Fortified Rice Market - Forecast(2023 - 2028)

Key Takeaways

Fortified Rice Market Segment Analysis-By Nature

The Fortified Rice Market based on nature can be further segmented into. The conventional segment held the largest share in 2021. The growth is owing to the easy availability of conventionally produced cereal grains. Conventional farming takes pesticides into account with an aim to boost the crop yield to the highest possible level. Conventional farming requires less labor force and is suitable for producing more in less land; as a result, it curbs the expenses and maximizes farmers’ revenue. In addition to that, unlike organic products, conventionally produced rice is available round the corner regardless of geographies. Nonetheless, the organic segment is estimated to be the fastest-growing segment with a CAGR of 8.6% over the forecast period 2022-2027. The primary reason behind this is the shortcomings of conventional farming such as harmful effects on the environment, health problems, detrimental to animals, high risk of plant bugs, and many others. Therefore, with budding alertness among consumers regarding their personal health and environmental health, the global demand for organic products is spiraling considerably.

Fortified Rice Market Segment Analysis-By Distribution Channel

The Fortified Rice Market is based on distribution channels further segmented into offline (supermarkets, convenience stores, brick-and-mortar) and online. The offline segment held the largest share in 2021. The growth is owing to comprehensive existence in both metropolitan and pastoral areas. On the contrary, online or e-commerce services are bound with certain requirements such as full-fledged infrastructure for their smooth functioning; otherwise, it is not viable for them to offer doorstep deliveries. Additionally, the majority prefer buying offline because of advantages like instant purchases, hassle-free returns, bulk buying, bargaining, and quality check. In addition to that, the growing existence of modern outlets like supermarkets has gravitated the attention of billions worldwide because well-established nature, easy shopping, lucrative sale deals, and one-stop solution. Nevertheless, online is projected to be the fastest-growing segment with a CAGR of 7.7% over the forecast period 2022-2027. The growth is owing to proliferating technological advancements like Google maps and e-banking services. Moreover, all-weather network access, the time-saving nature of e-commerce purchases, expanding smartphone users are the factors attracting peoples’ attention toward online platforms.

Fortified Rice Market Segment Analysis-By Geography

The Fortified Rice Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Asia-Pacific held the largest share with 44% of the overall market in 2021. The growth in this segment is owing to the factors such as the presence of world-leading rice-producing countries in the region. With more than 210 million tonnes of production, China is the biggest rice-producing nation on the planet followed by India with more than 170 million tonnes of annual production. Not just India and China but other Asian countries like the Philippines, Indonesia, Bangladesh, Vietnam, Pakistan, and Thailand are among the top producers. 90 percent of the global rice supply comes from Asia. According to a report, nearly Asia contributes 85-90 percent to global rice consumption and nearly 60 percent of consumption belongs to Indonesia, India, and China. Furthermore, Asia-Pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This growth is owing to high incidences of malnourishment in Asia nations, rising disposable incomes with flourishment of economies, increasing health consciousness among people, and soaring government initiatives to eradicate nutrient deficiency problems.

Fortified Rice Market Drivers

Growing rice consumption in different cuisines is anticipated to boost market demand.

Global rice consumption over the last decade has grown significantly. From 437.18 million metric tons in the 2008-2009 crop year, global rice consumption has reached 509.87 million metric tons in the 2021-2022 crop year. A larger of this consumption belongs to Asia as eating rice is not less than a culture in there. According to a report, in 2021 China consumed nearly 154.9 million metric tons of rice; whereas, India’s consumption stood around 103.5 million metric tons. India’s per capita rice consumption has reached around 6.8 kg per month. In addition to that, growing health attentiveness among consumers and easy availability because of bettering retail network is driving people toward fortified rice.

Mounting government initiatives to tackle malnutrition incidences in low-income countries is expected to boost market demand.

According to the Women and Child Development Ministry, in 2021 there were nearly 17.7 lakhs (1.7 million) children in India who were suffering from severe acute malnourishment. Moreover, according to International Food Policy Research Institute’s Hunger Index, with a 50.8 index, African country Somalia was the most malnourished nation on the planet in 2021. As a result, in order to rehabilitate the situation, international bodies like the World Health Organization and Food and Research Organization have adopted food fortification as one of their core strategies. Moreover, the government on individual levels are trying their best to tackle the situation. For instance, in 2021 government of India announced the distribution of fortified rice under Mid-Day Meal and Public Distribution System schemes by the year 2024. These factors are enhancing market growth.

Fortified Rice Market Challenges

Unemployment post-pandemic, rising inflation, and environmental hazards are projected to hamper the market growth.

Extensive usage of pesticides in conventional farming is the primary reason responsible for disruption in soil carbon sequestration process, as usage of chemicals upset biotic communities in soil. Moreover, pesticides kill the worms and insects that maintain nutrients in the soil through the breakdown of dung and leaf littering; as a result, fertility problems are coming to the foreground on an unprecedented scale. Nevertheless, rising unemployment and inflation rates worldwide are posing a severe threat in front of the aforementioned market. According to a CMIE report published in 2022, with a 1.09 percent hike unemployment rate of metropolitan areas in India reached 9.3 percent; similarly, rural areas witness a hike of 0.84 percent as the unemployment rate surged from 6.44 percent to 7.28 percent. Additionally, rising crude oil prices have unleashed a wave of staggering inflation across the globe. These altogether are hampering the Fortified Rice Market.

Fortified Rice Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the aforementioned Market. Fortified Rice Market top 10 companies include-

1. Cargill Incorporated
2. BASF SE
3. General Mills Inc
4. Willmar International Ltd
5. Aroma Fields
6. KRBL Ltd
7. Bunge Ltd
8. REI Agro Ltd
9. LT Foods
10. Hain Celestial (Tida Rice)

Recent Developments

• On October 21, 2021, Minnesota, United States-based renowned food corporation “Cargill” announced that companies bid of acquiring Mississippi, United States-based “Sanderson farms” gets a nod from Sanderson’s stockholders. The total value of the acquisition stands around $4.5 billion ($203 per share).
• On January 20, 2021, Gurugram, India-based rice milling company “LT Foods” announced the successful acquisition of 30 percent ownership interest in Netherland-based packaged food company “Leev.nu.” LT completed the acquisition through organic food producer Nature Bio Foods BV (a subsidiary of LT). The transaction aimed at strengthening the branded snacking business of Nature Bio.
• On August 28, 2019, Madrid, Spain-based food processing company “Ebro Foods”, known for its humungous rice production, publicized the successful acquisition of Tuna Rice brand From New York, United States-based natural products firm “Hain Celestial.” The Ebro made a payment of $342 million (all in cash) in order to bring the acquisition to a close.

Relevant Links:

Rice Market – Forecast (2022 - 2027)
Report Code: FBR 35037

Organic Rice Protein Market – Forecast (2022 - 2027)
Report Code: FBR 10912

Plant Protein Ingredients Market – Forecast (2022 - 2027)
Report Code: FBR 0063 

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