Fortified Rice Market Size, Share, and Industry Analysis by Nature (Conventional and Organic), By Micronutrients (Vitamins, Organic Ingredients, and Minerals), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Channels, and Others), and Regional Forecast till 2032

The global fortified rice market involves enhancing rice with essential micronutrients such as iron, folic acid, and vitamins to address nutritional deficiencies, especially in developing countries. According to the Food and Agriculture Organization (FAO) report of Regional Overview of Food Security and Nutrition 2023, 74.1% of Indians cannot afford a healthy diet and 39% lack a nutrient-adequate diet. It is a cost-effective solution to malnutrition, particularly where access to diverse and nutritious diets is limited. Fortification helps improve the nutritional content of rice by adding essential micronutrients such as vitamin B12, iron, ascorbate calcium, and folic acid to solve malnutritional problems in a particular population.

Fortified Rice Market Drivers

Growing Government Initiatives to Fuel the Market

The fortified rice market is driven by increasing government efforts to enhance public health via food fortification. These efforts involve developing standards for fortified rice and pledging to provide it through welfare programs. Numerous nations experiencing significant malnutrition are collaborating with international organizations and private enterprises to deliver fortified rice as a component of their public health strategies. Governments worldwide are increasingly supporting rice fortification as part of national nutrition programs. For instance, in October 2024, the Union Cabinet, led by Prime Minister Narendra Modi, sanctioned the ongoing distribution of fortified rice across all government programs, including the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), from July 2024 through December 2028. The program for supplying fortified rice will persist as a central sector initiative, entirely funded by the Government of India as part of PMGKAY (Food Subsidy).

Fortified Rice Market Restraints

High Production Costs and Consumer Acceptance to Hinder Market Growth

The costs involved in producing fortified rice, such as the fortification process and the need for specialized equipment, can be considerable. These expenses may hinder the expansion of fortification initiatives, particularly in low-income areas. Additionally, some consumers might doubt the flavor and quality of fortified rice, potentially hindering its acceptance in the market, especially in rural regions where this type of rice could be regarded as inferior to conventional varieties.

Fortified Rice Market Opportunities

Technological Development to Fuel Product Demand

Advancements in technology related to the production of fortified rice, along with the expansion of manufacturing facilities, are generating fresh opportunities in the fortified rice sector. For instance, in April 2023, Royal DSM, a global company focused on health and nutrition, introduced a new manufacturing line for fortified rice kernels near Hyderabad to address the nutritional requirements of individuals throughout India and South Asia. This facility employs cutting-edge technology and production techniques to create nutritionally enhanced rice kernels. It adheres to ISO 22000: 2018 standards and has a targeted production capacity of 3,600 tonnes of kernels annually.

Segmentation

Key Insights

The report covers the following insights:

• Overview of the Parent Market
• Supply Chain Analysis
• Regulatory Landscape
• Recent Industry Development – New Product Launches, Mergers & Acquisitions, Investment and Others
• Qualitative Analysis Related to Covid-19

Analysis by Nature

Based on nature, the market is divided into conventional and organic.

The conventional segment captures a significant portion of the global market due to its extensive usage and affordability. Conventional fortified rice is preferred due to its well-established farming practices and a wider market presence, allowing it to serve a larger consumer audience. The demand for conventional fortified rice is mainly influenced by its lower cost compared to organic alternatives, making it more available to a broad range of people. Additionally, the scalability of conventional agricultural techniques facilitates large-scale production, which is crucial for addressing the growing global need for fortified rice intended to alleviate micronutrient deficiencies.

The organic segment of the market is experiencing rapid growth owing to increasing health consciousness and environmental concerns. Although currently smaller than the conventional segment, the organic segment is gaining traction in affluent markets where consumers are willing to pay more for perceived health and quality benefits, including enhanced micronutrient content.

Analysis by Micronutrients

Based on micronutrients, the market is subdivided into vitamins, organic ingredients, and minerals.

The vitamins segment of the fortified rice market is expected to hold a major share. This is due to growing consumer awareness regarding the health benefits of vitamin-enriched diets, in addition to the increasing incidence of vitamin deficiencies around the world. Vitamins are essential for cellular health, immunity, and metabolic processes, leading to their incorporation in rice fortification to address nutritional gaps in diets.

Minerals, such as zinc and iron, account for a substantial portion of the market as well. These minerals are critical in improving overall health and combating anemia, thus driving their integration into fortified rice products.

Analysis by Distribution Channel

Based on distribution channel, the market is fragmented into supermarkets/hypermarkets, convenience stores, online channels, and others.

The supermarkets/hypermarkets segment dominates the fortified rice market due to their widespread reach, diverse product offerings, and ability to attract a broad range of consumers. They provide a convenient one-stop shopping experience, placing fortified rice products alongside other staple food items, which boosts visibility and sales. The growing existence of modern outlets such as supermarkets has attracted billions of consumers worldwide due to their well-established nature, easy shopping, lucrative sales, and one-stop shopping experience.

The online channels segment is projected to experience the highest growth during the forecast period. The increasing popularity of e-commerce platforms and the widespread use of the internet contribute to the expansion of the online market. The COVID-19 pandemic accelerated the shift toward online shopping as consumers preferred contactless delivery methods.

Regional Analysis

Based on region, the market has been studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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Asia Pacific holds a major share of the global fortified rice market. The region's dominance is attributed to its high population density, increased awareness of nutritional deficiencies, and government initiatives promoting fortified foods to combat malnutrition. Key contributors include countries such as India and China, which have substantial rice consumption and production supported by expanding fortified rice programs.

The Middle East and Africa region is experiencing rapid growth in the global market. Economic improvements in the region are contributing to the growth of the market. As disposable incomes rise, consumers are more willing to invest in nutritious food products. However, affordability remains a challenge for low-income households, necessitating innovative pricing strategies to enhance accessibility.

Key Market Players

• Cargill Incorporated (U.S.)
• BASF SE (Germany)
• General Mills Inc (U.S.)
• Willmar International Ltd (Singapore)
• Bunge Ltd (U.S.)
• REI Agro Ltd (India)
• Oliria Foods & Beverages Pvt. Ltd.(India)
• Relishum Foods (India)
• Hain Celestial (Tida Rice) (U.S.)
• Hexagon Nutrition Ltd. (India)

Key Industry Development

• In December 2020, Fermenta Biotech Limited launched a new production facility for Fortified Rice Kernel (FRK) located in Pennepalli, Tirupati district, Andhra Pradesh. This strategic development represents Fermenta's entry into the rice fortification sector, expanding its nutritional offerings. The FRK manufactured at this site will be fortified with vital nutrients, including iron, Vitamin B12, and folic acid, in accordance with the standards established by the Food Safety and Standards Authority of India (FSSAI).