Rice Market (2022 - 2028)

Rice Market Summary

Rice is the staple food of more than half of the world's population; Asia Pacific is the largest consumer of the product, which has led to significant market growth. Moreover, continuous developments in rice mill machinery globally and attractive packaging increases the product demand in emerging economies.

The growing demand for specialty rice varieties has increased the trade for long grain rice, which in turn is driving the market growth. Furthermore, continuously changing lifestyles and food habits among consumers are accelerating the fast-food industry market, which is subsequently expected to drive significant growth of the market during the forecast period. Additionally, the growing population coupled with increasing disposable income across the globe are anticipating the growth of the global market.

The producers are offering a wide range of products such as jasmine, basmati, white, brown, and wild rice, among many other products. However, rice is measured as a strategic commodity and controlled by the governments of various countries due to its role as a staple diet in numerous developing and developed economies. Moreover, increasing demand for high-quality rice from European and Gulf countries is further accelerating the growth of the market.

The lockdowns announced during the COVID-19 pandemic have not had much impact on the rice industry, as compared to the other industries. The increasing demand for cereal grain across the globe is propelling market growth. The rising demand for fast and packaged food after the COVID pandemic will create opportunities for the market players. Thus, the market is expected to witness a healthy market growth rate in the upcoming years.

Distribution Channel Insights

The offline channel contributed a share of more than 82% in the global rice market in 2021. Consumers are preferring the offline channel for the purchase of consumer goods, groceries, as well as food products such as grains, where they can physically verify product quality. Moreover, easy access and searchability for various grains through stores are factors likely to drive the segment growth. Offline channels are expected to remain dominant in the forecast period due to improved distribution networks across the globe.

The online segment of the market is anticipated to register the fastest CAGR of 2.7% from 2022 to 2028. The internet penetration rate has witnessed lucrative growth in recent years, which has subsequently led to significant demand for the e-commerce sector. Several suppliers of the product are offering it on their websites as well as on e-commerce platforms, which is projected to drive market growth during the forecast period.

Product Insights

The long-grain segment contributed to the largest revenue share of more than 63% in the global market for rice in 2021 and is expected to expand at a CAGR of 2.1% from 2022 to 2028. The increasing popularity of specialty rice like jasmine and basmati across the globe is driving the market growth. Moreover, the rising health concerns among consumers have increased the demand for high-fiber food and low sodium, to protect against cancer. This factor is stimulating the growth of the market over the last few years.

The medium-grain segment is expected to advance at the fastest growth rate of 2.4% from 2022 to 2028. Rice is a convenient form of nutritious and healthy food that is made available to consumers through retail channels, which is driving the growth of the market. Additionally, technological developments and advancements in rice mill machinery have projected the growth of this segment during the forecast period. Moreover, the growing popularity and demand for fast food, coupled with the increasing disposable income of consumers, are significant factors for market growth.

Regional Insights

Asia Pacific made the largest contribution to the global rice market with over 77% revenue share in 2021. China, India, Indonesia, and Bangladesh have a huge population base for the consumption of food products, which is expected to drive the regional demand further. Moreover, this region is expected to advance at a noticeable growth rate during the forecast period, owing to the rising disposable income of consumers, coupled with the growing population in this region.

North America is the fastest-growing regional market for rice and is expected to witness a CAGR of 3.9% from 2022 to 2028. The increasing demand for fragrant and specialty rice in the U.S. is propelling the growth of the market. Additionally, the increasing consumption of fast-food products in the U.S. and Canada due to the presence of high nutrition, and high fiber in grain products is projected to drive market growth.

Key Companies & Market Share Insights

The market consists of various established players, coupled with local manufacturers present across regions. Various manufacturers and suppliers have been continuously focusing on the logistic development and strengthening of the distribution channel to expand their business. Such initiatives are expected to boost the adoption rate of the product among consumers around the globe. The market is further driven by mergers, acquisitions, joint ventures, and innovative packaging designs.

Some of the key players operating in the global rice market include:

• Kohinoor Foods Ltd.

• Adani Wilmar Limited

• LT Foods

• KRBL Limited

• Aeroplane Rice Ltd.

• Sridhar Agro Product P Ltd

• Gautam General Trading LLC

• Sri Sainath Industry Pvt. Ltd

• Shriram Food Industry Pvt. Ltd.

• Aashirvad International

Recent Developments

• In April 2022, LT Foods launched ready-to-make Daawat Biryani Kits in three regional variants including Hyderabad, Kolkata and Lucknow to redefine authentic and fresh biryani cooking experience at home.

• In May 2022, Adani Wilmar announced the acquisition of Kohinoor Foods Ltd. to strengthen their leadership in the Basmati rice and FMCG segment. This will further expand their business strategy portfolio in the higher-margin branded staple product segment.

• In November 2022, LT foods announced a strategic partnership with Saudi Agricultural and Livestock Investment Company (SALIC). LT Foods and SALIC entered into a strategic Supply & Cooperation agreement that will accelerate LT Foods’ organic and inorganic expansion plans and export specialty basmati rice to the Middle East and Saudi Arabia region.

Rice Market