What Fueled Basmati Rice Market?
The basmati rice market has seen considerable growth due to a variety of factors.
• There has been a considerable increase in the size of the basmati rice market over the past few years. The market is projected to expand from $13.08 billion in 2024 to $14.7 billion in 2025, with a compound annual growth rate (CAGR) of 12.4%.
Reasons behind the growth witnessed in historical times include culinary fame, traditional food culture, demand for exports, cultural and festive consumption, brand awareness, and favourable climatic conditions.
What Are the Future Growth Projections for the Basmati Rice Market?
The basmati rice market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, a swift expansion is predicted for the basmati rice market as it is projected to reach a value of $23.38 billion in 2029, growing at a compound annual growth rate (CAGR) of 12.3%.
This growth during the projected period can be ascribed to shifts in dietary patterns, considerations around health and wellness, government backing of agriculture, infrastructure growth, and the endorsement of geographical indications. Key trends in this period encompass advancements in agricultural technology, production of organic and non-GMO basmati rice, improvements in rice processing and milling, ensuring quality and certification, and diversification in basmati rice product offerings.
Which Drivers Are Accelerating Growth In The Basmati Rice Market?
The demand for aromatic rice is projected to boost the basmati rice market's expansion. Aromatic rice, which contains natural chemical components that produce a unique smell, comes in various types, including the popular basmati and the lesser-known Randhunipagal. Despite being cooked in the same manner as standard rice, it provides meals with a unique taste and fragrance. Due to its superior taste and smell, which are greatly pleasing, basmati rice is gradually taking the place of other rice varieties. For example, as reported by the Indian Express in August 2024, Basmati rice production is expected to increase by 10% to 7 million tonnes (MT) this year, thanks to an expanded cultivation area for aromatic rice, with Punjab posting an increase of over 12% from 0.59 million hectares (MH) last year to 0.67 MH this year. Thus, the growing demand for aromatic rice is fuelling the basmati rice market's growth.
What Are The Major Segments Within The Basmati Rice Market?
The basmati rice market covered in this report is segmented –
1) By Product: Parboiled, Raw, Steamed
2) By Species: White, Brown, Other Species
3) By Distribution: Convenience Store, Modern Trade, Online Store, Traditional Grocery Stores
4) By Application: Industrial, Household
Subsegments:
1) By Parboiled: Long Grain Parboiled Basmati, Short Grain Parboiled Basmati
2) By Raw: White Raw Basmati, Brown Raw Basmati
3) By Steamed: White Steamed Basmati, Brown Steamed Basmati
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Which Trends Are Expected To Transform The Basmati Rice
A rising trend in the basmati rice market is the use of technological innovations. Many leading market players are leveraging advanced technologies to maintain their standing. For example, Crown Basmati Rice, a basmati rice producing company from India, introduced Diet Rice in August 2024. This rice, with a reduced glycemic index (GI) of 55 or less, is aimed at individuals managing their blood sugar levels. The rice is prepared via an exclusive hydration process involving soaking, steaming, and drying the complete rice seed (husk and bran), thereby improving its nutritional value by augmenting vitamin content and preserving minerals. This move underlines the company’s commitment to catering to contemporary dietary requirements and represents a crucial phase in its international expansion, now extending to over 30 countries.
Who Are the Key Players in the Basmati Rice Market?
Major companies operating in the basmati rice market include:
• Cargill Incorporated
• Kohinoor Food Ltd.
• Bunge Limited
• Louis Dreyfus Company B.V.
• HAS Rice Pakistan
• ITC Limited
• Ebro Foods S.A.
• Chamanlal Setia Exports Ltd.
• Unity Foods Limited
• East End Foods
• LT Foods Ltd.
• Farmers' Rice Cooperative
• REI Agro Ltd.
• GRM Overseas Ltd.
• Matco Foods Ltd.
• Adani Wilmar Limited
• Aeroplane Rice- Amir Chand Jagdish Kumar Limited
• Goel International Private Limited
• Dunar Foods Ltd.
• Amira Nature Foods Ltd.
• Amar Singh Chawal Wala
• Lakshmi Energy & Foods Ltd.
• KRBL Ltd.
• Sulson Overseas Pvt. Ltd.
• Hanuman Rice Mills
• Golden Food Products
What Is The Most Dominant Region In The Basmati Rice Market?
Asia-Pacific was the largest region in the basmati rice market in 2024. The regions covered in the basmati rice market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
