The North American rice market is projected to witness a CAGR of 2.4% during the forecast period (2020-2025).
- The United States is the major market for rice in North America, followed by Mexico and Canada. Arkansas Grand Prairie, Mississippi Delta, Gulf Coast, and Sacramento Valley of California are the major rice-producing areas in the United States. According to FAO, rice production in the United States was 10.1 million metric ton in 2018.
- Mexico is the second largest rice market in the region, with 283.8 thousand metric ton of rice production in 2018. Around 17 states in the country produce rice, with Sinaloa, Campeche, and Veracruz being the major rice producing states in Mexico. These states contribute to almost 20 % of the country's rice production.
Key Market Trends
The United States is a Major Producer
The United States is the major producer of rice in North America. Arkansas Grand Prairie, Mississippi Delta, Gulf Coast and Sacramento Valley of California are the major rice-producing areas in the United States. According to FAO, rice production in the United States was 10,167.0 thousand metric ton in 2016, which has increased to 10,170.0 thousand metric ton in 2018. Long grain, medium grain, and short-grain are the three major types of rice varieties produced in the country. According to USDA, long-grain accounted for 70% of the production, whereas medium and short-grain varieties accounted for 26% and 4%, respectively, in 2017. Arkansan is the major producer of long grain rice, whereas California is the major producer of medium-grain rice.
Increasing Exports of United States
According to UN Comtrade, exports of husked rice by the United States were 206.3 thousand metric ton in 2016, which increased to 216.8 thousand metric ton in 2019. Korea, Taiwan, Canada, and Mexico are the major importers of rice from the United States in 2019, accounting for 57.4%, 15.0%, 13.4%, and 4.6%, respectively, in terms of volume. Promotional activities in Mexico and various international agreements between the United States and other countries, including Korea, Taiwan, and Nicaragua, were the major reasons for the boost in the export of rice in 2019. For instance, in 2019, the promotional activities and trade visits to Mexico boosted rice import from the United States by 15%.
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