Africa Rice Market Size

Africa Rice Market Analysis

The Africa Rice Market size is estimated at USD 13.74 billion in 2024, and is expected to reach USD 16.26 billion by 2029, growing at a CAGR of 3.41% during the forecast period (2024-2029).

The coronavirus outbreak caused serious implications for the production and trade of several commodities in the global market, particularly in Africa. The countries in Africa are heavily import-dependent, resulting in a lack of self-sufficiency. The introduction of trade restrictions caused disruptions in the supply of rice from countries in the global market. The reduced imports of rice to the country during the initial phase of COVID-19 impacted the retail and wholesale prices of rice in several countries like Nigeria, Cabo Verde, Cameroon, etc. The increased prices of commodities can be attributed to the lack of supply to satiate the domestic demand of consumers.Therefore, the rice market in Africa is negatively affected by the global pandemic.

Rice cultivation across the African region is mostly done by small holding farmers. Around one-tenth of the total production by large-scale firms and trading companies may be partially vertically integrated to ease the supply of rice in the market. The most important factor contributing to the shift in consumer preferences toward rice is rapid urbanization and associated changes in family occupational structure. As women enter the workforce, the opportunity cost of their time increases, and convenience foods like rice can be prepared more quickly, rising in importance.

Nigeria, Cote D'lvoire, Madagascar, Mali, and Tanzania are the major producers of rice in the region. The increasing domestic consumption is met by the imports while the suitable climatic advantage for rice cultivation is encouraging production. Revolutionary change in the preferences of West African consumers has created a wide and growing imbalance between regional rice supply and demand has accelerated the market for rice in the region. According to the ITC trade statistics, African rice imports accounted for USD 23,189.9 million in 2019 with Cote D'lvoire Benin and South Africa being the main importers. Thus, the market is anticipated to record steady growth during the forecast period.