Rice Bran Oil Market

Global Rice Bran Oil Market Forecast

• The approximately US$8.1 Bn market for rice bran oil (2022) poised to cross US$14.8 Bn by 2030
• Rice bran oil market size anticipated to exhibit a CAGR of 8.9% over 2023 - 2030

 Quick Report Digest

1. Growing knowledge of rice bran oil's health advantages-including its high nutritional content and ability to decrease cholesterol-is influencing customer choices for healthier cooking oils. The increased demand for rice bran oil as a result of this awareness is driving market expansion.
2. The usage of rice bran oil in various culinary applications has increased due to the food industry's growing trend for healthier and more adaptable cooking oils. Due to its high smoke point, light flavour, and nutritious profile, chefs and food makers favour it, which drives market expansion.
3. The market is dominated by food-grade oils, as consumer demand for healthier culinary oils continues to rise. Because of its many nutritional advantages-such as its high smoke point and ability to cut cholesterol-rice bran oil is becoming more and more popular in the food business, which is driving the expansion of the category.
4. The market is dominated by the culinary oil segment, which is driven by the extensive utilisation of rice bran oil in both residential and food operations. Its high smoke point, high nutritional content, and adaptability support the expansion of the market and consumer demand.
5. The market is dominated by the online retail segment, which is fueled by the ease of e-commerce platforms. Customers prefer the convenience of buying rice bran oil online, which fuels the market domination and rapid growth of this industry.
6. Asia Pacific is the market region with the quickest rate of growth, driven by nations like China, and India adopting more healthful cooking oils. The popularity of rice bran oil and growing health consciousness are major factors in the robust expansion of this region's market.
7. The market is concentrated in North America, where demand for healthier cooking options is rising. Because rice bran oil has so many nutritional advantages, health-conscious consumers in the region are choosing it more often, which has led to a significant increase in the market's size and dominance.
8. Europe is the second-largest market region, trailing closely behind. Customers in the region are becoming more interested in introducing healthier cooking oils into their diets, and the popularity of rice bran oil and its health benefits are major factors propelling the market's growth in Europe.

A Look Back and a Look Forward - Comparative Analysis

Growing consumer awareness of rice bran oil's health advantages is the main factor driving the market's rapid rise. Globally, there is a growing need for healthier cooking options, and rice bran oil is becoming more and more well-liked due to its nutritional content and adaptability. Due in large part to the dietary choices of nations like China and India, Asia-Pacific emerges as a major player in the present market dynamics.

The rice bran oil market has undergone a radical change in the last ten years. Once viewed as a specialty item, it has become a popular option for health-conscious consumers. The trend in history shows a slow shift away from unhealthy cooking oils and toward healthier options, with rice bran oil emerging as a leader. The market has grown steadily, as seen by rising use in a range of applications, including cosmetics and cooking oil.

In the future, the market is expected to expand more due to consumers' ongoing interest in wellness and health. Further market penetration is anticipated by the futuristic vision, particularly in areas where awareness is still developing. The product landscape is anticipated to be shaped by innovations in distribution channels, packaging, and product compositions. Rice bran oil is expected to continue growing as long as consumer tastes continue to place a high value on health. New markets and applications will likely open up for it, further strengthening its position as a major player in the cooking oil and wellness industries.

Key Growth Determinants

• Increasing Health Consciousness, and Demand for Nutritional Cooking Oils

The rise in consumer health consciousness across the globe is a major factor driving the rice bran oil market. The demand for cooking oils with nutritional advantages is rising as people become more conscious of the connection between nutrition and overall health. Because of its high antioxidant, vitamin E, and oryzanol content-all of which support heart health and cholesterol control-rice bran oil has become a popular option.

Customers are actively looking for cooking oil substitutes, and the apparent health benefits of rice bran oil are encouraging them to use it. The increasing consumer consciousness regarding the nutritional value of food items is a major driver of market expansion and purchase behavior.

• Growing Awareness of Rice Bran Oil's Versatility

Beyond its use as a cooking oil, rice bran oil's adaptability plays a major part in the market's growth. The market for rice bran oil is growing as more people become aware of its many uses, which include medications, cosmetics, and personal hygiene items. Owing to its moisturising qualities and capacity to support skin health, rice bran oil is becoming a more common ingredient in skincare, and cosmetic formulations.

The oil's potential health advantages are being investigated for a range of medical applications in the pharmaceutical industry. With more uses, rice bran oil is positioned as a versatile product that appeals to a wider range of customers and promotes expansion into a variety of industries.

• Expansion of (Online) Distribution Channels

The growth of distribution channels has significantly boosted the rice bran oil industry, with online retail playing a key role. Customers now find it simpler to research and buy rice bran oil because of the ease of use and accessibility provided by e-commerce platforms. Manufacturers may reach a larger audience through online retail, which gives them the opportunity to highlight the advantages of their products and draw in health-conscious customers.

The ability to compare products and read reviews, along with the convenience of online transactions, has significantly increased the sales of rice bran oil. This trend in customer behavior toward online shopping is a reflection of changing consumer tastes and helps to expand the market overall, enabling more market penetration and reach.

Major Growth Barriers

• Price Sensitivity, and Competition from Lower-Cost Alternatives

Customers' price sensitivity is a significant barrier to the rice bran oil business, especially in areas where people choose less expensive cooking oils. Even with its health advantages, rice bran oil may seem pricey in comparison to more conventional options. This disparity in price is a problem since budget-conscious buyers might choose less expensive products, which would prevent rice bran oil from becoming widely used.

• Limited Awareness, and Educational Gaps

A noteworthy impediment is the deficiency in knowledge and understanding regarding the advantages of rice bran oil. Customers in some markets might not be completely aware of its nutritional benefits, which would prevent demand. In order to dispel myths, improve knowledge, empower customers to make wise decisions, and encourage a wider acceptance of rice bran oil in a variety of applications, educational programs are essential.

Key Trends and Opportunities to Look at

1. Surge in Demand for Organic and Non-GMO Variants

One significant opportunity for the rice bran oil market is the growing trend of consumers favouring non-GMO and organic products. The demand for cooking oils made from non-genetically modified, organic rice is rising as concerns about sustainability and health become more pressing.

Producers can take advantage of this trend by providing rice bran oil in certified organic and non-GMO varieties, appealing to a market segment of consumers who value making healthy and ecologically friendly decisions.

2. Technological Advancements in Extraction Processes

Improvements in quality and efficiency brought about by advancements in extraction processes provide the market with a substantial opportunity. New developments in extraction technology, including solvent-free extraction or cold-pressing techniques, can reduce the amount of chemicals used in the production process while improving the nutritional profile of rice bran oil.

Producers who engage in R&D to implement these cutting-edge methodologies stand to gain from the production of superior rice bran oil, satisfying the changing demands of consumers who desire minimally processed and chemical-free goods.

3. Increasing Focus on Sustainable and Responsible Sourcing

The market for rice bran oil is showing signs of growth as sustainable and ethical sourcing methods become more and more important. The growing awareness among consumers regarding the environmental consequences of their purchases has led to a demand for components obtained responsibly.

By emphasizing ethical and sustainable sourcing methods, manufacturers may set their products apart from the competition and win over environmentally sensitive customers. The trend, as mentioned above, provides opportunities for collaborating with farmers and advancing fair trade efforts, bolstering the supply chain for rice bran oil's overall sustainability, and satisfying the changing demands of consumers who prioritise social responsibility.

How Does the Regulatory Scenario Shape this Industry?

The worldwide food safety and health agencies have established strict regulations governing the rice bran oil business. Criteria, including acceptable amounts of pollutants, labeling, quality, and safety, are all covered by these standards.

Guidelines are established by regulatory bodies, such as the European Food Safety Authority (EFSA) in Europe, the US FDA, and other agencies of a similar nature globally, to guarantee that the production, labeling, and marketing of rice bran oil comply with safety and nutritional standards. For producers and distributors to maintain consumer safety and trust while negotiating the cutthroat environment of the global market, compliance with these rules is essential.

Fairfield’s Ranking Board

Top Segments

1. Sales of Food-Grade Oil Dominant

The food-grade section currently leads the market because more and more people want healthier cooking oils. The food sector uses rice bran oil extensively because of its high smoke point and cholesterol-lowering qualities, among other nutritional advantages.

Food-grade rice bran oil is valued more highly by health-conscious customers due to its beneficial effects on overall health, which is fueling the segment's continuous demand and expansion. The market's fastest-growing section is now the industrial-grade category, mostly due to the growing demand for rice bran oil in non-food applications, including cosmetics and pharmaceuticals.

The oil is a sought-after component in many industrial processes due to its adaptability and advantageous qualities, which include antioxidants and vitamin E. The industrial-grade category is growing at a quick pace, increasing its market share and relevance as a result of the growing use of rice bran oil in pharmaceutical and cosmetic formulations.

2. Global Demand for Cooking Oil Continues to Climb up

In 2022, the rice bran oil market will be dominated by the cooking oil segment due to its increasing popularity as a healthier substitute. Because of rice bran oil's high smoke point, high nutritional value, and heart-healthy qualities, consumers are choosing it more frequently.

The cooking oil market's domination is largely due to consumers' rising awareness of the oil's culinary advantages and its adaptability to a variety of cuisines. The market segment with the quickest rate of growth is turning out to be cosmetics and personal care items.

Because of rice bran oil's moisturising and antioxidant qualities, the beauty industry is using it for skincare purposes. The growing popularity of natural skincare products has led to a sharp increase in the need for rice bran oil in cosmetic formulas, which has driven the segment's impressive market expansion.

3. Supermarket/Hypermarket Sales to be Maximum

The supermarket/hypermarket category now dominates the market because of how widely accessible and convenient these retail channels are for customers. Supermarkets and hypermarkets offer a one-stop shop where consumers may browse and buy rice bran oil in addition to other groceries. The commercial domination of supermarkets and hypermarkets is largely attributable to the strategic placement of rice bran oil in these establishments and consumer trust in well-established retail chains.

The convenience and broad reach of eCommerce platforms have led to the fastest-growing distribution channel in the market being, the online retail segment. Rice bran oil sales have increased as a result of how simple it is to browse, compare items, and make well-informed selections when making purchases online. The online retail segment has experienced a rapid increase due to the growing trend of online shopping, particularly for health and wellness products. This has made it a crucial driver of the total growth of the industry.

Regional Frontrunners

North America has the Higehst Affliction for Rice Bran Oil

The market for rice bran oil is concentrated in North America due to the combination of consumer preferences that are health-conscious and the extensive use of alternative cooking oils. Because of its nutritious qualities, which include a high smoke point and heart-healthy qualities, rice bran oil is becoming more and more popular among consumers in the area.

North America dominates the industry and accounts for the majority of its size and growth because of the region's well-established food and health trends as well as its strong marketing and distribution infrastructure.

Consumer Shift Toward Healthier Choices to Push Sales Across Asian Markets

The market for rice bran oil is expanding at the quickest rate in the Asia Pacific region, mainly due to nations like China, and India adopting better diets. The demand for rice bran oil is greatly influenced by the historical use of rice bran in Asian cuisines as well as growing health consciousness. The market is expanding quickly due to the region's huge population, and expanding middle class, which are driving consumer demand for better cooking oil options, and highlighting the advantages of rice bran oil's versatility, and nutritional value.

Fairfield’s Competitive Landscape Analysis

The competitive environment in the rice bran oil industry is defined by major firms implementing strategic efforts, such as expanding their distribution networks and developing new products. To obtain a competitive edge in this fast-paced and expanding industry, major corporations concentrate on improving product quality, adhering to regulatory requirements, and utilising marketing tactics.

Who are the Leaders in Global Rice Bran Oil Space?

1. Adani Wilmar
2. Cargill Incorporated
3. Ricela Group of Companies
4. Emami Agrotech Limited
5. King Rice Oil Group
6. AP Solvex Ltd.
7. 3F Industries Ltd.
8. Marico Limited
9. California Rice Oil CompanyConagro Foods

Significant Company Developments

Product Launch

• June 2021: The Department of Food and Public Distribution's Secretary, Shri Sudhanshu Pandey, emailed a launch announcement for "Nafed Fortified Rice Bran Oil." At the event, Shri Sudhanshu Pandey stated that this Nafed project would greatly reduce the nation's future reliance on imported edible oil for consumption.
• January 2018: West Bengal witnessed the introduction of rice bran oil by Emami Agrotech Ltd (formerly known as Emami Biotech Ltd). The Emami group company, based in Kolkata, announced on Wednesday that it has developed a television commercial to launch the new product under its Healthy and Tasty brand.
• September 2021: Gemini Edibles & Fats India Ltd. (GEF India) debuted their newest 5-litre jar of Physically Refined Rice Bran Oil. In an effort to raise awareness of the health advantages of rice bran oil and to persuade people to use it for everyday cooking, the company has launched a new campaign with the tagline "Freedom Rice Bran Oil fights bad cholesterol and increases good cholesterol" across print, digital, and social media channels.
• June 2022: The Sanjay Ghodawat Group, a well-known Indian business conglomerate whose goal is to improve lives all around the world by providing high-quality goods and services, just made a further advancement toward achieving its main goal in June 2022.
• Feb 2020: China has been pushing rice bran as the nation's staple food since 2020 when shortages have continued to be a major problem for the Chinese people.

An Expert’s Eye

Demand and Future Growth

Analysts are upbeat about the market's future since they anticipate ongoing demand due to rising consumer knowledge of rice bran oil's health benefits. The oil is positioned as the preferred option due to its nutritional advantages and the growing trend toward healthier cooking alternatives.

Analysts highlight the market's potential for growth, especially in areas where awareness is still developing. The market is anticipated to grow strongly and steadily as long as consumers continue to place a high value on health and well-being, along with advancements in product formulations and delivery methods. This will position rice bran oil as a major player in the changing cooking oil market.

Supply Side of the Market

According to our analysis, the rice bran oil market's supply side is characterised by a resilient and adaptable production environment. The main raw ingredient is rice bran, which is a byproduct of milling rice. Cold pressing and solvent extraction are two effective extraction techniques used by producers worldwide to guarantee a steady supply of high-grade products.

Another factor supporting a steady supply of raw materials is rice's agricultural universality as a staple. Strategic alliances and collaborations between farmers, millers, and manufacturers maximise output, and supply chain management is crucial. In general, the supply side demonstrates flexibility, technological developments, and teamwork to satisfy the growing demand for rice bran oil.

Global Rice Bran Oil Market is Segmented as Below:

By Grade:

• Food Grade
• Industrial Grade

By Application:

• Cooking Oil
• Cosmetics and Personal Care Products
• Pharmaceuticals
• Miscellaneous

By Distribution Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Online Retail

By Geographic Coverage:

• North America 
  • U.S. 
  • Canada 
• Europe 
  • Germany
  • U.K.
  • France
  • Italy
  • Turkey
  • Russia
  • Rest of Europe 
• Asia Pacific 
  • China
  • Japan
  • South Korea
  • India
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America 
  • Brazil 
  • Mexico 
  • Argentina
  • Rest of Latin America 
• Middle East & Africa  
  • GCC 
  • South Africa
  • Egypt
  • Nigeria
  • Rest of Middle East & Africa