According to the report by Expert Market Research (EMR), the GCC basmati rice market is projected to grow at a CAGR of 5.8% between 2024 and 2032. Aided by increasing consumer demand for premium quality rice and the rising popularity of traditional and ethnic cuisines across the Gulf Cooperation Council (GCC) countries, the market is expected to reach significant heights by 2032.
Basmati rice, known for its long grains, distinctive aroma, and superior texture, holds a premium position in the global rice market. In the GCC region, the consumption of basmati rice has surged due to the diverse demographic composition and the growing popularity of Indian, Pakistani, and Middle Eastern cuisines. The increasing purchasing power of consumers in the region has contributed to the higher demand for premium food products, further driving the basmati rice market. Additionally, the rise in urbanization, changing consumer preferences, and the growing trend of dining at home have also boosted the demand for basmati rice across the GCC.
The market has benefited significantly from the growing number of expatriates from South Asia in the GCC countries, especially in the United Arab Emirates (UAE) and Saudi Arabia, where rice is a staple food. This demographic shift has amplified the demand for basmati rice, particularly the aged and extra-long-grain varieties, which are preferred for their superior taste and cooking characteristics. Furthermore, the increasing number of restaurants and food service establishments offering traditional rice-based dishes has also contributed to the expansion of the basmati rice market in the GCC.
Get a Free Sample Report with a Table of Contents: https://www.expertmarketresearch.com/reports/gcc-basmati-rice-market/requestsample
Another factor fueling the growth of the GCC basmati rice market is the increasing awareness of the health benefits associated with basmati rice. Compared to other rice varieties, basmati rice has a lower glycemic index and is rich in nutrients, making it a healthier option for consumers. This has led to a rise in demand for basmati rice among health-conscious individuals, particularly as the GCC region witnesses a growing trend toward healthier eating habits.
The import of basmati rice into the GCC has also seen a boost due to favorable trade relations with India and Pakistan, the primary producers of basmati rice. The strategic geographic location of the GCC countries as a trade hub has facilitated the smooth flow of rice imports, ensuring the availability of a variety of basmati rice types in the market.
As per the market analysis, the growing retail presence of basmati rice, both in hypermarkets and online platforms, has further driven the market growth. Consumers in the GCC are increasingly opting for online grocery shopping, and the availability of different basmati rice brands on e-commerce platforms has contributed to higher sales. Furthermore, the strategic marketing efforts by leading rice brands, coupled with consumer engagement initiatives, have strengthened the market position of basmati rice in the region.
However, challenges such as fluctuating prices due to weather conditions in key producing countries, rising logistics costs, and import regulations may impact the market in the short term. To mitigate these risks, players in the basmati rice market are exploring options for developing more resilient supply chains and focusing on sustainability and transparency in sourcing.
Read Full Report with Table of Contents: https://www.expertmarketresearch.com/reports/gcc-basmati-rice-market
Looking ahead, the GCC basmati rice market is set for robust growth, with key players focusing on product innovation, sustainability, and enhancing consumer experience. The development of organic and fortified basmati rice, along with eco-friendly packaging solutions, is expected to appeal to the growing base of environmentally conscious consumers in the region. Furthermore, collaborations between rice exporters and local distributors will be essential in maintaining the supply chain efficiency and catering to the growing consumer demand for basmati rice in the GCC.
Market Segmentation
The market can be divided based on type, distribution channel, and country.
Market Breakup by Type
- White Basmati Rice
- Brown Basmati Rice
- Organic Basmati Rice
Market Breakup by Distribution Channel
- Off-Trade
- On-Trade
Market Breakup by Country
- Saudi Arabia
- United Arab Emirates
- Qatar
- Oman
- Kuwait
- Bahrain
Competitive Landscape
The GCC basmati rice market is characterized by a competitive landscape with several key players operating in the region. These companies are engaged in extensive marketing and branding strategies to strengthen their foothold in the market. The EMR report examines the market shares, capacities, investments, and strategic initiatives of the leading players in the GCC basmati rice market. Some of the major players explored in the report include:
- India Gate
- Daawat
- Tilda
- Royal
- Falcon
- Al Watania
- Al Adil Trading Co.
- Fortune Rice Ltd.
- Kohinoor Foods Ltd.
- Others
White Basmati Rice: Key Insights
White basmati rice remains the most popular type of basmati rice in the GCC due to its widespread use in traditional dishes such as biryanis, pulaos, and other regional rice-based meals. Consumers are drawn to its long, slender grains, fluffy texture, and characteristic aroma. This segment has witnessed robust demand, especially in countries like Saudi Arabia and the UAE, where rice consumption is part of the daily diet for a significant portion of the population.
Moreover, white basmati rice is preferred in the hospitality sector, with high-end restaurants and hotels using it to create gourmet rice dishes for consumers. The increasing popularity of home dining and catering services during festive seasons and family gatherings has further fueled the demand for white basmati rice.
Brown Basmati Rice: Growing Popularity Among Health-Conscious Consumers
Although white basmati rice dominates the market, the demand for brown basmati rice is rising steadily among health-conscious consumers. Brown basmati rice retains the outer bran layer, which provides additional fiber and nutrients compared to its white counterpart. This makes it a preferred choice for individuals seeking a healthier alternative without compromising on taste.
With the increasing focus on healthier eating habits in the GCC, brown basmati rice has gained popularity among consumers who are mindful of their carbohydrate intake and glycemic index. This trend is expected to continue as awareness of the health benefits of whole grains grows, supported by government initiatives promoting healthy lifestyles in the region.
Organic Basmati Rice: A Niche but Growing Market
The demand for organic basmati rice, while still niche, is growing as consumers become more conscious of food quality and production practices. Organic basmati rice, free from chemical pesticides and fertilizers, appeals to a segment of consumers looking for sustainable and ethically produced food products. The premium pricing of organic basmati rice is offset by its perceived health benefits and environmental sustainability, making it an attractive option for affluent consumers in the region.
Off-Trade Segment: The Dominant Distribution Channel
The off-trade segment, which includes supermarkets, hypermarkets, and grocery stores, dominates the GCC basmati rice market. Consumers in the GCC prefer purchasing rice from well-established retail outlets that offer a wide range of brands and packaging options. Supermarkets and hypermarkets such as Carrefour, Lulu Hypermarket, and Spinneys are key players in the distribution of basmati rice, offering both local and imported varieties to meet consumer demand.
The rise of online grocery shopping has also contributed to the growth of the off-trade segment. E-commerce platforms such as Amazon.ae, Noon.com, and Carrefour’s online store offer a convenient shopping experience, with consumers able to choose from a variety of basmati rice brands and receive home deliveries.
On-Trade Segment: Growing Demand from Restaurants and Catering Services
The on-trade segment, which includes restaurants, hotels, and catering services, plays a significant role in driving demand for basmati rice in the GCC. With the growth of the tourism and hospitality sectors in the region, particularly in the UAE and Qatar, the demand for premium basmati rice varieties has surged. Basmati rice is a staple in many dishes served in fine-dining establishments, and its use in catering services for large events and weddings further boosts the market.
Country Analysis
Saudi Arabia: Saudi Arabia is the largest market for basmati rice in the GCC, driven by the high consumption of rice in traditional dishes and the large expatriate population. The country imports a significant volume of basmati rice from India and Pakistan, and demand is expected to remain strong in the coming years.
United Arab Emirates: The UAE is a key market for basmati rice, with its multicultural population and thriving tourism industry contributing to high demand. The country’s strategic position as a trade hub also facilitates the import and re-export of basmati rice to other GCC countries.
Qatar, Oman, Kuwait, and Bahrain: These countries are also witnessing growth in basmati rice consumption, supported by increasing disposable incomes, changing consumer preferences, and the growing popularity of rice-based dishes in local cuisine.
The GCC basmati rice market is poised for substantial growth in the coming years, driven by rising consumer demand for premium rice varieties and the growing influence of traditional and ethnic cuisines. The market’s expansion will be further supported by the increasing availability of basmati rice in both offline and online retail channels, as well as the growing focus on health-conscious and environmentally sustainable food products.
Key players in the market are expected to focus on product innovation, sustainability, and enhancing their distribution networks to capture a larger share of the growing market. As consumer preferences continue to evolve, the demand for premium, organic, and healthier rice options is likely to shape the future of the GCC basmati rice market.