Market Trends of United States Rice Industry
Steady Increase in Production is Driving the Market
- Rice production in the United States is increasing steadily due to an increase in acreage under rice cultivation. The country normally specializes in a specific type of rice, referred to in the United States by the length of grain - long, medium, and short. US long-grain varieties are dry and separate, while US medium and short-grain varieties are moist, clingy, or sticky.
- In general, long-grain production accounts for around 75% of the US rice production, medium-grain production for about 24%, and short-grain for the remainder. Due to the pandemic, the United States produced 191.8 million hundredweight (cwt) of rough rice in 2021, a 16% decrease from the crop in 2020 but still significantly higher than in 2019.
- US long-grain rice production is concentrated in the South. Arkansas typically grows 56-58% of the US long-grain crop. California typically grows 70-76% of the crop, making it the primary producer of medium-grain rice. Although California is experiencing a drought, Arkansas produces a significant amount of medium grain, which sustains the rice market's growth.
- According to Food and Agriculture Organization (FAO), rice production in the United States was 10.3 million metric tons in 2020, which has declined to 8.6 million metric tons in 2021 due to the pandemic impact on the country. However, increasing production is due to increased acreage under rice cultivation, which accounts for 1.17 million hectares compared to 0.96 million hectares last year. Further, the constant increase in acreage under rice cultivation in the United States will boost productivity, which will drive the United States rice market during the forecast period.
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The United States Acts as the Major Exporter
- The United States is a consistent, timely supplier of high-quality rice in both the long- and combined medium- and short-grain global markets and accounts for less than 2% of global rice production. It ships almost 5% of global exports and is currently the fifth-largest exporter. Exports are thus important to the US rice industry, with around 45% of the crop currently exported each year.
- The United States rice is majorly shipped to more than 120 countries worldwide every year, making the United States the fifth largest exporter. And while US production is typically around 3 million acres, which tends to oscillate depending on several economic, weather, and regulatory factors. According to ITC Trade, the export value of rice in the country increased in 2022 compared to last year (USD 1.9 million in 2021), further encouraging the market to grow in the future.
- The major exporting partners for the US within the region are Mexico, Canada, and Haiti. The country exports rough rice, parboiled rice, brown rice, and fully milled rice. The regular imports of rice account for nearly 10% of the US food use of rice. According to International Trade Center (ITC) Trade, the quantity of rice exported from the United States amounted to 3.3 million metric tons in 2021, a slight increase compared to the previous year, with 3.2 million metric tons in 2020. Increasing the export of rice year over year will boost the United States rice market during the forecast period.
