Increasing Global Demand For Rice Market With Rising CAGR Forecast Till 2028|Grand View Research, Inc.

Posted by Mrudula Karmarkar on January 2nd, 2023

The global rice market size is expected to reach USD 334.24 billion by 2028, registering a CAGR of 2.2% during the forecast period, according to a new report by Grand View Research, Inc. The rapidly growing food industry and rising spending on fast food products are expected to promote market growth. Moreover, continuous developments in rice mill machinery across the globe and attractive packaging have increased the demand for these products in emerging economies.

The lockdown situation that has resulted from the COVID-19 pandemic has not significantly affected the rice industry, as compared to the other industries. The increasing demand for cereal grain across the globe is propelling market growth. Moreover, the rising demand for packaged and fast-food products in the post-COVID period will create several growth opportunities for the market players.

The medium-grain segment is expected to advance at the fastest CAGR 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 the rice mill machinery have projected the growth of this segment during the forecast period. Moreover, the growing popularity and demand for fast food items, coupled with the increasing disposable income of consumers, are significant factors for the market growth.

The online retail segment is expected to grow with a higher CAGR of 2.7% from 2022 to 2028 in the global market. This can be attributed to the widespread availability of the internet and smart devices among consumers. It is also observed that companies, distributors, and retailers are adopting the online platform to increase sales of rice, which in turn will drive the industry demand.

Asia Pacific made the largest contribution to the global market for rice with over 77% revenue share in 2021. China, India, Indonesia, and Bangladesh have a huge consumer base for the consumption of food products, which will drive the regional demand. 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 rising population in this region.

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The expanding food and restaurant sector worldwide is expected to promote market growth in the coming years. 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.

Rice Market Report Highlights

  • Asia Pacific accounted for the largest market share of more than 77% in 2021 owing to a huge consumer base in the region
  • The medium-grain segment is expected to foresee the fastest growth during the projection period, with a CAGR of 2.4% from 2022 to 2028, due to the growing popularity of fast-food products across the globe
  • The offline distribution channel held the largest market in share in 2021, contributing more than 82% of the total revenue, due to the easy access and search for various rice products
  • North America is expected to register the fastest growth rate of 3.9% from 2022 to 2028, due to the growing demand for fragrant and specialty rice in the region

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.

List of Key Players of Rice Market

  • 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

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Mrudula Karmarkar

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Mrudula Karmarkar
Joined: March 30th, 2020
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