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Basmati Rice Market

Basmati Rice Market Size, Trend Analysis & Competition Tracking by Species (white, brown), By Sales Channel (Traditional, Modern, Retail, HORECA), By Application (Industrial, Household) - Global Market Insights 2022 to 2032

Analysis of Basmati Rice Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Basmati Rice Market Outlook (2022 to 2032)

Rice is rich in terms of carbs and necessarily creates the main fuel of the human body. Keep one energized and satisfied, carbohydrates play a crucial role. These are excellent sources of nutrients and fiber, manganese, and selenium. Due to its better flavor and aroma qualities compared to other long-grain rice varieties, basmati rice continues to be in high demand. Few other South Asian nations, like Bangladesh, Vietnam, and Indonesia, also grow basmati rice, though solely for domestic consumption. The majority of basmati rice is grown in India.

This rice is preferred more for its aroma and flavor which makes it the leading rice brand in both regional and international arcades. Varieties of hybrid basmati ranges are available in the market. In addition to the present famous categories white and brown are dominant in evolving consumer palates. Moreover, evolving recipes of rice are making it excel in demand further.

The market is anticipated to grow with a CAGR of 5.1% in the forecast period i.e., 2022 to 2032. The biggest market share is still held by raw basmati rice due to its superior nutritional and culinary qualities, low price, and mouth-watering aroma. Furthermore, while white basmati rice enjoys widespread global distribution, demand for brown basmati rice is gradually gaining pace in the basmati rice market as awareness of the health advantages of brown rice spreads.

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Market dynamics- Drivers of Demand

The global consumption of rice has seen an increase in the last decade ad it was 509.87 million metric tons in 2022 rising from 43718 million metric tons in 2008. Basmati rice contains fiber which is soluble adds bulk and helps in the removal of waste along the digestive tract. Furthermore, whole grains like Basmati lower the risk of a heart attack.

It also lowering blood sugar levels and cholesterol levels in the body. The high amount of vitamin B such as B1 is the major driver for demand for this product. It has 22% of the daily recommended quantity of intake. These vitamins are essential for brain health which is the prime health reason for basmati demand.

The strong supply chain is another leading factor for this market. This supply chain network is sufficiently facilitating exports and international shipping of products. The field has generated constant sources of fair income for farmers to consumers.

The majority of governments are also pushing the supply chain in basmati to increase market share and fulfill demand. The prominent market players continue to establish authenticity in the basmati rice supply chain which, in turn, enhances the brand image in both domestic and international markets.

Basmati Rice Market

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Challenges faced by the market

While cost continues to stymie the widespread adoption rates of basmati rice, recent EU ban on the export of a few varieties of basmati rice that underwent the Tricyclazole fungicide treatment is expected to threaten the arcade while prominently hitting the Indian market.

According to the All India Rice Exporters Association (AIREA), basmati exporters in India are looking for alternative fungicides to treat rice to gain compliance with the stringent EU norms and establish future sustainability of the Indian market.

Climate change is anticipated to decline rice production; this necessarily denotes the need for adopting climate-resilient crop varieties in forecast years. Furthermore, irrigation practices and technologies are expected to gain momentum in the forecast duration.

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Regional Outlook

India leads the Asian region in terms of the volume of basmati rice produced each year owing to favorable agro-climatic conditions. India, Thailand, and Vietnam owe a significant share in the market due to the wide varieties of crops cultivated in these regions. China’s imports of basmati in 2022 amounted at 4.6 million metric tons. Moreover, China is anticipated to remain a major importer of basmati rice followed by the Philippines and Nigeria. The market is segmented on the basis of different types such as raw, steamed, and parboiled basmati rice.

Further, based on species the market is segmented into brown and white basmati rice. Regional segmentation of the basmati rice market includes North America, Latin America, Asia Pacific, MEA, and Europe. Asian countries like the Philippines owe a major share in rice production.

Segment wise insights

Application-wise, the basmati rice market is segmented into two applications food and cosmetics, and personal care segments. Rice makes a key staple in the regions like the Philippines. By sales channel, the basmati rice market finds major distribution through the traditional grocery store, HORECA, convenience stores, and other modern trade.

Competitive landscape

Along with addressing the steady demand for raw basmati rice, the market players are focusing on introducing a wide variety of flavors in attractive packaging solutions. For instance, the Hain Celestial Group Inc. has recently featured its new product lines including a premium flavored ready-to-heat product line of basmati rice in Expo West 2018.

In addition, strategic acquisitions and expansions also remain prominent in the market. McCormick & Co. Inc.’s complete acquisition of Kohinoor in 2017 is one such example. Further, the liquidation of REI Agro Ltd. following the order from the National Company Law Tribunal (NCLT) and KRBL Ltd.’s plan to acquire the company are other strategic developments occurring in the global marketplace.

The key companies in this field are -

  • LT Foods Ltd.
  • Estraco Kft.
  • East End Foods
  • The Rice 'n Spice Int. Ltd.
  • Amira Nature Foods Ltd.
  • Mars Inc

Pricing strategies

The wave of competition is high in regions like Asian markets owing to major brands competing for the dominant position. Retail rice prices in the domestic market are discovered to be regionally integrated over time. However, reaching long-term equilibrium is a difficult and unpredictably long process.

It is discovered that vertical price transmission along the rice supply chain is asymmetric, suggesting that short-term deviations from competitive behavior occur when palay supplies are low. There are undeniably alarming indications of a shift away from competitive markets, necessitating additional investigation.

Key Segmentation of Basmati Rice Market

  • On the basis of Species :

    • White
    • Brown
    • Others
  • On the basis of Sales Channel :

    • Traditional
    • Modern
    • Retail
    • HORECA
  • On the basis of Application :

    • Industrial
    • Household
  • On the basis of Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia
    • Oceania
    • Middle East & Africa

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Basmati Rice Market

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The global market is expected to rise with a CAGR of 5.1% in the forecast period 2022- 2032.

Asia Pacific holds accounts for more than 90% of basmati rice production.

With rising requirements for long-grain specialty rice along with a strong supply chain, opportunities in the global market are likely to increase.

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