Americans Are Eating More Rice

Food Consumption Americans Are Eating More Rice

Nathan Childs (202) 219-0840

lthough rice has not histori Growth in use will likely be Use Soars, Diversifies Acally been a major item in strongest among processed prod Since the Late 1970's the American diet, U.S. con ucts-specifically packaged rice sumption is on the rise and is ex mixes-as demand for prepared During the 1970's, total U.S. rice pected to continue increasing foods continues to grow. Use of consumption (including imports, during the rest of the 1990's. rice in pet food should continue to which were minute during that pe Continuing to move rice away expand, as premium high-quality riod) grew 27 percent. But in the from merely side-dish status at lines see greater sales as the econ 1980's, consumption rose 76 per meals will be the fast-growing omy picks up. Growth will also cent. Per capita consumption, in Asian-American and Hispanic likely remain strong for certain spe cluding brewers' use, was nearly American populations, improved cialty rices, such as brown rice, as 22 pounds in 1991--double the health awareness among consum consumers demand fiber-rich amount in 1975. If present growth ers coupled with a perception of foods. rates continue, per capita use rice as a healthy food, greater con venience in preparing rice, tasti ness of rice with many entrees, a large variety of prepared rice dishes and flavored mixes avail able, a greater number of restau rants serving rice dishes, and adaptation of rice by-products (such as brokens, rice bran, and rice-bran oil) to new consumer uses. Prior to the 1989 /90 market year for rice, more rice was exported -I' from the United States than was eaten or used in beer by Americans each year. In the 1990's, however, U.S. rice exports have shown little long-term growth, and domestic use has exceeded exports. Today, domestic consumption is outpac ing population growth, leading to continued growth in per capita use.

The author is an agricultural economist with the U.S. consump#on of rice Is on the rise and Is expected to continue Increasing during Commodity Economics Division, Economic Re the rest of the 1990 's. If present growth rates continue, per capita use should be at least search Service, USDA. 25 pounds by 1995. Food Consumption

should be at least 25 pounds by tion as a whole. Some consumer Specialty Rices Have 1995. surveys indicate that, in certain lo Become More Popular U.S. rice consumption is divided calities, Asian-Americans eat up to into three categories: direct food 150 pounds of rice a year, com Direct food use of rice expanded use, processed food, and beer. Di pared with the national average of faster in the 1980's and early 1990's rect food use is the largest category around 18 pounds. Currently the than during the previous 15 years. and includes regular milled white fastest growing ethnic group in the And, consumption of domestically rice as well as specialty rices, such United States, Asian-Americans grown specialty rice has risen at a as parboiled, precooked, pre have contributed to the increasing faster pace than regular milled cooked-parboiled, precooked-par per capita rice consumption. white rice. boiled brown rice, brown rice, and Asian-Americans accounted for Domestic specialty rices' share aromatic rice (see box). 43 percent (2.48 million people) of of direct food use rose from 18 per The share of the domestic rice total immigration into the United cent, or 3.4 million hundredweight market going to direct food use has States from 1981 to 1989. The num (cwt) in 1980/81, to about 21 per averaged almost 59 percent during ber of Asian-Americans in the cent (6 million cwt) in 1990/91. the last decade, while that going to United States doubled in the These figures would be even processed food has expanded from 1980's, rising from 1.6 percent of higher if they included imported 14 to over 21 percent. Brewers' the population in 1980 to about 3 specialty rices and specialty rices share has declined from 25 to un percent in 1990. used in processed foods. Such im der 20 percent. Hispanic-Americans are the Na ports, which came to almost 3.5 mil tion's second fastest growing popu lion cwt (milled basis) in 1990/91, have been expanding. Trend Will Likely lation group, increasing 53 percent during the 1980's. Hispanic-Ameri Growth over the last decade has Continue With Changing cans accounted for 9 percent of the been strongest for brown rice and Ethnic Mix total U.S. population in 1990. parboiled (including precooked As the number of Americans African-Americans also eat parboiled) rice. These two specialty rices are perceived as nutritious, who eat rice as a primary staple in more rice per capita than the na their diet increases, direct food use tional average, and their numbers rich in vitamins and minerals, an aid to good health, and good could expand in the 1990's at a are growing faster than the popula sources of fiber. greater pace than during the tion as a whole. The African-Ameri can population expanded 13.2 1980's. Parboiled Asian-Americans and Hispanic percent between 1980 and 1990, to constitute 12.1 percent of the Na Parboiled rice is soaked as Americans consume more rice per tion. rough rice in water, drained, and person than does the U.S. popula- then heated, typically by steaming. In this process, nutrients that would normally be lost during mill ing are retained in the kernel of the Figure l rice. All parboiled rice is southern U.S. Rice Consumption Has Soared Since the Late 1970's long grain. Parboiled rice has supe Million cwt rior milling qualities-fewer ker 60 nels are broken in the process Beer1 compared with regular milled white rice. Processed food Although it takes more time, Direct parboiled rice is also easier to cook 30 food use2 l than regular milled white rice, dis integrates less during cooking, re mains better separated, and sticks together less. Parboiled rice retains its shape, texture, and taste longer 0 1966/67 1980/81 1990/91 after cooking than does regular Marketing year milled white rice. These are impor tant properties for restaurants that 2 'Treasury Department data. 1ncludes imports, specialty rices, and regular milled white rices. place food under heat lamps or in

FoodReview 20 Food Consumption

Separating the Different Types of Rice

Aromatic Rice be eaten as is, or may be milled Rice oil is extracted from rice These scented rices include into regular-milled white rice. bran. basmati and jasmine rice. Cooked brown rice has a slightly Basmati rice has a distinctive chewy texture and a nutty flavor. Rough Rice odor when cooked, has a desir- The light brown color is caused Also called paddy rice, is har- able taste, doubles its grain by the presence of seven bran lay- vested, whole-kernel rice with length, and the grains remain ers, which are very rich in miner- the hull remaining. Rough rice is completely separate. Basmati rice als and vitamins-especially the sold to mills for dehulling and is grown mostly in the Punjab B-complex group. polishing. area of central Pakistan and northern India, and is mainly Head Rice Second Heads bought by higher income Middle Whole kernels of milled rice. Fragments of grains broken Eastern countries and the United The kernel must be at least three- during milling, which are at least States. Basmati rice is sold at fourths the length of a whole ker- one-half as long as whole kernel prices roughly double those for nel. but less than three-fourths. This long-grain rice. is the largest size of broken rice. Parboiled Rice Also includes jasmine rice, Rough rice soaked in warm Grain Sizes which is a fragrant rice preferred water under pressure, steamed, Rice in the United States is pro- by much of the Asian community and dried before milling. Par- duced and marketed according in the United States. Jasmine boiled rice cooks up fluffier and to three Government-established rices cook soft, moist, and clingy. sticks together less than does grain size and shape types-long, Almost all jasmine rice imports regular milled white rice. Desired medium, and short. The length/ are from Thailand. by consumers who like a chewy width ratio is 3.0 or more for and wholesome taste, but takes long-grain rice, 2.0-2.9 for me- Brewers' Rice longer to cook than regular dium-grain rice, and 1.9 and be- The smallest size of broken milled white rice. low for short-grain rice. rice fragments. Used in making Long-grain rice accounts for pet foods and as a source of car- Precooked Rice bohydrates in brewing. about 70 percent of U.S. rice pro- Rice that has been cooked and duction, medium-grain almost 30 dehydrated after milling. This re- Brokens percent, and short-grain less than duces the time required for cook- 1 percent. Most long-grain rice in Kernels of rice that are less ing. Includes quick-cooking rices, than three-fourths of the length the United States is grown in the instant rices, and boil-in-the-bag southern producing area (Arkan- of the whole kernels. Brokens are rices. used in beer, processed foods, sas, Louisiana, Mississippi, Mis- and pet foods. souri, and Texas). Over half of all Rice Bran medium-grain rice comes from The outer cuticle layers and Brown Rice California, with Arkansas and germ directly beneath the hull. Louisiana providing most of the Whole or broken kernels of This is removed during the mill- rice from which only the hull has remainder. Almost all short-grain ing process. Rice bran is rich in rice is produced in California. l been removed. Brown rice may protein and natural B-vitamins.

microwaves, as well as for use in showed the only growth in this 1 million cwt in 1980/81 to about canned soups and frozen dinners. product category since 1988/89. 870,000 cwt in 1990/91. Once pre Total consumption of parboiled cooked, the rice may have an infe rice (including precooked- par Precooked rior taste and texture compared boiled rice) increased from 2 mil Consumption of precooked with regular milled white rice. Due lion cwt in 1980/81 to 4.2 million in regular milled white rice (includ to improved quality, precooked 1990/91. Precooked-parboiled rice ing instant) has dropped from over parboiled rice has replaced some

May -1~ust 1993 Food Consumption

Figure 2 years, due to its taste and stability. The Rising Popularity of Parboiled and Brown Rice Pushes Up It is used in Japan in rice cookies, Consumption of Specialty Rices potato chips, and in household cooking oil. Million cwt 6 Precooked Aromatic parboiled Aromatic rices produced domes Brown rice1 tically remain a very small portion Precooked of total specialty rice consumption, accounting for under 100,000 cwt 3 in 1990/91. These sell at prices 2 to 3 times higher than regular milled white rice. However, use of domes tic aromatic rice has grown much faster than total rice-virtually dou 0 bling from 1988/89 to 1990/91. 1971 /72 1980/81 1990/91 Many industry participants believe Marketing year this product category has contin Note: Precooked-parboiled rice was not included in the survey questionnaire until 1986/87 . ued to expand. 'Includes brown rice used in processed foods in 1990/ 91 . And, if current efforts by U.S. re searchers are successful in develop ing domestic aromatic varieties capable of competing with im sales of precooked rice. Sales of pre Most rice bran is used in live ported aromatic rice, this product cooked-parboiled rice, with its su stock feed rather than for human category could expand substan perior taste and cooking qualities, use, because the removal of the tially. have expanded from 72,000 cwt in bran layer from the grain causes About 90 percent of imported 1986/87, to over 800,000 cwt in the oil in the bran to tum rancid specialty rices is jasmine, and the 1990/91. Boil-in-the-bag types of very quickly. Rice bran can be stabi remainder is mostly basmati. Im precooked rices account for some lized to prevent rancidity by com ported jasmine rices are mostly of the precooked market. mercially heating the bran in an purchased by recent immigrants extrusion cooker. from Asia. Sales of these rices have Brown Rice Some recent studies have shown risen each year since 1980/81, and Consumption of brown rice ex that rice bran oil, which is found in will continue expanding as this eth panded from 375,000 cwt in rice bran, can lower cholesterol in nic group grows. Most jasmine 1980/81 to 808,000 in 1990/91. humans. Rice bran oil may be able rices are imported from Thailand; Brown rice retains the bran layer to be used in place of vegetable and most basmati rice comes from that is removed during the com oils, but U.S. supplies are small Pakistan and India. plete milling process, thus contain and most is imported from Japan. ing more fiber and nutritional This market could expand signifi qualities. cantly in the future if evidence re Processed Food Use This factor explains much of the lating lower cholesterol with Shows Fastest Growth growth in sales during the 1980's. consumption of rice oil is substanti Processed food is the fastest Consumption of brown rice could ated. growing market for U.S. rice. From grow faster if research is successful Riceland Foods, Inc., headquar 1980/81 to 1990/91, this use of rice in extending its shelf-life without tered in Stuttgart, Arkansas, re expanded from 4.5 million cwt to changing the texture or appear cently joined with two Japanese 12.2 million cwt. Processed foods' ance. firms to extract, refine, and market share of U.S. rice consumption has rice bran oil in the United States. grown from about 14 percent in Rice Bran The new facilities to extract and 1980/81 to nearly 22 percent in Rice bran is a good source of die process oil are scheduled to begin 1990/91. tary fiber, with many health bene operations during the summer of Package mixes and pet foods fits. Some rice bran cereals are on 1994. have been the fastest growing proc the market, but these account for a Rice bran oil has been viewed as essed markets for rice in L'-le 1990's. very small portion of rice cereals. a superior oil in Japan for many These two products together ex-

Food Review 22 Food Consumption

Table 1 Package Mixes and Pet Foods Are the Fastest Growing Processed Rice Products

Market Baby Package Pet Rice Frozen year Cereal Soup food mixes food cakes Candy dinners Total' 1,000cwt

1971/72 2,102 646 141 421 3.455 1972/73 2,372 367 150 210 3,174 1973/74 2,789 103 117 151 3.414 1974/75 1,837 210 124 227 2,507 1975/ 76 1,921 106 145 331 2,849 1978/ 79 2,090 157 157 1,096 3,7 17

1980/ 81 2,588 147 133 1,366 4.491 1982/ 83 2,503 176 152 221 3,342 1984/ 85 3,577 241 316 567 5.438 1986/ 87 4,800 76 233 1,505 426 288 147 61 7,630 1988/ 89 3,937 119 172 1,705 1,338 707 220 89 8,621

1990/91 4,415 117 445 3,172 2,065 411 105 240 12,194

Note: - Product not included in survey questionnaire. 'Includes rice not included in any specific category.

panded over 2 million cwt between Packaged Mixes head rice. Pet foods also use small 1988/89 and 1990/91, accounting Use in packaged mixes, some amounts of rice flour. for the bulk of the nearly 3-million times called flavored rice mixes, cwt growth in food use during that has continued to expand since the Baby Food time. Use in baby food and frozen early 1980's, growing from under A traditional processed food use dinners also experienced strong 400,000 cwt in 1984/85 to almost of rice, baby foods, began to signifi growth, but the volume expansion 3.2 million cwt by the early 1990's. cantly expand in the early 1990's af was less due to their smaller Variety, ease in cooking, desirable ter two decades of stagnant sales. amounts. taste, and ability to quickly add In 1990/91, baby foods used new flavors to product lines have around 445,00 cwt of rice-mostly Cereal contributed to growth. Almost all rice flour-a record high, more Cereal, the major processed rice used in package mixes is high than twice the amount 2 years ear product for rice, accounted for quality, southern long-grain. In ad lier. Baby foods are the largest user over 35 percent of all rice used in dition to regular milled white rice, of rice flour. Rice-based baby foods processed food in 1990/91. Me packaged mixes also use small are an important substitute for chil dium- and short-grain rice account amounts of brown rice, fried rice, dren who are allergic to wheat. for most of the rice used in cereal. and parboiled rice. Rice cereals are mainly the ready Rice Cakes to-eat type, including rice flakes, Pet Food The amount of rice used in rice puffed rice, shredded-rice, and sev Use of rice in pet foods (mostly cakes climbed from 288,000 cwt in eral multigrain cereals. for dogs) jumped from 426,000 cwt 1986/87 to about 411,000 cwt in Although almost stagnant dur in 1986/87 to over 2 million cwt in 1990/91. First introduced to U.S. ing the late 1960's and 1970's, rice 1990/91. Many industry partici consumers in the mid-1980' s, rice use in cereal expanded rapidly pants believe this market for rice cakes are a nutritious snack and through the middle of the 1980's , has continued to expand. are low in calories, cholesterol, and as many new cereal products with Pet foods containing rice typi fat. rice were introduced and as con cally command premium prices. Numerous efforts to add fla sumption of traditional rice cereals Rice is more expensive than other vored lines-such as apple cinna expanded. Cereal accounted for the grains, and it is used in pet foods mon, "nacho-cheese," and sesa bulk of the growth in processed for desirable quality attributes. Pet me-and improve eating quality food use of rice during that time. food uses mostly broken rice, a by have kept this item an important From 1986/87 to 1990/91, how product of milling, which currently component of processed food use. ever, rice use in cereal has aver sells at around half the price of However, the inclusion of non-rice aged 4.5 million cwt a year.

May -1~ust 1993 Food Consumption items in rice cakes has slowed the Brewers' Use domestic rice consumption drop growth of rice use in rice cakes ped from 25 percent in 1980/81 to even as total rice cake sales have Remains Flat under 20 percent in 1990/91. grown. The fastest and only growing market for domestic rice from the Frozen Entrees mid-1960's through the mid-1970's East and West Coasts Use of rice in frozen dinners has was for brewing. Beer producers Are Biggest Markets also grown since the late 1980's, historically used mostly broken for Rice rice. However, recent upgrades in but these products use substan State and regional data provide acceptable standards for rice used tially less rice than do package a profile of direct food use ship in beer have shifted much of the de mixes and pet foods. Frozen din ments of rice, about 59 percent of mand away from brewers' rice to ners used over 240,000 cwt of rice total shipments (such data do not sorted second heads and whole ~ 1990/9~, almost exclusively exist for processed or brewers' grain rice. high-quahty southern long grain. uses). This compares with about 90,000 Larger stocks of rice and fewer In the mid-1950's, New York, cwt in 1988/89. alternative uses for broken rice in Louisiana, and California together the mid-1980's made rice an attrac accounted for over 38 percent of di Soup and Candy tive ingredient in beer. However, rect food use of rice in the United this category of rice use has not Soups used 117,000 cwt of south States. Consumption of rice has grown since the late 1980's. Stag ern long-grain rice in 1990/91, since spread somewhat across the nant total sales of beer, increasing about the same as in 1988/89. United States. In 1990/91, almost popularity of light beers, and use Many soups use parboiled rice for 82 percent of all direct food use of of rice in premium beers whose superior cooking qualities and lon rice occurred in four regions which sales have been slowing are rea gevity in cans. Use of rice in candy border either the Atlantic, Pacific, sons behind the stagnation. remained around 105,000 cwt in or Gulf coasts (fig. 3). These re 1990/91, and has shown no growth During the 1980's, brewers' use gions have large, ethnically diverse in the 1990's. Some other minor of rice rose 35 percent, the slowest populations and contain large ur outlets for rice include rice pud growth rate of the three major cate ban centers. ding, and certain confectionery gories of rice use. And, brewers' Per capita consumption of rice uses. use of rice has actually dropped varies greatly, among regions and slightly since 1988/89. Its share of States within regions. The Pacific (California, Washington, Oregon, Alaska, and Hawaii) had the high est per capita direct food use in most years from the late 1960's through 1988/89. Per capita direct food use was 17.2 pounds in 1990/91, up from 16.7 in 1988/89. California and Washington have accounted for most of the growth in per capita consumption on the continental Pacific coast. However, Hawaii has the highest per capita rice consumption among the 50 States-over 50 pounds in 1990/91. The Middle Atlantic (New York, New Jersey, and Pennsylvania) had the highest per capita use, at 18.8 pounds, up from almost 17 pounds 2 years earlier. This re gion's large urban centers, with eth nically diverse populations and internationally oriented restau During the 1970's, total U.S. rice consumption (Including Imports, which were minute dur rants, accounted for much of the ing that period) grew 27 percent. But In the 1980's, consumption rose 76 percent to nearly 22 pounds per capita In 1991. growth in rice consumption. In

FoodReview 24 Food Consumption

Figure 3 which are counted as processed Most Rice Is Consumed Along the Coasts ... food uses of rice, and migration of East . people with low per capita rice con West South Mountain sumption into this region explain North Central/ why sales have not grown as fast New Central / in the West South Central region as East England Middle along the Atlantic and Pacific North Atlantic Central coasts. The South Atlantic (Maryland, Delaware, Virginia, West Virginia, West District of Columbia, North Caro South Central lina, South Carolina, Georgia, and Florida}, with a per capita direct food use of 13 pounds, ranked fourth. South Carolina, District of Columbia, Florida, and North Caro lina all had per capita direct food use of rice well above the national Share of 1990/91 U.S. rice consumption average of 11.4 pounds. Per capita consumption of rice in West Vir ... And, These Regions Have the Highest Per Capita Consumption ginia was extremely low compared with the rest of the Nation. Per capita direct food use, 1990/91 Pounds Per capita rice consumption in 20 - the South Atlantic was essentially / (l flat during the 1970's, and growth / / was modest even through the early 1980's. But the greater recent migra tion of Asian-Americans and His / /I panic-Americans into this region / (l along with emphasis on health, / / convenience, and tastiness; a large African-American population; and 10 .... consumer willingness to try new

/ products-combine to explain (l growth of rice sales in the South At / /I .I' 71 lantic as well as nationwide . / ~ ,/ Per capita direct food consump tion of rice in the other five census regions was well below the na l..11 tional average. New England (Mas 0 . . Middle Pac1f1c West South U.S . New West East Mountain East sachusetts, Vermont, Rhode Island, Atlantic South Atlantic avg. England North North South Maine, and New Hampshire), at Central Central Central Central 7.5 pounds, was the highest among the remaining regions. However, Massachusetts' per capita food use of over 13 pounds was substan New York and New Jersey, direct was 13.8 pounds in 1990/91, third tially higher than in the region as a food use exceeded 23 pounds a per among the regions. In 1956/57, whole. In addition, some of the re son. Louisiana had the highest per cap ported rice shipments to the Mid dle Atlantic region may have been Although the West South Cen ita direct food use of rice in the Na tion at over 35 pounds-compared further shipped to New England tral (Louisiana, Texas, Arkansas, for final consumption, thus slightly and Oklahoma) consumed the with the national average of about 5 pounds. overstating per capita use in the most direct food use rice per per Middle Atlantic and understating Greater consumption of package son from 1955/56 through the per capita use in New England. • 1960's, per capita use in this region mixes and flavored rice dishes,

May - ~iust 1993