Published on: December 12, 2019
Rice is the most consumed cereal grain globally, with its cultivation and consumption largely concentrated in APAC. Rice is generally consumed after the removal of starch during the cooking process. Rice is also used to prepare products such as rice flour, rice syrup, rice bran oil, and rice milk. The global rice market has been categorized as part of the global agricultural products market. The global agricultural products market includes producers of agricultural products. The market also includes crop growers, owners of plantations and companies that produce and process foods but do not package and market them.
Based on product type, white rice dominates the global rice market and APAC is expected to dominate the global rice market during the forecast period. Factors such as growing awareness about the nutritional benefits of rice-based foods expected to aid market growth in the APAC region. Additionally, trends such as the emergence of the digital agricultural economy worldwide are expected to improve the efficiency of rice cultivation and aid market growth during the forecast period.
Many factors are expected to influence growth in the global rice market during the forecast period. Our analysis identifies the following factors to be driving the growth of the global rice market:
The term ‘superfood’ refers to nutritionally dense food that is perceived to be highly beneficial to consumer health. Superfoods are rapidly emerging as a popular marketing term worldwide, predominantly for plant-based foods that are high in nutritional content. Brown rice is a rich source of vitamins, including niacin, thiamin, pyridoxine, and pantothenic acid. It also contains manganese, which is beneficial for bone development, wound healing, muscle contraction, nerve function and blood sugar regulation. Extensive promotion of brown rice as a superfood is expected to be key to the growth of the global rice market during the forecast period.
The demand for agricultural products is supported by the diverse food requirements in developing and heavily populated countries such as China and India. China is among the leading producers and consumers of rice. Also, significant developments in the agricultural sector of countries such as Bangladesh and Sri Lanka are anticipated to drive the market growth. The aforementioned factors are expected to boost the growth of the global rice market during the forecast period.
The rising awareness about the health benefits of rice has aided the demand for healthy rice-based snack variants. The indulgence in rice snacks is high among consumers worldwide, as these snacks are produced using natural ingredients and do not include artificial flavors or gluten. The rising demand for packaged rice-based snacks is expected to aid the growth of the global rice market during the forecast period.
Meanwhile, the vendors operating in the market face numerous challenges in increasing their sales and improving profitability. Some of those challenges are:
The global rice market is highly regulated, with the regulations pertaining to aspects such as sales, marketing, packaging, labeling, and advertising of rice-based foods and beverages. The vendors operating in different countries must adhere to different regulations and this can prove to be a challenge to the vendors. The Food Safety and Standards Authority of India (FSSAI) in India, the United States Department of Agriculture (USDA) in the US, and the Canadian Food Inspection Agency (CFIA) in Canada are some of the regulatory bodies that draft norms related to the production, procurement, marketing, sales, and distribution of rice-based foods and beverages. The varying regulations in different countries can increase the compliance costs for vendors and negatively influence the growth of the global rice market during the forecast period.
The occurrence of pest attacks on crops is increasing in the agricultural industry, which is causing a threat to food security. Rice crops are highly susceptible to attack from pests such as termites, rice root weevils, and striped stem borers. These crops are also highly susceptible to common diseases such as sheath blight, sheath rot, and rice tungro disease. The affinity of rice crops to pest attacks and diseases compel farmers to use chemical pesticides, which have a negative impact on the health of humans.
Allergy to rice and rice-based foods, especially if unrefined, causes severe reactions and sustains lifelong. The major allergens responsible for rice allergy symptoms are 9-, 14-, and 31-kDa (kilo Dalton) protein bands. While rice intolerance may result in periodic ailments such as systemic inflammation, rice food allergies are known to cause urticaria, rice allergy rashes, itchy skin, gastrointestinal problems, anaphylaxis, asthma, and other respiratory issues. Subsequently, people avoid foods and beverage products that contain rice as an ingredient.
The global rice market can be segmented into the following:
The global rice market is fragmented with the presence of several international and regional players. We provide a detailed analysis of around 25 vendors operating in the global rice market, including some of the prominent vendors such as Riceland Foods Inc., KRBL Ltd., The Hain Celestial Group Inc., Grain Millers Inc., and Groupe Soufflet. Mergers and acquisitions, and investments in new facilities are among the strategies adopted by manufacturers in the global rice market.
Backed with competitive intelligence and benchmarking, our global rice market research report is designed to provide entry support, customer and M&A assessment, as well as go-to-market strategy support.
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