy Group Ltd, Koch Industries, Inc., Gunvor Group Ltd, Vitol, ADM, Glencore plc, Bunge Limited, Trafigura Group Pte. Ltd.

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Commodity Services Market

Global Opportunity Analysis and Industry Forecast, 2023-2032