Global Fortified Rice Market - 2024-2031

Global Fortified Rice Market - 2024-2031

The Global Fortified Rice Market reached US$14.86 billion in 2023 and is expected to reach US$21.27 billion by 2031, growing at a CAGR of 4.58% during the forecast period 2024-2031.

Fortified rice is increasingly utilized in food aid and humanitarian programs, particularly in regions affected by food insecurity, which broadens the market’s scope and social impact. With fortified rice falling into the functional foods category, its popularity aligns with the broader trend towards food products that offer health benefits, driving market interest among health-conscious consumers.

To ensure consistency, the market is witnessing stricter quality control measures, aligning fortified rice with established safety and nutritional standards. The market is seeing an increase in fortified rice varieties with diverse flavor profiles and added nutrients to cater to different consumer tastes and health needs. Companies are innovating with targeted nutrients to address specific health issues like anemia or vitamin deficiencies, diversifying the market’s product offerings.

For instance, on June 5, 2024, Capwell Industries launched the first-ever fortified rice in Kenya, marking a potential milestone for the entire African continent. This innovative product is enriched with essential vitamins B6, B1, B9 (folic acid), iron and zinc, representing a significant advancement in the region’s food industry. Aligned with its mission to enhance lives through nutrition and a commitment to innovation, Capwell has boldly provided consumers with rice that offers enhanced nutritional benefits at no additional cost.

Dynamics

Prevalence of Anemia and Micronutrient Deficiencies

The prevalence of anemia and micronutrient deficiencies is a significant driver for the global fortified rice market, as these health issues heighten the demand for nutrient-enhanced food solutions. Anemia, often caused by iron deficiency, along with shortages of essential nutrients like vitamin A, folic acid and zinc, affects a large portion of the global population, particularly in regions where rice is a staple food. This rising health concern propels the fortified rice market, as countries and health organizations look to address these deficiencies through affordable, widely consumed food products.

According to the World Health Organization, anemia represents a critical public health challenge, predominantly impacting young children, pregnant and postpartum women, as well as menstruating adolescent girls and women. The burden of anemia is most severe in low- and lower-middle-income countries, with the highest prevalence among populations in rural areas, economically disadvantaged households and individuals without formal education. Worldwide, approximately 40% of children aged 6–59 months, 37% of pregnant women and 30% of women aged 15–49 are estimated to be affected by anemia.

Fortified rice provides an effective solution within the market by incorporating essential micronutrients directly into a daily staple, making it a convenient source of added nutrition. Consequently, the market benefits from increasing government mandates, public health initiatives and collaborations with NGOs to improve access to fortified rice, especially in vulnerable and developing regions.

Focus on Clean Label Products

Clean-label fortified rice, which typically excludes artificial additives, preservatives and synthetic fortification agents, aligns well with the rising consumer demand for healthier and more natural food options, thus boosting market interest. This trend is particularly influential within the fortified rice market, as producers seek to differentiate their products by offering fortification methods that retain nutrient integrity while meeting clean label standards. Health-conscious consumers are showing a strong preference for fortified rice that is nutrient-dense and also free from unwanted artificial ingredients.

As a result, manufacturers in the market are investing in clean label formulations, natural fortification processes and sourcing transparency to appeal to this expanding demographic. The emphasis on clean-label fortified rice is helping to broaden the market's appeal, driving innovation and positioning fortified rice as an attractive option for consumers who value both nutrition and ingredient simplicity.

On July 5, 2022, according to Ingredion, research conducted over the past decade indicates a transformative shift in the European food industry, with clean-label products set to redefine company portfolios soon. The study highlights a strong consensus among European manufacturers: an impressive 99% view clean-label products as essential to their business strategy rather than just a competitive advantage. The findings suggest that clean-label products are expected to comprise over 70% of portfolios within the next two years, a significant increase from 52% in 2021, reflecting a crucial movement toward transparency and simplicity in ingredients.

Inadequate Research on Long-Term Benefits

A lack of conclusive, long-term research on the health benefits of fortified rice can lead to low consumer awareness and hesitation in adopting these products. The fortified rice market relies on evidence to promote its potential health advantages, but without robust data, it struggles to convince consumers of its long-term efficacy. Consumers increasingly seek well-researched, scientifically validated products. The fortified rice market faces trust issues, as skepticism grows around health claims unsupported by strong, long-term studies.

Inadequate research can deter investments from both the public and private sectors, as stakeholders prefer market sectors backed by comprehensive research. Without strong evidence, the fortified rice market finds it challenging to secure the funding needed to drive innovation and scale production. Regulatory bodies increasingly require scientifically backed evidence of health benefits to approve and support the sale of fortified foods. The fortified rice market encounters compliance obstacles without sufficient research, limiting the market growth.

Segment Analysis

The global fortified rice market is segmented based on micronutrients, technology, distribution channel, end-user and region.

Nutritional Deficiency Concerns Drives Segment Growth

The minerals segment holds the largest share of the global fortified rice market. Addressing mineral deficiencies, particularly in regions prone to iron and zinc deficiency, is a significant driver within the market. Governments and organizations are promoting mineral-enriched fortified rice as a cost-effective solution to combat malnutrition, which positions the minerals segment at the forefront of the market.

For instance, on October 9, 2024, the Union Cabinet, led by the Prime Minister of India, approved the extension of free fortified rice distribution under various welfare programs from July 2024 through December 2028. Union Minister announced that the rice fortification initiative will continue as a centrally funded project to ensure comprehensive nutritional security across the country. This initiative aims to combat anemia and address deficiencies in essential micronutrients.

Growing awareness around bone health, immunity and anemia prevention is fueling demand for mineral-fortified rice products in the market. As consumers become more knowledgeable about the health benefits of essential minerals, the preference for mineral-enriched products in the fortified rice market continues to rise. Improved technologies in rice fortification are allowing manufacturers to better integrate minerals without altering the taste or texture of rice, expanding the appeal and reach of mineral-fortified rice in the market.

Geographical Penetration

Growth in Rice Consumption and Innovations in Asia-Pacific

Asia-Pacific dominates the global fortified rice market. Rice is a staple food in many Asia-Pacific countries, resulting in a high consumption rate. The fortified rice market can capitalize on this existing demand, as incorporating fortification into rice products is a strategic approach to improve public health. The region's large population and growing urbanization contribute to an increasing need for convenient and nutritious food options, which fortified rice can fulfill.

According to the Food and Agriculture Organization, rice is the predominant crop in the Asia-Pacific region. The projected demand for rice by 2025 is staggering, as major Asian countries are expected to see rice consumption outpace population growth. Specifically, rice consumption in Asia is anticipated to increase by over 51 percent compared to the base year of 1995.

Another notable trend is the emergence of numerous mega-cities, each with populations ranging from 10 to 15 million, alongside the overall urbanization of the populace. This shift will lead to a significant increase in the number of consumers while the number of producers is likely to decline substantially. Current demand, standing at 524 million tonnes, is expected to rise to over 700 million tonnes. Rice will continue to provide 50-80 percent of daily caloric intake, necessitating that production growth keeps pace with population growth to meet these escalating demands.

Several Asia-Pacific governments are implementing policies and regulations to promote food fortification as a means to improve national health standards. These supportive policies create a favorable environment for the fortified rice market. Initiatives such as subsidizing fortified rice programs in schools and community feeding programs help enhance the market's reach and acceptance.

For instance, in 2022, the Cabinet Committee on Economic Affairs (CCEA) approved a phased national rollout and supply of fortified rice under the Targeted Public Distribution System (TPDS) and Other Welfare Schemes (OWS) as a Central Sector Initiative. This initiative, funded entirely by the Government of India, is set to continue until June 30, 2024, with a proposed expenditure of INR4,269.76 crore.

Competitive Landscape

The major global players in the market include LT Foods, Cargill Incorporated, BASF SE, DSM, Oliria Foods & Beverages Limited, Sarwafood, Relishum Foods LLP, Shivshakti International, Christy Friedgram Industry and Balaji Rice Industries Private Limited.

Russia-Ukraine War Impact Analysis

The conflict has disrupted agricultural supply chains, particularly in Eastern Europe, where both Russia and Ukraine are major producers of grains and cereals. This disruption affects the availability of raw materials required for fortified rice production. Shipping routes have been compromised, leading to delays and increased costs in sourcing essential ingredients for rice fortification, thus impacting the market's ability to meet demand.

The war has contributed to rising commodity prices, including rice and its fortifying agents. Increased costs of production may lead manufacturers to raise prices, affecting market accessibility and consumer purchasing power. Price volatility can discourage investment in the fortified rice market, as stakeholders may hesitate to enter or expand operations in an uncertain economic environment.

By Micronutrients
• Minerals
• Vitamins
• Others

By Technology
• Drying
• Extrusion
• Coating Technology & Encapsulation
• Others

By Distribution Channel
• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Online Stores
• Others

By End-User
• Commercial
• Residential

By Region
• North America
US
Canada
Mexico
• Europe
Germany
UK
France
Italy
Spain
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• On June 5, 2024, Capwell Industries launched the first-ever fortified rice in Kenya, marking a potential milestone for the entire African continent. This innovative product is enriched with essential vitamins B6, B1, B9 (folic acid), iron and zinc, representing a significant advancement in the region’s food industry. Aligned with its mission to enhance lives through nutrition and a commitment to innovation, Capwell has boldly provided consumers with rice that offers enhanced nutritional benefits at no additional cost.
• On January 31, 2023, Panchamrutha launched South India’s first fortified rice, aiming to promote a healthier lifestyle. This unique fortified rice is enriched by blending fortified rice kernels with regular rice, enhancing its nutritional value to support daily dietary needs.
• On October 22, 2024, the Government of Senegal, in partnership with the United Nations World Food Programme (WFP), initiated a fortified rice distribution program for schools aimed at enhancing nutrition in school meals. This initiative seeks to combat micronutrient deficiencies, improve the health and well-being of children and support quality education across Senegal.

Why Purchase the Report?
• To visualize the global fortified rice market segmentation based on micronutrients, technology, distribution channel, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of the global fortified rice market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global fortified rice market report would provide approximately 70 tables, 64 figures and 202 pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies

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