After the Asian Market, Europe Could be the Next Potential Market for Rice Consumption

Rice is one of the largest staple food crops for the population. According to World Economic Forum, more than half population depends on Rice as part of their daily diet. Production and consumption both are heavily concentrated in Asia, accounting for more than 80%. Now, the Imports of specialty rice like aromatic basmati are gaining popularity in the European Market.

According to research by Market.us, “The Global Rice Market is expected to grow at a CAGR of roughly 2.5% over the next ten years and will reach USD 368.06 Bn in 2032, from USD 287.54 Bn in 2022″

The report highlights the key trends that will shape the Rice Market as we advance and gives information on the size of this fast-growing market, along with the regions and segments to focus upon.

Gaurav Yadav, a senior research analyst at Market.us, said,” Rice is an essential ingredient in Asian cuisines, along with diverse consumption patterns and production ways, is in constant demand. With the increasing prominence of premium grade packaged Rice enriched with authentic aroma and taste, sleek grains, and increased shelf-life, it is positively influencing the HoReCa sector.”

The trade of Rice represents 0.16% of the total global trade. China, Saudi Arabia, the USA, the Philippines, and Iran were the top rice importers, accounting for almost one quarter, i.e., 23.3% of demand globally. Whereas India, Thailand, and Vietnam were the leading exporters of Rice in 2020.

Most of the rice varieties belong to the Asian rice species known as Oryza sativa and the African Rice, Oryza glaberrima. It includes whole-milled or semi-milled Rice, husked Rice, brown Rice, broken Rice, jasmine, and basmati.

Of these two types of Rice that make up the most in the commercial market are Japonica and Indica. According to the U.S. Department of Agriculture, Indica rice makes up more than 70% of market demand, a significant staple food in South Asian and Indian cooking.

Asian countries account for 89% of the world’s rice production, while India and China together produce 55%. However, Rice is not consumed equally in the region. Japan, which has a higher per capita rice consumption, consumes 65kg, four times more than Bangladesh, which is overpopulated (258 kg).

The Philippines became the biggest importer of Rice from Vietnam in the year 2022. As per the Hanoi-based Ministry of Agriculture and Rural Development, the Philippines received about 2.47 million metric tons of Rice from Vietnam at $425-430 per M.T., accounting for over $1.15 billion.

Gaurav added, “Imports of specialty rice like basmati are gaining traction in European countries. The positive response comes mostly from NorthWest Europe, predominantly the United Kingdom, where Rice is neither consumed nor produced. The rice producers can take advantage of this trend and expand their territory.”

Europe is not self-sufficient in rice production. This indicates that the market for Rice is still open to further development and exploration. Europe’s production accounts for around 60% of the demand, which means there is still a need for 1.8 million tonnes of milled and husked Rice to be imported.

According to the E.U. Agricultural Outlook 2020-2030, rice imports will continue to rise until 2030. The EU-27 will see an increase in imports of approximately 250,000 tonnes over the next decade.

Aside from population growth, climate change is also a challenge that requires attention. This includes inducing technological advances, new high-yielding varieties resistant to flooding or drought, alternate wetting and drying land methods, and more responsible use of pesticides and fertilizers.

Rice demand will continue to rise on any occasion, and Asia must prepare for shocks and self-sufficiency in future decades. Aside from the crop’s political and strategic importance, Asian governments must increase their policies, including guaranteed prices and subsidized inputs.