Market Trends of United States Rice Industry
Rising Production Levels to Cater to the Demand
Rice production in the United States is increasing steadily due to an expansion in acreage under rice cultivation. US long-grain rice production is concentrated in the South, with Arkansas typically growing 56-58% of the US long-grain crop. California is the primary producer of medium-grain rice, typically growing 70-76% of the crop. Despite California's drought conditions, Arkansas produces a significant amount of medium-grain rice, supporting the market's growth.
In 2023, US rice production reached 9.89 million metric tons, a 36% increase compared to 2022, according to USDA data. The harvested area expanded to 1.15 million hectares, a 32% increase over the previous year. This surge in output is attributed to favorable growing conditions, advanced farming techniques, and increased focus on rice cultivation.
After facing challenges in 2022 due to drought and other factors, US rice farmers rebounded, contributing significantly to both domestic food supply and export capacity. This boost in production ensures a steady supply for local markets and enhances the country's global rice export potential. Maintaining and expanding rice production in the United States will depend on continued innovation in farming techniques, climate resilience, and market adaptability. The ongoing increase in acreage under rice cultivation is expected to boost productivity, driving growth in the US rice market during the forecast period.
The United States is a 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 of rice worldwide. 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. The United States rice harvest is typically around 1.15 million hectares, 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 2023 to USD 2.01 billion compared to last year's USD 1.7 billion in 2022, 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. According to the International Trade Center (ITC), the quantity of rice exported from the United States amounted to 2.70 million metric tons in 2023, an 8.71% increase compared to the previous year, with 2.48 million metric tons in 2022.
