Industry: Food and Beverages
Published Date: January-2025
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 195
Report ID: PMRREP35053
The global rice bran oil market is estimated to reach a valuation of US$ 6.8 Bn by 2024. It is anticipated to experience a CAGR of 7.3% during the forecast period to reach a value of US$ 12.1 Bn by 2031. Increasing use of rice bran oil as a raw material for biodiesel production will drive growth in the industrial sector.
According to the International Energy Agency (IEA), biofuel consumption is expected to rise by 5% annually from 2024 to 2030, with rice bran oil contributing to biofuel production due to its sustainability and availability. Rice bran oil’s use in cosmetics and skincare products is expanding due to its moisturizing, anti-aging, and anti-inflammatory properties.
Japan and South Korea are key markets for rice bran oil-based cosmetics, as they are marketed for their natural ingredients and skin benefits. Ongoing research on the functional benefits of rice bran oil are likely to result in new product innovations, further cementing its position as a healthy alternative in the oils market. Rice bran oil has a potential to decrease cholesterol and manage diabetes.
Key Highlights of the Industry
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Market Attributes |
Key Insights |
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Rice Bran Oil Market Size (2024E) |
US$ 6.8 Bn |
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Projected Market Value (2031F) |
US$ 12.1 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
7.3% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
6.2% |
Asia Pacific accounted for a share of 48.7% in 2024. Rice bran oil is widely consumed across Asia Pacific due to the region’s heavy reliance on rice as a staple food and the growing preference for healthy cooking oils. The region is estimated to dominate the global market owing to high production, consumption, health trends, and favourable economic conditions.
India is home to an extensive rice farming industry, which generates a huge volume of rice bran, the raw material for rice bran oil. Production capacity in India exceed 1.2 million tons annually. This abundance of rice bran in India contributes significantly to the regional dominance of the rice bran oil market.
The region is home to a rapidly growing middle class that is becoming health-conscious and are willing to invest in healthier food options. Consumers are highly attuned to the health benefits of their food choices, especially in countries like Japan, South Korea, and China, thereby making rice bran oil a popular alternative to conventional cooling oils. The oil’s high smoke point and health properties make it a preferred choice for frying and deep-frying.
Several countries in Asia Pacific, particularly India, have introduced government incentives and policies to encourage rice bran oil production. This includes subsidies for biodiesel production and financial support for farmers and mills engaged in rice bran collection.
Unrefined rice bran oil held a share of 25.8% in 2024. Based on a study published in the Journal of Agricultural and Food Chemistry, unrefined rice bran oil contains high levels of oryzanol and tocopherols, which are vital for their antioxidant and anti-inflammatory properties.
Unrefined rice bran oil, being a "cold-pressed" oil, fits this health trend as it contains beneficial compounds that are often lost in the refining process of other oils. This type of oil, with its minimal processing and natural composition, align with the consumer preference for transparency in food labelling.
Unrefined rice bran oil is gaining popularity in gourmet cooking due to its natural flavor and aroma. This is driving its use in premium restaurants, cooking schools, and for specialty food products. Chefs and home cooks prefer unrefined rice bran oil for its ability to enhance the taste of fried, sautéed, and roasted dishes, making it a preferred option for high-quality cooking oils.
Food and beverages sector accounted for a share of 71% in 2024. Rice bran oil is widely recognized for its heart-healthy properties, making it a preferred choice in the food industry. The oil is a rich source of vitamin E and antioxidants, which help in neutralizing free radicals and reducing oxidative stress. Its high smoke point is a key attribute making it popular in the food and beverages sector.
Rice bran oil can withstand higher cooking temperatures without breaking down or producing harmful compounds, making it a safe and stable option compared to other oils like olive oil or sunflower oil.
Rice bran oil has a mild and neutral flavor that does not overpower the taste of food. This characteristic makes it ideal for use in a wide range of food product. The ability of rice bran oil to complement diverse dishes is driving its adoption in the food industry, from restaurant kitchens to consumer households.
According to a GlobalData survey, 70% of global consumers are willing to pay more for healthy food products, including oils with proven health benefits. This is driving the demand for rice bran oil in the food and beverage sector, especially in premium and organic food markets.
Food and beverages sector accounted for a share of 71% in 2024. Rice bran oil is widely recognized for its heart-healthy properties, making it a preferred choice in the food industry. The oil is a rich source of vitamin E and antioxidants, which help in neutralizing free radicals and reducing oxidative stress. Its high smoke point is a key attribute making it popular in the food and beverages sector.
Rice bran oil can withstand higher cooking temperatures without breaking down or producing harmful compounds, making it a safe and stable option compared to other oils like olive oil or sunflower oil.
Rice bran oil has a mild and neutral flavor that does not overpower the taste of food. This characteristic makes it ideal for use in a wide range of food product. The ability of rice bran oil to complement diverse dishes is driving its adoption in the food industry, from restaurant kitchens to consumer households.
According to a GlobalData survey, 70% of global consumers are willing to pay more for healthy food products, including oils with proven health benefits. This is driving the demand for rice bran oil in the food and beverage sector, especially in premium and organic food markets.
B2C distribution channel held a share of 31.8% in 2024. Consumers can easily access detailed product information, nutritional benefits, certifications, and sourcing practices through B2C channels. This transparency fosters trust and influences purchasing decisions.
E-commerce platforms further enable consumers to read reviews, compare products, and directly buy from manufacturers or brands. The rise of online grocery shopping platforms such as Amazon, Walmart, and local online stores has made it convenient for consumers to buy rice bran oil directly from retailers or producers.
In India, for instance, the popularity of online grocery stores has boosted sales of rice bran oil, with platforms like BigBasket, Groffers, and Amazon India reporting a steady increase in sales of this oil. B2C channels provide consumers with easy access to premium and organic rice bran oil, which is often available only in specialized retail stores.
The global rice bran oil market is predicted to be driven by increasing awareness of heart health, cholesterol management, and antioxidant-rich diets. The shift towards organic and sustainable food choices has resulted in rice bran oil gaining popularity.
This popularity of rice bran oil is increasing owing to its environment-friendly production processes, including the utilization of rice bran as a by-product of rice milling. Advancements in extraction techniques and better processing methods is estimated to enhance production efficiency and oil quality, thereby boosting growth.
The rice bran oil market growth was robust at a CAGR of 6.2% during the historical period. The oil gained popularity owing to its heart healthy attribute. The shift towards healthy eating and natural ingredients among consumers fuelled demand for rice bran oil in cooking, especially in regions like India, Southeast Asia, and the U.S.
The market also witnessed growth in the non-food sector, including cosmetics, pharmaceuticals, and biodiesel production, contributing to its expansion. The COVID-19 pandemic disrupted global supply chains, including the rice bran oil industry.
The movement of raw materials was affected, leading to temporary shortages in production. By 2022, the market showed signs of recovery as consumers returned to a focus on health and wellness, leading to increased demand for rice bran oil, particularly in markets like India and the United States.
Sustainability trends, including the use of rice bran oil for biodiesel and its environment- friendly extraction methods, are estimated to continue driving growth in the forecast period. Innovations in packaging, particularly towards recyclable and eco-friendly options, will likely further support market expansion.
Growing Demand for Premium and Speciality Products
There is a rising demand for non-GMO products owing to heightened awareness about health and environmental impacts. A survey conducted in 2023 revealed that 45% of consumers are willing to pay a premium for organic cooking oils, including rice bran oil.
Cold-pressed rice bran oil appeals to gourmet and health-conscious consumers, particularly in urban markets, where demand for unrefined oils is increasing. Fortified rice bran oil caters to health-conscious buyers, thereby aligning with the global nutritional fortification initiatives.
A study found that fortified rice bran oil reduces LDL cholesterol levels by 7% to 10%, enhancing its appeal among consumers managing heart health. Companies are introducing flavoured rice bran oil infused with garlic, chili, or herbs to attract gourmet cooking enthusiasts.
Industrial and Non-food Applications Remains a Prominent Driver
Rice bran oil serves as an efficient feedstock for biodiesel due to its fatty acid composition and availability as a by-product. Using rice bran oil for biofuel aligns with renewable energy initiatives, reducing dependence on fossil fuels and greenhouse gas emissions. In 2023, 35% of rice bran oil derivatives were utilized in cosmetics and personal care products.
Oryzanol and tocotrienols in rice bran oil are used in nutraceuticals to support cardiovascular health, reduce cholesterol, and provide antioxidant benefits. Rice bran oil's high oxidative stability and viscosity make it suitable for industrial lubrication, including machinery and automotive applications.
Rice bran oil is added to animal feed to enhance energy content, improve coat quality in pets, and support overall health. Fatty acids derived from rice bran oil are used in the production of soaps, detergents, and other cleaning products.
Competition from Other Edible Oils
Rice bran oil tends to be more expensive than several other vegetable oils due to the complexity of the extraction process and the relatively limited supply of rice bran. Rice bran oil typically costs about 20% to 30% more than sunflower, soybean, or palm oil, which are cheaper due to higher availability and economies of scale in production.
Rice bran lacks the same level of recognition as oils like sunflower or olive oil, especially in regions where the market is dominated by these well-known oils. A survey conducted in 2023 revealed that 45% of consumers in developed markets preferred sunflower or olive oil over rice bran oil because of long-standing familiarity and established health claims.
Government Support and Policy Incentives
India, the world's leading producer of rice bran oil, has extended restrictions on the export of deoiled rice bran to ensure domestic availability. This policy, initially set to expire in March 2024, has been extended until January 31, 2025, prioritizing its use within local industries. These restrictions redirect focus to domestic value addition, encouraging the production of edible and industrial-grade rice bran oil.
Governments are promoting rice bran oil fortification with vitamins as part of national nutrition programs to address malnutrition. In India, the Food Safety and Standards Authority of India (FSSAI) has mandated the fortification of edible oils, including rice bran oil, to combat vitamin deficiencies.
Rice bran oil is gaining attention as a biodiesel feedstock. Governments are providing subsidies and incentives for biofuel production to reduce reliance on fossil fuels. For instance, India’s National Bio-Energy Mission encourages biodiesel production from non-edible oils like rice bran oil to meet the country’s renewable energy goals.
Government authorities across the globe are funding research and development projects to enhance rice bran oil extraction technologies and improve its applications in pharmaceuticals, cosmetics, and industrial sectors. Rice bran oil has been identified as a key ingredient in advanced cosmetic and nutraceutical products in Japan and South Korea, supported by government-backed innovation programs.
Governments encourage the utilization of rice milling by-products like rice bran for oil extraction as part of sustainability and zero-waste policies. The United Nations' Sustainable Development Goals (SDGs) emphasize sustainable agriculture and resource utilization, aligning with the increased use of rice bran in various industries.
Growing Demand for Products with Sustainable Packaging
Rice bran, a by-product of rice milling, is being utilized to produce oil, reducing waste and enhancing resource efficiency. There is a growing preference for organic and non-GMO rice bran oil, driven by health-conscious consumers seeking natural and sustainable products.
Companies are progressively adopting biodegradable and recyclable packaging materials to decrease plastic waste and improve product sustainability. Consumers are willing to pay a premium for products with sustainable packaging, indicating a trend towards eco-friendly practices.
Adoption of energy-efficient extraction and refining technologies reduces energy consumption and lowers carbon footprints. Prominent producers are progressively investing in renewable energy sources and energy-efficient equipment to align with the global sustainability standards.
Products with recognized sustainability certifications often command higher market prices and consumer trust. Obtaining certifications such as organic, fair trade, and non-GMO assures consumers of the product's environmental and social responsibility.
Companies in the rice bran oil market are developing fortified rice bran oil with added nutrients like vitamin E, antioxidants, and omega-3 fatty acids. They are offering cold-pressed, organic, and flavoured rice bran oil to appeal to niche markets.
Businesses are progressively highlighting health benefits like cholesterol reduction and heart health to attract health-conscious consumers. They are educating consumers about the health benefits of rice bran oil through marketing campaigns.
Brands are also collaborating with nutritionists, chefs, and fitness influencers to promote their products. They are customizing their marketing efforts to resonate with regional or cultural preferences.
Companies are partnering with online grocery platforms and creating proprietary e-commerce channels. They are working on strengthening their presence in supermarkets, hypermarkets, and local stores. They are also targeting international marketing with growing health awareness and demand for edible oils.
Recent Industry Developments
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Attributes |
Detail |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Market Segments Covered |
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Key Companies Profiled in the Report |
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Report Coverage |
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Customization and Pricing |
Available upon request |
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The market is anticipated to reach a value of US$ 12.1 Bn by 2031.
India is one of the largest producers of rice bran oil, accounting for a majority of total global production.
It is popular because of its balanced fatty acid profile, antioxidant capacity, and cholesterol lowering abilities.
Rising demand for healthy oils among consumer is a key factor influencing consumption pattern of consumers.
Prominent players in the market include Adani Wilmar, Ricela Health Foods Ltd., and Cargill, Inc
