India Rice Milling Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The rice milling market is estimated to be worth $222.4 billion in 2023, and to reach $308.5 billion in 2032, at a CAGR of 3.7% from 2024 to 2032. The steady growth in the rice milling industry is due to the rising world population and the increasing demand for food. In addition, technological advancements in rice milling equipment are expected to enhance productivity and reduce operating costs, which will boost the investment in the industry. In terms of the rice milling industry, there are many reasons for this positive growth trend, such as the increasing automation of rice milling and the growing emphasis on food safety and quality. In addition, the development of smart milling systems and energy-saving equipment will help milling companies optimize their operations. The major players in the rice milling industry, such as Satake and Buhler, are actively promoting their business strategies through acquisitions, mergers, and new product launches. This is a sign of the dynamic nature of the rice milling industry and the prospect of a long-term growth trend.

Regional Market Size

Regional Deep Dive

India is one of the largest rice producers in the world, and also one of the largest consumers of rice. Various factors such as increasing population, rising income, changing food habits, and the rising demand for rice as a staple food have influenced the market. Also, newer milling techniques and government initiatives to increase the productivity of the agriculture sector will lead to the growth of the market. The milling techniques in the northern states of India are more traditional, whereas in the southern states of India, newer milling techniques are used to increase the productivity and efficiency of the milling process.

Europe

• In Europe, the demand for rice, preferably organically grown and sustainably produced, is on the increase, and the milling industry is responding by developing new milling processes that are more environment-friendly. As a result, companies such as Ebro Foods are investing in sustainable production methods.
• European Union's strict food safety regulations have forced the Indian rice millers to adopt higher standards of production. This has added to the reputation of Indian rice in the European market.

Asia Pacific

• India's rice is in great demand in the Asia-Pacific region. Countries like China and Japan are particularly keen to import Indian rice because of its unique quality and flavour. There are many Indian rice exporters who have entered into strategic alliances with local importers to penetrate the local market.
• There is a great demand for such machinery in countries such as China, Japan, and India, which are important rice-producing countries, and also in countries like India, Japan, and China. The competition in the manufacture of rice has become so severe that the Indian millers have been forced to improve their milling process.

Latin America

• Latin America is seeing an increase in the consumption of exotic varieties of rice, including Indian basmati rice, because of the growing popularity of Asian cuisine. The companies, such as Grupo Bimbo, are looking to establish joint ventures with Indian rice producers.
• Regulatory frameworks in countries like Brazil are evolving to accommodate the import of Indian rice, which is expected to facilitate smoother trade and increase market access for Indian exporters.

North America

• The North American market is experiencing a growing interest in Indian rice varieties, especially basmati, because of the growing demand for ethnic foods. Tilda and Royal are expanding their product lines to include Indian rice to meet consumers’ diverse tastes.
• The quality of the imported food is regulated by the Ministry of Agriculture. This should boost the confidence of consumers and increase the sales of Indian rice products.

Middle East And Africa

• The Middle East is a significant market for Indian rice, with countries like Saudi Arabia and the UAE being major importers. The demand is driven by the large expatriate Indian population and the popularity of Basmati rice in local cuisines.
• Government initiatives in the region to diversify food sources and ensure food security are leading to increased imports of Indian rice, which is expected to strengthen trade relations and boost the market.

Did You Know?

“India is the largest exporter of rice in the world, accounting for over 25% of global rice exports, with Basmati rice being one of the most sought-after varieties.” — Food and Agriculture Organization (FAO)

Segmental Market Size

The Indian Rice Milling Industry is a crucial sub-segment of the Agricultural Processing Industry, which is currently experiencing a steady growth due to the rising demand for processed rice and the need for efficient milling technology. Among the major factors driving this growth are the increasing population, the increasing urbanization, the increasing demand for the ready-to-cook rice and the government initiatives to modernize agriculture. Furthermore, the growing food safety concerns are forcing millers to adopt advanced milling technology in order to ensure quality and compliance. The Indian Rice Milling Industry is in its early stages of development, and the most developed areas are Punjab and Haryana. The main applications of the industry are the production of white rice, parboiled rice and special rice varieties, for domestic consumption and for export. The trends in this industry are towards the adoption of sustainable practices and the adoption of digital technology, including IoT for the monitoring of the milling processes. Besides that, the increasing focus on reducing the post-harvest losses through the use of improved milling techniques is a key trend shaping the industry.

Future Outlook

In the meantime, the rice milling industry is expected to grow steadily, with a CAGR of 3.7% between 2023 and 2032. The demand for rice, the staple food of a large section of the population, is expected to grow in the same proportion. And as urbanization continues to accelerate, the demand for rice-based products will rise. This will spur the development of milling technology and the corresponding industry. By 2032, it is expected that the share of advanced milling technology will have reached around 40%, and efficiency and quality will be further improved. The industry will be driven by government policies to increase agricultural productivity and food security. Mechanization and energy-saving milling equipment will be encouraged, resulting in a further rise in the industry’s development. And the growing popularity of organic and specialty rice will open up new opportunities for millers. As the market matures, there will be an increasing emphasis on value-added products. This will require millers to develop new products and new ideas. The industry will be driven by the trend of the population, technological development, and policy support.