Market Size of South America Rice Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 3.50 % |
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South America Rice Market Analysis
The South America rice market is estimated to record a CAGR of 3.5% during the forecast period.
- Rice is grown as a major staple crop in most countries of South America. The crop is cultivated in wet soils common in the lowlands of the region. The lowland rice expansion in the vast wetlands of Brazil (with a potential of 24 million hectares), the Andean countries (Bolivia, Ecuador, Peru, and Venezuela), and the River Plate Basin (Argentina, Paraguay, and Uruguay) would greatly influence the regional production of rice in the future. The tropical countries of the region account for the majority of demand.
- The Russia-Ukraine war had a negligible impact on the rice market because rice is not a staple in Russia and Ukraine. Therefore, there is no proportional price spike due to the invasion. However, the same is not the case for the price of other grains. The United Nations Food and Agriculture Organization's (UN-FAO) price index for cereal grains jumped 17.1% between February and March 2021, while the price index for rice remained stagnant, 10% lower than it was a year ago.
- Rice consumption is income elastic in the region, as consumers tend to increase consumption as their incomes rise. The yield in the region was 63,857 hg/ha in 2021, which increased compared to the previous year. Direct seeding and purchased inputs are used for cultivation across the region. Uruguay has gained the third-highest rice productivity in the world, with an average of 8 metric tons per hectare of dry paddy rice in the last 5 years. These factors are boosting the growth of the rice market in the region.
- Factors driving Brazil's transformation include agricultural research that has increased yields, expansion of the arable land base, significant investments in production technologies to develop crop and forage varieties, and increased global demand for food and animal feed, particularly over the last decade. These are anticipated to grow the market during the forecasting period.
