Market Trends of Rice Bran Oil Industry
This section covers the major market trends shaping the Rice Bran Oil Market according to our research experts:
Increase in Production of Rice Drives the Market Growth
The increasing level of rice production worldwide has led to increased market demand. Globally, this rise in rice production has escalated the market revenues in the rice bran oil market. According to the United States Department of Agriculture's World Agricultural Production 2022, China, India, and Indonesia were the top producers of milled rice in the financial year 2020-21, with 148.3 million metric tons, 122.27 million metric tons, and 35.3 million metric tons, respectively. This leads to the high standing of these countries in producing rice bran oil. India has been one of the largest producers of rice bran oil globally, with an increasing number of consumers realizing the importance of incorporating heart-friendly oil into their diet. According to the Directorate of Economics and Statistics, the Government of India, in 2021, the rice yield across India was estimated to be approximately 2.7 thousand kilograms per hectare, an increase from about 2.6 thousand kilograms per hectare. The government takes various measures worldwide to meet the supply and demand of edible oils. Different growers and investors have lifted the quantitative restrictions on organic edible oils, which has led to the growth of the rice bran oil market.
Asia-Pacific is the Largest Market
Asia-Pacific accounts for a relatively high volume share. It is expected to grow significantly in the global rice bran oil market because of the easy availability of raw materials across the region, particularly in India. The major producers in the region are India, China, Japan, and Thailand. India is the world's largest consumption area. The perceived health benefits of cooking in edible oil are one of the primary reasons Australian consumers prefer rice bran oil. It prevents heart attack and helps lower cholesterol absorption.
For instance, in June 2021, the Ministry of Consumer Affairs, Government of India launched fortified rice bran oil in India. This rice bran oil was marketed under the apex Agri-marketing organization of India, viz, National Agricultural Cooperative Marketing Federation of India Ltd (NAFED). Moreover, it is a rich source of Vitamin A, γ-oryzanol, and phytosterols and contains many medicinal properties.
