DUBLIN, July 21, 2021--(BUSINESS WIRE)--The "Africa Rice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The market for rice in Africa is projected to register a CAGR of 3.2% during the forecast period of 2021-2026.
The coronavirus outbreak caused serious implications on the production and trade of several commodities in the global market, particularly in Africa. The countries in Africa are heavily import-dependent, resulting in a lack of self-sufficiency. The introduction of trade restrictions caused disruptions in the supply of rice from countries in the global market.
The reduced imports of rice to the country during the initial phase of COVID-19 impacted the retail and wholesale prices of rice in several countries like Nigeria, Cabo Verde, Cameroon, etc. The increased prices of commodities can be attributed to the lack of supply to satiate the domestic demand of consumers. Therefore, the rice market in Africa is negatively affected by the global pandemic.
Rice cultivation across the African region is mostly done by small holding farmers. Around one-tenth of the total production by large-scale firms and trading companies may be partially vertically integrated to ease the supply of rice in the market. The most important factor contributing to the shift in consumer preferences toward rice is rapid urbanization and associated changes in family occupational structure. As women enter the workforce, the opportunity cost of their time increases, and convenience foods like rice can be prepared more quickly, rise in importance.
Nigeria, Egypt Madagascar, Mali, and Tanzania are the major producers of rice in the region. The increasing domestic consumption is met from the imports while the suitable climatic advantage for rice cultivation is encouraging production. Thus, the market is anticipated to record steady growth during the forecast period.
Key Market Trends
Increased Production Potential In The Region
Most of the African countries are heavily dependent on imports to satiate the growing demands for rice among consumers. However, with the introduction of focused cultivation of rice through several studies, domestic production has increased during the study period.
With consistent low levels of productivity across the region, the analytical work of the Global Agro-ecological Zones (GAEZ) was developed by the International Institute for Applied Systems Analysis (IIASA) to prepare maps of land suitability for rice production in the African region. This enabled the identification of appropriate land for the cultivation of rice, which has steered the production of rice.
The high production volume can be attributed to the favorable climatic conditions in the region characterized by humid and sub-humid continuum environments, rainfed lowlands, and deep water/floating rice environments. Though the natural conditions are affirmative to the growth of the market, investments are improved by farmers toward artificial irrigation as well. Millers engage in contract farming activities with smallholder farmers to source paddy.
This has provided farmers with a stable source of income from millers and enhanced the production of rice in the region. The adoption of new practices in agriculture in the African region boosting the domestic supply is anticipated to drive the growth of the rice market in the region.
Egypt is leading the Consumption Demand
The demand for rice, as a staple food production has increased in the country owing to the rising demand by middle-income class consumers. The changing preferences by consumers can be attributed to the shifting occupational structure, accelerated by the high rate of urbanization.
Domestic rice consumption has been witnessing an upward trend over the years, due to elevating population growth. Rice has become a major part of the diet among consumers, and is used in many cuisines in restaurants and at home as well owing to its convenience in preparation and palatable recipes. The long shelf life of rice when stored inappropriate climatic conditions have also attracted consumers in the region.
The consumption of rice in Egypt has increased during the study period from 2016-2020. This can be attributed to the growing population in the countries and changing preferences of consumers. The increased consumption is anticipated to drive the demand and to satiate the growing demands of consumers,
For more information about this report visit https://www.researchandmarkets.com/r/m4ola
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Laura Wood, Senior Press Manager
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