Rice Market Size, Share, Industry Analysis, Trends, Growth, 2032

Rice Industry Prospective:

The global rice market size was worth around USD 398.26 billion in 2023 and is predicted to grow to around USD 554.82 billion by 2032 with a compound annual growth rate (CAGR) of roughly 3.40% between 2024 and 2032.

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Rice Market: Overview

Rice is a cereal grain. It is one of the most widely consumed grain items across the globe. In its domesticated form, rice is a staple food for more than 50% of the world's population. Rice-based food items are equally popular in other parts of the world. Rice belongs to the Oryza sativa grass species. Extensive research proves that rice was initially domesticated between China and India around 2000 Before Christ (BC). At present times, Asian and African countries are some of the largest producers and exporters of rice in its original form. However, other countries such as the US and European Union also have massive amounts of fields dedicated to rice cultivation. Years of practice suggest that the optimal temperature for rice cultivation is around 25 degrees Celsius. Additionally, rice cultivation also requires higher humidity and annual rainfall of around 100 cm. The demand rate for rice has been growing at a rapid rate mainly driven by the growing population rate and subsequent demand for rice and other grains that form a part of staple diet cultures. Additionally, the rice market providers are increasingly launching new brands of domesticated rice which may act as a further growth trigger. However, changes in climate conditions and disruptions in the rice supply chain may lead to growth limitations and challenges.

Key Insights:

• As per the analysis shared by our research analyst, the global rice market is estimated to grow annually at a CAGR of around 3.40% over the forecast period (2024-2032)
• In terms of revenue, the global rice market size was valued at around USD 398.26 billion in 2023 and is projected to reach USD 554.82 billion, by 2032.
• The rice market is projected to grow at a significant rate due to the growing population rate across the globe
• Based on the distribution channel, the offline segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on the product, the long-grain rice segment is anticipated to command the largest market share
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period

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Rice Market: Growth Drivers

Growing population rate across the globe will drive the market demand rate

The global rice market is projected to grow due to the rising population rate across the globe. As the number of food consumers surges, the consumption of regular and essential food grains is expected to rise. By 2050, as per World Health Organization (WHO) predictions, the global population will reach around 9.7 billion. As of 2023, the world population is over 8 billion with China and India being the most densely populated countries in the world. These nations also have high rice production and consumption rates. The growing urban population with higher disposable income and access to branded rice grains in domesticated forms will fuel the market revenue trends. Accessibility has increased due to the emergence of several retailers including domestic and international companies. Additionally, the rising number of supermarkets and hypermarkets selling multiple brands of rice under one roof further promotes the market revenue streams.

Increase in government undertakings to promote rice production will be beneficial for the market players

Governments worldwide are working toward meeting the regional and global food demand. This has resulted in increased input from the official bodies to promote rice production. They are also keen on developing a more robust infrastructure to support the smooth distribution of rice grains among general consumers. In December 2023, the Bill & Melinda Gates Foundation-backed Multiple Harvest Rice for Africa (MHRA) project was finally launched by AfricaRice. The project is expected to promote rice production in Africa and the overall allotted budget is around USD 3 million. In the same month, the country of Togo witnessed the launch of a new project to boost rice production in the region. The initiative is backed by the United Nations Food and Agriculture Organization (FAO) and called the OCOP-TOGO. It is expected to cover all major zones in the region with high rice production value alongside implementing green technologies. In February 2023, the U.S. Department of Agriculture (USDA) announced assistance of USD 250 million to rice farmers thus promoting the global rice market.

Rice Market: Restraints

Fluctuating production rates and subsequent prices will restrict the market expansion rate

The global industry for rice is expected to be restricted due to the changing production rate and subsequent prices of the grain. Rice cultivation demands specific weather conditions and resources. Minor changes in the initial weather conditions or raw materials can impact the crop yield. In addition to this, rice production is a labor-intensive activity. The changes in the weather conditions caused by global warming impact the overall crop production rate which subsequently affects the overall product pricing.

Rice Market: Opportunities

Rising use of rice in global culinary will generate extensive expansion possibilities

The global rice market is expected to benefit from the rising use of grain in global cuisine. The rise of international tourism and the emerging concept of a global citizen is fueling higher innovations in terms of food products. The hotel, restaurant, and cafe (HoReCa) and food service industries are the leading promoters of food globalization. In addition to this, the internet has been pivotal in shaping the ways in which modern food products are curated. The availability of global recipes through written and video mediums such as blogs and social media platforms respectively has allowed more people to try novel nutrition-rich recipes belonging to other cultures and diet programs.

High demand for organic rice holds tremendous growth potential 

The growing consumer base for organic food products is likely to impact the growth rate in the rice sector as well. Organic rice grains have become tremendously popular in recent times owing to several associated advantages. In March 2023, California-based Lundberg Family Farms became the first company in the US to produce Regenerative Organic Certified® Rice. The company is a global leader in terms of organic rice and the new launch has further solidified the company’s foothold in the market. Lunderberg also aims to certify all of its organic rice produce by 2027. The increase in the production volume of organic rice is made possible using advanced and science-based agricultural practices. Taking the concept of organic rice production one step further, Lotus Foods announced the launch of the Organic Asian Rice Noodle Line in March 2024.

Rice Market: Challenges

Health risks associated with overconsumption of rice and its derivate food products will challenge the market expansion rate

The global rice industry is projected to be challenged by the several known health risks associated with excessive intake of rice and other food items derived from it. For instance, white rice has a high glycemic index which is known to cause an increase in blood sugar levels. Additionally, excess processing of white rice causes essential nutrients in the grain to diminish in quantity further resulting in negative health impacts.

Rice Market: Segmentation

The global rice market is segmented based on distribution channel, product, and region.

Based on the distribution channel, the global market segments are offline and online. In 2023, the highest growth was witnessed in the offline segment driven by the higher sale of rice grain and food products made of rice across supermarkets and other forms of retail stores. In addition to this, the food service industry has been influential in fueling the segmental market demand. The growing trend of e-commerce companies in the grocery delivery sector is a major reason for growth in the online segment. Uber Eats generated a total revenue of USD 32 billion in the first quarter of 2024.

Based on the product, the rice industry divisions are short-grain, medium-grain, and long-grain. In 2023, over 60% of the market share was dominated by long-grain rice products. The rise in demand for specialty rice variants for global cuisines is responsible for driving the segmental demand. Moreover, evolving health consciousness among consumers especially those seeking high-fiber food products that also have low sodium values is further contributing to the market revenue streams.

Rice Market: Report Scope

Rice Market: Regional Analysis

Asia-Pacific to continue emerging victorious during the projection period

The global rice market is expected to be dominated by Asia-Pacific during the forecast period. In 2023 over 75% of the global market share was contributed by Asia-Pacific. The sheer high volume of rice cultivation, production, and distribution in Southeast Asian countries is the primary contributor to regional market dominance. For instance, China is currently the world’s largest rice producer followed by India and Bangladesh. In 2022-2023, China produced over 146 million metric tons of rice. Moreover, the Asia-Pacific has a high consumption demand for rice including small-grain and large-grain variants. Rice is a part of the staple diet in several Asian countries. As per official estimates, around 1.2 billion people in India depend on rice for nutrition and sustenance. The regional governments are promoting the adoption of advanced technologies to improve production yield. In May 2024, the Chhattisgarh region of India witnessed the launch of the highly advanced FullPage® Rice Cropping Solution owned by Savannah Seeds and ADAMA India. The novel technology is expected to help farmers enhance yield by 25% to 40%. As per claims, the solution will save the farmers around Rs 6000 per acre.

Rice Marke: Competitive Analysis

The global rice market is led by players like:

• KRBL Limited
• Mars Food (Uncle Ben's)
• U.S. Rice Producers Association
• Farmers' Rice Cooperative
• Riviana Foods Inc.
• Suminter India Organics
• SunRice
• California Family Foods
• Ebro Foods S.A.
• Riceland Foods Inc.
• Chaman Lal Setia Exports Ltd.
• LT Foods Ltd.
• VSR Rice
• Tilda and Amira Nature Foods Ltd.

The global rice market is segmented as follows:

By Distribution Channel

• Offline
• Online

By Product

• Short-Grain
• Medium-Grain
• Long-Grain

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa