The global organic rice market reached over USD 1500 million in 2019. The market is expected to witness strong growth in the near future, thanks to a growing demand for functional and healthy foods in key regions like the United States. According to the United States Agriculture Department (USDA), the demand for organics has skyrocketed in recent years, with 3 out of 4 grocery stores keeping up with demand, and another completely natural food store appealing to the customers across the country. Moreover, apart from conventional distribution channels like grocery stores, and natural food stores, direct distribution has picked up tremendous pace in the global organic rice market.
For example, while most organic sales (about 93%) still take place through supermarkets, the growth of avenues like farmers’ markets has doubled in recent years. In 1994, there were 1,755 active farmers markets across the country. The same figure rose to 8,144 in 2013. A recent USDA survey estimated that the demand for organics remained robust in farmer markets throughout the country, and more farmer participation was needed to cater to the growing demand.
The rising demand for healthy foods, rising awareness about side-effects of processed foods, and growing demand for organics remains a key driver for growth in the global organic rice market. The landscape of the global organic rice market remains an innovative, and promising landscape with techniques like hydroponics making it easier to grow large quantities of organics at cost-effective prices. Some key players in the global organic rice market are Bioway Organic Ingredients Co., Ltd., Axiom Foods Inc., Golden Grain Group Ltd., AIDP Inc., Nutrition Resource Inc., Shaanxi Fuheng Biotechnology Ltd., Shafi Gluco Chem Pvt. Ltd.
Growing Awareness, and Availability of Organics to Create New Opportunities for Growth
According to a USDA publication, over 69% of Americans purchased an organic product at least occasionally. This confirms that organics are a key trend driving demand in countries like the US, thanks to growing consumer awareness. Major brands like Kellogg’s, General Mills, Dean Foods have all launched an organic version of their famous products, thanks to the premium pricing margin for organics. Hence, popular products like Gerber baby food in organic variety have made their way into the consumer’s hands in recent years. Moreover, super chains have also launched a generic version of their organic products, driving further competition in organic food pricing across the United States. Furthermore, thanks to growing demand, the major food producers continue to import organic supplies from a dozen of different countries across the world, driving cost-effectiveness further. According to the USDA, the food sales in organics grew at 12% to 21% per year during the 1197-2008 periods. Moreover, organic sales also witnessed major growth during the coronavirus crisis, thanks to rising demand for a booster to healthy immunity, and major demand for food essentials. The growth is likely to remain robust, and stable over the forecast period, as an organic variety of rice remains more favorable, tasty, and natural. Furthermore, niche categories of consumers like athletes continue to lean towards fitness trends like low-carbs to meet an energy-resourceful diet. Various doctors, academics, and consumer groups came together in 2019 to demand low-carb to be included in the national recommended diet plan. Fitness trends like a low-carb diet and the promise of organics remain major drivers for growth in the global organic rice market.
Rising Demand for Chemical-free Food Rises as Health Awareness Concern Rise
Rice has remained a part of the staple diet in many cultures for generations. Moreover, rice protein is higher in organics rice leading to the high content of cysteine, and methionine. Organic rice also answers questions like chemical-free food, GMO-free food, among others. Furthermore, organic rice also embeds higher quantities of amino acids, which are essential for body muscles, body tissues, and the immune system. Moreover, this protein is not naturally produced in the body, making organic rice a vital source of body protein, through dietary intake. The current method in organic rice production also supports hexane-free extraction and low-temperature extraction. The rising demand for chemical-free, GMO-free, and organic foods will likely drive robust growth for the global organic rice market in the near future.
North America and Europe to Remain Key Region for Growth during 2021-2027 Period
The establishment of key manufacturers in the North America region and widespread presence of key technologies remains a key driver of manufacturing in the region. The region has witnessed manifold growth in demand in recent years, with sales of organics quadrupling in some segments. Moreover, among organics, produce, and dairy sales remain the highest in the region, providing further momentum to growth. According to the Nutrition Business Journal, produce accounted for over 43% of sales in 2012, with dairy accounting for only 15% with second-highest category sales. Furthermore, packaged, and prepared food accounted for 11% of sales. The rising shift to organics is also coupled with more demand for veggies, with the percentage of meat and poultry among others meats falling to just 3% in the organics category. The rising demand for fresh fruits, vegetables, and organic foods is on the rise in the region, thanks to rising awareness about diseases like cardiovascular illnesses. These diseases remain the leading cause of death in the US, and prevailing awareness of health issues in the US promises more opportunities for growth for organic rice manufacturers in the near future. According to the USDA, the organic rice acreage production has doubled in recent years, while smaller farms and issues like control of pesticides remain key challenges to growth for manufacturers in the global organic rice market.
The global Organic Rice Market Report is Segmented as Below:
- Polished glutinous rice(sticky rice)
- Indica(long-shaped rice)
- Polished round-grained rice
Segmentation by application:
- Direct edible
- Deep processing
- United States
Middle East & Africa
- South Africa
- GCC Countries
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