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Basmati Rice Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Published: November 2024 || SKU: AG8419
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180 pages
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Global Basmati Rice Market is segmented By Product (Parboiled, Raw, Steamed) By Species (White, Brown, Others) By Distribution Channel (Traditional Grocery Stores, Convenience Stores, Online Stores, Other) By Application (Food Industry, Cosmetic Industry, Personal Care) By End-User (Industrial, Household) and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

 

Market Overview

Global Basmati Rice Market reached US$ 6.52 billion in 2023 and is expected to reach US$ 15.16 billion by 2031, growing with a CAGR of 11.12% during the forecast period 2024-2031.

Basmati rice, a long aromatic rice variety comes in parboiled or raw varieties, both offered in white, brown, and other options. It has major applications in food industries but may have other applications in cosmetics or industrial uses. The market is driven by its unique taste, aroma and health benefits. The increasing global population and need for more agri products along with the rising basmati rice premium image and growing interest in diverse cuisines boost the market expansion.

The support, standardizations, and regulations in the major basmati rice-producing places help better market penetration at the global level. For instance, in March 2023, India's food safety authority introduced formal standards for the premium basmati rice variety to establish basmati rice as its intellectual property, protected under GI laws. The evolving new varieties of basmati rice and better innovations in improved parboiling techniques and ready-to-eat basmati rice products fuel the market growth.

Asia-Pacific accounted for the largest share with the higher rice production in countries of this region. According to USDA, India's rice area, yield and production statistics, in the years 2023-2024, a total of 48,000 areas (1000 Ha) of rice production is done with yields of 4.2 T/Ha. According to the United States Department of Agriculture's estimation of world ice production in 2023-2024, China accounted for 149,000,000 metric tons of production.

Market Scope

MetricsDetails
CAGR11.12%
Size Available for Years2022-2031
Forecast Period2024-2031
Data AvailabilityValue (US$)
Segments CoveredProduct, Species, Distribution Channel, Application, End-User and Region
Regions CoveredNorth America, Europe, Asia-Pacific, South America, and Middle East & Africa
Fastest Growing RegionAsia-Pacific
Largest RegionNorth America
Report Insights CoveredCompetitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights.

 

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Market Dynamics

Rising Demand for the Agriculture Sector and Rice Industry

The sharp growth in demand for processed foods including increasing urbanization, disposable incomes, changing spending priorities, and the growing need for Convenience Food are some of the most important factors contributing to the greater demand in the agricultural sector at the global level. According to a review, published by NIH in November 2023, rice, one of the most widely consumed staples worldwide serves as a versatile gluten-free substitute.

The gluten-free nature of basmati rice drives its use among gluten-intolerant people. According to FAO, world rice production reached 519.5 million tonnes in 2022. According to APEDA, in the size of the global rice industry of approximately US$275 billion, of which, the basmati industry accounts for about 2.1% in 2022.

APEDA record estimated that in 2023 the consumption of basmati rice is estimated to be 17613.7.9 K MT. Population growth, particularly in developing countries, is increasing the overall demand for rice. Basmati rice, with its distinct taste and aroma, is often seen as a premium choice, attracting a growing consumer base.

Demand for Aromatic Rice

The global demand for aromatic rice varieties, including basmati, is on the rise. This can be attributed to increasing disposable income and a growing interest in exploring different cuisines, particularly in developing countries. According to APEDA, basmati is unique among other aromatic long-grain rice varieties. So far 45 varieties of basmati rice have been notified under the Seeds Act, 1966.

Basmati rice is prized for its distinct nutty flavor and long, aromatic grains. It offers a distinct taste and aroma compared to regular rice. This is a major selling point for basmati rice.  This unique characteristic differentiates it from regular rice varieties and attracts consumers seeking a premium culinary and more flavorful and enjoyable rice experience.

Strict Government Regulations for Import of Basmati Rice

Many developed countries have stringent regulations regarding food safety, certificates of origin, and quality standards for imported basmati rice. This can involve complex procedures and additional costs for exporters. Some countries have zero-tolerance policies for contaminants or exceeding residue limits of certain chemicals used in agriculture.

Even minor infractions can lead to rejections of entire shipments, causing significant losses for exporters. For instance, in 2022, the European Union rejected a large consignment of PUSA 1121 basmati rice from India due to exceeding fungicide residue levels. This incident significantly impacted Indian basmati rice exports to the EU.

Strict regulations can discourage new entrants into the basmati rice export market due to the complexities and potential risks involved. These regulations can make it challenging for existing exporters to expand their reach to new markets with stringent import controls. Delays due to regulations can disrupt the supply chain and potentially lead to price fluctuations for basmati rice in the global market.

Segment Analysis

The global basmati rice market is segmented based on product, species, distribution channel, application, end-user and region.

Increased Consumer Preference Towards Convenient Parboiled Basmati Rice

The global basmati rice market is segmented based on product into parboiled and raw. The parboiled segment accounted for the largest share of the global basmati rice market with the greater convenience provided by them. Parboiled rice's quicker cooking time and ease of use appeal to busy consumers, potentially driving its popularity in various regions.

Parboiled rice cooks about 20% faster than raw rice. It retains its shape better and is less sticky after cooking. The parboiling process partially gelatinizes the starch, making it easier to digest for some people. It retains more B vitamins and some minerals compared to raw rice. For people who prefer less cooking time, ease of digestion, and higher levels of certain nutrients, parboiled rice is chosen as the ultimate product making this a higher segment growth.

Geographical Penetration

Major Role of Asia-Pacific in the Agriculture Sector

Asia-Pacific dominated the global Basmati rice market. According to IBEF 2024, India is one of the major players in the agriculture sector worldwide and it is the primary source of livelihood for ~55% of India’s population. IBEF reported that globally, India is the second largest producer of fruits and vegetables, rice, wheat, groundnuts, cashews, and tea. According to the Ministry of Agriculture & Farmers Welfare, in the total food grain production in the country estimations, the total rice production during 2022-23 reached 1357.55 lakh tonnes in India.

The high record of rice production helps in building a greater basmati rice market in India considering its export market too. In India J & K, Himachal Pradesh, Punjab, Haryana, Delhi, Uttarakhand and western Uttar Pradesh states are the areas of basmati rice production. According to APEDA, basmati rice is one of the largest agro products for export from India.

The country has exported 4558972.23 MT of basmati rice to the world for the worth of Rs. 38524.11 crores/ 4787.50 US$ mill. The exports were done to destinations such as Saudi Arab, Iran, Iraq, United Arab EMTs and Yemen Republic during the year 2022-23. The support from the government is creating greater opportunities for the development of the agriculture sector in India.

For instance, the Agriculture Infrastructure Fund was released in India. According to the Press Information Bureau, February 2024, as of 31-12-2023, Rs.33.209 Crores have been sanctioned for 44,912 projects under AIF, out of this total sanctioned amount, Rs 25,504 Crores is covered under scheme benefits. These sanctioned projects have mobilized an investment of Rs 56.471 Crores in the agriculture sector.

Competitive Landscape

The major global players in the market include Adani Group, KRBL Limited, LT Foods, Aarush Food Grain Pvt. Ltd., Shree Krishna Rice Mills, Himalayan Queen Rice, Ashoka Rice Mills Pvt. Ltd., Baghel Agro Industries, GRM and RS Rice Mills.

COVID-19 Impact Analysis

COVID-19 had a mixed impact on the global basmati rice market. The halted distribution channels and supply chain negatively impacted the market and created economic crises. There was increased rice consumption during COVID-19. In the initial stages of the pandemic, there has been a surge in overall rice consumption due to panic buying and people eating more meals at home. This could have benefited basmati rice as a staple food in some regions.

Early 2020 saw a rise in global rice prices as some major exporters, like Vietnam, temporarily halted exports. This might have impacted basmati rice prices as well. According to NIH, concerns over the potential effects of the COVID‐19 pandemic have led to trade restrictions by major rice exporters, contributing to an average 25% increase in Thai and Vietnamese rice export prices between December 2019 and March–September 2020.

Key Developments

  • In February 2024, the centre of the Ministry of Consumer Affairs, Food & Public Distribution launched the sale of Bharat Rice at an MRP of Rs. 29/kg in 5Kg and 10Kg packs. Centre provides Bharat Rice, Bharat Atta, Bharat Dal, onion, sugar and oil at affordable prices to consumers.
  • In February 2024, India Gate Basmati Rice made up the region-specific marketing strategy and announced the launch of Sona Masoori Rice, Kolam Rice and Gobindobhog Rice to attract the southern, western and eastern Indian markets.
  • In March 2023, India's food safety authority introduced formal standards for the premium basmati rice variety. This move seems to be part of the country's efforts to establish basmati rice as its intellectual property, protected under Geographical Indications laws.

Why Purchase the Report?

  • To visualize the global basmati rice market segmentation based on product, species, distribution channel, application, end-user and region, as well as understand key commercial assets and players.
  • Identify commercial opportunities by analyzing trends and co-development.
  • Excel data sheet with numerous data points of basmati rice market-level with all segments.
  • PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
  • Product mapping available as excel consisting of key products of all the major players.

The global basmati rice market report would provide approximately 78 tables, 72 figures and 230 pages.

Target Audience 2024

  • Manufacturers/ Buyers
  • Industry Investors/Investment Bankers
  • Research Professionals
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