WORLD – A steady rise in demand across the world will drive the global market for basmati rice to US$17.74 billion, growing an impressive 11% per annum between 2017-22.
According to a new research study by Transparency Market Research (TMR), the global basmati rice market is undergoing a phase of significant improvement as consumers appreciate the quality and taste of basmati.
“Thanks to the premium position basmati rice enjoys in the global rice market, the worldwide basmati rice market has been proliferating substantially,” says a TMR analyst.
With rice being one of the most crucial food crop and a staple for more than half of the population across the world, basmati rice has gained a premium status among all the type of rice available, globally due to its fine quality, fragrance, and taste, states the report.
The report estimates that the worldwide market for basmati rice will rise from US$10.51 billion in 2017 to US$17.74 billion, growing at a robust CAGR of 11.0% over the period from 2017 to 2022.
The increasing price of paddy crop and the declining inventory prices in Asian Countries are likely to reflect positively on the global market for the basmati rice in the years to come, states the research report.
The Asia Pacific region will drive the future demand for basmati rice, where the production as well as consumption of basmati rice is centered, with China and India being the most prominent producers, as well as consumer of this type of rice.
The Asia Pacific excluding Japan is the leading regional market for basmati rice, having 46% of the overall market in 2017. It is predicted to continue to be the leading consuming region throughout the forecast period to 2022.
Raw basmati rice will register greater demand than parboiled and steamed basmati rice, thanks to its superior quality, fragrance, and taste, growing 12.90% per annum, reports the research study.
The report notes that the leading players in the basmati rice market, such as McCormick & Co., LT Foods, Hain Celestial, East End Foods, Rice ‘n Spice, Amira Nature Foods, and REI Agro, have ample opportunities for the growth of their businesses around the World.
These companies are expected to increase their focus on expanding in various regional markets across the world, for which, they are engaging into strategic partnerships.
This, as a result, is anticipated to intensify the competition within the market in the years to come, notes the research study.