Rice Bran Oil Market
Global Industry Analysis (2017 – 2020) – Growth Trends and Market Forecast (2021 – 2025)
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Rice Bran Oil Market to Remain Buoyant as Pharma, Cosmetics, and Food Industry Realize Benefits
In recent years, rice bran oil (RBO) has become the most preferred oil among various other options available to consumers. It is extracted from the outer, brown-coloured layer of rice grain. Rice bran oil has high nutritional value and is a rich source of antioxidants and vitamin E. Many prefer it over others as it has a balanced fatty acid profile. In addition, it is composed of nutraceutical ingredients known as oryzanol and tocotrienols, which possess cholesterol-lowering properties, thus reducing blood cholesterol and chances of clotting. A swelling wave of health consciousness is expected to stoke the demand for low fat and low cholesterol products. This sentiment is expected to bode well for the overall demand for rice bran oil across the globe.
Associated health benefits of rice bran have won the product a definite place in various industries such as food, pharmaceutical, and cosmetics. Food cooked with rice bran oil absorbs nearly 15%-20% less oil, making food less calorific, better-tasting food, and improved flavour. Several medical studies have observed that rice bran oil is effective against Alzheimer, reduces allergic reactions, prevents gastrointestinal disorders, and strengthens the immune system. Owing to these attributes, rice bran oil is used in the manufacturing of different pharmaceutical products.
Anti-dandruff and anti-ageing properties of this oil also make it a beneficial natural ingredient for skincare, haircare, and lip care products. Thus, wide industrial applications of rice bran oil is expected to creating new growth opportunities for the market over the forecast period.
Food Segment to Hold the Largest Value Share as End Users Remain Determined to Lower Cholesterol
The global rice bran oil market is segmented based on end user, application, and sales channel. Based on application, the food segment is expected to account for the highest value share by 2025. Growing awareness amongst consumers about health benefits of consuming rice bran oil and increasing inclination towards maintaining low cholesterol levels are expanded the product presence on retail shelves. Rice bran oil is also being used for the production of shortenings, margarine, dressings, mayonnaise, sauces, non-dairy creamers, and baked goods in the food industry. These factors will collectively support the growth of the food segment during the forecast period.
Based on sales channel, the online segment is expected to gain a significant incremental dollar opportunity by 2025. Higher convenience factor and the pandemic effect have led to a large chunk of consumers is shifting to online shopping, which has attributed to the growth of the online segment. Analysts anticipate the trend to continue in the forthcoming years.
India Leads Asia Pacific Market as State Governments Focus on Subsidies
Globally, Asia Pacific is expected to hold the largest volume share. Countries such as India, China, Japan, Thailand, and Vietnam are some of the largest producers and exporters of rice bran oil across the globe. In Japan, rice bran oil is popularly known as “heart oil” as it keeps cholesterol at a low level and reduces the risk of cardiovascular diseases.
Among all the Asian countries, India is expected to register significant growth in the rice bran oil market. Rice, being one of the most important cereal crops in India, the country remains the second-largest rice producer worldwide. Based on the country’s paddy production, currently rice bran output potential is more than 9 million tons. However, India is processing nearly 5 million tons and the rest goes for cattle feed. Thus, there is still an untapped potential, which could create substantial new opportunity pockets for the manufacturers.
Relevant to this market potential, the Indian state government and manufacturers are seeking to expand their production capacity. For instance, in December 2020, in Odisha, India, the state government issued a subsidy of US$ 1.4 Mn to the existing rice bran oil manufacturers. Similarly, in March 2021, Gemini Edibles & Fats announced that the company is planning to fully convert one of its existing units for rice bran oil production. Thus, increasing health consciousness among the consumers and demand for fat-free and nutritional products are driving the overall rice bran oil market growth during the forecast period.
Expanding Presence, an Emerging Trend in Rice Bran Oil Market
Some of the major players considered in the report are Adani Wilmar Limited, Cargill Incorporated, Ricela Group, IB Group, AP Refinery Pvt. Ltd., CALOFIC, Kasisuri Co., Ltd., TSUNO Group, King Rice Oil Group and Mother Dairy Fruits & Vegetables Pvt Ltd (Dhara).
To tap the potential growth and to be competitive, manufacturers are seeking expansion opportunities, especially in Asia Pacific region.
For instance, in September 2018, Cargill food oil brand Gemini introduced a new rice bran oil in different states of India. The product is claimed to absorb 12-25% less oil as compared to other ordinary edible oil.
Similarly, in 2018, Arawana, a brand of Wilmar International, entered the Japanese market with its first launch in supermarket. The company is also looking forward to entering into a partnership with more than 10,000 supermarkets in Tokyo and Osaka.