Basmati Rice Market

Market CAGR for Basmati Rice is driven by the growing demand for aromatic and high-quality basmati rice. Basmati variety Rice is vulnerable to most insect pests and diseases that can result in low productiveness and quality. The research institutes have developed several aromatic rice varieties to fulfill the increasing demand for better-quality basmati rice. In 2022, the Indian Agricultural Research Institute (IARI) came out with basmati varieties - PB1847, PB1885, and PB1886, which can fight against bacterial blight and blast diseases.

As per the EU Agricultural Outlook 2020-2030, the demand for rice imports will move upwards until 2030 in this part of the world. India has exported about 3.5 billion U.S. dollars’ worth of basmati rice during fiscal year 2022. On the other hand, rice varieties other than the Basmati amounted to over $6 billion in export value that year. The paddy acreages in Uttar Pradesh are supposed to be estimated as 15,770 thousand hectares, whereas the share of Basmati Varieties stands at 461.74 thousand hectares.

As a result, it is anticipated that throughout the projection period, demand for the Basmati Rice Market will increase due to the growing demand for aromatic and high-quality basmati rice. Thus, driving the basmati rice industry revenue.

The Global Basmati Rice Market Industry benefits significantly from the expansion of export markets, particularly in regions like the Middle East and North Africa. Countries such as India and Pakistan, which are major producers of Basmati rice, are capitalizing on this trend by enhancing their export capabilities. The increasing demand from these regions is expected to contribute to a substantial portion of the market's growth. As a result, the market is projected to reach 34.8 USD Billion by 2035, indicating a robust trajectory fueled by international trade dynamics.

The Global Basmati Rice Market Industry is also benefiting from the growing awareness of the health benefits associated with Basmati rice consumption. Rich in essential nutrients and lower in glycemic index compared to other rice varieties, Basmati rice is increasingly being recognized as a healthier alternative. This trend is particularly pronounced among health-conscious consumers and those with dietary restrictions. As more individuals seek nutritious food options, the demand for Basmati rice is expected to rise, further propelling the market's growth trajectory in the coming years.

The Global Basmati Rice Market Industry is currently experiencing a notable surge in demand, driven by the increasing popularity of Basmati rice among consumers worldwide. In 2024, the market is valued at approximately 14.7 USD Billion, reflecting a growing preference for premium rice varieties. This trend is particularly evident in regions such as North America and Europe, where health-conscious consumers are gravitating towards Basmati rice due to its aromatic qualities and nutritional benefits. As awareness of the health advantages associated with Basmati rice continues to spread, the market is poised for sustained growth.

Sustainability initiatives in rice production are becoming increasingly relevant within the Global Basmati Rice Market Industry. As consumers become more environmentally conscious, there is a growing demand for sustainably sourced products. Producers are responding by adopting eco-friendly farming practices, reducing water usage, and minimizing chemical inputs. These initiatives not only appeal to environmentally aware consumers but also enhance the market's reputation. As sustainability becomes a key factor in purchasing decisions, the market is likely to see a positive impact on growth, aligning with broader global trends towards responsible consumption.

Technological advancements in rice cultivation are playing a pivotal role in shaping the Global Basmati Rice Market Industry. Innovations such as precision farming, genetically modified seeds, and advanced irrigation techniques are enhancing yield and quality. These developments not only improve the efficiency of Basmati rice production but also address challenges related to climate change and resource scarcity. As producers adopt these technologies, the market is likely to witness increased supply, which could further stimulate demand and contribute to the projected CAGR of 8.16% from 2025 to 2035.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The anticipated expansion of the Basmati Rice market in North America can be attributed to several key factors. Basmati rice availability in North America has vividly increased over the years compared to the past. It becomes more accessible to consumers in major retail grocery stores, specialty food markets, and online platforms, making buying and consumption a simpler task.

In the 2022/23 marketing year (August–July), U.S. rice imports are forecasted to grow by 16 percent compared to the previous year and hit their highest levels on record with 44 million hundredweight.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: BASMATI RICE MARKET SHARE BY REGION 2023 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's Basmati Rice Market accounts for the second-largest market share as Basmati rice is perceived by some as a healthier choice rather than regular white rice. More than two-thirds (67.8 %) of persons in the EU have perceived their health as very good or good, as compared to 2022 reports. In terms of the EU Member States, Germany and France had the highest healthcare expenditures compared to GDP, which was 12.8% and 12.2%, respectively, in 2020. It has a low glycemic index, and hence, the gradual release of sugar in the body.

This type of sweetener is, therefore, suitable for people who are watching their carbohydrate intake and for people suffering from diabetes. Moreover, Basmati rice is gluten-free and naturally low in fat, which also targets customers with health concerns. Further, the German basmati rice industry held the largest market share, and the UK Basmati Rice was the fastest-growing market in the European region

The Asia-Pacific Basmati Rice Market is expected to grow at the fastest CAGR from 2024 to 2032. The growing acceptance of basmati rice in the food and drink sector to create numerous traditional Indian meals such as biryani, desserts, pilafs, etc., is also responsible for the market expansion. In the 2023 year, the exports of basmati have reached Rs 18310.35 crore, with the country exporting a quantity of 20.10 lakh metric tonnes. For the same period in 2022-23, the basmati rice exports amounted to the amount of Rupees 15,4514.74 crore with the shipping of 18.75 LMT.

Again, in 2021-22, the Indian export of basmati rice garnered Rs 10,690.03 crore, where the quantity exported was 17.02 LMT. Moreover, China’s Basmati Rice held the largest market share, and the Indian basmati rice industry was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Basmati Rice market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Basmati Rice industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Basmati Rice industry to benefit clients and increase the market sector. In recent years, the Basmati Rice industry has offered some of the most significant advantages to the food industry, including premium quality, distinctive flavor, and cultural significance in various cuisines. Major players in the Basmati Rice Market, including Adani Wilmar Ltd, ITC, East End Foods, TBA Suntra, Amira Basmati Rice, VSR Rice, The Rice 'n, Spice International Ltd., Kohinoor Foods, S.G.S.

International Rice Company., LT Foods is attempting to increase market demand by investing in research and development operations.

Adani Wilmar Limited is a subsidiary of Adani Group that specializes in consumer-branded goods (FMCG). The company develops consumable items for the Indian market, such as edible oil, wheat flour, rice, pulses, and sugar. Similarly, it has a consumer health and convenience brand portfolio consisting of Rice Bran oil, blended oil, soya nuggets, buffalo meat, rhyme kit, and khichdi. Their segments include Edible Oils, Food & FMCG, as well as Industry Essentials. The Horeca business Oil segment includes buying and processing of oil. The Food & FMCG segment is responsible for purchasing and producing food items for consumption. The Industry Essentials segment is focused on the activities of commodity trading and the production of chemical products. The product portfolio, which includes versatile oleochemicals, castor oil and its derivatives, as well as de-oiled cakes, is quite extensive. It sells all of its packed products in edible oil and food FMCG segments to consumer markets under various brand names, including Fortune, Raag, Bullet, Fryola, Jubilee, Aadhar, and Kohinoor. In May 2022, Adani Wilmar Ltd purchased the 'Kohinoor' trademark from McCormick Switzerland GMBH. The acquisition would enable AWL to own the trademark of 'Kohinoor' basmati rice as well as 'Ready-to-Cook' and 'Ready-to-Eat' curries and meals, which will be marketed under the umbrella brand of Kohinoor in India.

ITC runs a diversified conglomerate business. The company is a manufacturer of fast-moving consumer goods, hotels, paperboards and specialty papers, packaging, agribusiness, and information technology. The Company develops products under the brands of tobacco and leaf, foods, personal care, stationery, safety matches, incense sticks (agarbattis), paperboards and packaging material, specialty papers, and agribusiness. The major brands are bread brands Ashirwad, SunFest, Yippee!, Bingo, Farmland, Sunrise John Players, Gold Flake, Classmate, Aim, and Superfine Printing. The organization works in The United States of America, Canada, Europe as well as the South East Asian countries. ITC has its headquarters in Kolkata, West Bengal, India.