Basmati rice has become synonymous with luxury food due to its unique aroma and long grains. Its demand has been growing steadily over the decades worldwide. Basmati rice manufacturers in India also have increased manifold due to this global demand.

India has been the home of basmati rice production. However, its consumption is no longer restricted to Indian boundaries. Instead, this premium rice variety is hotly favoured in most countries now. That has led to the expansion of basmati rice market size in all its segments.

Basmati rice market size

A report titled “Global Basmati Rice Market Report and Forecast 2025-2034” has come out with details of how basmati rice demand for different segments will grow in the next few years. 

The global basmati rice market size was around USD 13.5 billion in 2023. The market grew further to $13.08 billion in 2024. Reports have estimated that the global market size for basmati rice will increase to $14.7 billion in 2025.

The basmati rice market is expected to reach around $356 by 2030 end. It is likely to register a growth rate of 2.6%. Most reports project this market to grow to USD 26.89 billion by 2032.  

There are many key reasons for this impressive growth rate. However, the main reasons include the development of high-yielding basmati rice varieties and a growing appetite for this rice. People are now more health conscious, which is also fueling the demand.

The CAGR of basmati rice 

The compound annual growth rate (CAGR) in global basmati rice from different sources varies.

For instance, Industry ARC projects the annual growth of global basmati rice from 2022 to 2027 to be 9.1%. Market Research Future estimates it for 2024–2032 to be 9.00%. And Precision Business Insights estimates the growth to be 10.5% from 2025–2031. The CAGR growth rate estimate from The Business Research Company from the present to 2029 is to be 12.3%.

Overall, the growth rate is between 9% and 12.3%. 

Source: (Market Research Future)

Basmati Rice Market in India

Basmati rice is native to India. This unique long-grain aromatic rice is available in brown or white varieties and is known for its nutty flavour and floral scent. This variety is also rich in potassium, zinc, magnesium, vitamins, and other nutrients. Considering its rich aroma and nutrients, basmati rice has been a traditional kitchen staple. 

The Indian basmati rice market is already around INR 485.1 billion. By the end of 2030, the market is estimated to cross the INR 500 billion mark. As a result, there are growing numbers of basmati rice suppliers in India. 

Leading basmati rice market regions

The demand for aromatic basmati rice has been increasing steadily over the decades. Still, some regions have registered faster growth in the demand for this variety of rice. 

Based on the overall revenue generation, North America is the biggest region for the basmati rice market. The second place is Europe, where demand has been growing steadily. 

Asia-Pacific, South America, the Middle East, and Africa are responsible for consistently generating demands for basmati rice. 

Largest global manufacturer of basmati rice

There are many big players in the global basmati market. Most of these basmati manufacturers are from India. With the growing demand for basmati rice, many new players in this premium market are emerging. 

Jashn Foods is one of the leading basmati rice manufacturers in India and abroad. 

Factors driving the global Basmati Rice Industry growth

There are several reasons why global demand for basmati rice is increasing each year. Here are the major demand driving factors: 

Hotel, restaurant, and catering sector demand

One of the most significant contributing factors to the increasing demand for basmati rice is the hotel, restaurant, and catering sector. Known also by its popular acronym HoReCa, this hospital industry generates enormous demand for drinks, food, and lodging services.

The demand for basmati rice from hotels includes luxury hotels and hotel chains. Restaurant demand is especially for fine dining restaurants and casual cafes. Catering service broadly generates the demand from catering sectors for gatherings and events. Then, food stalls and many other food service businesses also boost the demand for rice.    

Big exports of basmati from India 

There has been a huge export of basmati rice from India, the leading basmati-producing nation. The number of basmati rice exporters in India has been increasing. The country has traditionally exported premium rice varieties and met ever-growing global demand. This has helped boost the basmati market overseas.

Convenience stores stocking basmati 

Convenience stores worldwide keep a heavy stock of basmati to meet demand consistently. The stores’ demand is also a leading factor in the growth of basmati rice market. Such big and small stores are fuelling the demand.  

Online purchasing

Another sector responsible for an increase in basmati demand is online purchasing. People today can buy things, including rice, online in just a few minutes thanks to fast or quick commerce model. With this becoming an easier way to shop, it also helps boost demand for the premium variety of rice. People use several on-demand grocery apps like Zepto, Blinkit, Big Basket, and more to order packs of basmati rice from their homes. Such ease of shopping has boosted the basmati market even farther.  

Demand from traditional grocery stores

Traditional grocery stores are known for their loyal customers. So, basmati buyers are always thronging their next-door grocery stores, steadily generating demand. These store owners sell a great quantity of rice variety, amongst other goods of daily use, to nearby consumers. 

So, it is clear from the above that the global and Indian basmati rice market size will increase further. The main reason for the market expansion is the rise in demand for this premium long-grain rice from different sectors.

Basmati rice traders and exporters can rely on Jashn Foods, one of India's leading sources of premium quality basmati rice. This brand is a prominent manufacturer, supplier, and exporter of high-quality basmati rice.

Wrapping Up

Basmati rice market size has been steadily growing over the decades, and it is estimated to reach up to $356 by 2030 end, a whopping increase from the last few years. The demand for food has been increasing in different food-related sectors.