Australia Rice Market Size, Share and Growth Analysis Report: Forecast Trends and Outlook (2024-2032)

Australia Rice Market Trends 

The Australia rice market is well-known for its exceptional quality and offers a wide variety of types, such as Jasmine, Arborio, and long-grain rice. This quality and variety attract both domestic and international consumers. Additionally, strong export prospects, particularly in Asia and the Middle East, significantly boost the Australia rice industry revenue. In 2024, SunRice entered a trade agreement with key Asian nations, enhancing Australian rice exports and opening new markets, capitalizing on the rising demand for high-quality rice in Asia while reinforcing economic connections.

The Australia rice market benefits from the country’s favourable climate, especially in the Riverina region, which supports high rice yields. Cutting-edge agricultural technologies improve efficiency and production, while continuous research and development enhance crop resilience and pest control, ensuring a strong and sustainable rice industry that fuels rice demand. In 2023, the University of Sydney introduced a new rice variety that can withstand extreme weather, aimed at improving yield stability in the face of climate change and providing Australian farmers with a dependable crop option under varying environmental conditions.

Australia Rice Market Growth

The Australia rice market creates jobs in farming, processing, and distribution, strengthening economic stability in rural areas. By sustaining a strong market, it contributes to national food security through a steady supply. Furthermore, rice is a staple for many communities, highlighting its cultural importance in daily life, thus driving demand of the Australia rice market. In 2023, SunRice initiated a marketing campaign to showcase the health benefits of Australian rice, aiming to increase domestic consumption by informing consumers about the nutritional value and versatility of local rice products.

The Australia rice market thrives on its reputation for high quality, enhancing its standing internationally. The advanced processing sector guarantees efficiency and superior quality. Also, the research focused on creating climate-resilient rice varieties is one of the key trends of the Australia rice market. Additionally, growing consumer awareness of the benefits of locally sourced rice enhances its market appeal, fostering a more sustainable industry. In 2022, Rice Research Australia collaborated with AgriTech companies to create precision agriculture tools, allowing farmers to monitor crop health and optimize resources, leading to higher yields and a lower environmental footprint.

Australia Rice Market Insights

•    According to the FAO, Australia’s per capita rice consumption was 14.3 kg in 2021, reflecting a 5.60% increase compared to 2020.
•    As per Australia rice market report, cereal products, including rice, made up 8.29% of the total daily per capita weight of all products sold in 2020-21.
•    The ABS noted a substantial 8.5% increase in retail spending within the grocery sector in March 2020.
•    Long grain rice s expected to grow at a CAGR of 3.5% during the forecast period of 2024 and 2032.

Industry News

April 2023

Cambodia and Australia jointly announced the official launch of a new fragrant rice variety named Champei Sar 70 (CPS 70) to commemorate the 70th anniversary of diplomatic relations between the two countries. CPS 70 is a non-seasonal crop that matured in three months and is resistant to both floods and drought, allowing farmers to cultivate it two to three times a year.

July 2022

Black rice was harvested for the first time in Australia as demand for superfoods surged. The dark purple grain gained popularity due to its nutritional benefits. Australians consume approximately 3,000 tonnes of black rice annually.

Australia Rice Market Drivers

Sustainability Practices

The Australia rice market has experienced growth due to an increasing focus on sustainable farming practices. Farmers have started adopting methods like reduced pesticide usage, crop rotation, and water-efficient irrigation systems. This transition not only benefits environmental health but also aligns with consumer demand for sustainably produced food. Industry organizations are actively promoting these practices, encouraging farmers to implement techniques that improve soil health and lower carbon footprints. This trend in the Australia rice market is likely to drive innovation and create a more resilient agricultural sector, appealing to environmentally conscious consumers both domestically and internationally. In November 2022, an Aus-Viet partnership was established to enhance breeding efficiencies for disease resistance in rice using Australian genetic material.

Technological Advancements

The Australia rice market has been reshaped by the integration of technology in farming. Precision agriculture tools, such as drones and soil sensors, have been adopted to improve crop management and increase yields. These technologies allow farmers to monitor crop health in real-time, optimise resource use, and enhance efficiency. Furthermore, advancements in processing technology have improved the quality of rice products and minimised waste. The Australia rice market dynamics and trends are being influenced by a shift toward digitization and automation, which not only increases productivity but also draws in younger farmers, fostering a tech-savvy approach to conventional farming methods. Rice Research Australia Pty Ltd (RRAPL), a subsidiary of SunRice, has collaborated with partners like the NSW Department of Primary Industries to conduct varietal and agronomic research. Advanced technologies, including GPS, precision farming, CAD, laser landforming, and GIS, have improved irrigation efficiency and crop management.

Opportunities in the Australia Rice Market

Consumer Awareness and Demand

The Australia rice market is experiencing growth due to a significant increase in consumer awareness about food sources and nutritional quality. Consumers are actively seeking high-quality, locally sourced rice, driving the rice demand both at home and abroad. Marketing efforts that emphasize the health benefits and versatility of Australian rice are reinforcing this trend. Additionally, the rise of plant-based diets is boosting rice consumption as a staple ingredient. Consequently, rice producers are concentrating on branding and consumer education to leverage this increasing demand. Industry reports indicate that Australia produces enough rice to feed nearly 20 million people daily, ranking as the third largest cereal grain exporter and serving about 60 international markets, including those in the Middle East and Asia.

Market Restraints

The Australia rice market faces several key restraints. Water scarcity and climate change threaten crop yields due to unpredictable weather and limited water resources. Labor shortages complicate seasonal planting and harvesting, while competition from cheaper imports pressures prices and profit margins. Stringent regulations increase operational costs, and pest pressures necessitate ongoing research.

Additionally, shifts in consumer preferences toward alternative grains can reduce rice demand. Supply chain disruptions from global events can hinder production, and market access barriers limit export opportunities. Finally, inadequate funding for agricultural research constrains innovation, affecting the industry's ability to adapt to challenges.

Australia Rice Industry Segmentation

“Australia Rice Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Red Rice
• Rosematta Rice
• Brown Rice
• Arborio Rice
• Black Rice
• Sushi Rice
• Others

Market Breakup by Size

• Long Grain Rice
• Medium Grain Rice
• Short Grain Rice

Market Breakup by Application

• Food
• Feed

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online
• Others

Market Breakup by Region 

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Rice Market Share 

By Type Analysis 

The Australia rice market is thriving as red rice provides notable health benefits, being rich in antioxidants, vitamins, and minerals that appeal to health-conscious consumers. Its high fibre content aids digestion and supports heart health. Moreover, its culinary versatility enables its use in various dishes, increasing demand within the market. Growing consumer interest in whole and organic foods further enhances its popularity, creating several opportunities in Australia rice market for farmers. Additionally, red rice cultivation encourages sustainable farming practices due to its adaptability to different environments, reducing chemical reliance. Its cultural significance resonates with diverse communities, broadening its market reach. Red rice is a native plant found in Western Australia, Northern Territory, and Queensland.

The Australia rice market is thriving as Rosematta rice is prized for its unique nutty flavour and distinct aroma, enhancing culinary experiences, and appealing to gourmet chefs and food lovers. Like red rice, it offers substantial nutritional benefits, being rich in fibre and nutrients that promote health and digestion, attracting health-conscious consumers. By offering Rosematta rice, Australian producers can distinguish their products in a competitive market while catering to the demand for authentic varieties among ethnic communities. Its sustainable cultivation practices also resonate with environmentally aware consumers, contributing to the growth of the Australia rice market. Rosematta rice, also known as Kerala Matta rice, is available from various retailers in Australia, including Bigtrolley Groceries, which offers brands like Kottackal and Double Horse, and Amazon.com.au, featuring nalAmudhu Rose Matta Rice.

By Application Insights

The Australia rice food market thrives due to the essential role rice plays in food application, which provides a range of benefits. Food segment is expected to grow at a CAGR of 3.4% between 2024 and 2032. As a staple, it is rich in carbohydrates and essential nutrients, with varieties like brown and red rice offering additional health benefits. Its versatility in cooking allows it to be incorporated into various dishes, attracting a wide audience. Moreover, focusing on local sourcing supports domestic agriculture and minimizes environmental impact, while its cultural importance encourages community involvement, driving the growth of the Australia rice market. In 2023, LT Foods' ‘DAAWAT®’ Basmati rice was recognized as the ‘Top Brand’ in Canstar Blue’s ratings for dry rice in Australia, a consumer review platform that helps Australians make informed choices. DAWAT® offers a variety of dry rice, primarily emphasizing aromatic basmati, catering to both Australian and South Asian markets.

The Australia food market also benefits from rice as a cost-effective feed for livestock, providing high energy content that is crucial for animal nutrition. Utilizing feed rice minimizes waste from rice production and encourages sustainable practices. It is rich in essential nutrients that support livestock growth and health, benefiting the agricultural sector. By diversifying product offerings, feed rice helps stabilize farmers' incomes during market fluctuations. Overall, its use strengthens the animal husbandry sector, contributing to food security and promoting economic growth within the agricultural industry. As of 2024, Australia’s livestock population has reached 26 million, according to the latest data from the Australian Bureau of Statistics, due to its high digestibility and nutritional profile, which enhance growth and production in animals.

Australia Rice Market Regional Insights

New South Wales Rice Market Regional Insights

New South Wales, particularly the Riverina area, offers optimal conditions for rice cultivation, enhancing local economies through job creation and utilizing innovative water management to address drought challenges. New South Wales is expected to grow at a CAGR of 3.5% between 2024 and 2032. A substantial increase in water allocations from the Department of Regional NSW has significantly contributed to agricultural production, positively impacting the Australia rice market. This policy adjustment, combined with the increased allocations, resulted in an impressive 962% year-on-year growth in planted area, expanding to 45,000 hectares.

Queensland Rice Market Trends

Queensland is expected to grow at 3.2% CAGR during the forecast period. Queensland's rice by-products serve as high-quality feed for livestock, promoting sustainability by reducing waste, while the rice feed market bolsters local economies through job creation in production, processing, and distribution. With around 13.2 million beef cattle, Queensland is vital to Australia's livestock sector, possessing the largest herd in the nation, as reported by the Australian Bureau of Statistics for 2023. The state significantly contributes to beef production, offering premium beef for both domestic and export markets, aided by varied climates and grazing practices that drive demand for feed rice.

Western Australia Rice Market Dynamics

The Western Australia rice market enhances the agricultural economy by delivering high-quality production, generating jobs in farming and processing, and employing sustainable practices that support environmental stewardship and resource management. Western Australia is expected to grow at 3% CAGR during the forecast period. Rice is primarily grown in the Ord River Irrigation Area (ORIA) in the East Kimberley, an ideal location for cultivation due to its warm climate, suitable soil types, and availability of irrigation water.

Competitive Landscape

The key players in the rice industry are committed to supplying high-quality rice products for both consumers and businesses. Emphasising sustainable sourcing and eco-friendly practices, these companies ensure their rice is cultivated with attention to detail. They offer a wide variety of rice types, including long-grain, short-grain, and speciality options, to meet diverse culinary needs. Dedicated to quality and innovation, they work closely with local farmers and use advanced processing methods to preserve the integrity and flavour of their products, aiming to satisfy the increasing demand for nutritious and flavorful rice.

Key Industry Players

Taj Foods Australia: Established in 1995 and headquartered in Sydney, Taj Foods Australia specializes in high-quality rice products tailored to diverse culinary needs. The company prioritizes sourcing premium ingredients and delivering authentic flavours, making it a favoured choice among consumers seeking quality and taste in their rice dishes.

Ricegrowers Limited (SunRice): Founded in 1950 and based in Leeton, Ricegrowers Limited, known as SunRice, is a leading rice producer and exporter in Australia. Committed to sustainable farming practices, the company offers a broad range of rice products, ensuring high quality and freshness for both domestic and international markets.

Natural Rice Co.: Established in 2010 and headquartered in Melbourne, focuses on organic and naturally sourced rice products, emphasizing health and sustainability. The company is dedicated to environmentally friendly practices and caters to health-conscious consumers, aiming to provide nutritious options within the rice market.

International Rice & Products Pty Ltd.: Established in 2005 and located in Brisbane, International Rice & Products Pty Ltd. specialises in the import and distribution of a wide variety of rice products. The company emphasizes quality and customer satisfaction, serving both local and international markets with a diverse selection of rice offerings.

Other key players in the Australia rice market report include The Rice Company, among others.

Recent Developments

September 2023

Taj Foods Australia has launched a range of speciality rice varieties, including jasmine and basmati. This initiative targets culinary enthusiasts looking for diverse flavours and high-quality ingredients, highlighting Taj Foods' commitment to offering authentic and premium rice products to Australian consumers.

August 2023

Natural Rice Co. has introduced a new line of organic rice products designed for health-conscious consumers. This launch underscores the company’s commitment to sustainability and nutrition, featuring certified organic options that meet the increasing demand for wholesome, eco-friendly food choices in Australia.