The global rice bran oil market is estimated to augment at a CAGR of 4.51% from a market size of USD1.346 billion in 2019 to grow to a market size of USD1.754 billion by the end of 2025. 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 which include protein, good fat, ash, and crude fiber. The health benefits provided by rice bran is projected to fuel the market demand in the forecast period. The growing health awareness among individuals worldwide is further propelling the 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 with the growing animal feed industry.
The market for rice bran oil in 2020 is estimated to experience a slight decline due to the COVID-19 impact worldwide, the shut-down of manufacturing plants due to work-from-home and lockdown measures have led to labour shortages, showing a decline in production rate. However, the online mode of distribution channel will help in promoting sales of rice bran oil, but in a controlled manner. The advent of new normal, post lockdown will further promote market growth in the forecast period after 2020.
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 favourable 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 a large number of suppliers operating in the market owing to the large consumer base, especially in the 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 are further resulting 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 are known to 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 is 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 livestock population.
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 in order 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 in order to meet food security goals. For this, the country is investing in high amounts to expand poultry production and attain high economies of scale. Furthermore, in order 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 particular poultry equipment. Yellow corn, soybean meal, distillers’ dried grain with solubles (DDGs), corn gluten feed, and sorghum lies in the current list of animal feed products eligible for subsidies. Furthermore, the government is supporting the establishment of new chicken farms, further increasing the 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, in 2018, in India, the rice bran oil production was more than 9,80,000 tonnes per annum, and it is 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, and 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.