Asia-Pacific Rice bran Oil Market Outlook, 2028

The outer layer of rice grains, which is removed during the milling process to create white rice, is used to make rice bran oil. Different techniques, including solvent extraction and cold pressing, are used to obtain this oil. Rice bran oil is a healthier option to conventional cooking oils since it is high in antioxidants, vitamin E, and other nutrients. Due to its high smoke point, it can be used for high-temperature cooking techniques including stir-frying and deep-frying. Globally, Asia Pacific is expected to hold the largest volume share. Countries such as India, China, Japan, Thailand, and Vietnam are some of the largest producers and exporters of rice bran oil across the globe. In Japan, rice bran oil is popularly known as “heart oil” as it keeps cholesterol at a low level and reduces the risk of cardiovascular diseases. The region shows a high demand for rice bran-based products owing to the wide availability of raw materials. Rice bran is majorly produced in Japan, India, and China. The main factors driving the market's demand are the rise in the number of health-conscious consumers and the advantages that rice bran offers in terms of health. In addition, favorable government initiatives are enhancing the growth of the market in rice bran derivatives market. Rice bran oil (RBO) is widely used in most Asian nations (Japan, Korea, China, Taiwan and Thailand) as premium edible oil. It is the Japanese standard & favorite cooking medium and is widely known in Japan as the "Heart Oil." It has obtained status as a "Functional Food" or a "Health Food" in the Western Countries. Asia-Pacific consumers are increasingly health-conscious, and this trend has played a pivotal role in the rise of rice bran oil. With rising concerns about lifestyle-related diseases, consumers are actively seeking cooking oils that align with their health goals. Rice bran oil, with its cholesterol-lowering properties, has become a staple in the kitchens of health-conscious individuals. According to the research report, “Asia-Pacific Rice Bran Oil Market Outlook, 2028” published by Bonafide Research, the market was valued at over USD 1100 Billion market size in 2022. Rice bran oil is an outstanding option for those intolerant to other cooking oils due to its hypoallergenic impact and perfect fat structure. Also, due to sedentary work lifestyles of the major population sections, cholesterol problems are becoming more prevalent, often leading to increased danger of cardiovascular diseases and stroke. Increasing consumer health consciousness and more focus on healthier products has led restaurants to look for heart-friendly, naturally GMO-free alternatives that have lengthy shelf-life, which is inevitably one of the main drivers of the rice bran oil market. Compared to other alternatives such as olive oil, the cost of rice bran oil is less, making it a better option for customers looking for nutritional oils at a moderate cost. Therefore, manufacturers of rice bran oil market their products between the costly olive oil and standard oils. Additionally, if the rice bran oil plant contains a common facility center that extracts and refines bran oil from the rice mill cluster bran, a nominal sum is invested to meet operational costs and make a corpus fund for future upgrading, grading and support of the common facility center, this enables cost efficiencies in production processes. Rice bran oil is often used in skincare products like moisturizers, face oils, and massage oils, in addition to cooking, because it comprises antioxidants that minimize wrinkles and other signs of aging. In cosmetics, rice bran oil, as well as other rice byproducts, is used all across Asia. Skin whitening and brightness is a crucial parts of Asian beauty regimens. It has consequently become an important component in the pharmaceutical and cosmetics industries. Some significant variables driving the industry include better marketing by the manufacturers, increased disposable incomes, and changing lifestyles, among others.

The major market growth is attributed to the easy availability of raw materials across the region, particularly in India. The major producers in the region are India, China, Japan, and Thailand. As one of the world's largest producers of rice, India plays a pivotal role in the Asia-Pacific rice bran oil market. The country has seen significant investments in rice bran oil production, driven by increasing demand for healthier cooking oils. 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, ?-oryzanol, and phytosterols and contains many medicinal properties. Recently in 2018, Wilmar International’s Arawana stepped into Japanese market, where RBO is popularly referred to as the heart oil, with the first launch in supermarket category. The company has plans to establish partnerships with over 10,000 supermarkets in Osaka, and Tokyo. The same year, a new RBO variety was launched under Cargill’s Gemini across multiple Indian states. The Asian economies are home to abundant rice as a raw material to rice bran oil. This shows that Vietnam, Thailand, Japan, China, and India would be the torchbearers in terms of exporting rice bran oil in the upcoming period. The formation of the International Council of Rice Bran Oil (ICRBO) in 2013 has given an impetus to uniformity in commerce & trade among member economies and also improved communication amongst the manufacturers, academic researchers, and local governments. It is also working toward sponsoring training programs for members involved in technical development and work. A positive development with India is that its SEA (Solvent Extractors Association) is on the ICRBO board to promote rice bran oil in different parts of India as one of the richest sources of vitamin E coupled with high oryzonal content. Relevant to this market potential, the Indian state government and manufacturers are seeking to expand their production capacity. For instance, in December 2020, in Odisha, India, the state government issued a subsidy of US$ 1.4 Mn to the existing rice bran oil manufacturers. Similarly, in March 2021, Gemini Edibles & Fats announced that the company is planning to fully convert one of its existing units for rice bran oil production. Thus, increasing health consciousness among the consumers and demand for fat-free and nutritional products are driving the overall rice bran oil market growth during the forecast period. China is another major player in the region's rice bran oil market. The growth of the Chinese middle class and their emphasis on health-conscious choices has boosted the demand for rice bran oil. Countries like Thailand, Indonesia, and Malaysia have incorporated rice bran oil into their culinary traditions. It is used in traditional dishes as well as in modern cooking due to its suitability for high-heat applications. The Asia-Pacific region has witnessed a significant surge in the demand for rice bran oil, driven by its nutritional benefits, versatility in culinary applications, and growing consumer health consciousness. In recent years, a notable distinction within this burgeoning market is the choice between conventional and organic rice bran oil. Conventional rice bran oil is the standard product commonly available in the market. It is derived from rice bran through traditional extraction methods that may involve the use of solvents. The conventional rice bran oil segment dominates the Asia-Pacific market due to its affordability, wide availability, and suitability for various cooking applications. Organic rice bran oil, on the other hand, is produced using rice bran sourced from organically cultivated rice fields. This means that no synthetic chemicals, pesticides, or genetically modified organisms (GMOs) are used during cultivation. The extraction process also adheres to organic standards, often using solvent-free methods. The conventional rice bran oil segment has historically been the dominant force in the Asia-Pacific market. Its lower cost and widespread availability make it an attractive choice for consumers. However, the segment is not devoid of competition, as consumers increasingly seek healthier alternatives. Organic rice bran oil is experiencing robust growth in the Asia-Pacific region, albeit from a smaller base. Health-conscious consumers, particularly in urban areas, are willing to pay a premium for organic products that align with their desire for chemical-free and environmentally friendly options. While conventional rice bran oil maintains its dominance due to its affordability and versatility, organic rice bran oil is carving out a niche for itself among health-conscious and environmentally aware consumers. As awareness of organic products continues to grow and supply chains mature, the organic segment is expected to flourish, contributing to the diversification of the Asia-Pacific rice bran oil market.

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Manmayi Raval

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The Asia-Pacific region is home to a diverse and thriving food services industry that caters to a wide range of culinary traditions and tastes. Within this culinary landscape, rice bran oil has emerged as versatile and nutritious cooking oil, finding a special place among food services end users. The Asia-Pacific region boasts a rich tapestry of cuisines, from the spicy curries of Southeast Asia to the delicate sushi of Japan and the aromatic biryanis of South Asia. This diversity presents an ideal canvas for the culinary versatility of rice bran oil. The oil's high smoke point, neutral flavor profile, and heart-healthy attributes make it a sought-after ingredient in the kitchens of food services establishments across the region. The growing awareness of healthy eating habits has prompted food services establishments to adopt cooking oils that align with consumer preferences for heart-healthy options. Rice bran oil, with its low saturated fat content and cholesterol-lowering properties, fits this demand perfectly. Rice bran oil has high smoke point, which enables it to withstand high cooking temperatures without breaking down or producing harmful compounds, makes it ideal for deep frying, stir-frying, sautéing, and other high-heat cooking methods. The food services industry is increasingly inclined toward clean labeling and natural ingredients. Rice bran oil often produced using minimal processing methods and without additives, resonates with consumers who seek natural and pure ingredients in their meals. As food services establishments aim to offer authentic and diverse cuisines, rice bran oil has found its place in traditional and fusion dishes alike. Its neutral flavor allows it to complement various culinary traditions without overpowering the dish's natural taste. The Asia-Pacific rice bran oil market, with its strong foothold in the food services sector, is poised for continued growth. As the region's food services industry evolves to cater to health-conscious consumers and diverse culinary preferences, rice bran oil is expected to remain a staple ingredient. Innovations in packaging, distribution, and marketing will further expand its reach, offering food services establishments an increasingly versatile and healthful option for their culinary creations. The rise of online sales channels has become a game-changer for the rice bran oil industry, offering consumers greater accessibility, convenience, and choice. The Asia-Pacific region has witnessed an explosive growth in internet penetration and e-commerce adoption in recent years. This digital revolution has revolutionized the way consumers shop for groceries and cooking essentials, including rice bran oil. Online sales channels, which include e-commerce platforms, dedicated websites, and mobile apps, have quickly become a preferred choice for a growing number of consumers. Online shopping offers unparalleled convenience. Consumers can browse, compare, and purchase rice bran oil products from the comfort of their homes, saving time and effort spent in physical stores. Online platforms provide a vast array of rice bran oil brands, variants, and packaging options. Consumers can explore a wider range of products, including conventional and organic varieties, with ease. They often feature competitive pricing, promotions, and discounts that may not be available in brick-and-mortar stores. Consumers can access detailed product information, including nutritional content, ingredient lists, and customer reviews, empowering them to make informed purchase decisions. Home delivery services ensure that rice bran oil is conveniently delivered to the consumer's doorstep, eliminating the need for physical transportation. Online sales channels enable consumers to access rice bran oil products from various regions, including imported and specialty options that may not be readily available in local stores. The future of the Asia-Pacific rice bran oil industry is intrinsically tied to the continued growth of online sales channels. As more consumers across the region embrace e-commerce for their culinary needs, businesses that adapt to this trend are poised for success. This transformation promises a more inclusive and accessible rice bran oil market, catering to the diverse tastes and preferences of the Asia-Pacific region. Recent Developments •In December 2022, A Japanese Company announced the introduction of a defatted rice bran-based meat substitute. This ground-breaking innovation offers Japanese farmers a brand-new way to make money. •For instance, in September 2018, Cargill food oil brand Gemini introduced a new rice bran oil in different states of India. The product is claimed to absorb 12-25% less oil as compared to other ordinary edible oil. •In September 2021, TSUNO announced that from September 2021, it will introduce "Expeller Pressed Rice Bran Oil," premium rice bran oil that is made using a natural manufacturing process. The oil has been promoted as a nutrient-rich product that promotes healthy living. •In June 2021, the Indian government's NAFED developed and announced a new fortified rice bran oil product that promotes healthy living. The product was developed to lessen the nation's future reliance on imported edible oil for consumption. •In 2018, Arawana, a brand of Wilmar International, entered the Japanese market with its first launch in supermarket. The company is also looking forward to entering into a partnership with more than 10,000 supermarkets in Tokyo and Osaka. •Kerala-based KPL Oil Mills Ltd launched KPL Sudhi Rice Bran Oil. The product is available in one liter and 500 ml bottles and sachets. According to senior company officials, the demand for rice bran oil is increasing, especially among young people, thanks to their increased awareness of their health. The company has implemented new storage tanks and packaging machines with very strict quality measures to market the product. •Food giant Cargill India said on Tuesday that it has expanded its edible oil portfolio to launch healthy blended cooking oils and is targeting a 10% market share in this high-end segment within two years. Cargill India, part of the large American food company Cargill, is a major player in the country's edible oils and sells cooking oils under the NatureFresh, Gemini, Sweekar, Leonardo olive oil and Rath brands. The company launched "NatureFresh Acti Heart" cooking oil Tuesday, mixed in equal parts with canola oils and rice bran. •Restaurant chain QSR KFC India has announced that it will switch to rice bran oil as a cooking medium in its restaurants starting early next year. The company said the move was part of its efforts to improve the nutritional profile of its foods. KFC is testing this initiative in select restaurants in Hyderabad, Bengaluru, Chennai and New Delhi. The company said it will switch from palm oil to rice bran oil in its restaurants across the country during the first quarter of 2018. The company said the rice bran oil will be sourced locally from Indian oil manufacturers.

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Considered in this report •Geography: Asia-Pacific •Historic year: 2017 •Base year: 2022 •Estimated year: 2023 •Forecast year: 2028 Aspects covered in this report •Asia-Pacific Rice Bran Oil with its value and forecast along with its segments •Country-wise Rice Bran Oil market analysis •Various drivers and challenges •On-going trends and developments •Top profiled companies •Strategic recommendation Countries covered in the report •China •Japan •India •Australia •South Korea By Nature: •Conventional •Organic By End-User: •Household •Industrial •Food Service By Distribution Channel: •Convenience store •Hypermarket/Supermarket •Direct Sales •Others •Online The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations and organizations related to the Rice Bran Oil industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.