The global rice bran oil market is valued at US$1,681.29 million in 2020.
Rice bran oil is extracted from the outer layer of rice; the outer layer of rice is known as bran. According to the International Rice Research Institute (IRRI), 100 kilograms of paddy will produce 5-10 kilograms of bran approximately. The extracted rice bran is a mixture of nutritious substances, including protein, good fat, ash, and crude fibre. The health benefits provided by rice bran are projected to fuel the market demand in the forecast period.
The growing health awareness among individuals worldwide further propels market growth in the forecast period. The growing number of lifestyle-related disorders like obesity and hypertension will provide an impetus in propelling the market demand in the forecast period. The growing research activities on the global level have resulted in knowing the usage of rice bran for various household, commercial, and industrial purposes in the form of oil; such activities are further driving the market demand in the forecast period. The utilization of rice bran oil in feed formulation is further promoting market growth in the growing animal feed industry.
On the basis of geography, the Asia Pacific region is projected to hold a substantial market share due to the sizeable production of rice bran oil. The North American region is estimated to hold favorable growth prospects due to the high health awareness and rice bran oil benefits leading to high market demand in the forecast period.
The growing animal feed industry is propelling the market demand in the forecast period.
The animal feed industry is a competitive market with many suppliers operating in the market owing to the large consumer base, especially in developing regions like the Asia Pacific region, thus impacting the growth of the global rice bran oil for feed formulations. The demand for animal products is further burgeoning the market demand in the forecast period.
The use of feed additive trends is utilized to enhance the nutritional content in an animal which is leading to their increasing adoption, further adding to the growth of the global animal feed industry. Simultaneously, the expanding industrial livestock production and increasing animal farming further resulted in the expansion of the customer base of vendors.
Moreover, the firms in the industry are striving hard to remain competitive and improve their market share through strategic mergers and acquisitions, and joint ventures, especially in the APAC region. Fats and oils serve as important ingredients for the animal feed industry. The Asia Pacific region is among the key regions of the world with a high consumer base for animal products; manufacturers find this region as a lucrative opportunity for setting up their bases and generating high revenues.
Furthermore, government initiatives ensuring adequate health of an animal are further increasing the use of nutritional products contributing to promoting the health of livestock animals. The collaboration of the Animal Production and Health Commission for the Asia Pacific region with the other units in FAO and partnerships with international organizations such as the World Organization for Animal Health (OIE) and WHO are continuing to carry out several development initiatives for the livestock population.
Investments in meat production
In other regions of the world, like Saudi Arabia, the local chicken meat production is estimated to grow from 600,000 MT in 2016 to reach 700,000 MT by 2019 to achieve 60% self-sufficiency in chicken meat production (source: USDA).
The government of Saudi Arabia is focused on surging chicken meat production by the end of 2020 to meet food security goals. For this, the country invests in high amounts to expand poultry production and attain high economies of scale. Furthermore, to reduce high production costs, the government is offering subsidies for animal feed, in addition to providing interest-free loans and rebates for the purchase of poultry equipment. Yellow corn, soybean meal, distillers’ dried grain with solubles (DDGs), corn gluten feed, and sorghum lie in the current list of animal feed products eligible for subsidies.
Furthermore, the government supports establishing new chicken farms, further increasing domestic meat production. Such initiatives are providing strong growth prospects for the market to propel in the forecast period.
In India, from the APAC region, the untapped potential of rice bran oil is further providing strong growth opportunities for the market to proliferate during the forecast period.
According to Solvent Extractors’ Association, SEA estimates that in 2018, in India, the rice bran oil production was more than 9,80,000 tonnes per annum, growing by around 40,000 to 50,000 tonnes annually. Additionally, it was estimated that based on the country’s paddy production output, which is the second-largest producer of rice in the world, the output potential of rice bran is around 9.8 million tonnes.
On the basis of rice bran production potential, the potential of rice bran oil production is more than 1.62 million tonnes every year. The untapped potential is about 6,50,000 tonnes. Furthermore, the country produces an average yield of around 2,400 kg per hectare from around 44 million hectares of land for rice production. During the time period 2016-2017, rice production was more than 100 million tonnes. West Bengal, Andhra Pradesh, Uttar Pradesh, and Punjab are the major rice-producing states.
Strict lockdown and social distancing regulations during the COVID-19 pandemic led to a decrease in market demand for a lot of sectors. Disruptions in supply and production lines led to a decrease in industrial productivity, and also initially affected the rice bran oil market. The shutdown of manufacturing plants due to work-from-home and lockdown measures led to labour shortages, showing a decline in production rate. However, the market was quick to recover, and reported an increase in product demand, due to the health benefits and nutrient-rich properties of rice bran oil. Further, the increasing health concerns and the increase in home-cooking also led to a rise in demand. The online mode of distribution channel also flourished due to the rising e-commerce and online shopping trend, which helped in promoting sales of rice bran oil. The advent of the new normal post lockdown will further promote market growth in the forecast period after 2020.
|Market size value in 2020||US$1,681.29 million|
|Growth Rate||CAGR during the forecast period|
|Forecast Unit (Value)||USD Million|
|Segments covered||Type, End-User, Distribution Channel, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Ricela Health Foods Ltd., BCL Industries Limited, 3F Industries Ltd., Adani Group, Cargill, Incorporated, King Rice Oil Group, Zhejiang Delekang Food Co., Ltd, Modi Naturals Ltd., Sanwa Yushi Co., Ltd.|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global rice bran oil market?
A1. The rice bran oil market is valued at US$ 1,681.29 million in 2020.
Q2. Who are the major players in the rice bran oil market?
A2. Prominent key market players in the rice bran oil market include Ricela Health Foods Ltd., BCL Industries Limited, 3F Industries Ltd., Adani Group, Cargill, Incorporated, and King Rice Oil Group, among others.
Q3. How is the rice bran oil market segmented?
A3. The rice bran oil market has been segmented by type, end-user, distribution channel, application, and geography.
Q4. What factors are anticipated to drive the rice bran oil market growth?
A4. The growing health awareness among individuals worldwide further propels the rice bran oil market growth in the forecast period.
Q5. Which region holds the largest market share in the rice bran oil market?
A5. The Asia Pacific region is projected to hold a substantial market share due to the sizeable production of rice bran oil.
1.1. Market Definition
1.2. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Market Opportunities
4.4. Porter’s Five Forces Analysis
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Power of Buyers
4.4.3. Threat of New Entrants
4.4.4. Threat of Substitutes
4.4.5. Competitive Rivalry in the Industry
4.5. Industry Value Chain Analysis
5. Global Rice Bran Oil Market Analysis, by Type
5.2. Organic Rice Bran Oil
5.3. Conventional Rice Bran Oil
6. Global Rice Bran Oil Market Analysis, by End-User
7. Global Rice Bran Oil Market Analysis, by Distribution Channel
8. Global Rice Bran Oil Market Analysis, by Application
8.2. Food & Beverage
8.4. Animal Feed
9. Global Rice Bran Oil Market Analysis, by Geography
9.2. North America
9.2.1. United States
9.3. South America
9.5. Middle East and Africa
9.5.1. United Arab Emirates
9.5.3. Saudi Arabia
9.6. Asia Pacific
9.6.4. South Korea
10. Competitive Environment and Analysis
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix
11. Company Profiles
11.1. Ricela Health Foods Ltd.
11.2. BCL Industries Limited
11.3. 3F Industries Ltd.
11.4. Adani Group
11.5. Cargill, Incorporated
11.6. King Rice Oil Group
11.7. Zhejiang Delekang Food Co., Ltd
11.8. Modi Naturals Ltd.
11.9. Sanwa Yushi Co., Ltd.
BCL Industries Limited
3F Industries Ltd.
King Rice Oil Group
Zhejiang Delekang Food Co., Ltd
Modi Naturals Ltd.
Sanwa Yushi Co., Ltd.
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