Global Market Outlook on Rice Protein

 Usage of Rice milling by-products (Bran, Broken kernels, etc.,) as feedstock to produce high value oil products like rice bran oil or high value protein products like RPC, RPI, RPH ensures an economical and sustainable value chain

  • Either brown rice or white Rice is an expensive feedstock for protein product extraction besides their inherently low protein content
  • Rice bran, Broken rice kernels and also the residue of rice starch extraction, which has lesser economic value are considered suitable

Supply Market Trends

Majority of the rice bran produced in the Asian countries is diverted to animal feed products due to lack of awareness  

Feedstock Production Share and Trends

China

  • Jun-Jul is the peak harvest season in South China, contributing 1/3rd of total annual rice output
  • China is a net exporter (1.3MMT surplus) of rice products

India

  • Cultivable land getting partly flood-affected may lower West Bengal paddy production by 10-15% in 2017.
  • Area expansion on marginal lands (largely divided among small farmers) is likely to have negative impact on overall yields, reducing feedstock supply

Indonesia

  • ~5,000 hectares of new land was planted with paddy in 2016/17 first crop cycle. Additional 80,000 hectares for paddy are planned, increasing rice products availability

Bangladesh

  • Bangladesh is a Net importer of rice (0.6MMT deficit)
  • Rice production for2017/18 (May-April) is forecasted at 34.7 MMT on higher yields rates easing supply constraints

Vietnam

  • Rice production is estimated to rise by ~3.6% Y-o-Y
  • Domestic demand increasing in aqua feeds and industrial scale food processing, especially in the beer and wine industries

Demand Market Trends

Demand from Infant food industries especially in North America , Europe and Asian markets are increasing. This is largely because soluble rice protein products can improve formulations of rice based infant formula or baby foods

  • Rice based protein rich products have become available in geographical regions where traditional rice consumption is low
  • Recognized heath benefits and hypoallergenic properties are the major reasons for the recent popularity of rice proteins
  • Amongst F&B sectors, meat analogues & extenders is the fastest growing segment with a CAGR of 11.6% between 2016 to 2025
  • Rice Protein Isolates accounts for ~54% of the market by volume, with high protein content (90-95%) driving its market share

Industry  Analysis

Rice proteins are of less importance  in the industry due to the low volume demand. Still a quiet huge number of manufacturers in the major producing countries dispose rice bran and other by products as waste or divert it to animal feed industry

Strengths

  • Preferred nutrition profile
  • Low carbon footprint
  • Higher sustainability
  • Economical and ensures an optimal value chain

Weakness

  • Low score on sensory properties
  • Products from genetically modified feedstock has lesser acceptance especially in European markets
  • Feedstock supply and price volatility

Opportunities 

  • Increasing potential to be used in blended formulations
  • Increasing demand from the Infant nutrition industry majorly from Asian market
  • R&D initiatives could increase protein delivery

Threats

  • Dairy proteins and other plant proteins like soy, wheat, pea have greater consumer awareness and acceptance
  • Increasing demand for feedstock (rice bran) from the edible  oil industry

Rice Protein Industry Overview (2016)

  • Rice Protein accounts to 1% of global plant proteins market by volume
  • Rice Protein accounts to 0.25% of the global protein ingredients market by volume