12 export items that are going to dominate international trade this decade
Contemporary times will experience a remarkable balance between the quintessential and innovative export commodities. These export items have the ability to significantly transform the global trade scenario.
Here we will be talking about the top 12 export products that will be dominating the international trade market this decade according to the changing trends and consumer behaviours. The business world is getting prepared to deal with a major transformation as more than 80% of the companies are locating manufacturing in Africa, Asia, and the Middle East in the upcoming years.
The last few years have also witnessed a rise in conscious consumerism. Along with that, implementation and advancement of the global governance standards to maintain and promote sustainable measures were also accommodated.
Keeping in mind the long-lasting trend of sustainable development and environmental consciousness, the products that have the potential to reduce the world’s dependence on fossil fuels will be dominating global trade. Among these products, we have put forth the product categories that will be donning the markets.
- Electric Cars
Electronic vehicles are a great alternative to tackle the problems of air pollution. The idea came from Nikola Tesla in 1887 and came into practice after a century when governments all across the world issued bills recommending the usage of electric vehicles and adopting eco-friendly measures.
The use of such a car remained an optimistic idea because of its high costs as compared to the IC engines. However, now we can see almost every automobile company acquiring an impressive range of EVs.
Countries such as India and China have a slow but stable market demand for these products. The US, Germany, South Korea, Slovakia, and Belgium are leading the EV export market. However, India is also working to secure a prominent position in manufacturing and exporting electric cars with its $1 trillion merchandise exports aim by 2030.
It is anticipated that electric car components will witness a significant rise in demand, because of the expected hike in sales and manufacture of electric vehicles.
- Bio Fuels
The US is the leading producer of biofuels like ethanol which is made from corn. One-third of the entire corn production is used for the production of ethanol. Brazil and Canada are among the leading importers of this biofuel.
There is a significant and constant increase in demand for Bio Diesel that Argentina and Indonesia produce. The leading importers of biodiesel are the EU, the USA, and China.
- Solar Panels, Cells, and Other Elements
The trend of environment-friendly measures will also raise demand, production, and exports for solar cells, solar panels, etc. Because of the ongoing trade war between the USA and China, India is benefiting in the case of solar panels. It is importing components such as photovoltaic cells, solar inverters, and silicon from China. The value addition is done locally in order to export finished goods to the US.
Europe right now is dominating the market of solar energy products because of its clean energy policies and the increasing demand in Germany and Spain for instalments of solar panels.
- Medical Equipment
There is a huge market for medical devices in the leading economies. Countries like Japan, the UK, the US, and the EU are investing a significant amount to purchase surgical instruments. Pakistan and Bangladesh have witnessed a rise in the demand for medical equipment suppliers. These suppliers are securing their position in the international export market through good-quality precision equipment imports.
- Precision Equipment
Professionals anticipate that global precision equipment will grow at a significant CAGR of 6.6% and overtake USD 20 billion by 2028.
There is high demand for scientific and medical equipment in European nations such as Netherlands and Germany. The leading markets of the United States, the United Kingdom, and China also have an increasing demand for such equipment.
Hong Kong leads the production of precision equipment. There is high demand because of the focus on reducing downtime and increasing the production of precision equipment.
There is demand for watches and their components too. Both the USA and India are improving the capacity of their imports.
- Integrated Semiconductors and Circuits
Semiconductors are anticipated to grow at a CAGR of 8.6%. Singapore is amongst the leading producers and exporters of semiconductors. The export leaders such as South Korea, Taiwan, and Hong Kong are working to produce and export these integrated semiconductors predominantly from Asia.
The US, Vietnam, China, and Germany are leading importers.
- Broadcasting Equipment
Receiving apparatus for radio and television, and transmitters are experiencing a great surge in usage. There is an increase in demand for dimmers, stage lights, spotlights, and broadcast booths due to the rise in popularity of podcasts and content on social media platforms.
- Palm and Olive Oils
Indonesia increased the production of palm oil despite the harmful effects on its ecosystem. This production made the South East Asian powerhouse a leading producer of palm oil, which surely will have a high demand in the markets.
There is a limited supply of other cooking oils such as Sunflower Oil and Soyabean Oil because of the ongoing Ukraine and Russia war. Thus, there is a considerable boost in the production and export of palm oil.
Olive oil is a strong competitor of palm oils. It is a staple of the Mediterranean. Olive oil is also universally popular because of its health benefits therefore, the EU nations such as Italy, Spain, and Portugal have increased their production.
- Lobsters, Crabs, Shrimps, and Cuttlefish
India, Ecuador, Vietnam, and Canada are the leading exporters of this industry. There will be a further rise in the demand with imports from the US, Japan, Spain, South Korea, and China.
Those exporters and importers who have an EPCG License can get considerable benefits on capital goods under the EPCG scheme.
- Whey Powder
Whey powder is a byproduct of the cheese-making process and is a healthy protein supplement. It is high in demand because of the trending health conscious consumerism.
Indonesia will witness a considerable change in its overall trade surplus because of the growing dependence on the produced goods. Chemicals and rubbers are Indonesia’s leading export commodities. Also, the hookah culture has increased the demand for coal briquettes in Europe, Africa, and the Middle East.
- Poultry Meat
Despite the popularity of seafood, red meat will remain an important product in the market. The predicted growth of poultry meat in the United States is enough to encourage investment in the production and distribution of poultry meat.
China, Germany, the United Kingdom, and France will continue to witness a hike in domestic consumption of grill meat, proving to be attractive export markets for poultry meat.
- Textiles and Apparel
As per the Confederation of Indian Industry (CII), India’s goal of $1 trillion in product exports by 2030 is heavily reliant on textile exports. Indonesia, Malaysia, and Vietnam are new entrants in this market area, while seasoned exporters such as the United States, Germany, and, of course, China will continue to make this one of the most heavily exported commodities this decade.
Several export houses are fighting for first place amid the changing of the guard brought about by the introduction of some of these products. With a comprehensive focus on ecologically friendly manufacture and export, these products will undoubtedly guarantee a long-term presence in the GDP of many developed and developing countries aiming for a trade surplus in the coming decade.
Having an EPCG License helps in facilitating the import of capital goods to produce high-quality goods and services further enhancing the manufacturing competitiveness in India. Under the EPCG Scheme imports of capital goods for production can be initiated at zero customs duty.
It is highly beneficial if the exporters and importers efficiently use the EPCG Scheme. This will encourage the manufacturers to improve their trade and take their businesses to unprecedented heights.