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

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

The rice market is poised to register a CAGR of 1.2% during the forecast period, 2021-2026.

The commercialization of rice has not been much significantly affected by the impact of COVID-19, as compared to other industries, as its demand has been ever so increasing. In Southeast Asia, rice farming was affected due to a lack of access to credit, capital inputs, and remittance income. Additionally, restrictions on exports resulted in a short supply of the product, which in turn, caused the rise in price. For instance, with the coronavirus outbreak, Thailand’s rice export prices marked a rise almost by 20% after the outbreak, which was nominally low in early 2020.

Asia-Pacific is identified to be the largest market. Most of the rice is grown and consumed in the Asian region, from Pakistan in the west to Japan in the east. Rice is the second-most important cereal crop, after maize, in the world. It is a crop that ensures food security in many of the developing countries of East Asia and the Southeast Asian regions.

Therefore, rice being the most consumed cereal grain globally, the rice market is anticipated to grow. Although North America and Europe are not large consumers of rice, both are currently importing record amounts of rice. Also, these two regions are large markets for Asian aromatic varieties. Over the recent years, the rice market has witnessed considerable growth on the back of the increasing demand for rice in emerging and developing nations across the world.

Key Market TrendsThe Rising Demand for Specialty Rice Varieties Leads to Increased Trade

Basmati rice is known to be one of the best types of rice in the world, known for its sleek, slender, tapering grains with a unique aroma, taste, and grain elongation quality upon cooking. Exports of the premium variety from India have an 85% share in the Basmati exports market. The United States majorly imports Asian aromatic rice such as basmati and jasmine rice. Global export grew by 10% in 2018-19, primarily due to higher demand from Iran. Other than Iran and the United States, major importers of basmati rice are the United Arab Emirates, Kuwait, Saudi Arabia, and the United Kingdom.​

According to APEDA, as of 2018-19, India accounted for 65% of the overseas basmati rice market, while Pakistan accounted for the remainder. In Europe, the demand for specialty and exotic varieties, such as basmati or jasmine rice, is growing exponentially. A significant share of import rice consists of long-grain Indica rice and aromatic varieties (basmati and jasmine), which are popular varieties mainly in Northern Europe. The United Kingdom dominates the imports of basmati rice, mainly from India. Ethnic populations and Southern European dishes are important drivers for the consumption of several rice varieties.

Asia-Pacific Dominates the Market

Rice is the staple food of Asia and part of the Pacific. According to the Food and Agriculture Organization, about 90% of the world’s rice was produced in the Asia-Pacific region in 2019. India and China are the prominent producers of rice, with the production of 177.6 million metric ton 211.4 million metric ton, respectively, in 2019. The Indian government has been encouraging farmers to take up rice cultivation by providing a minimum support price (MSP). For the 2016-17 Kharif season, the minimum selling price (MSP) was at INR 1,470 per quintal compared to INR 1,410 per quintal last year.

After China and India, the next largest rice producers are Indonesia, Bangladesh, Vietnam, Myanmar, and Thailand. However, rice production is affected by various pests and diseases such as thrips, planthopper, and gall midge. Therefore, players like Bayer Crop Science and Syngenta are involved in the development of disease- and pest-resistant varieties to improve rice production. This is anticipated to further boost rice production in the region.

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• The market estimate (ME) sheet in Excel format
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Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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