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. 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
Market Restraints
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 an exponential growth. Further, increasing health concerns has resulted in marked shift in dietary patterns among the global consumers. They are moving away from milk derived from animals and are increasingly orienting themselves towards plant-based milk product, which encompasses rice milk among others. Additionally, the consumers of 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 the 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 green-house-gas (GHG) emissions is between 2 to 4 kgs carbon dioxide equivalents (CO2eq). With regards to the 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 production 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 of functional beverages, a greater number of players are emerging as well as diversifying into plant-based milk category. This would lead to a significant growth of the rice milk market. The established and ever-expanding distribution networks is projected 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 has become a staple in every household across several markets and is 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 UK, sales of almond milk were to the tune of US$106.9 million, the highest among all categories of the plant-based products. Further, with regards to presence across all other markets, oat milk surpasses all other plant-based milks. In UK, oat milk sales shot up by 66,7% between 2016 and 2017. Moreover, consumers’ aspiration 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 UK. Further, the plant-based market is not saturated which paves the way for more alternatives to rice milk. In view of above Elmhurst switched to producing a variety of plant-based milks from almond, cashew, hazelnut, oat and walnut after being 92 years in dairy. Califia Farms known for its range of plant-based milks that are inclusive of but are not limited to that of coconut and almond milk raised $50 million round of capital in the year of 2018 led by Ambrosia Investments. Another Californian coconut milk-based brand called REBBL raised US$20 million in funding.
|
Type |
Products |
|
Cereal based |
Corn milk, Oat milk, Rice milk, Spelt milk |
|
Legume based |
Peanut milk, Lupin milk, Cowpea milk. |
|
Nut based |
Almond milk, Coconut milk, Hazelnut milk, Pistachio milk, Walnut milk |
|
Seed based |
Flax milk, Hemp milk, Sesame milk, Sunflower milk. |
|
Pseudo-cereal based |
Amaranth milk, Quinoa milk, Teff milk. |
Available Rice Milk Substitutes
The growing preferences of vegan diet is a significant contributing factor towards 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 the 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 its two-thirds of the total consumers who shares 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 is 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 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 in 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 a significant growth during the forecast period due to the 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.
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
Frequently Asked Questions (FAQs)
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