Market Size of United States 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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US Rice Market Analysis
The United States rice market is estimated to register a CAGR of 3.5% during the forecast period.
- In the United States, areas under rice cultivation increased rapidly over time due to increased long-grain rice production. The grain types grown across the United States include long, medium, and short grain. However, long-grain types and hybrids are more common in southern states, whereas medium-grain types are more common in California.The major rice-producing areas include Arkansas, Mississippi, Missouri, Texas, California, and Louisiana, accounting for 1.17 hectares of land under rice cultivation.
- The US rice industry has made impressive progress. The US rice industry has improved land use efficiency by 39%, reduced soil erosion by 28%, and decreased water use by 52%. It has also reduced energy use by 34% while cutting greenhouse gas emissions by 41%. And as part of its commitment to continuous improvement, it has set ambitious targets for 2030 to maintain and improve it for the next generation.
- Meanwhile, US farmers were looking for crops with promises of larger margins. They reported to the United States Department of Agriculture (USDA) that they intended to plant 3% fewer rice acres in 2022 than in 2021. Except there was one problem. Most of the surveys were completed before the impacts of Russia's invasion of Ukraine were realized. They were also carried out before California, the second-largest rice-producing state, had completed 2022 water allocations - affecting United States' food supply. However, the US legislators established a fair farm safety net to assist farmers during their most difficult years of production, which will support the market over the coming years.
- The factors driving the market demand are government support in the production of rice, growing demand for rice for numerous uses, an increasing number of rice processing companies, and rising exports to regions like Mexico, Northeast Asia, Central America, the Caribbean, Canada, the Middle East, the European Union, and Sub-Saharan Africa. These factors will boost the growth of the market during the forecasting period.
