Mexico Rice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The Mexican rice market is projected to register a CAGR of 4.5% over the forecast period (2022-2027). During the pandemic, international export prices of rice in the first quarter of the year held an upward trend, mainly due to the accumulated stock of consumers and traders in different countries. Also, restrictions on rice exports affected the supply as Mexico depends on imports to meet the local demand. Further, to boost production, Mexico provided the agricultural sector with new credit funds with preferential interest rates.

In Mexico, the national demand for rice exceeds four times the consumption of the grain produced internally, which has caused growing volumes of imported rice. Long and thin-type rice is the one with the highest consumption. However, consumers value domestic rice more than imported rice. Per capita rice consumption in Mexico was recorded as 8.62 kgs, with a total consumption of 1.2 million metric ton, in 2018. One of the aspects that have defined the preference of consumers is the culinary quality of the rice, and as per industrialists, the industrial quality of the grain is a parameter to be taken into account. The United States is the major import partner for Mexico, importing more than 60% of its total import quantity. Other suppliers include neighboring South American countries.

Scope of the report

The Mexican rice market is segmented by production (volume), consumption (volume and value), import (volume and value), export (volume and value), and price trend analysis. The report offers the market size and forecast in terms of value in USD million and volume in metric ton for the above-mentioned segments.

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Key Market Trends

Increase in the Domestic Rice Production

A continuous increase in production has been noticed for the last few years at an average rate of 10000 - 15000 metric ton per year. The main reason for the increase in rice production every year is the support from the Mexican government and encouragement from the Mexican Rice Council. The Mexican government provides generous subsidies to rice farmers through price guarantees, input, and credit subsidies. In addition to direct support, the government also started import duties on rice to increase domestic production. The demand for rice is also one of the market drivers in Mexico.

The rice production in Mexico was recorded at nearly 0.3 million metric ton in 2020. Sinaloa, Campeche, and Veracruz are the major rice-producing states in Mexico, with more than 20% of the production share.

Further, the ministry is also providing a new support program to boost domestic rice production and its productivity to increase its market share in the Mexican market and provide an alternative crop to improve farmers’ income.

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