Adroit Market Research - Industry Insights

Driven by astute consumer pursuit for healthy lifestyle, consumption patterns of healthy food ingredients have witnessed sharp incline. Edible oils for that matter remain one of the most versatile food ingredients and ample R&D ventures are directed to produce nutrient-rich edible oils sourced from a myriad plant sources. RBO, refined rice bran oil, has in recent years emerged as a high-in-demand edible oil, backed by a rich nutrient portfolio as well as an economical pricing bracket.

Hence it is safe to proclaim that rice bran oil in its own right has tangibly substituted contemporary, pricy oil variants such as olive oil, sesame oil, avocado, and walnut oil besides a slew of

Driven by astute consumer pursuit for healthy lifestyle, consumption patterns of healthy food ingredients have witnessed sharp incline. Edible oils for that matter remain one of the most versatile food ingredients and ample R&D ventures are directed to produce nutrient-rich edible oils sourced from a myriad plant sources. RBO, refined rice bran oil, has in recent years emerged as a high-in-demand edible oil, backed by a rich nutrient portfolio as well as an economical pricing bracket.

Hence it is safe to proclaim that rice bran oil in its own right has tangibly substituted contemporary, pricy oil variants such as olive oil, sesame oil, avocado, and walnut oil besides a slew of others. Rice bran oil is extracted from the exterior brown crust of rice husk which is acknowledged as a complete nutrient storehouse. Besides its nutrient properties as well as judicious pricing strategy, rice bran oil market is further aided by easy availability of raw materials, as rice is a staple across various countries across the globe.

Soaring Incidences of Fatal Maladies to Bode Well with Impressive Adoption

At the backdrop of fast paced lifestyle and sedentary work schedules, prevalence of critical maladies such as obesity, cardiac diseases, and diabetes continue to baffle mankind. Essential nutrient attributes of rice bran oil are claimed to have startling cholesterol reduction properties thereby significantly offsetting the risks of cardiac disorders. With clearances from international bodies such as American Heart Association and World Health Organization supporting the role of rice bran oil in decreased cardiac disorders are accounted to further manifest favorable growth triggers in global rice bran oil market in foreseeable future. Besides the food industry applications, rice bran oil is witnessing mentionable inclusion in drug making as well as cosmetics.

A Glimpse of Elaborate Nutrient Profile: Rice Bran Oil

Rice bran oil is a rich and abundant source of essential micronutrients such as oryzanol, phytosterols, vitamin E, squalene, and polyphenols amongst others. Attributed to lend a characteristic flavor with no distinct taste, rice bran oil is highly versatile and hence finds ample applications across a broad range of culinary varieties such as salad dressing as well as cooking oil, for both shallow and deep frying owing to its high smoking point.

Rice bran oil is also blended and used in tandem with other cooking oil varieties such as mustard and coconut oil for superlative results. Several ongoing studies also emphasize the cancer preventive attributes of rice bran oil. Regular consumption of rice bran oil is proved to have lasting impact in warding off cancer occurrences owing to high amounts of phytochemicals which are abundantly found in rice brans.

Refining processes of rice bran oil is a debatable area, with several industrial behemoths supporting a range of methods. However, of late, physical refining as attained reasonable traction. Oryzanol is extremely susceptible to damage. Chemical refining methods destroys oryzanol. Hence, leading players are now vouching for physical refining processes. Physical refining involves a range of elaborate processes such as degumming, dewaxing, bleaching, and deodorization.

Wilmar Industries' Rice Bran Oil Brand, Arawana Forays into Japanese Market, Eying Geographical Expansion

At the backdrop of lucrative opportunities in rice bran oil market, triggered by soaring consumer demands, leading rice bran oil makers and stakeholders are increasingly scouting for best opportunities to consolidate their position, thus ensuring sustainable lead amidst burgeoning competition in global rice bran oil market. Companies are embracing both organic and inorganic growth strategies to ensure superlative lead and sustainable revenue pools.

Besides betting high on mergers and acquisitions, prominent rice bran oil makers are pushing their boundaries to register ample geographical expansion. Followed by its reception of 'Quality Award' back in 2016 at the ICRBO held in Tokyo, China based Arawana has since become a highly sought after rice bran oil brand across Japan, despite Japan's dominant position in rice bran oil market across the globe.

 Arawana invested heavily in launching novel rice bran oil supermarket in Japan followed by its award. The company is also well known for its flagship rice bran oil production techniques wherein rich nutrient sources, oryzanol and phytosterol are retained by a unique, low temperature oil extraction process. Arawana rice bran oil is therefore highly valued for its flavorful and nutrient rice features. As part of its future growth endeavors, Arawana is soon to establish trade relations with Japanese retailers and traders. With this development in place, Japanese rice bran oil behemoths are certainly up to massive competition and are expected to soon reinforce other competitive strategies to ensure sustenance.

Regional Analysis: Why APAC Continues to Remain High Profit Market

In terms of regional market analysis and opportunity assessment of global rice bran oil market, APAC clearly is likely to demonstrate a major lead. In terms of both production as well as consumption, APAC showcases high affinity towards rice. Countries such as China, Japan, Thailand, Vietnam, India, Bangladesh, besides rest of Asia are identified as major rice consumption countries where rice is a staple. Hence, high consumption ratio clearly manifests high production of rice. This enables seamless sourcing, allowing the rice bran oil market to remain a flourishing market in APAC on the back of easy availability.

Additionally, prevalence of lifestyle diseases and increased government initiatives towards healthy lifestyle are likely to support relentless advances in rice bran oil market in APAC region. Besides Asian Pacific countries, rice bran oil market is expected to remain a high profit market across North America and European countries where growth of rice bran oil market is facilitated by consumer preferences for healthy as well as affordable edible oil.

European Markets Offers Challenging Situations Owing to Surged Preferences for Olive Oil

On the flip side however, European market is also plagued by tangible challenges, such as astute loyalty towards indigenous olive oil. Europe is massively propelling numerous dedicated programs to push olive oil market beyond boundaries. Projects such as 'Olive Oil World Tour' are targeted to attract new markets worldwide. However, across rice dominated countries such as Asian countries, rice bran oil is offering stiff competition to other healthy oil variants such as olive oil, in terms of both pricing as well as availability.

Rice Bran Oil Market Overview

The global rice bran oil market is anticipated to remain a high revenue generating market, through the forecast period, 2019-25, and is likely to clock a robust CAGR of 4.1%, thereby likely to exceed its initial market value of USD 1 billion in 2018. With improved consumer mindfulness and knack towards healthy lifestyle, adoption of healthy cooking ingredients is a burgeoning trend, influencing concomitant growth in global rice bran oil market, across the globe.

Additionally, the global market is likely to witness surged consumer demands for edible grade rice bran oil which will grow steadily at 4% CAGR. Besides food industry being a frontline adopter, pharmaceutical industry is expected to soon follow suit with relentless increase in drug manufacturing on the back of adverse health conditions and an aging geriatric population. As highlighted earlier, APAC will remain atop of revenue generation, however, other potential regional markets have been identified across North America and Europe where adoption rate is steadily picking momentum and is expected to deliver high returns on investments in forthcoming years.

Key Takeaways

• Choice of ingredients is strictly manipulated by consumer preferences.
• With rising consciousness about healthy consumption habits, the food industry is likely to witness multilayered alterations, coupled with sharp inclination towards high nutrition food ingredients.
• By virtue of its extensive nutritional portfolio, rice bran oil will continue to remain a top choice thereby incurring substantial revenue pools in the coming years.
• Substantial improvements in oil extraction and production processes will further accelerate throughput besides improving quality. This is going to bode well with amplified growth opportunities in rice bran oil market
• In terms of food industry, packaging clearly plays a crucial role in enticing consumer preferences. Adoption of high end packaging by rice bran oil makers is therefore going to play a revenue fetching domain.
• Top notch companies are also employing improved physical refining processes for maximum nutrient retention.