"Market Intelligence that Adds Flavour to Your Success"
The global rice bran oil market size was USD 6.16 billion in 2020. The market is projected to grow from USD 6.67 billion in 2021 to USD 12.27 billion by 2028 at a CAGR of 9.09% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering with rice bran oil witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a moderate growth of 2.74% in 2020 for this market. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Growing awareness among consumers about the health benefits associated with the product consumption increased the sales of the product. The evolving dietary preferences among consumers and the rising demand for nutritional food ingredients play a crucial role in promoting the market growth.
Demand for vegetable oil among consumers, especially in Europe and North America, is rising rapidly due to growing awareness regarding its health benefits. This oil presents a cheaper and more suitable alternative among consumers who prefer vegetable oil for cooking. Additionally, this oil exhibits certain physical properties suitable for cosmetic applications such as creams and oils. Hence, companies launch new products to extend their product line to boost their presence in the market.
Increased Demand for Nutritional Oil Among Consumers to Boost Demand and Promote Market Growth
The demand for immunity-boosting food ingredients increased significantly among consumers after the outbreak of the coronavirus pandemic. Strong marketing and promotional activities adopted by companies highlighted the benefits of the product, which boosted the consumption. As COVID-19 significantly affects and attacks people with pre-existing health conditions, such as cardiovascular disease, consumers' demand for these products also rose to mitigate the impact of infection. The prices of oil saw a significant upward shift, owing to labor shortage and reduction of output caused by the sudden imposition of lockdown by governments across various countries. Additionally, freight charges were also hiked during the period, which further impacted the price and consumption of the product. These factors significantly affected the oil exports and imports of edible oil products, causing a hike in price. Hence, the rice bran oil market growth was significantly impacted during the pandemic.
Request a Free sample to learn more about this report.
Changing Dietary Patterns to Propel Rice Bran Based Oil Demand
In recent years, consumers have been adopting significant changes in dietary patterns, including adopting new diets such as veganism. Scientific studies published in the American Journal of Clinical Nutrition have stated that adopting a vegan diet helps reduce weight, prevent type-2 diabetes, and provide other health benefits. The adoption of such oil is increasing among consumers looking for environment-friendly cooking ingredients. It also acts as a cheaper substitute for other vegetable oils such as olive oil. Hence, the demand for the product is expected to rise in the upcoming period.
High Nutritional Content of Rice Bran Oil to Boost its Adoption in Food Industry
This oil has a higher smoke point than other oils and thus, it is used widely to prepare various cuisines that require high heating temperatures. Restaurants in multiple countries, predominantly Asian countries, prepare food recipes that require high heat points. Hence, various cooking joints, restaurants, and eateries gradually adopt this oil to prepare different food items. Restaurant chains are also adopting these products to improve the nutrition profile of food products. For instance, in 2018, the KFC food chain of India stated that the company planned to switch from other oil, such as palm oil, to prepare its food items with rice bran-based oil due to its high nutritional content.
Rising Demand for Rice Bran Oil-Based Cosmetic Products is Expected to Boost Market Growth
The demand for cosmetic products, such as creams, gels, and other skincare products, increases rapidly among consumers. This oil is rich in ingredients, such as vitamin E, Vitamin B, and others, which also help to hydrate the skin. With the increasing demand for clean beauty products among consumers that helps to hydrate and moisturize the skin, the use of such oil in preparing cosmetics is increasing rapidly. This factor also acts as one of the major factors responsible for promoting the market growth.
Availability of Other Vegetable Oil Substitutes to Impede Market Growth
The adoption of this oil among consumers is low due to lack of awareness about the benefits of these products. The presence of other suitable vegetable oil substitutes such as sunflower oil and olive oil also impedes the market growth and results in low adoption among consumers in other regions such as Europe and North America. Hence, companies need to adopt innovative and aggressive marketing and promotional strategies to increase the adoption of these products among consumers.
One of the major raw materials used for manufacturing the oil is rice, which is available readily in the market. But in recent years, rice production has been significantly impacted due to weather fluctuation, which further impacts the manufacturing of this oil. Additionally, lack of availability of advanced production technologies also impacts the availability of this oil in the market. This is a major factor restraining the market growth.
To know how our report can help streamline your business, Speak to Analyst
Refined Rice Bran Oil is Expected to Hold Highest Share Due to its Increasing Application in Food Industry
The use of refined rice bran-based oil for cooking food products has been associated with several health benefits such as maintaining healthy cholesterol levels and improving heart health. 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, it 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, the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) announced the launch of fortified rice bran based oil under the ‘Aatmnirbhar Bharat’ initiative of the government of India.
Use of Rice Bran Based Oil for Cooking Food Products to Show Promising Growth Owing to Increased Consumption Among Consumers
Rice bran-based oil is rich in minerals and proteins, making it a healthier alternative over other edible oils available in the market. As one of the major ingredients required for cooking food items is oil, consumers are becoming more concerned about choosing the right oil beneficial for their health. The presence of beneficial nutrients such as Vitamin E, gamma, and oryzanol makes them suitable for consumers, especially those looking to lower their cholesterol levels in the body and prevent chronic disease such as hypertension, high cholesterol, and others. Additionally, this oil does not impact the taste of the cooked food products as it has a neutral or mild taste compared to other vegetable oils such as coconut oils or mustard oils. Hence, they are used to cook different cuisines in various countries, especially in the Asia market.
This oil is also used in the cosmetics and pharmaceutical industries as it is rich in various vitamins and antioxidants. Further, it is also used as a base oil for manufacturing different creams and oils. Skincare products comprising such oil also protect against UV rays generated from sunlight. It also provides nourishment for the hair, due to which companies are also launching rice bran-based oil for hair. The skin also absorbs this oil as it is rich in linoleic acid. Furthermore, it is also used as a feed supplement for animals such as horses to improve the animals' hair coat.
Asia Pacific Rice Bran Oil Market Size, 2020 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Asia Pacific is the largest manufacturer and consumer of rice bran-based oil globally. Some of the major rice manufacturing countries such as China, India, and Japan are present in the region.
Rice bran is one of the major by-products obtained from rice milling, and the oil obtained from processing the rice bran is used as cooking oil and manufacturing cosmetic products. In c 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. Majority of such oil suppliers are available mainly in Asia Pacific countries that export these products to other regions.
North America is one of the leading users of this oil due to rising health awareness among consumers. Consumers are adopting several dietary measures to ensure that they are consuming food products that are beneficial for health. Additionally, different restaurants specializing in Japanese cuisines are switching to this oil. It is also used for salad dressing and baking products such as brownies, cakes, and other bakery products. With the rise in veganism in the region, the demand for vegetable oil such is increasing gradually. As per recommendations provided by both the American Heart Association and World Health Organization (WHO), the adoption of such oil helps maintain healthy cholesterol levels. This factor also acts as a major factor that further promotes the adoption of this oil in the region.
Europe is also one of the developing rice bran-based oil markets due to the region's rising demand for vegetable oils. As an emerging market, Europe acts as one of the major importers of this oil and imports from Thailand, India, and China. As this oil has several health properties, it is slowly gaining popularity in the region. Also, other vegetable oils, such as olive oil, are comparatively priced higher in the region and provide a suitable alternative for consumers adopting new diet regimes such as vegan diet and keto diet.
Additionally, in other regions, such as South America and the Middle East & Africa, the adoption rate of rice bran-based oil is comparatively slower than in other regions. Brazil is expected to register promising growth due to the rising demand for vegetable oils.
To know how our report can help streamline your business, Speak to Analyst
In South Africa and Saudi Arabia, the demand for low cholesterol cooking oil is rising gradually due to the rise in the younger and affluent generation.
Adani Group is Adopting Strategies such as Collaboration to Increase their Market Presence
The competitive landscape of the rice bran oil market is highly fragmented, with several regional and local players competing with each other to increase their market presence. Some of the major manufacturers in the global market include Adani Wilmar and Cargill, Incorporated. Leading companies are entering into a joint venture to increase their market presence. For instance, Adani Group entered into a 50-50 joint venture with Wilmar International to increase their presence in other countries such as Singapore and market their products to a larger consumer base. In recent years, the market penetration of such oil manufacturers has increased in both developed and developing countries.
An Infographic Representation of Rice Bran Oil Market
To get information on various segments, share your queries with us
The market report provides a detailed rice bran oil industry analysis and focuses on key aspects such as leading companies, product type, and application. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.
ATTRIBUTE | DETAILS |
Study Period | 2017-2028 |
Base Year | 2020 |
Estimated Year | 2021 |
Forecast Period | 2021-2028 |
Historical Period | 2017-2019 |
Unit | Value (USD Billion) |
By Type |
|
By Application |
|
By Geography |
|
Fortune Business Insights says that the global market size was USD 6.16 billion in 2020 and is projected to reach USD 12.27 billion by 2028.
In 2020, the Asia Pacific market value stood at USD 4.68 billion.
Growing at a CAGR of 9.09%, the market will exhibit steady growth over the forecast period (2021-2028).
The refined rice bran oil segment is expected to be the leading product type segment in this market during the forecast period.
Increasing demand for healthy oils among consumers is a key driver influencing the consumption pattern of consumers.
Wilmar International, Conagra Foods, and Marico are the major players in the market.
Asia Pacific dominated the market share in 2020.
The rising demand for vegetable oil is expected to increase product adoption in the global market.
Related Reports