Europe Basmati Rice Market Expected to reach $866.5 million by 2031-Allied Market Research

According to a new report published by Allied Market Research, titled, “Europe Basmati Rice Market by Type, Application, and Distribution Channel: Opportunity Analysis and Industry Forecast, 2022–2031,” the Europe basmati rice market was valued at $551.8 million in 2020, and is projected to reach $866.5 million by 2031, registering a CAGR of 4.2%. The Indian variety segment was the highest revenue contributor with $418.1 million in 2020, and is estimated to reach $671.3 million by 2031, with a CAGR of 4.5%.

Basmati rice is distinguished by its distinct aroma and cooking qualities, and it is two to three times more expensive than other long grain rice. It is a slender and extra-long grain that expands to at least twice its original length when cooked. Basmati rice is distinguished from other aromatic long grain rice varieties by its excellent aroma, wonderful taste, and distinct flavor. It is widely used in Indian and Pakistani cuisines, as well as in Persian, Arab, and Middle Eastern cuisines.

Basmati rice continues to be the most popular long-grain rice variety due to its exceptional scent and flavor attributes. The majority of basmati rice farming is focused in India and Pakistan, with a few other South Asian countries such as Bangladesh, Vietnam, and Indonesia also cultivating basmati rice for self-consumption. Basmati rice continues to be the most popular long-grain rice variety due to its exceptional scent and flavor attributes. The majority of basmati rice farming is focused in India and Pakistan, with a few other South Asian countries such as Bangladesh, Vietnam, and Indonesia also cultivating basmati rice for self-consumption.

A significant export of basmati rice across global regions has created a demand for a stronger supply chain to provide a fair outcome for all supply chain players, from farmers to consumers. While governments work to strengthen the basmati rice supply chain, significant market participants continue to develop authenticity in the basmati rice supply chain, which improves brand image in both domestic and international markets.

With the rise in rice consumption, there is expected to be a surge in demand for specialty rice, such as basmati rice, across Europe. Iran was the biggest importer of Indian basmati rice; however, in 2016, Iran imposed a ban and price cap on imports, causing Indian exporters to shift their focus to other markets. It offers price advantages to numerous European countries in order to promote the basmati rice business in Europe.

As a result of COVID-19, the European rice market faced a number of issues, including supply chain disruption caused by restricted trade movements and lockdowns. While most restaurants and bars in European countries have shuttered, retail demand for grains and pulses is strong. There is adequate food in and around Europe, and grain production is expected to increase. However, if logistical restrictions and protectionism develop, food shortages could become a real threat in the immediate term. Global economic recessions may have a long-term detrimental impact on the value of food commodities.

The Indian strain dominates the European basmati rice market. India is the leading producer and exporter of basmati rice, accounting for over 70% of global basmati rice production. Basmati 370, Taraori Basmati, Basmati 386, Basmati 217, Pusa Basmati, Ranbir Basmati, and Super Basmati are the Indian cultivars of basmati rice that are allowed to export to Europe.

Key Findings Of The Study

• In 2021, the UK dominated the market, with more than one-third share, in terms of both revenue and volume.
• Spain is estimated to grow at the highest CAGR of 7.4% from 2021 to 2031, in terms of revenue.
• The Indian variety type segment is projected to grow at the highest CAGR of 4.5%, in terms of revenue.
• In 2021, the commercial application segment dominated the market, with more than two-thirds share, in terms of both revenue and volume.
• The household application segment is anticipated to grow at the highest CAGR of 5.0%.

In 2021, the UK witnessed the highest demand for basmati rice, as it is the leading importer of this rice from India and Pakistan. Moreover, the price of this rice is expected to decrease in the UK, owing to the recent ban on basmati rice from Iran. The Netherlands is the second leading country, accounting for one-seventh share in Europe basmati rice market.

The key companies profiled in the report include Amira Basmati Rice, HBI, Estraco, East End Foods, TBA Suntra, S.G.S. International Rice Company, Amira Nature Foods, VSR Rice, The Rice ‘n Spice International Ltd., and Kohinoor Foods.