Thailand Rice Export Market Outlook to 2029

The report titled “Thailand Rice Export Market Outlook to 2029 – By Export Destinations, By Rice Varieties, By Key Producers, By Government Initiatives, By Trade Agreements, and By Global Competitors” provides a comprehensive analysis of the rice export market in Thailand. The report covers an overview and genesis of the industry, overall market size in terms of export volume and revenue, market segmentation; trends and developments, regulatory landscape, exporter profiling, issues and challenges, and comparative landscape including competition scenario, cross-country comparisons, opportunities, bottlenecks, and company profiling of major exporters in the Thailand Rice Market. The report concludes with future market projections based on export revenue, key export destinations, rice varieties, trade policies, and success case studies highlighting the major opportunities and cautions.

Thailand Rice Export Market Overview and Size

The Thailand rice export market reached a valuation of USD 6.3 Billion in 2023, driven by its position as one of the world’s top rice exporters, rising global demand for premium-quality rice, and government-backed initiatives to promote rice trade. Major players in the market include CP Intertrade Co., Charoen Pokphand Foods, Capital Rice Co., and Asia Golden Rice Co. These companies are recognized for their extensive supply chain networks, diverse rice varieties, and focus on quality and sustainability.

In 2023, Thailand's Ministry of Commerce introduced a program to enhance the competitiveness of rice exporters by providing subsidies for research and development, logistics improvements, and promotional activities in key markets. The Middle East, Africa, and ASEAN countries emerged as key export destinations, owing to their high demand for both premium and staple rice varieties.

Market Size for Thailand Rice Export Industry Based on Volume Sales in Tons, 2018–2024

What Factors Are Leading to the Growth of Thailand Rice Export Market?

• Economic Factors: The increasing global demand for premium-quality rice, particularly Thai Jasmine rice, has propelled export growth. In 2023, Jasmine rice alone contributed over 35% of Thailand’s total rice export revenue, driven by its popularity in high-income markets such as the United States, China, and the EU.

• Trade Agreements: Thailand has leveraged trade agreements such as the ASEAN Free Trade Area (AFTA) and bilateral agreements with the Middle East to enhance its export competitiveness. These agreements reduce tariff barriers, making Thai rice more attractive in price-sensitive markets.

• Sustainability Trends: Global trends towards sustainable and organic food production have opened up new opportunities for Thai rice exporters. Organic rice exports accounted for 12% of the total market share in 2023, with increasing demand from Europe and North America.

Which Industry Challenges Have Impacted the Growth for Thailand Rice Export Market?

• Price Volatility: The global rice market is highly susceptible to price fluctuations caused by changing weather patterns, supply chain disruptions, and geopolitical tensions. In 2023, Thailand experienced a 6% decline in export revenue due to falling global rice prices and increased competition from countries like India and Vietnam. This volatility affects the profitability of exporters and limits long-term growth potential.

• Climate Change and Water Scarcity: Unpredictable weather conditions and water scarcity have significantly impacted rice production in Thailand. Prolonged droughts in 2022 and 2023 led to a 10% drop in production volumes, causing supply shortages and delayed shipments. These challenges put pressure on farmers and exporters to adapt to more sustainable and resilient practices.

• Increasing Competition: Thailand faces stiff competition from emerging rice-exporting countries such as India, Vietnam, and Pakistan. These nations offer competitive pricing and diversified rice varieties, which have eroded Thailand's market share in key markets like Africa and the Middle East. In 2023, India accounted for over 40% of global rice exports, compared to Thailand's 15%.

What Are the Regulations and Initiatives That Have Governed the Market?

• Export Quality Standards: The Thai government enforces strict quality standards for rice exports to ensure competitiveness in global markets. These regulations cover factors such as grain size, moisture content, and pesticide residue. In 2023, approximately 92% of Thai rice exports passed international quality checks, reflecting the industry's high compliance levels.

• Subsidies for Sustainable Farming: To promote sustainable agriculture, the government introduced subsidies for farmers adopting eco-friendly practices, such as organic farming and water-saving irrigation methods. By 2023, these initiatives helped increase organic rice production by 25%, catering to the growing global demand for sustainable products.

• Bilateral Trade Agreements: Thailand has signed multiple bilateral trade agreements to reduce tariffs and increase market access. Notable agreements include partnerships with China, the ASEAN region, and Middle Eastern countries. These agreements helped boost exports to these regions by 7% in 2023, strengthening Thailand’s position in competitive markets.

Thailand Rice Export Market Segmentation

• By Export Destinations: Asian countries dominate Thailand's rice export market due to their close proximity and cultural preferences for Thai rice. China, Indonesia, and the Philippines are major importers, collectively accounting for approximately 55% of total rice exports in 2023. The Middle East, including Saudi Arabia and the UAE, is a significant market for premium rice varieties, while African countries such as Nigeria and South Africa are key consumers of broken and parboiled rice, valued for affordability. North America and Europe focus on premium and organic rice, with the premium segment capturing 20% of total export volume.

• By Rice Varieties: Jasmine rice leads the export market due to its unique aroma and high demand in premium markets like the US, China, and Europe, holding a 35% share of total rice exports. White rice is a staple for export to Asia and Africa, making up 40% of total exports due to its affordability. Parboiled rice, valued for its ease of cooking and long shelf life, holds 15% of the market share with strong demand from Africa and the Middle East. Organic rice is an emerging segment, representing 10% of total exports, driven by demand in the EU and US for sustainable and eco-friendly products.

• By Exporter Structure: Large exporters such as Asia Golden Rice Co. and CP Intertrade Co. dominate the market with a 65% share due to their robust logistics networks and partnerships with major international buyers. Medium-sized exporters focus on niche markets, such as organic rice, and contribute 25% of the market share. Small-scale exporters serve localized or emerging markets, holding the remaining 10%, with limited capacity but specialized offerings tailored to specific customer needs.

Competitive Landscape in Thailand Rice Export Market

The Thailand rice export market is moderately concentrated, with a few key players leading the industry. The presence of large-scale exporters such as Asia Golden Rice Co., CP Intertrade Co., Charoen Pokphand Foods, Capital Rice Co., and Thai Hua Co. ensures the country's position as a global rice export powerhouse. Emerging exporters focusing on organic and niche rice varieties have further diversified the competitive landscape.

Some of the recent competitor trends and key information about competitors include:

• Asia Golden Rice Co.: The company, Thailand’s largest rice exporter, recorded a 12% increase in export volumes in 2023, driven by strong demand from Middle Eastern and African countries. Its focus on maintaining high product quality and leveraging extensive supply chain networks has cemented its leadership position.

• CP Intertrade Co.: Known for its premium Jasmine rice exports, CP Intertrade reported a 20% growth in organic rice shipments to European markets in 2023. The company's initiatives to expand into sustainable rice production have been well-received globally.

• Charoen Pokphand Foods: As a diversified agribusiness, Charoen Pokphand Foods expanded its rice export operations, achieving a 15% increase in revenue in 2023. Its emphasis on integrating advanced technologies in milling and packaging has enhanced product quality and efficiency.

• Capital Rice Co.: Specializing in white and parboiled rice, Capital Rice Co. saw a 10% increase in export sales to African countries. Its partnerships with regional distributors have enabled the company to strengthen its presence in cost-sensitive markets.

• Thai Hua Co.: The company recorded a 25% surge in demand for its niche products, including black and red rice varieties, in 2023. Thai Hua’s investments in organic farming and sustainable practices have positioned it as a key player in premium rice segments.

What Lies Ahead for Thailand Rice Export Market?

The Thailand rice export market is projected to grow steadily by 2029, with a respectable CAGR during the forecast period. This growth will be driven by factors such as rising global demand for premium rice varieties, expanded trade agreements, and the adoption of sustainable agricultural practices.

• Expansion of Organic and Specialty Rice Segments: Growing global awareness of health and sustainability is expected to drive demand for Thai organic and specialty rice varieties. With the implementation of certification programs and government incentives for sustainable farming, organic rice is anticipated to capture a larger share of export markets, particularly in Europe and North America.

• Focus on Value-Added Products: The Thai rice industry is shifting towards producing value-added products such as rice-based snacks, fortified rice, and gluten-free rice flour. These products cater to niche markets and premium consumers, diversifying revenue streams for exporters and increasing the appeal of Thai rice in competitive markets.

• Increased Investment in Infrastructure and Technology: Advancements in milling, storage, and packaging technologies are expected to improve the quality and shelf life of exported rice. Additionally, logistics infrastructure investments will enhance efficiency, reducing costs and delivery times for exporters.

• Strengthening Trade Partnerships: The Thai government’s continued efforts to establish and strengthen trade agreements with regions like the Middle East, ASEAN, and Africa will ensure reduced tariffs and improved market access. These agreements are expected to secure Thailand’s position as a top global rice exporter.

Future Outlook and Projections for Thailand Rice Export Market Market on the Export Volume in Tons, 2024-2029

Thailand Rice Export Market Segmentation

• By Export Destinations:
  o Asia
  o Middle East
  o Africa
  o North America
  o Europe
  o South America
• By Rice Varieties:
  o Jasmine Rice (Hom Mali)
  o White Rice
  o Parboiled Rice
  o Broken Rice
  o Organic Rice
  o Specialty Rice (Black and Red Rice)
• By Exporter Structure:
  o Large Exporters
  o Medium Exporters
  o Small-Scale Exporters
• By Trade Agreements:
  o ASEAN Free Trade Area (AFTA)
  o Bilateral Trade Agreements with China
  o Trade Partnerships with Middle Eastern Countries
  o EU-Asia Trade Deals
• By Certification and Quality Standards:
  o Organic Certified Rice
  o ISO-Certified Mills
  o Phytosanitary-Compliant Rice
• By Price Categories:
  o Premium (Jasmine and Organic Rice)
  o Mid-Priced (White Rice)
  o Low-Cost (Broken and Parboiled Rice)

Players Mentioned in the Report:

• Asia Golden Rice Co., Ltd.
• Capital Rice Co., Ltd.
• Thai Rice and Food Co., Ltd.
• Wonnapob Co., Ltd.
• Ake Rice Mill Co., Ltd.
• Siam Golden Rice Co., Ltd.
• Ponglarp Co., Ltd.
• Thai Hua Co., Ltd.
• Chaiyaporn Rice Co., Ltd.
• Patum Rice Mill and Granary PLC

Key Target Audience:

• Rice Exporters
• Importers and Distributors
• Government Trade Bodies
• Agricultural Research and Development Institutions
• Logistics and Supply Chain Companies

Time Period:

• Historical Period: 2018-2023
• Base Year: 2024
• Forecast Period: 2024-2029