Rice Bran Oil Market Size, Share & Industry Analysis, By Type (Refined and Unrefined), Application (Food Processing, Cosmetics, Pharmaceuticals, and Others), and Regional Forecast, 2024-2032

The global rice bran oil market size was USD 7.86 billion in 2023 and is projected to grow from USD 8.55 billion in 2024 to USD 18.35 billion by 2032 at a CAGR of 10.02% during the forecast period (2024-2032). Asia Pacific dominated the rice bran oil market with a market share of 82.7% in 2023. Moreover, the rice bran oil market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 1.14 billion by 2032, driven by the high nutritional content of rice bran oil to boost its adoption in the food industry.

Rice bran oil is a type of oil extracted from the outer germ and brown layer of rice known as bran.  Owing to its high smoke point, this oil is beneficial for high heat cooking and is mainly used for several cuisines of East and South Asian countries. The growing awareness among consumers about the health benefits associated with the product consumption increased the sales of the product. The evolving dietary preferences among consumers and the rising demand for nutritional food ingredients play a crucial role in promoting the market growth.

Demand for vegetable oil among consumers, especially in Europe and North America, is rising rapidly due to growing awareness regarding its health benefits. This oil presents a cheaper and more suitable alternative among consumers who prefer vegetable oil for cooking. Additionally, this oil exhibits certain physical properties suitable for cosmetic applications such as creams and oils. Hence, companies launch new products to extend their product line to boost their presence in the market. 

In the year 2020, the outbreak of the novel coronavirus caused market turbulence and posed unprecedented challenges on the food processing industry. The sudden lockdown, shortage of workforce and hike in freight charges significantly impacted every industry, including the oil industry. However, the fear of COVID-19 virus had influenced consumers to purchase immunity boosting food ingredients, which increased the demand of rice bran oil.

Rice Bran Oil Market Trends

Changing Dietary Patterns to Propel Rice Bran Based Oil Demand

In recent years, consumers have been adopting significant changes in dietary patterns, including adopting new diets such as veganism. Scientific studies published in the American Journal of Clinical Nutrition have stated that adopting a vegan diet helps reduce weight, prevent type-2 diabetes, and provide other health benefits. The adoption of such oil is increasing among consumers looking for environment-friendly cooking ingredients. It also acts as a cheaper substitute for other vegetable oils such as olive oil. Hence, the demand for the product is expected to rise in the upcoming period.

Rice Bran Oil Market Growth Factors

High Nutritional Content of Rice Bran Oil to Boost its Adoption in Food Industry

This oil has a higher smoke point than other oils and thus, it is used widely to prepare various cuisines that require high heating temperatures. Restaurants in multiple countries, predominantly Asian countries, prepare food recipes that require high heat points. Hence, various cooking joints, restaurants, and eateries gradually adopt this oil to prepare different food items. Restaurant chains are also adopting these products to improve the nutrition profile of food products. For instance, one of the leading QSR chains, KFC has switched to rice bran oil for cooking and is being used in almost all the locations of KFC across the country.

Rising Demand for Rice Bran Oil-Based Cosmetic Products is Expected to Boost Market Growth

The demand for cosmetic products, such as creams, gels, and other skincare products, increases rapidly among consumers. This oil is rich in ingredients, such as vitamin E, Vitamin B, and others, which also help to hydrate the skin. With the increasing demand for clean beauty products among consumers that helps to hydrate and moisturize the skin, the use of such oil in preparing cosmetics is increasing rapidly. This factor also acts as one of the major factors responsible for promoting the market growth. For instance, in October 2023, Shay & Company, a wholesaler in the U.S., introduced two waxes, rice bran and cera bellina wax, which can be used for applications such as skincare, haircare, and soap manufacturing.

RESTRAINING FACTORS

Availability of Other Vegetable Oil Substitutes to Impede Market Growth

The adoption of this oil among consumers is low due to lack of awareness about the benefits of these products. The presence of other suitable vegetable oil substitutes such as sunflower oil and olive oil also impedes the market growth and results in low adoption among consumers in other regions such as Europe and North America. Hence, companies need to adopt innovative and aggressive marketing and promotional strategies to increase the adoption of these products among consumers.  

One of the major raw materials used for manufacturing the oil is rice, which is available readily in the market. But in recent years, rice production has been significantly impacted due to weather fluctuation, which further impacts the manufacturing of this oil. According to the U.S. Department of Agriculture, a governmental agency, the India’s rice production dropped by 2 million tons due to torrential rains in 2023-24. Additionally, lack of availability of advanced production technologies also impacts the availability of this oil in the market. This is a major factor restraining the market growth.

Rice Bran Oil Market Segmentation Analysis

By Type Analysis

Refined Rice Bran Oil is Expected to Hold Highest Share Due to its Increasing Application in Food Industry 

The use of refined rice bran-based oil for cooking food products has been associated with several health benefits such as maintaining healthy cholesterol levels and improving heart health. Additionally, as per American Heart Association, it helps improve the cholesterol levels in the body. In the U.S., restaurants increase the use of such oil to make new food items. Furthermore, it is a rich source of vitamin E, gamma-oryzanol, and other components that helps to reduce the cholesterol content in the body and prevent heart disease. Companies are also launching new food products fortified with additional nutrients and vitamins. For instance, in 2021, the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) announced the launch of fortified rice bran based oil under the ‘Aatmnirbhar Bharat’ initiative of the government of India.

By Application Analysis

Use of Rice Bran Based Oil for Cooking Food Products to Show Promising Growth Owing to Increased Consumption Among Consumers

Rice bran-based oil is rich in minerals and proteins, making it a healthier alternative over other edible oils available in the market. As one of the major ingredients required for cooking food items is oil, consumers are becoming more concerned about choosing the right oil beneficial for their health. The presence of beneficial nutrients such as Vitamin E, gamma, and oryzanol makes them suitable for consumers, especially those looking to lower their cholesterol levels in the body and prevent chronic disease such as hypertension, high cholesterol, and others. Additionally, this oil does not impact the taste of the cooked food products as it has a neutral or mild taste compared to other vegetable oils such as coconut oils or mustard oils. Hence, they are used to cook different cuisines in various countries, especially in the Asia market.

This oil is also used in the cosmetics and pharmaceutical industries as it is rich in various vitamins and antioxidants. Further, it is also used as a base oil for manufacturing different creams and oils. Skincare products comprising such oil also protect against UV rays generated from sunlight. It also provides nourishment for the hair, due to which companies are also launching rice bran-based oil for hair. The skin also absorbs this oil as it is rich in linoleic acid. Furthermore, it is also used as a feed supplement for animals such as horses to improve the animals' hair coat.

REGIONAL INSIGHTS

Asia Pacific is the largest manufacturer and consumer of rice bran-based oil globally. Some of the major rice manufacturing countries such as China, India, and Japan are present in the region.

Rice bran is one of the major by-products obtained from rice milling, and the oil obtained from processing the rice bran is used as cooking oil and manufacturing cosmetic products. In Japan, this oil is known as the ‘heart oil’ due to its beneficial impact on cardiovascular patients. The rise in disposable income in some emerging economies such as India and China further surges the demand for premium healthy food ingredients, including this oil. Majority of such oil suppliers are available mainly in Asia Pacific countries that export these products to other regions. 

North America is one of the leading users of this oil due to rising health awareness among consumers. Consumers are adopting several dietary measures to ensure that they are consuming food products that are beneficial for health. Additionally, different restaurants specializing in Japanese cuisines are switching to this oil. It is also used for salad dressing and baking products such as brownies, cakes, and other bakery products. With the rise in veganism in the region, the demand for vegetable oil such is increasing gradually. As per recommendations provided by both the American Heart Association and World Health Organization (WHO), the adoption of such oil helps maintain healthy cholesterol levels. This factor also acts as a major factor that further promotes the adoption of this oil in the region.

Europe is also one of the developing rice bran-based oil markets due to the region's rising demand for vegetable oils. As an emerging market, Europe acts as one of the major importers of this oil and imports from Thailand, India, and China. As this oil has several health properties, it is slowly gaining popularity in the region. Also, other vegetable oils, such as olive oil, are comparatively priced higher in the region and provide a suitable alternative for consumers adopting new diet regimes such as vegan diet and keto diet.

Additionally, in other regions, such as South America and the Middle East & Africa, the adoption rate of rice bran-based oil is comparatively slower than in other regions. Brazil is expected to register promising growth due to the rising demand for vegetable oils.

In South Africa and Saudi Arabia, the demand for low cholesterol cooking oil is rising gradually due to the rise in the younger and affluent generation.

List of Key Companies in Rice Bran Oil Market

Adani Group is Adopting Strategies such as Collaboration to Increase their Market Presence

The competitive landscape of the rice bran oil market is highly fragmented, with several regional and local players competing with each other to increase their market presence. Some of the major manufacturers in the global market include Adani Wilmar and Cargill, Incorporated. Leading companies are entering into a joint venture to increase their market presence. For instance, Adani Group entered into a 50-50 joint venture with Wilmar International to increase their presence in other countries such as Singapore and market their products to a larger consumer base. In recent years, the market penetration of such oil manufacturers has increased in both developed and developing countries.

LIST OF KEY COMPANIES PROFILED

• Adani Wilmar (Gujarat, India)


• Modi Naturals (New Delhi, India)


• Marico (Maharashtra, India)


• Conagra Foods (Chicago, U.S.)


• BCL Industries Limited (Punjab, India)


• King Rice Oil Group (Bangkok, Thailand)


• California Rice Oil Company (California, U.S.)


• Ricela Health Foods Ltd. (Punjab, India)


• 3F Industries Ltd (Mumbai, India)


• Sethia Oils Ltd. (West Bengal, India)

KEY INDUSTRY DEVELOPMENTS

• March 2024 – Gemini Edibles & Fats India Ltd., announced the launch of a new campaign, focusing on Freedom rice bran oil titled as “Cholesterol Ki Safai ka Specialist”. This is the second promotional advertisement on the campaign series, “Rice Bran Oil Kare Andar Se Safai.” Such marketing strategies help drive consumers to opt for rice bran oil which will ease the cleansing process of cholesterol.


• April 2023 – Chhen Chandara, owner of Cambodian Rice Bran Oil Co Ltd., opened a new rice bran oil production unit in Battambang area, Columbia. The plant aims at refining 6 tons of oil/day and would offer their products to the local consumers after Khmer New Year Celebrations.


• September 2021 – Super Sarvottam, a Chhattisgarh-based oil brand, expanded its offerings across PAN India through several e-commerce portals and modern trades. The products are now available in DMart, Walmart, Reliance, and other online channels such as Flipkart, Big Basket, and Jio Mart.


• June 2021 – India-based company, N.K. Proteins Pvt Ltd., announced its plans to launch rice bran oil brand ‘Tirupati’ for health-conscious consumers in the market.


• August 2019 – Cargill, Incorporated, a U.S.-based company, announced the extension of Gemini's existing rice bran oil product line. The product is marketed to contain 40% more gamma oryzanol than other conventional oil.

REPORT COVERAGE

The market report provides a detailed rice bran oil industry analysis and focuses on key aspects such as leading companies, product type, and application. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation