Basmati Rice Market - Forecast(2024 - 2030)

Basmati Rice Market Overview

Basmati Rice Market Size is estimated to reach $31.6 billion by 2027 and is poised to grow at a CAGR of 9.1% over the forecast period of 2022-2027. Basmati is a variety of long, slender-grained aromatic rice that is traditionally grown in India, Pakistan and Nepal. The aroma of basmati rice is due to the presence of the chemical 2-acetyl-1-pyrroline. It also contains amino acid, folic acid, thiamine and carbohydrates. The aroma, aesthetic taste and high nutritional values surge the demand for aromatic basmati rice. Government initiatives to increase production and strengthen the supply chain of basmati rice are expected to propel market growth. For instance, in November 2021 to boost exports of basmati rice, the Agricultural and Processed Food Products Export Development Authority and Basmati Export Development Foundation took steps to sensitize farmers involved in the cultivation of Basmati rice in key growing regions of India about the adoption of good agricultural practices. According to the United States Department of Agriculture, US rice imports have been increasing over the last 20 years, from about 10% of the domestic market to around 25% by 2019-2020 (August-July). Most U.S. rice imports are aromatic varieties from Asia - jasmine from Thailand and basmati from India and Pakistan. Such government support and imports of high-quality Basmati Rice propel the growth of the Basmati Rice Industry over the forecast period 2022-2027.

Basmati Rice Market Report Coverage

The report: “Basmati Rice Market Forecast (2022-2027)" by Industry ARC, covers an in-depth analysis of the following segments in the Basmati Rice Market.

Key Takeaways

Basmati Rice Market: Market Share (%) By region, 2021

Basmati Rice Market Segment Analysis - By Type

The Basmati Rice Market based on type can be further segmented into Parboiled and Raw. The parboiled basmati rice segment held a dominant market share in 2021. It has high nutritional properties compared to white polished rice. It has low calories, fewer carbohydrates, more fiber, proteins, amino acids and folic acid. It also improves gut health and has less impact on blood sugar levels which drives the growth of the Basmati Rice Market Size.

However, Raw basmati rice is estimated to grow with the fastest CAGR of 10.6% over the forecast period 2022-2027. This is owing to its high nutritional content than any other type of rice. As per an article published in WebMD in August 2020, eating whole grains like brown basmati rice is linked to a lower risk of heart disease by reducing blood cholesterol levels and the risk of high blood pressure. This factor increases the demand for this type of basmati rice. This is also anticipated to grow its Basmati Rice market share over the forecast period.

Basmati Rice Market Segment Analysis - By End-use

The Basmati Rice Market based on the end-use can be further segmented into industrial and household. The Industrial segment held a dominant market share in 2021. This is owing to the growing demand for basmati rice in food & beverages, nutraceuticals, bakery and cosmetic industry. For instance, in April 2022, LT Foods launched Dawaat Biryani Kit for consumers to take authentic Biryani home. Such a variety of products made up of Basmati Rice are available in the market and their growing demand drives the growth of the Basmati Rice Market Share.

However, Household use is estimated to grow with the fastest CAGR of 11.0% over the forecast period 2022-2027. As rice is a staple food in Asian cuisines, it provides a good source of carbohydrates, proteins, folic acid and amino acids. As Asia holds about 60% of the global population, the demand for basmati rice continues to increase around the world. Such growing demand for Basmati Rice fuels the growth of the Basmati Rice Market Share over the forecast period.

Basmati Rice Market Segment Analysis - By Geography

Asia-pacific held a dominant market share of 40% in 2021 due to the high production and consumption rate of Basmati Rice in this region. According to a report published by Rice Today in August 2022, more than 90% of rice is consumed in Asia. China, India, Indonesia and Bangladesh are the top basmati rice-producing countries in this region further driving the growth of the regional market Size. Furthermore, Europe is estimated to grow with the fastest CAGR over the forecast period 2022-2027. This is owing to favorable trade tariffs and consumer demand for specific basmati rice features including amino acid, folic acid, thiamine and carbohydrates. This further drives the growth of the Basmati Rice Market over the forecast period.

Basmati Rice Market Drivers

Growing Demand for Aromatic Rice:

Basmati Rice is susceptible to most insect pests and diseases which minimize its production and quality. Owing to the growing demand for premium quality basmati rice, many research organizations developed a number of varieties of aromatic rice. In 2022, the Indian Agricultural Research Institute introduced three new varieties of basmati rice - PB1847, PB1885 and PB1886, with resistance to bacterial blight and blast disease. According to EU Agricultural Outlook 2020-2030, the demand for imported rice in this region is expected to grow until 2030. Hence, enhancing the market growth.

Growing Demand for High-Quality Basmati Rice:

The increasing per capita income of people and changes in lifestyle around the world increase demand for premium, high-quality food. According to a report by Tridge, the demand for basmati rice increased by 70% in 2020-21 in European Union. Moreover, India exported 231,930 Metric Tons of Basmati Rice to the EU from April 2020 to November 2020. Such growing demand for high-quality aromatic rice drives the growth of the market.

Basmati Rice Market Challenge

Strict Government Regulations for Import of Basmati Rice:

To export aromatic rice in developed countries, exporters have to follow various food safety measures, certificates of origin, quality standards and other required certificates. Also, the zero-tolerance policy for GMOs in many developed countries creates a major threat to the supply chain. In 2022, PUSA – 1121 basmati rice variety from India got rejected by the EU due to a high level of fungicide. It caused the sales dropdown from 500,000 tonnes per year to 150,000 to 2,00,000 tonnes per year. Such stringent regulations can restrain Basmati Rice Industry.

Basmati Rice Industry Outlook

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Basmati Rice Industry. The top 10 companies in the Basmati Rice Market are:

1. Adani Wilmar Ltd
2. ITC
3. East End Foods
4. TBA Suntra
5. Amira Basmati Rice
6. VSR Rice
7. The Rice 'n Spice International Ltd.
8. Kohinoor Foods
9. S.G.S. International Rice Company.
10. LT Foods

Recent Developments

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