Europe’s Basmati Rice Market Expected to Hit $866.5 Million by 2031 Driven by Rising Demand for Indian Variety and Increasing Consumption in the UK
Published on: December 18, 2023.
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Europe Basmati Rice Market Set to Surpass $866.5 Million by 2031, Driven by Growing Demand and Consumption
Basmati rice, known for its distinct aroma and cooking qualities, is gaining popularity in the Europe market. According to a recent report by Allied Market Research, the Europe basmati rice market is projected to reach $866.5 million by 2031, with a CAGR of 4.2%. The Indian variety segment holds the highest revenue share at $418.1 million in 2020 and is expected to grow at a CAGR of 4.5% to reach $671.3 million by 2031.
Basmati rice stands out from other long-grain rice varieties due to its exceptional scent, flavor, and elongated grain structure. It is widely used in Indian and Pakistani cuisines, as well as Persian, Arab, and Middle Eastern cuisines. The majority of basmati rice production comes from India and Pakistan, with other South Asian countries like Bangladesh, Vietnam, and Indonesia also cultivating the rice for self-consumption.
To meet the global demand for basmati rice, efforts are being made to strengthen the supply chain and ensure fair outcomes for all stakeholders involved. Governments and market players are working together to improve authenticity in the basmati rice supply chain, which enhances brand image in both domestic and international markets.
The United Kingdom (UK) is currently the leading importer of basmati rice from India and Pakistan. In 2021, the UK accounted for the highest demand for basmati rice, and this trend is expected to continue. The recent ban on basmati rice imports from Iran is projected to lower the price of basmati rice in the UK. The Netherlands is the second leading country in the Europe basmati rice market, contributing to around one-seventh of the market share.
With the rise in rice consumption in Europe, there is an increasing demand for specialty rice, including basmati rice. India remains the dominant producer and exporter of basmati rice, representing over 70% of global production. The European market allows several Indian basmati rice cultivars, including Basmati 370, Taraori Basmati, Basmati 386, Basmati 217, Pusa Basmati, Ranbir Basmati, and Super Basmati.
Despite challenges posed by the COVID-19 pandemic, which led to supply chain disruptions and lockdown restrictions, the European rice market has remained resilient. Retail demand for grains and pulses remains strong, ensuring an adequate food supply in the region. However, logistical restrictions and protectionist measures could potentially lead to food shortages in the near future if not addressed.
In the Europe basmati rice market, the UK holds the largest market share in terms of revenue and volume, followed by Spain with the highest projected CAGR of 7.4% from 2021 to 2031. The Indian variety segment is expected to grow at the highest CAGR of 4.5% in terms of revenue. Commercial applications dominate the market, accounting for over two-thirds of the market share, while the household application segment is projected to grow at a CAGR of 5.0%.
In conclusion, the Europe basmati rice market is poised for significant growth in the coming years. The demand for basmati rice, driven by its unique aroma, flavor, and elongated grain structure, continues to rise in Europe, with the UK leading the import market. Efforts to strengthen the supply chain and ensure authenticity are underway, allowing for increased brand image and market expansion. With the market offering a variety of Indian basmati rice cultivars, Europe can continue enjoying the exceptional qualities of this aromatic rice.
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