Rice Bran Oil Market Report

Rice Bran Oil Market Size:

The global rice bran oil market size reached 1.8 Million Tons in 2023. Looking forward, IMARC Group expects the market to reach 2.1 Million Tons by 2032, exhibiting a growth rate (CAGR) of 1.7% during 2024-2032. The market is primarily driven by the growing edible oil demand, increasing rice production, the rising awareness regarding the health benefits of rice bran oil, and innovations in advertisement and extraction technology to improve oil yield and quality.

Rice bran oil is an edible vegetable oil which is extracted from the outer brown layer of rice. Characterized by a mild flavor and neutral taste, it is rich in vitamin E, antioxidants, and natural bioactive phytoceuticals such as oryzanol, tocopherols, tocotrienols, and lecithin. It is exceptionally versatile and light in texture, offers delicate flavors, is suitable for high-temperature cooking, and can easily be blended with other less stable oils. Consequently, it is widely employed in various cooking methods including stir and deep-frying, sautéing, and grilling. It is also associated with reducing the risk of cancer, lowering cholesterol levels, increasing immunity, and improving the nervous system.

Rice Bran Oil Industry Drivers:

Rising awareness about the multiple health benefits offered by rice bran oil has escalated its consumption. This, in confluence with the high demand for food and beverages with low fat and high nutritional content, is strengthening the growth of the market. Moreover, the World Health Organization (WHO) and the American Heart Association have approved the use of rice bran oil, stating that its composition of monounsaturated, polyunsaturated, and saturated fats is much safer as compared to the composition of most other vegetable oils. Since this oil contains oryzanol which stimulates hair growth, protects the skin against UV rays, and prevents aging, it has emerged as an essential component in the cosmetics and pharmaceutical industries for manufacturing soaps, moisturizers, lotions, and hair care products. Other key factors that are contributing to the growth of the market include rapid urbanization, inflating disposable incomes, changing lifestyles, aggressive promotions by manufacturers, and increasing penetration in both developed and emerging markets. 

Rice Bran Oil Market Trends:

Rising Edible Oil Demand

According to the National Institution for Transforming India (NITI) Aayog, the edible oil demand is expected to increase to 29.8 million tons by 2030 and further to 32.6 million tons by 2047. These forecasts are grounded in predictions of population growth and an established annual per capita consumption rate of 19.7 kg, which resulted in a total demand of 27.7 million tons in 2021. This traction is largely due to its recognized health benefits, including high levels of antioxidants and beneficial fats, which contribute to cardiovascular health and cholesterol management. The increasing consumer awareness and preference for healthier dietary choices are pivotal in propelling the demand for rice bran oil. As health trends continue to influence food choices, rice bran oil is positioned for further growth, benefiting from its health-centric attributes in a market where consumers are increasingly turning away from traditional, less healthy oils.

Increased Rice Production

The foundation of rice bran oil production is inherently tied to global rice production. According to the Food and Agriculture Organization (FAO) of the United Nations, global rice production hit 523.9 million tonnes on a milled basis for the 2023-2024 season, representing an increase of 0.8% from the yield recorded in 2022-2023. The substantial rice output, especially in the Asia-Pacific region the hub of rice cultivation and rice bran oil production ensures a steady supply of rice bran, the raw material for the oil. This correlation means that increases in rice production directly enhance the availability of rice bran for oil extraction. This dynamic is crucial as it allows rice bran oil producers to scale up operations in response to growing market demand without facing significant raw material shortages. Furthermore, as rice production increases, the rice bran oil sector is set to expand, supported by robust supply chains and enhanced production capabilities in these regions.

Technological Advancements

Technological innovations in the various advertisement and extraction processes of rice bran oil, such as cold pressing and solvent extraction, have significantly enhanced yield and quality. These advancements are critical as they improve the efficiency of oil extraction pushing extraction rates and ensuring a higher quality product by preserving nutrients and antioxidants. For instance, in June 2024, Gemini Edibles & Fats India Ltd unveiled an innovative print advertising campaign for Freedom Rice Bran Oil, named ACT TODAY. This pioneering campaign incorporates quick response (QR) code technology, marking a first in India for an edible oil brand to enhance how consumers engage with a product through print media. Additionally, customers can activate a dynamic video from a static image, which highlights the advantages of Freedom rice bran oil, touted as the 'cholesterol ki safai ka specialist' by scanning the QR code featured in the print ads. This technology-driven approach aims to improve interaction, convenience, and overall brand experience. The adoption of these advanced technologies makes the production process more profitable and sustainable. They enable producers to maintain competitive prices and high-quality standards, making rice bran oil more accessible to a broader market and further driving its growth in the edible oil industry.

Rice Bran Oil Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global rice bran oil market report, along with forecasts at the global and country levels from 2024-2032. Our report has categorized the market based on end-use.

Breakup by End-Use:

• Edible
• Industrial

Owing to the rising awareness about the health benefits of rice bran oil, it is widely used for culinary purposes on the global level.

Regional Insights:

• India
• China
• Japan
• Others
   

On the geographical front, India is the largest producer of rice bran oil, accounting for the majority of the total global production. This can be accredited to the easy availability of raw materials across the country.

Competitive Landscape:

The competitive landscape of the market has also been analyzed in the report with the detailed profiles of key players operating in the market.

Rice Bran Oil Market News:

• In September 2024, Myanmar Rice Bran Oil Company Limited (MRBO) announced the establishment of its inaugural rice bran oil facility in the Pyinmana township of Nay Pyi Taw Union Territory. Additionally, with support from the union government and the Myanmar Rice Federation, construction began in February on a plant capable of processing 200 tons of crude rice bran oil and refining 50 tons of oil. The facility is designed to produce an annual output of 90,000 tons of crude oil and 6,300 tons of refined oil, according to the company. The initiative aims to meet domestic demand for edible oil and introduce rice bran oil as a new agricultural export from Myanmar.
• In February 2024, Emerald Oil is set to invest TK 400 crore in establishing a new facility within the Jamalpur Economic Zone to augment its rice bran oil production, particularly for the export market, with a target of 100 tonnes per day. The company aims to commence commercial operations by March 2025.

Rice Bran Oil Market Report Scope: