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The Rice Market size is projected to increase by USD 85.65 Mn T and the market size is estimated to decline at a CAGR of 3.6% between 2022 and 2027. In 2017 the size of the market was valued at 402.83 Mn T.
This rice market report extensively covers market segmentation by Product (long grain, medium grain, and short grain), Distribution Channel (offline and online), and Geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
Rice is a staple food for more than half of the world's population. The growing consumption of rice is majorly attributed to the growing population, particularly in Asian, African, and Latin American countries where rice is a staple food item. According to the World Bank and United Nations data, countries including Syria(4.4%), Niger(3.8%), and Angola (3.2%) had the highest population growth rate in the world in 2021. Moreover, the growing per capita income plays an important role in driving the consumption of rice. According to the International Monetary Fund, Asian countries, including Macao(20.4%), Hong Kong(6.4%), and Singapore (6.0%), registered the highest growth rate in terms of per capita GDP in the world in 2021. Thus, the growing population and the increasing per capita income across developing economies are likely to boost the consumption of rice, which, in turn, will drive the Rice Market growth during the forecast period.
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Our researchers analyzed the data with 2022 as the base year, along with the key trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.
Increasing awareness about gluten-free food is a major trend driving the rice market share. The rising awareness about gluten and celiac disease among consumers has increased the demand for non-gluten or gluten-free food. Gluten is found in grains such as wheat, rye, and barley. However, rice is gluten-free and has witnessed a rise in demand among consumers. This can positively impact the growth of the global rice market during the forecast period.
The consumption of gluten can cause problems among individuals with an intolerance to gluten. If left undiagnosed, it can lead to celiac disease, a severe form of gluten intolerance. Nearly 1% of the population in the UK has celiac disease, out of which only around 24% is diagnosed. It is estimated that nearly three million people in the US have celiac disease. The disease causes bloating of the small intestine, headache, constipation, diarrhoea, and weight loss. Gluten sensitivity also leads to digestive issues, inflammation in the small intestine, and attention deficit hyperactivity disorder (ADHD). Currently, there is no cure for this disease, and the only way to avoid it is to switch to a gluten-free diet. As a result, customers are avoiding foods that have gluten or gluten-containing ingredients. Thus, the increasing preference for gluten-free food products is expected to drive the growth of the global rice market during the forecast period.
The price volatility of grains due to weather conditions is a major factor hindering the market. Fluctuations in the availability of rice can impede the growth of the global rice market. Lower rice harvests trigger an increase in the price of rice due to increasing demand. This can also cause a decline in the demand for rice and reduce the customer base. The dependency of vendors on climate increases volatility both in the price and quality of rice, causing a demand-supply imbalance for major rice-consuming countries. Climate change and unfavourable weather conditions can affect the volume and quality of the crop yield. Globally, climatic conditions are changing rapidly, giving rise to severe droughts and floods. Short supplies lead to higher rice prices, which increases the price for the end customer. Such factors will affect the sales in the global rice market during the forecast period.
The Rice Market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Rice Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The rice market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the long-grain segment will be significant during the forecast period. Long-grain rice is slim and lengthy, having a length that is three to five times its width. This segment has a range of rice varieties such as Basmati and Jasmine.
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The long-grain segment was valued at 177.73 Mn T in 2017 and continued to grow until 2021. Long-grain rice is widely produced and consumed across Asian countries. These countries are some of the largest consumers of rice in the world. Thus, the popularity of long-grain rice in leading rice-consuming countries in the world is driving the growth of the long-grain segment of the global market. Furthermore, long-grain rice is believed to be healthier than other rice varieties. For instance, basmati rice is low in carbohydrates and cholesterol, making it suitable for consumption by people with chronic disorders such as diabetes, cardiac diseases, and obesity. Such health benefits of long-grain rice increase its popularity among consumers, which, in turn, will drive the growth of the global market during the forecast period.
The offline distribution channel segment generates revenue from the sales of products through hypermarkets, supermarkets, department stores, and independent retailers. Retailers are introducing new business and retail strategies, for example, better pricing strategies and wider assortments, owing to the declining preference for offline shopping and the need to survive in a competitive market. As a part of the marketing and offline sales strategy, resellers place attractive displays that generate strong sales. Vendors push their offline sales by widening their store operations across locations. Companies are able to increase sales and cater to each consumer category through expansions in large geographies. With the growth in retail channels in cities and regions, customers have access to different varieties of rice, such as brown rice, basmati rice, and jasmine rice. This is expected to increase the sales of rice through offline channels during the forecast period.
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APAC is estimated to contribute 73% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC is the biggest producer and consumer of rice in the world. The region consumes about two-thirds of the total rice produced globally. Thus, rice is available in plenty across the region. Countries including China, Thailand, and India use rice in the preparation of a wide range of daily-use food items. This keeps the demand for rice high in the region.
Growing urbanization and economic growth over the years have influenced the lifestyle of people living in APAC and changed their consumption habits, tastes, and preferences, thereby driving the demand for convenience and ready-to-eat foods in the region. In recent years, the demand for wheat in APAC has increased marginally, but growing awareness about health is expected to witness a growth in the use of rice. People in APAC are, therefore, expected to move to healthier, rice-based gluten-free diets amid growing consciousness about the ill effects of gluten. Such consumer patterns in APAC are expected to drive regional market growth during the forecast period.
In 2020, the COVID-19 outbreak led to the temporary closure of offline retail sales and manufacturing units for rice-based products in the region. But online shopping has been on the rise as many people worked from home and enjoyed the convenience of shopping and getting things delivered to their homes. Such factors contributed to the sales of rice in APAC in 2020. However, in 2021, the initiation of large-scale COVID-19 vaccination drives led to the lifting of lockdown restrictions and the resumption of activities in offline retail channels. This has increased the demand for rice from offline channels. Such factors are expected to drive the growth of the regional rice market during the forecast period.
The rice market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Rice Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Decelerate at a CAGR of 3.6% |
Market growth 2023-2027 |
85.65 mn t |
Market structure |
USD Fragmented |
YoY growth 2022-2023(%) |
3.87 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 73% |
Key countries |
US, China, India, Japan, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aashirvad International, Adani Wilmar Ltd., Amir Chand Jagdish Kumar Exports Ltd., Anheuser Busch InBev SA NV, Bunge Ltd., California Family Foods, Cargill Inc., Ebro Foods SA, Farmers Rice Cooperative, Gautam General Trading LLC, GRM Overseas Ltd., ITC Ltd., Kohinoor Foods Ltd., KRBL Ltd., Louis Dreyfus Co. BV, LT Foods Ltd., Riceland Foods Inc., Shriram Food Industry Pvt. Ltd., Sri Sai Nath Agri Industries Pvt. Ltd., and Tamaki Rice Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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