Growing the Rice Processing Market to 17 Trillion Won by 2028... Focused Development on Instant Rice and Frozen Gimbap

The 3rd Five-Year Basic Plan for Fostering the Rice Processing Industry

The government has decided to expand the domestic rice processing industry market size to 17 trillion won by 2028 through focused promotion of major rice processed foods such as instant rice and frozen gimbap.

The Ministry of Agriculture, Food and Rural Affairs announced the "3rd Basic Plan for the Promotion of the Rice Processing Industry and the Promotion of Rice Utilization (2024-2028)" containing these details on the 23rd.

As of 2022, the sales of the rice processing industry amounted to 8.4 trillion won, and rice consumption was about 570,000 tons, increasing by 3.5 trillion won (an average annual growth rate of 11.4%) and 80,000 tons (an average annual growth rate of 3.1%) respectively compared to 2017.

The Ministry noted that the government’s reliance on public rice stocks for processed rice remains high, and the small-scale business structure limits new product development, market expansion, and response to consumer trends. To stably drive the growth of the rice processing industry, it plans to expand the rice consumption base through market diversification such as establishing a rice flour ecosystem and expanding exports. The goal is to more than double the market size to 17 trillion won and exports to 400 million dollars by 2028.

Rice is displayed on the shelves of a large supermarket in Seoul. Photo by Jinhyung Kang aymsdream@

First, based on four major market strategies (Convenience, Health, K-Food, Newtro) considering domestic and international food consumption trends, the government will foster 10 promising items to lead the dynamic growth of the rice processing industry. In particular, it will stably establish the production and distribution system of rice flour, which began full-scale production in 2023 as a new domestic food raw material, and support product development and market expansion in cooperation with the food and dining industries. By 2027, it plans to convert 10% (200,000 tons) of imported wheat flour demand into rice flour.

Through the expansion of domestic and international rice processed food markets, the consumption of processed rice, which was 570,000 tons in 2022, will be expanded to 720,000 tons by 2028 to strengthen rice supply and demand stability. By 2028, the government aims to nurture 100 companies certified by the Korea Gluten-Free Certification (KGFC) and increase the number of rice processing companies certified by major overseas gluten-free certifications tenfold (from 3 in 2023 to 30 in 2028), leading the domestic and international gluten-free markets. To achieve export sales of 400 million dollars, it plans to establish specialized strategies for major export countries and items, strengthen customized support, and foster 200 representative rice processed food export companies. Additionally, it will actively expand projects supporting healthy eating habits for future rice-consuming generations such as children and youth, including university students’ "1,000 Won Breakfast."

The government will also strengthen the industrial growth foundation such as raw material supply, facilities and management, research and development (R&D), and industrial information and statistics to enhance domestic and international competitiveness. Centered on rice flour, it will promote the establishment of dedicated cultivation complexes for processed rice and activate private procurement of raw materials through contract farming support. Considering the increase in consumption of long-grain rice and the growing number of foreign residents in Korea, it will also promote the establishment of Korean-style Indica rice cultivation complexes. Furthermore, it plans to expand funding support for raw material purchases and facility renovations, support R&D for 10 core technologies of rice processed foods including the development of processing-dedicated varieties such as rice flour and gluten replacement technologies, thereby supporting the sustainable growth of the rice processing industry.

Jeon Han-young, Director of Food Policy at the Ministry of Agriculture, Food and Rural Affairs, said, "By fostering the rice processing industry, we will add high value to our rice industry and strengthen the foundation for stable supply and demand through expanded rice consumption. We will actively support the promotion of various rice processed foods, which are recently gaining traction in overseas markets such as frozen gimbap and tteokbokki, to strongly drive the current market growth."