The global rice market was valued at USD 287.45 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 2.2% from 2022 to 2028. This growth is largely driven by the expansion of the global food and restaurant sectors, which has significantly contributed to the increasing demand for rice. As a staple food for more than half of the world's population, rice holds a central place in the global diet—particularly in the Asia Pacific region, which accounts for the largest share of consumption. This regional dominance continues to be a critical factor supporting overall market expansion.

In addition to consumption trends, technological advancements in rice milling machinery and improvements in attractive and functional packaging are also boosting demand, particularly in emerging economies where modernization of food processing industries is accelerating. These enhancements contribute to better product quality, shelf appeal, and distribution efficiency, which collectively increase the market potential.

Another key driver of growth is the rising global demand for specialty rice varieties, such as long grain, basmati, jasmine, and other aromatic types. This trend has notably increased international trade in premium rice segments, reflecting a shift in consumer preferences toward high-quality and diverse rice options. Evolving consumer lifestyles and dietary habits, including a greater inclination toward fast food and convenience meals, are fueling demand in both traditional and new consumption channels. As the fast-food industry expands, especially in urban regions, the use of rice-based dishes continues to grow.

Additionally, factors such as the rising global population and increasing disposable income levels are expected to further drive market growth. With more consumers able to afford higher-quality food products and shifting toward health-conscious and diverse diets, the market for various rice types is poised to expand steadily over the forecast period.

Producers have responded to this rising demand by offering an extensive array of rice products, including white rice, brown rice, wild rice, and high-value varieties like basmati and jasmine rice. However, due to rice's critical role as a staple commodity, its production and trade are often heavily regulated by national governments, especially in developing and food-insecure nations. These regulatory frameworks are designed to maintain food security and price stability, which adds a layer of complexity to the global rice trade.

The demand for premium-quality rice from European and Gulf countries is another notable trend that is positively impacting export-oriented producers. This growing appetite for quality grains in international markets is expected to further enhance the competitiveness and profitability of rice exporters in Asia and other major producing regions.

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Detailed Segmentation:

Distribution Channel Insights

In 2021, the offline distribution channel dominated the global rice market, contributing to more than 82% of the total market share. This dominance is largely attributed to consumer purchasing behavior, particularly for essential food items like rice and other grains. Shoppers typically prefer to physically examine the product quality, including attributes such as grain texture, color, packaging integrity, and freshness—factors that are more easily assessed in physical retail environments.

Offline channels such as supermarkets, hypermarkets, grocery stores, and local retail outlets continue to serve as the primary shopping medium, especially in developing regions where traditional retail infrastructure is deeply embedded in daily consumer routines. Despite the rise of e-commerce platforms, the offline segment remains resilient due to established trust, accessibility, and the sensory nature of food purchasing decisions.

Product Insights

The long-grain rice segment accounted for the largest revenue share of over 63% in the global rice market in 2021. Furthermore, it is projected to grow at a compound annual growth rate (CAGR) of 2.1% from 2022 to 2028. The dominance of this segment is largely driven by the widespread preference for premium specialty rice varieties, including jasmine and basmati, which fall under the long-grain category. These rice types are known for their distinct aroma, texture, and cooking characteristics, making them highly desirable in both domestic and international markets.

Additionally, long-grain rice is commonly used in a wide range of global cuisines, particularly in Asian, Middle Eastern, and Western diets, further fueling its popularity. The rising demand for premium, aromatic rice varieties in both emerging and developed markets underscores the long-grain segment’s strong growth trajectory.

Regional Insights

The Asia Pacific region made the largest contribution to the global rice market in 2021, accounting for over 77% of the total revenue share. This overwhelming dominance is driven by the region’s vast population base and the cultural significance of rice as a daily staple food. Countries such as China, India, Indonesia, and Bangladesh rank among the largest consumers and producers of rice globally.

Looking ahead, Asia Pacific is expected to maintain its leadership position and grow at a notable pace throughout the forecast period, supported by several key factors. These include the rising disposable incomes, urbanization, and changing dietary patterns, all of which are increasing the demand for both traditional and specialty rice products. Additionally, government support for rice cultivation and infrastructure development in key rice-producing nations further solidifies the region’s role in shaping global market dynamics.

Key Companies & Market Share Insights

The market consists of various established players, coupled with local manufacturers present across regions. Various manufacturers and suppliers have been continuously focusing on the logistic development and strengthening of the distribution channel to expand their business.

Some of the key players operating in the global rice market include: 

• Kohinoor Foods Ltd.
• Adani Wilmar Limited
• LT Foods
• KRBL Limited
• Aeroplane Rice Ltd.
• Sridhar Agro Product P Ltd
• Gautam General Trading LLC
• Sri Sainath Industry Pvt. Ltd
• Shriram Food Industry Pvt. Ltd.
• Aashirvad International

Recent Developments

• In April 2022, LT Foods launched ready-to-make Daawat Biryani Kits in three regional variants including Hyderabad, Kolkata and Lucknow to redefine authentic and fresh biryani cooking experience at home.
• In May 2022, Adani Wilmarannounced the acquisition of Kohinoor Foods Ltd. to strengthen their leadership in the Basmati rice and FMCG segment. This will further expand their business strategy portfolio in the higher-margin branded staple product segment. 
• In November 2022, LT foods announced a strategic partnership with Saudi Agricultural and Livestock Investment Company (SALIC). LT Foods and SALIC entered into a strategic Supply & Cooperation agreement that will accelerate LT Foods’ organic and inorganic expansion plans and export specialty basmati rice to the Middle East and Saudi Arabia region. 

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