Commodities - United Kingdom

United Kingdom

The nominal value in the Commodities market is projected to reach €904.60bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.03% resulting in a projected total amount of €1,102.00bn by 2029.
The average price per contract in the Commodities market amounts to €0.01 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (€49,270.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 84,980.00k by 2029.

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Analyst Opinion

In recent years, the Commodities market in United Kingdom has seen a significant increase in trading activity and market participation.

Customer preferences: Traders and investors in the UK have shown a growing interest in Commodities as a way to diversify their investment portfolios and hedge against market volatility. The appeal of Commodities lies in their potential for high returns and as a way to spread risk across different asset classes.

Trends in the market: One notable trend in the UK Commodities market is the shift towards online trading platforms, which have made it easier for retail investors to access and trade Commodities. This trend has led to an increase in trading volume and liquidity in the market. Additionally, there has been a rise in the popularity of leveraged trading products, allowing investors to amplify their exposure to Commodities with a smaller initial investment.

Local special circumstances: The UK's strong financial services industry and position as a global financial hub have contributed to the growth of the Commodities market. London, in particular, is home to a number of major exchanges and financial institutions that play a key role in facilitating Commodities trading. The regulatory environment in the UK is also conducive to Commodities trading, providing a level of investor protection and market oversight.

Underlying macroeconomic factors: The performance of the UK economy, global market trends, and geopolitical events all play a role in shaping the Commodities market in the UK. Economic indicators such as inflation, interest rates, and currency fluctuations can impact the prices of Commodities and influence trading activity. Geopolitical tensions, supply and demand dynamics, and technological advancements also contribute to the overall market sentiment and direction in the UK Commodities market.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.