The rice milk market is projected to witness a compound annual growth rate (CAGR) of 17.17% during the forecast period to reach a total market size of US$2,619.954 million by 2024, increasing from US$1,012.838 million in 2018. Rice milk is grain milk made by processing rice and is recommended for people who are lactose intolerant and vegan.

The Rice milk market is particularly targeted towards the lactose-free population. It is one of the best alternatives of dairy milk and contains most carbohydrates compared to almond and soy milk which is considered as one of the key drivers for the growth of the market during the forecast period. In addition, increasing dairy alternative food demand and raising awareness of the benefits of rice milk are expected to drive the global rice milk market. However, the availability of competitive products like almond and coconut milk and low market penetration of the product may result in restraint for the rice milk market in the coming years. The North American region holds a significant market share owing to the presence of a high percentage of lactose intolerant population in the region coupled with the emerging trend of the preferences for vegan food.

Market Drivers

• Growing vegan and lactose-free population
• Expanding non-dairy milk industry

Market Restraints

• High cost involved
• Lack of product awareness
• Availability of substitutes

Owing to the profusion of gastronomic pursuits around the world that has resulted in food and beverages innovation, the rice milk market is poised to witness exponential growth. Further, increasing health concerns have resulted in marked shifts in dietary patterns among global consumers. They are moving away from milk derived from animals and are increasingly orienting themselves towards plant-based milk products, which encompasses rice milk among others. Additionally, the consumers of the APAC region are more lactose intolerant than in other parts. This too has necessitated the adoption of rice milk, whether in powder or liquid form, consumed directly or indirectly, as a healthy alternative to dairy-based products.

Another factor that would lead to an uptick in the rice milk market is the growing environmental concern pertaining to bovine milk production.  The estimated global variation pertaining to 1 liter of milk production with regards to greenhouse-gas (GHG) emissions is between 2 to 4 kgs carbon dioxide equivalents (CO₂eq). With regards to terrestrial acidification, 1 liter of milk production amounts to more than 30 grams of sulfur dioxide equivalents (g SO₂eq) and leads to eutrophication to the tune of 20 grams of phosphate (g SO₂eq). Besides the health concerns, consumers today are aware of the environmental impact of dairy products and are proactively adopting plant-based alternatives to milk like rice milk. Apart from actively communicating the environmental credentials, players in the market are increasingly partaking in the plant-based foods sector.

Moreover, the abundance of raw materials in the APAC region is estimated to further propel the growth of the market. Further, due to the emerging preference for functional beverages, a greater number of players are emerging as well as diversifying into the plant-based milk category. This would lead to significant growth of the rice milk market. The established and ever-expanding distribution networks are projected to further catalyze the growth of the rice milk market.

The rice milk market faces competition from a growing number of substitutes since plant-based alternatives have become a staple in every household across several markets and are not restricted to the diets of vegans, only. Besides, rice milk there appears to be a profusion of other plan-based products. For example, the market share of almond milk in the US had been 64%. In the UK, sales of almond milk were to the tune of US$106.9 million, the highest among all categories of plant-based products. Further, with regards to presence across all other markets, oat milk surpasses all other plant-based milk. In the UK, oat milk sales shot up by 66,7% between 2016 and 2017. Moreover, consumers’ aspirations for variety, novelty and the willingness to experiment are a few key reasons that are propelling the emergence of plant-based drinks other than rice milk. In 2019, Chobani, the widely recognized American yogurt brand announced that it would start selling oat-based drinks. Other players in the oat milk segment are Danone’s Silk, Oatly and Planet Oat. As a response to the growth of 11.5%, Sainsbury’s doubled its range of non-dairy milk across 300 stores in the UK. Further, the plant-based market is not saturated which paves the way for more alternatives to rice milk. In view of the above Elmhurst switched to producing a variety of plant-based milk from almond, cashew, hazelnut, oat, and walnut after being 92 years in dairy. Califia Farms known for its range of plant-based milk that is inclusive of but is not limited to that of coconut and almond milk raised a $50 million round of capital in the year 2018 led by Ambrosia Investments. Another Californian coconut milk-based brand called REBBL raised US$20 million in funding.

Available Rice Milk Substitutes

The growing preferences for a vegan diet is a significant contributing factor towards the meteoric adoption of non-dairy milk alternatives. For rice milk, this poses a significant opportunity even beyond the forecast periods. One such alternative is that of rice milk. Presently consumers are proactively moving away from bovine milk towards rice milk mainly due to milk protein allergy, lactose intolerance, cultural influences, etc. One out of two European and American consumers prefer to consume plant-based milk independently or alongside cow’s milk, whereas in LATAM and in APAC regions it's two-thirds of the total consumers who share the aforesaid preference. This has enabled beverage processors and marketers to capitalize on the growing consumer preference for rice milk and increase their portfolio of lactose-free milk brands. Further, countries, where consumers are mostly lactose-tolerant, are turning towards rice milk, as well. 

In light of the above, in 2017, Danone (Euronext: BN) acquired American WhiteWave Foods for a deal, worth US$12.5 billion, which among others, generated 38% of its sales from plant-based foods and beverages according to a certain forward-looking statement published by Danone. Further, the Dairy Farmers of America (DFA) in 2019 reported net sales of US$13.6 billion for 2018, compared to US$14.7 billion in 2017, which is a decrease of 7.5%.

On the basis of source, the rice milk market has been segmented into organic and inorganic. On the basis of form, the segment has been divided into powdered rice milk and liquid rice milk. All the two forms are projected to witness significant growth during the forecast period due to its increasing demand in the food and beverage sector. On the basis of application, the market has been divided into food and bakery & confectionery, beverages, snacks, and others.

The major players profiled in the Rice milk market are Danone (Alpro), Vitasoy Australia Products Pty Ltd, Fine Japan Co. Ltd, The Bridge bio, Pacific Foods, and SunOpta, Campbell, The Hain Celestial Group, Inc, and Pureharvest Pty Ltd among others.

Rice Milk Market Scope:

Segmentation

The Rice milk market has been analyzed through the following segments:

By Source

Organic

Conventional

By Form

Powder rice milk

Fluid rice milk

By Application

Beverages

Bakery & Confectionery

Others

By Geography

North America

USA

Canada

Mexico

South America

Brazil

Argentina

Others

Europe

Germany

France

United Kingdom

Spain

Others

Middle East and Africa

Saudi Arabia

Others

Asia Pacific

China

Japan

South Korea

India

Others