Global Basmati Rice Market Size and Share - Outlook Report, Forecast Trends and Growth Analysis (2024-2032)

Global Basmati Rice Market Size

The global basmati rice market stood at a value of around USD 6.22 billion in 2023. The basmati rice market value is estimated to expand at a CAGR of 2.0% in the forecast period of 2024-2032 to attain a value of around USD 7.47 billion by 2032.

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Global Basmati Rice Market Outlook

Owing to the increasing consumer preference for premium quality rice that has great taste and aroma, the global market value for basmati rice increased. The basmati variety forms an integral part of Middle Eastern cooking. It is used to cook lavish dishes containing layers of rice, meats, and dried fruits. Basmati rice also forms a part of the staple diet of many cultures, thus boosting its consumption globally. Besides, the basmati rice demand forecast indicates that the increasing export demand from various countries in the Middle East has further led to the fast rate of rice cultivation in most major geographic regions. Other important large importing countries are the USA and Europe.

As the population increases, so does the market for basmati rice. Moreover, the increasing level of disposable incomes in major rice-consuming countries is also hastening this market growth. In addition to this, it has been expected that there will be an increased consumption of premium products and basmati rice is also in that category.

Due to the knowledge of health among consumers, this variety is more likely to be popular because of higher nutritional value and lower fat content.

Basmati Rice Market Growth

As per the Agricultural & Processed Food Products Export Development Authority (APEDA), for India's basmati rice export market, Iran emerges as the largest importer, accounting for 25.3% of the total exports, followed by Saudi Arabia with 17.1% and Iraq with 12.3%. These three countries alone represent a substantial portion of the market, indicating the strong demand for basmati rice in the Middle East. The United Arab Emirates and Yemen also contribute notable shares, with 6.5% and 5.2%, respectively, reinforcing the Middle Eastern dominance.

The basmati rice industry analysis also states that the United States (4.1%) and Kuwait (3.7%) are prominent non-Middle Eastern buyers, while the United Kingdom (3.3%), Oman (2.0%), and Qatar (1.8%) account for smaller shares. The overall trend shows a concentrated demand in the Middle East, driven by inventory-building efforts and a willingness to pay higher prices.  This reflects the regional preference and robust market potential for India's basmati rice.

Basmati Rice Market Trends

It is well known for its special smell and taste; hence, basmati rice is in high demand in the local and global markets.

• Basmati rice has cultural value in many countries, especially South Asia. This factor will ensure continuous demand for this particular rice.

• Basmati rice is considered a healthy diet compared with other rice types; this might be another reason why people all over the world prefer it as a healthy food, aiding the basmati rice market development.

• The major producers like India and Pakistan have built up a strong export market that will assure continuous supplies and a strong market for the product.

As the world population is increasing and with the rise in disposable incomes in most of the emerging markets, demand for value-added and high-end food products like Basmati rice is increasing.

• Growing interest in international cuisines and ethnic food raises the demand of global basmati rice market.

• Increasing demand for organic food products and specialty rice varieties is an opportunity for new growth for Basmati rice producers.

• Bilateral and multilateral trade agreements can open up new markets and cut tariffs, thereby providing opportunities to exporters.

Issues Confronted by Basmati Rice Producers in the Global Industry

• Basmati rice prices fluctuate due to crop variation and this affects the profit-making and market stability in the basmati rice market.

• Production of Basmati rice is highly dependent on the monsoon rains, making the crop susceptible to climatic and weather changes.

• Various geographical locations present the issue of inconsistent quality standards. Consumer trust and satisfaction are influenced by these factors.

• Tariffs, quota restrictions, and other trade barriers have the propensity to limit access to markets and lower profitability for exports made under Basmati rice. This hinders the seamless flow of the basmati rice market revenues. 

• Any political conflicts or tensions in the main rice-growing regions could affect the supply chains, in turn affecting market stability.

Recent Developments

• In July 2023, Adani Wilmar Limited (AWL) announced the comeback of the renowned Kohinoor Basmati Rice with a 360-degree campaign, highlighting its rich and unique aroma.

• In June 2017, LT Foods invested USD 15 million in its first European rice processing facility in Rotterdam Netherlands, having an initial capacity of 60,000 tonnes, to introduce its popular brand, ‘Daawat’ in Europe.

Industry Outlook

India is the leading exporter of Basmati Rice to the global market. Basmati rice exports in FY24 reflect strong regional variation. The GCC—Gulf Cooperation Council—is the major importing region. GCC countries import USD 1.79 billion worth of Basmati rice, cornering substantial market share at 37%. This robust demand attests to a preference for Basmati rice in the region, guided by its cultural affinity and established trade relations with India, the primary exporter of the crop. On this basis, it is also the strategic geographical position of the GCC that facilitates efficient distribution channels, further entrenching its dominance in Basmati rice imports, there by bolstering the basmati rice industry revenue.

The region, West Asia, was the next with USD 1.86 billion worth of imports. India's share in this region, at about 38 percent. The intensity of this competition is contributed to by a variety of factors, including the availability of alternate rice suppliers and regional trade agreements. There is a wide gap between the import value and the share of India clearly means there is an opportunity for India to increase its market share through proper market-competitive policy actions.

Basmati rice imports into Europe are USD 0.33 billion, with India holding 10%. This indicates a much smaller but still strong demand driven by the culinary preferences of European consumers. A stable market presence would suggest that the consumer base has remained steady, driven by appreciation for the uniqueness of Basmati rice, such as its aroma and texture. However, the lower import value compared to West Asia points to a more niche market segment.

North America imports USD 0.31 billion worth of Basmati rice, with India capturing only an 8% market share. In the North American market, there exists a diversity of rice consumption habits that have to face tough competition from other varieties of specialty rice. The large multicultural population of the region comprising the South Asian communities helps in keeping up the basmati rice demand. However, it is also penetrated less in the market due to tough competition and changing consumer preferences.

The value of imports to North Africa comes to USD 0.23 billion, while India's market share is only 6 percent in the region. Economic factors, coupled with tough competition from other rice-exporting countries, play a role here. Because the market share is small, there is enough reason for India to work on its competitive advantage by focused marketing strategies and overcoming logistic problems in order to expand in North Africa.

East Asia and South Asia are other small markets for Basmati rice, which imports of this type of rice amounted to USD 0.06 billion and USD 0.05 billion, respectively. The market share of India in these regions is almost negligible, pointing to limited demand or strong competition from local rice producers. While this minimal presence brings growth potential, India needs to identify and exploit the available niches or adapt to the local taste.

The overall basmati rice demand growth in FY24 reflect high regional disparities, driven by various consumer preferences, competitive landscapes, and economic conditions. While the GCC is the largest market, other important markets with growth potential are Other West Asia, Europe, and North America. On the other hand, there are regions like ASEAN, East Asia, and South Asia that have a lot of challenges but come out as strategic opportunities for market expansion.

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Basmati Rice Industry Segmentation

Breakup by Type

• Parboiled

• Raw

Breakup by Nature

• White

• Brown

• Others

Breakup by Country of Origin

• India

• Pakistan

• Others

Breakup by End User

• Retail

• HoReCa and Institutional

Breakup by Distribution Channel

• Supermarkets and Hypermarkets

• Convenience Store

• Speciality Store

• Others

Breakup by Region

• North America

• Latin America

• Middle East and Africa

• Europe

• Asia Pacific

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Global Basmati Rice Market Regional Insight

According to the global basmati rice industry analysis, the Asia Pacific is the leading rice producing region, with India and Pakistan as the key markets. The region accounts for almost 90% of the global rice production. China is the leading rice producer, followed by India. However, basmati rice, specifically, is primarily grown in India and Pakistan.

India is the largest producer of basmati rice, accounting for over 70% of its global output. Basmati rice consumption India is quite high as rice is among the staple diets of India. In 2018, its production attained almost 5.03 million tons. The country is also the leading exporter of basmati rice. The strengthening exports is a combined result of an increasing demand from Iran and the rise in prices that have been taking place over the last three years.

Haryana, Punjab, Himachal Pradesh, Uttarakhand, Uttar Pradesh, Jammu and Kashmir, and Delhi are the major basmati rice producing states in India. In Pakistan, the Punjab province is the largest producer of the paddy crop.

The Middle East and Africa is a significant consumer of basmati rice, which accounts for 37.5% of their total consumption of the paddy crop. GCC countries are the major importers of the basmati variety of the paddy crop. The steady increase in imports from Saudi Arabia and Iran is driving the rise of Indian exports of basmati rice.

Between 2017-2018, Iran was the leading importer of the grain from India. Iran was followed by Saudi Arabia and the United Arab Emirates as the other significant importing countries of the basmati variety from India. Europe and the US are also significant consumers of the basmati variety.

The North American market remains focused on niche markets and ethnic communities where there is a preference for authentic Basmati rice. Importers in this region give precedence to the building of robust supply chains with reliable producers in India and Pakistan. Besides, the product differentiation is given in the form of organic and specialty rice types to cater to the health-conscious and gourmet consumers. While marketing, the features such as aroma, flavour, and health attributes are highlighted, placing Basmati in the premium category to favour the changing basmati rice market dynamics and trends.

The quality and sustainability standards are very stringent in the European markets, since consumer preference is for high-quality and sustainably produced food there. The certified producers in India and Pakistan work in conjunction with importers and retailers to ensure EU compliance. Much attention is given to organic and fair-trade certification as a means of attracting environmentally and socially aware consumers. The marketing strategies in Europe focus on the cultural heritage and high quality of Basmati rice, targeting gourmet markets and food enthusiasts. Besides, it reduces carbon footprints while boosting traceability through responsible sourcing.

The Middle East, and more specifically the GCC markets, presents a potential and current huge market for Basmati rice, based on cultural preference and high consumption. Close trade relationships with major producers in India and Pakistan are nurtured by importers in this region. Competitive pricing and ability to meet large demand are important. The Middle East market is focused on the stability of the supply chain and the quality of Basmati rice imports. Strategic partnerships and long-term contracts with key exporters are the most common routes to market share.

In other regions, for example, Africa and Latin America, the strategies principally aim at increasing market penetration and brand recognition. To further augment the growth of the basmati rice market, importers initially target the growing middle-class populations and urban centres with increasing demand for high-end food products.

Overall, competitive strategies adopted by firms in the global basmati rice market, those that best fit the demand and tastes in each region, are bound to ensure continued growth and presence in the market.

Competitive Landscape

The report provides a detailed analysis of the key players in the global basmati rice market, covering their capacity, market share, and latest developments like mergers, acquisitions, investments, expansions of capacity, and plant turnarounds:

• KRBL Limited

• Kohinoor Foods Limited

• Adani Wilmar Limited

• Dunar Foods Ltd.

• Ebro Foods, S.A.

• Lundberg Family Farms

• New Bharat Group

• Supple Tek Pvt Ltd

• LT Foods Limited

• HAS Rice Pakistan

• Latif Rice Mills Pvt. Ltd.

• A.I.Z Import & Export

• Others

KRBL Limited and LT Foods focus on quality control and innovative marketing strategies to keep them ahead of the game. The companies have made a lot of branding investments and have invested in a heavy spend on consumer outreach for their products so that its Basmati rice can be perceived to be of the highest quality by the consumers. They have further focused on expanding their product lines to include organic and specialty rice varieties now matching consumer preferences on the super food front.

The companies that are at the forefront of using the basmati rice market opportunities are Amira Nature Foods and Kohinoor Foods. Such companies lead because of their international distribution networks and international export capabilities. Strategic presence in key regions such as the Middle East, Europe, and North America remains of strategic importance for both companies, thus providing them the ability to influence global supply dynamics and meet the demand for high-quality Basmati rice. Other competition emerges from Tilda, which focuses on sustainability and quality in making sure the supply chains remain steady and the consumers can account for the products.

Emerging players and regional brands leverage unique strengths by focusing on clearly defined niche markets. Companies from the Middle East like Al Dahra and Emirates Grain Products benefit from their strategic location and their efficiency in servicing Europe, Asia, and Africa. Indian and Pakistani regional brands leverage cultural significance and traditional marketing in their domestic and regional markets. This is to maintain strong positions and boost the growth of basmati rice market.

For example, even newer firms, such as Kohinoor Foods, developed very significant niches with an understanding of competitive advantages arising from quality, organic certifications, and new packaging solutions. These companies with greater established brand presence attract the health-conscious and premium segment consumers. Additionally, concerted efforts with local farmers and commitment to strict quality control standards go a long way in furthering product consistency and consumer satisfaction.

In essence, the Basmati rice market at the global level is defined by extremely competitive big players who maintain a relentless expansion of branding, quality control, and markets with innovative strategies. The competition among these companies makes industry standards high and enhances the growth of the basmati rice industry globally. They are also aimed at maintaining a dynamic market landscape in consumer preferences and sustainability trends.

Key Players Having Significant Basmati Rice Market Share

The global basmati rice market is highly competitive. Key companies like KRBL Limited, LT Foods, Amira Nature Foods, Kohinoor Foods, and Tilda, dominate the landscape, each leveraging their unique strengths to capture and expand market share, creating a dynamic and challenging environment.

Competitive Strategies to Boost Basmati Rice Market Growth

• Use of advanced milling technology to ensure product consistency and superior quality is expected to support the basmati rice market dynamics and trends.

• Diversify product offerings, including organic and ready-to-cook options.

• Strong branding, packaging, and targeted marketing campaigns to build customer loyalty.

• Strategic partnerships to expand the basmati rice market reach and strengthen global distribution channels are expected to positively impact the basmati rice demand forecast.

• Adoption of in sustainable farming practices as significant trends of global basmati rice market

• Innovate with unique flavour profiles and value-added products to differentiate in the competitive market.

• Enhance supply chain efficiency.

• Leverage extensive product portfolios.

Key Highlights of the Report

Basmati Rice Market Report Snapshots

Basmati Rice Market Size

Basmati Rice Market Growth

Basmati Rice Companies

Basmati Rice Market Regional Analysis