Packaged Rice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Packaged Rice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Packaged Rice Market is projected to register a CAGR of 3.5% during the forecast period, 2022-2027.

Packaged rice market has not been significantly impacted by the effect of the COVID-19 outbreak, as compared to other industries, as the demand for packaged rice has been increasing. Due to a lack of access to credit, capital inputs, and remittance revenue, rice cultivation in Southeast Asia suffered. In addition, prices rose due to the product shortage brought on by the export restrictions. For instance, following the coronavirus outbreak, Thailand's rice export prices increased by about 20% from their theoretically low level in early 2020.

The rise in disposable income, improvement in the standard of living, education, employment, and decreasing household size positively boost the sales of packaged rice. The quick rise in global affluence, escalating concerns over food safety, and modifications in the retail industry are leading to an increase in the demand for rice that is packaged and labeled better.

The enhancement of packaging and branding that promotes the vertical coordination link between mills and wholesalers/exporters and between supermarket chains and large rice mills, a movement in selling rice from loose to packaged form, and the selling strategy of supermarkets at different price ranges to appeal to different socioeconomic groups by offering a diversity of product types are factors driving demand for the packaged rice market internationally.

Moreover, the increase in private label brands and the upgradation of packaging materials to a recyclable package of rice is gaining traction among consumers globally owing to an increase in the concerns for the environment and sustainability. For instance, in January 2022, Aldi Stores Limited, which offers private label packaged rice under its own brand Aldi, launched rice products with recyclable mono-material PE packaging developed by Coveris.

Key Market TrendsIncreasing demand for Premium Packaged Rice

The rise in consumer awareness of the safety and quality of food products is driving the demand for premium packaged rice markets. The premium packaged rice brand that facilitates the communication of attributes such as quality, traceability, and production practices such as organic, fair trade, sustainable production, sustainable value chain upgrading, and reducing the climate footprints of rice production is boosting the sales of premium packaged rice which drivers for food safety. The emergence of a wide range of products in premium rice products such as basmati rice, brown rice, and red rice and the commercial advertisements across various channels by premium packages rice players are boosting sales. Moreover, the players are producing quick-cooking rice. For instance, in June 2022 Lotus Foods, an organic rice company launched Organic White Quick Cook Rice, short grain rice the company claims that the rice cooks in just 10 minutes or about half the time of most white rice.

Asia-Pacific Region Dominates the Market

According to the International Rice Research Institute, rice is a staple for nearly half of the world’s seven billion people. However, more than 90% of this rice is consumed in Asia, especially in India, Japan, and China, and the region has a wide range of rice-based cuisines. The demand for packaged rice is expected to rise due to food safety and nutrition concerns as the chances of contamination in loose rice are very high due to the environment's physical, chemical, and biological reactions. Moreover, with the increase in disposable income and improvement in the standard of living consumers in the Asia-Pacific region have replaced loose rice with packaged rice. Also, packaging can be seen as the modernization of the food retail sector's shift from an emphasis on intrinsic to extrinsic quality attributes because it makes it easier to communicate extrinsic quality attributes, which can educate consumers about the quality, safety, and nutrition of food products. Consumers residing in urban and semi-urban areas in the Asia Pacific region are more inclined towards packaged rice due to the convenience, quality, and safety of rice.

Competitive Landscape

The packaged rice market is fragmented with many players operating internationally. The major players in the market include Amira Nature Foods Ltd, Adani Group, Gia International Corporation, Producers Rice Mills Inc, and Riviana Foods Inc. among others. The industry players are actively involved in expanding their presence through geography, acquisition of packaged rice brands and companies, and are also launching new products with attractive packaging. For instance, in September 2021, Mars Food Australia, owner of Ben’s Original rice products, launched its new packaging, following the brand’s name change from Uncle Ben’s in 2020. The new packaging will feature a recognizable orange background and navy-blue font alongside Ben’s Original brand name.

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