Introduction

Long. Slender. Aromatic. No other grain can better fit this description than Basmati Rice. [1] The term ‘Basmati’ literally translates to ‘full of aroma’ in Hindi. This grain is native to India and Pakistan and has been farmed for thousands of years. It is a staple in many Indian dishes. With the advent of globalisation, the products prepared from basmati Rice like biryani, are relished by millions all over the globe creating a global market for basmati rice [2] .

Global Market for Basmati rice 

Globally, the market for basmati rice grew from $10.26 billion to $11.65 billion in 2023 at a CAGR of 13.5%. It is expected to rise to $18.32 billion at a CAGR of 12%. [3] 

The factors for the change in the market size are presented below. 

1. Rising demand for basmati rice- While many households regard rice as their staple food, the need for aromatic aromatic rice is burgeoning, leading to a sizeable increase in the market for basmati rice. [4]    Basmati rice has more nutritional value. It is high in fibre and low in fat, due to which the demand has been       rising among health-conscious individuals. [5] 
2. Better supply chains – Supply chains are the channels necessary for transporting the product from the farmer to the consumers. A more robust supply chain implies faster, broader and better product transportation to the consumer, making basmati rice more accessible to people. While governments of producing countries are improving the supply chain, the markets are ensuring the authenticity of the supply chain in both the domestic and international markets.  
3. Increase in disposable income– This leads to better purchasing power for consumers who can afford the relatively expensive variety of rice. [4] 
4. Improved technologies– Many industries have adopted technological advancements to retain their market position after conducting industry and market research. For example, Indian company Galaxy Rice Industries Private Limited launched a new product in October 2021 called Galaxy Quick Cooking Brown Basmati Rice that cooks within 15 minutes. In addition, it has nutrients such as protein, fibre, calcium, and vitamins B1 and B6. The company has incorporated a German VDF technology to hydrate the bran. [3]

Figure 2 : Factors boosting raw sugar market

Challenge in the basmati rice market 

A short-term challenge in the basmati rice market could be attributed to the Russia-Ukraine war that caused supply-chain disruptions, increased commodity prices, and economic sanctions on many countries. [3] 

Types of Basmati rice 

Four varieties of red basmati rice (pigmented) and white (non-pigmented) rice are available in the market. While white rice is widely used to prepare dishes, the demand for red basmati rice is slowly increasing. The reason can be traced to higher antioxidant levels and slow and steady release of energy which can be classified as a substance with a low glycaemic index (GI).  Red rice also has a higher antioxidant content than white rice, therefore finding its application as an ingredient for functional food.  

The rice is also available based on whether it is raw or parboiled. The raw variety is the most preferred one at present. The demand for the parboiled variety is slowly rising among health-conscious individuals since parboiling increases the number of resistant starches. [6] 

Conclusion 

Basmati rice is one of the most popular rice varieties available and will continue to be in the future. While the reasons for growth can be traced to increased consumer demand and better supply chains, a short-term challenge could be attributed to the war between Russia and Ukraine. Technological advancements can help increase the market size further.  

How the Food Research Lab can help 

The Food Research Lab conducts various market and consumer research that not only looks at the present but also gives an insight into what might happen in the future so that the food, beverage and nutraceutical companies can make wiser decisions on developing and launching new food products. 

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