Paddy Rice Market

Global Paddy Rice Market Size (2024 to 2029)

paddy rice market will have a market value of USD 310.39 billion in 2024 and is expected to have a value of USD 357.91 billion by 2029, with a CAGR of 2.89% during the forecast period. 

Paddy rice is also known as lowland rice, generally grown in flooded or well-irrigated fields. The crop is grown at sea level on the coastal plains and in delta regions. It can also be grown on the slopes of hilly terrains. Crop production requires more materials, water, and labor. South and East regions are the main producers of rice. It is also a key source of greenhouse gas such as methane, ethane, and carbon dioxide emissions. Such emissions, which are harmful to the environment, are mitigated by adopting sustainable practices in the entire supply chain. To overcome the challenges faced in practicing sustainable practices, an alliance by formed to support the countries and farmers. Most of the world’s population’s staple food is rice, and monitoring the rice market is one of the critical tasks.

The government is providing many initiatives for the major domestic rice production industries that will enhance the opportunities for the global paddy rice market in the coming years. During the forecast period, the innovative planting and cultural technologies in the rice crop will provide a new way of opportunities for market growth in the future. In recent times the demand for specialty rice varieties is increasing the trade for long-grain rice. The population of the world is at a high pace of growth, and an increase in disposable income would increase global market growth.

Global Paddy Rice Market Drivers:

There is a huge demand for high-quality rice.

The major driving factor for the global paddy rice market is the growing demand for high-quality and nutritional rice. Parboiled rice is one type of rice that is driven by its non-sticky texture, swollen nature due to high water absorption, and high nutritional value. The quality of rice depends on the taste, texture, flavor, and others. Generally, long rice grain type drives the market. The time for cooking is also one of the parameters checked by the consumer, and paddy rice is cooked in less time, which makes it different from other types of rice.

The growth in the production of rice drives the market.

An increase in self-consciousness about health among people in recent years resulted in them looking for a balanced diet with all the required nutrients. The shift to energy consumption for carbohydrate foods in high-income countries is increasing. Restaurants with rice dish trends are becoming popular in the market. This propels the global paddy rice market in the coming years. Most Asian countries produce rice and account for 84% of the total global rice production, and it includes the countries which are having a high share in rice exports. The India and China countries’ rice production has a significant impact on global food security.

Global Paddy Rice Market Restraints:

The major restraints in the global paddy rice market are the high cost and the current market scenario of raw material shortage. Further challenges can arise with the high prices of paddy rice compared to normal rice, and this is combined with delayed shipping. The continuous change in consumer behavior, lifestyle, and food habits may hinder market growth

Impact of COVID-19 on the Global Paddy Rice Market:

The impact of the COVID-19 pandemic is seen in the global paddy rice market in terms of volume of production and price. The pandemic has shown a surge in the price of rice. There has been an average price rose of 25% during the period when compared to pre-covid. The restriction imposition on rice exports caused a decrease in the level of sales. There are some quarantine restrictions during international export. Even though there were fewer restrictions on agricultural commodity supply chain activities but the unable availability of labor and transportation are the main restraints to the market. 

REPORT COVERAGE: 

This research report on the global Paddy Rice Market has been segmented and sub-segmented based on product, nutrition, distribution channel, and region. 

Global Paddy Rice Market - By Product:

• Long-grain
• Medium-grain
• Short-grain

The long-grain segment is expected to have a large share of the global paddy rice market and is expected to expand its CAGR during the forecast period. The popularity of specialty rice is increasing at an expanding rate and becoming a driving factor for market growth. People are becoming health conscious and demanding high-fiber food and low sodium. The next large share-holding segment is medium-grain products. Technological advancements and developments in rice mill machinery are projected to drive segment growth.

Global Paddy Rice Market - By Nutrition:

• High Fiber
• High Carbohydrates

In terms of nutrition, high-fiber content products are expected to have a high demand in the global paddy rice market in the coming years. People are more concentrating on their health. This resulted in the rising demand for more nutritional, high fiber, low sugar, and limited carbohydrate content products and food grains.

Global Paddy Rice Market - By Distribution Channel:

• Online
• Offline

The offline distribution channel is expected to contribute a large share of the global paddy rice market. The preference of consumers for the offline purchase of consumer goods, groceries, and food grains is increasing so they can do a physical examination of the quality of the goods. The easy access and searchability of the various grains through physical stores are more. The online segment is anticipated to register fast growth in terms of CAGR. The internet penetration is likely to be lucrative to the growth of the market. The demand for e-commerce and the frequency of product purchases from online channels is expected to see high growth in the coming years.

Global Paddy Rice Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Asia-pacific region is the largest contributor to the global paddy rice market growth. Nations with high populations, such as China, India, and Bangladesh, have a consumer base for the consumption of food products which is expected to propel the market growth in the region. The disposable income of the consumers is increasing along with the rise in population, which is expected to show a noticeable growth rate in the market in this region. North America is the next fast-growing market for rice. There is an increase in demand for fragrant and specialty rice in certain areas of the region. which is propelling the market growth. Fast-food product consumption is also increasing in certain areas of the region owing to the presence of high nutrition and high-fiber content in grain products.

KEY MARKET PLAYERS:

Key Market players of Paddy Rice Market are LT Foods Ltd (DAAWAT, ROYAL), KRBL Limited (India Gate, Unity), Lundberg Family Farms , Tanasan Rice Group (Thai Rice), Ake Rice Mill Co., Ltd (Thai Premium Rice Ake Rice Mill Co., Ltd), Kohinoor Foods Limited (Kohinoor Premium, Kohinoor Middle), Aashirvad International (Aashirvaad), GIA Foods Ltd, Thai Hua (2511) Co., Ltd, Asia Golden Rice Co., Ltd. (Siam Purice, Monarch)

RECENT HAPPENINGS IN THE MARKET:

In 2020, as a strategic action started during the lockdown India Gate Basmati Rice collaborated with Swiggy and Zomato to deliver the product to the home.