Rice Bran Oil Market

Rice Bran Oil Market Analysis:

Rice Bran Oil Market is expected at USD 1.58 million tons in 2021 and is anticipated to extent an over of USD 1.77 million tons by the end of the assessment period. The Rice Bran Oil Market is estimated to experience reasonable growth to record a CAGR of 2.3% throughout the estimate period (2022 - 2027).

Rice bran oil is an edible vegetable oil extracted from the hard outer layer of rice. Rice bran oil has benefits such as low fat content, antioxidant properties, and subtle flavor, making it more desirable and attractive. Growing health awareness and growing demand for fortified edible oils are driving the global market for rice bran oil. The American Heart Association has recommended the use of rice bran oil as an effective option for keeping cholesterol in check. The use of rice bran oil in the hotel / restaurant / cafe (HoReCa) sector is also increasing at a rapid rate. Rice bran oil is said to have the optimal balance of monounsaturated fatty acids (MUFA) and polyunsaturated fatty acids (PUFA), which also contribute to storage stability. Rice bran oil has a high smoke point that helps it retain its nutritional value even at high temperatures, allowing it to be used for deep frying and deep frying. The reuse of rice bran oil is also high, making it more durable compared to other edible vegetable oils.

Recent Developments

Kerala-based KPL Oil Mills Ltd launched KPL Sudhi Rice Bran Oil. The product is available in one liter and 500 ml bottles and sachets. According to senior company officials, the demand for rice bran oil is increasing, especially among young people, thanks to their increased awareness of their health. The company has implemented new storage tanks and packaging machines with very strict quality measures to market the product.

Food giant Cargill India said on Tuesday that it has expanded its edible oil portfolio to launch healthy blended cooking oils and is targeting a 10% market share in this high-end segment within two years. Cargill India, part of the large American food company Cargill, is a major player in the country's edible oils and sells cooking oils under the NatureFresh, Gemini, Sweekar, Leonardo olive oil and Rath brands. The company launched "NatureFresh Acti Heart" cooking oil Tuesday, mixed in equal parts with canola oils and rice bran.

Restaurant chain QSR KFC India has announced that it will switch to rice bran oil as a cooking medium in its restaurants starting early next year. The company said the move was part of its efforts to improve the nutritional profile of its foods. KFC is testing this initiative in select restaurants in Hyderabad, Bengaluru, Chennai and New Delhi. The company said it will switch from palm oil to rice bran oil in its restaurants across the country during the first quarter of 2018. The company said the rice bran oil will be sourced locally from Indian oil manufacturers.

Market Drivers and Restraints:

The growth of the global rice bran oil market is driven by increased consumer health awareness and increased demand for nutrient-dense, low-fat foods and beverages. The benefits of rice bran oil, including antioxidants, low cholesterol, and relief from hot flashes during menopause, are driving the global market for rice bran oil. Macroeconomic factors that are driving the global rice bran oil market include economic growth, lifestyle change, rapid rate of urbanization, and rising national income. However, the lower popularity of rice bran oil compared to other healthy edible oils is expected to limit the global market demand for rice bran oil. Some of the trend factors in the global rice bran oil market include mergers and acquisitions between the rice bran oil market players and their suppliers and high investments in the food industry. Companies operating in the rice bran oil market can increase their share by collaborating with rice bran suppliers, upward integration, and offering organic and gluten-free products to the market. Additionally, regulatory bodies promoting the consumption of rice bran oil have further fueled the growth of the market. For example, the World Health Organization (WHO) and the American Heart Association have approved the use of rice bran oil, claiming that its composition of monounsaturated, polyunsaturated and saturated fats is much safer compared to the composition of most other vegetable oils. However, the market is facing challenges such as the lower popularity of rice bran oil among people compared to other healthy edible oils that are restricting the market space.

Market Segmentation:

The Rice Bran Oil Market is segmented by end user, application, and Distribution channel. On the end-user basis, the global rice bran oil market is segmented as industry and direct consumer. However, among the industry segments that are expected to account for a relatively high value share, the consumer segment is expected to grow at a relatively high CAGR in the global rice bran oil market, due to increase of health conscious people around the world. On the basis of the application, the global rice bran oil market is segmented into food and beverage, cosmetics, pharmaceuticals and others, and the food and beverage segment has a significant revenue share, while the Pharmaceuticals segment posted a significant CAGR, above forecast period. On the basis on Distribution Channel for Global Rice Bran Oil Market it can be divided into online retail, Departmental stores, Supermarkets/Hypermarkets, and Others.

Impact of covid-19 on Rice Bran Oil Market

The COVID-19 pandemic has affected many economies around the world. The pandemic has affected more than 100 countries, infecting more than 31,091,469 people and killing 961,352 as of September 21, 2020 (Source: European Center for Disease Prevention and Control). To control the spread of this disease and avoid the serious consequences that arise, governments around the world have announced a partial or total closure, which has had a great impact on the availability of biologicals. Many organic food ingredients consumed by North Americans and Europeans are produced and exported primarily from Asia, Latin America, and Africa. Thus, the transportation restriction has affected the availability of organic food in stores and supermarkets. Furthermore, changes in consumer purchasing behavior due to the uncertainty surrounding the pandemic are expected to have significant consequences for the growth of the industry in the short term. Meanwhile, the deficit and tight cash flow have already affected fleet operators' sales, which are expected to rise further in the coming months.

Regional Analysis:

The Rice Bran Oil Market has been categorized on the basis of geography to offer a clear understanding of the global market, the world Market for Rice Bran Oil has been studied in five regions: North America, Asia Pacific, Europe, Latin America, and Middle East and Africa. Among all regions, the Asia-Pacific region has a significant market share for rice bran oil and is expected to grow at a significant rate due to the wide availability of raw materials in the region, especially in countries such as India, Japan, China and Vietnam, which are also the main rice producers. The price of rice bran oil is being lowered by companies encouraging more consumers to buy it. Europe is expected to see remarkable growth in the rice bran oil market in the coming years. Consumers' informed purchasing decisions to buy the product, increased awareness of the health benefits of rice bran oil, is driving the regional market. The snack market is also taking the lead in healthy snacks by introducing products fried in rice bran oil. For example, it is claimed that Boulder Canyon Authentic Foods is cooked in a pot in 100% rice bran oil. According to the World Health Organization (WHO), Europe is one of the regions that most frequently faces high levels of cholesterol-related health problems, followed by North American countries such as the United States. This has led consumers to switch to rice bran oil for their daily cooking. Latin American countries offer many expansion opportunities to the main players. Overall, the outlook for the world rice bran oil market will have positive growth during the forecast period, rapid urbanization rate, rapid population growth and changing mode of production, consumers' life being around the world a counterfeit factor. The Middle East and Africa is one of the main emerging regions, which will generate significant opportunities in the market during the anticipated period due to growing health awareness and product benefits awareness.

Leading Company

A.P. Refineries had the largest share of the Rice Bran Oil Market in terms of sales revenue in 2021.

Key Players

The Rice Bran Oil Market is concentrated with well-established players. Key players in the Rice Bran Oil Market include Tsuno Rice Fine Chemicals, A.P. Refineries Pvt. Ltd., King Rice Oil Group, Oryza Oil & Fat Chemical, Wanyuan Food & Oil, Harwin Agro Enterprises, Vaighai Agro Products Ltd., Maheshwari Solvent, Modi Naturals Ltd, Ricela Health Foods, BCL Industries & Infrastructure, 3F Industries Ltd., and Sethia Oils