Renub Research, a market research company, released the report “Rice Market, Size, Global Forecast 2023-2028, Industry Trends, Growth, Share, Outlook, Impact of Inflation, Opportunity Company Analysis.” According to the report, rice farming requires continuous monitoring and labor to achieve high-quality yields because of specific growing conditions and diverse farming techniques, including wetland and upland cultivation.
Rice is essential for global sustenance and economic development, playing a vital role in providing nutrition and calories to billions of people.
The United States Department of Agriculture (USDA) projected a record-breaking 520.5 million tons (milled basis), global rice production for the 2023/24 period is expected to increase by 12.1 million tons compared to the previous year.
Economically, rice is important for livelihoods and the economy. Culturally, it holds significance in culinary traditions. Rice is also a staple food that contributes to food security and has a long shelf life.
The Global Rice Market is predicted to experience a compound annual growth rate (CAGR) of 3.71% from 2022 to 2028.
Due to population growth and increasing food demand, there is also a higher demand for rice as a staple food. Additionally, changing dietary preferences and rising global incomes have also increased the demand for rice in many countries. The economic growth in emerging markets such as China and India has resulted in higher purchasing power and increased rice consumption.
Technological advancements and improved farming practices have boosted productivity and increased global rice production. Furthermore, government support and subsidies to rice farmers have encouraged cultivation expansion, ensuring stable production and supply in the global rice market.
Currently, China holds the largest market share in the global rice market.
Among others, China, India, Bangladesh, Indonesia, Vietnam, Philippines, Thailand, Burma, Japan, and Nigeria are the nations prominent in the global rice market. China in particular wields significant influence in the global rice market as its substantial production and consumption shares, along with a large domestic market and high per capita consumption, make China mostly self-sufficient in rice.
China exports only a small portion of its output but the Chinese government supports the rice sector through subsidies, research and development investments, and trade protection. China’s rice industry benefits from efficient production methods, a favorable climate, and ample land for cultivation.
Significant investments in agricultural practices have contributed to India’s increase in global rice production. Major producers in the global rice market include China, India, Bangladesh, Indonesia, Vietnam, Thailand, Philippines, Burma, Brazil, Japan, and others. According to the USDA, India is anticipated to achieve a record-breaking rice production of 127 million metric tons (MMT) in the marketing year 2023/2024.
Technological advancements, including the use of high-yielding varieties, improved irrigation methods, mechanization, and modern farming techniques have significantly contributed to India’s increased rice production. The rice industry is also supported by government initiatives such as subsidies and research investments.
In 2022, China became the world’s top rice importer with USDA estimating imports at 5.2 million metric tons. On the other hand, India dominates the rice export market and is likely to continue in the coming years.
The All-India Rice Exporters Association reported that in FY23, India’s non-basmati rice exports reached 17.79 million tons (MT), surpassing the 17.3 MT exported in FY22. The favorable climatic conditions, abundant agricultural land, investments in advanced farming practices, high-yielding varieties, skilled farmers, efficient supply chain infrastructure, and government-supportive policies have facilitated India’s emergence as a major player in meeting the rising global demand for rice.