Global Rice Bran Oil Market - 2023-2030

Global Rice Bran Oil Market - 2023-2030

Market Overview

The global rice bran oil market was valued at USD YY million in 2022. It is forecasted to reach USD YY million by 2030, growing at a CAGR of 8.34% during the forecast period (2023-2030).

Rice bran oil is prepared by extracting oil from the chaff of the rice. This oil has a high smoke point, making it useful for cooking at high temperatures and a very mild flavor. It is richest in vitamin E, antioxidants, and natural bioactive phytochemicals. It includes oryzanol, tocopherols, tocotrienols, and lecithin. It has a mild flavor and neutral taste. It is extremely versatile and light in texture, with delicate flavors that are suitable for high-temperature cooking and can be easily blended with other less stable oils.

The rice bran oil market has witnessed significant growth due to rising health consciousness among consumers and high demand for nutritional and fat-free food and beverages. Increasing consumer health consciousness from edible oils to reduce cholesterol levels drives the global demand for rice bran oil.

Market Dynamics: Rising demand for rice bran oil market with an increase in the production of rice

The increasing level of rice production worldwide has led to increased market demand. Globally, this rise in rice production has escalated the market revenues in the rice bran oil market. India has been one of the largest producers of rice bran oil globally, with an increasing number of consumers realizing the importance of incorporating heart-friendly oil into their diet. According to the Directorate of Economics and Statistics, the Government of India, the rice yield increased from 2,638 kilograms per hectare in 2019 to 2,722 kilograms per hectare in 2020, further increasing the market's growth.

The government takes various measures worldwide to meet the supply and demand of edible oils. Different growers and investors have lifted the quantitative restrictions on organic edible oils, which has led to the growth of the rice bran oil market. According to the United States Department of Agriculture, China, India, and Indonesia were the top producers of milled rice in the financial year 2020-21. It leads to the high standing of these countries in producing rice bran oil.

However, the adoption of rice bran oil among consumers is low due to the need for more awareness about the benefits of these products. The presence of other suitable vegetable oil substitutes, such as sunflower oil and olive oil, also impedes market growth and results in low adoption among consumers in other regions, such as Europe and North America. Additionally, the lack of advanced production technologies also impacts the availability of this oil in the market. It is a major factor restraining market growth.

Market Segmentation: Refined segment held a highest market revenue share in the year 2021

Refined rice bran-based oil for cooking food products has several health benefits, such as maintaining healthy cholesterol levels and improving heart health. Rice bran-based oil is rich in minerals and proteins, making it a healthier alternative to other edible oils available in the market. Additionally, as per American Heart Association, it helps improve the cholesterol levels in the body. In the U.S., restaurants increase the use of such oil to make new food items.

Furthermore, food and beverage has the largest market share due to the high product usage of various foods and beverages. Mostly in Asian countries, such as India, China, and Japan, oil is used commonly to prepare everyday dishes. The increase in popularity of beverages made of cereal has resulted in increased use of rice bran oil in functional beverages. Rice bran oil is a rich source of vitamin E, gamma-oryzanol, and other components that helps to reduce the cholesterol content in the body and prevent heart disease. Companies are also launching new food products fortified with additional nutrients and vitamins. For instance, in 2021, TSUNO, a Japanese company, launched premium rice bran oil, namely Expeller Pressed Rice Bran Oil, prepared through natural manufacturing.

Geographical Penetration: Asia Pacific the dominating region during the forecast period

Asia-Pacific accounts for a relatively high value share. It is expected to grow significantly in the global rice bran oil market because of the easy availability of raw materials across the region, particularly in India. The major producers in the region are India, China, Japan, and Thailand. India is the world's largest consumption area. The perceived health benefits of cooking in edible oil are one of the primary reasons Australian consumers prefer rice bran oil. It prevents heart attack and helps lower cholesterol absorption. In Japan, this oil is called the ‘heart oil’ due to its beneficial impact on cardiovascular patients. The rise in disposable income in some emerging economies, such as India and China, further surges the demand for premium healthy food ingredients, including this oil. Most such oil suppliers are available mainly in Asia Pacific countries that export these products to other regions. For instance, in 2021, the Ministry of Consumer Affairs, Government of India launched fortified rice bran oil in India. This rice bran oil was marketed under the apex Agri-marketing organization of India, viz, National Agricultural Cooperative Marketing Federation of India Ltd (NAFED).

Competitive Landscape:

The rice bran oil market is highly competitive and has several small and regional players. The market is fragmented, and the major players include Cargill Incorporated, Dow, BASF SE, and Chr. Hansen Holding A/S, DSM, DuPont, Evonik Industries AG, NOVUS INTERNATIONAL, Alltech and Associated British Foods plc. Emphasis is given to the merger, expansion, acquisition, and partnership of the companies, along with new product development, which work as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Major companies believe in strengthening their product quality with certifications to gain customer loyalty.

For instance, in March 2022, Damdam Rice Drops Balancing Oil Serum was launched in the market. Its composition includes botanical oils such as hydration-retaining rice bran oil and avocado oil as acne-friendly jojoba oil that nourishes the skin for a notable glow. Although it is worn during the day (try a drop or two in your foundation if you wear makeup), we also love it as an overnight mask to top off a more elaborate routine. In June 2021, an India-based company, N.K. Proteins Pvt Ltd. announced its plans to launch the rice bran oil brand ‘Tirupati’ for health-conscious consumers. It helps enhance immunity, reduces heart disease risk and promotes skin health.

COVID-19 Impact: Negative impact on the global rice bran oil market

The spread of COVID-19 through major ports, cities, and business centers is expected to increase the prices for raw materials in the short and medium run. Also, the worldwide lockdown restricted the supply of raw materials and even the final product in the market. Rice bran oil production and extraction processes was closed in lockdown. Hence the COVID-19 implications declined the amount of stock and revenue in the global industry. The supply chains for raw materials and distribution channels for finished goods have been disrupted due to the prevailing lockdown in most regions. It hindered the pace of market growth and performance.

The global rice bran oil market report would provide access to approximately 61 market data tables, 55 figures and 170 pages