US Rice Bran Market Outlook to 2028

US Rice Bran Market Overview

The US rice bran market is valued at USD 1.4 billion, driven by the increasing demand for healthier food ingredients and its use in animal feed and nutraceuticals. Rice brans unique composition, rich in fiber, antioxidants, and essential fatty acids, makes it a popular ingredient for functional foods. The growth of the plant-based food sector and rising consumer awareness around nutrition further contribute to the market's expansion. Moreover, rice bran is gaining traction as a raw material in biofuel production, especially with the surge in sustainability initiatives across the country.

The southern regions of the US, particularly states like Arkansas, Louisiana, and Texas, dominate the rice bran market due to their substantial rice cultivation. Arkansas alone accounts for nearly half of the rice production in the US, giving it a geographical advantage. The presence of rice milling facilities in these states ensures the steady production of rice bran, contributing to their leadership in the market. Moreover, these states benefit from well-established supply chains that cater to the food, feed, and biofuel industries.

The FDA has issued specific guidelines on the use of rice bran in food products, ensuring that it meets the safety and nutritional standards required for consumption. In 2023, the FDA expanded its guidelines to include rice bran oil as a recognized food ingredient, promoting its use in various health food products. This regulatory support is expected to bolster the growth of rice bran in the U.S. food industry.

US Rice Bran Market Segmentation

By Product Type: The market is segmented by product type into defatted rice bran and full-fat rice bran. Recently, full-fat rice bran has a dominant market share under this segmentation, owing to its higher nutritional value and its broader application in health foods and animal feed. Full-fat rice bran contains all the original oil content, which is highly sought after for producing rice bran oil and for its use in cosmetic and nutraceutical products. The rising trend of health-conscious consumers is further propelling the demand for full-fat rice bran in the market.

By Application: The market is also segmented by application into food and beverage, animal feed, biofuels, cosmetics and personal care, and pharmaceuticals and nutraceuticals. Animal feed holds a dominant market share in this segment, driven by the demand for high-nutrient feed ingredients. Rice bran's high protein and fiber content make it a valuable component in livestock and poultry feed. The cost-effectiveness of rice bran compared to other feed additives also strengthens its position in the market, particularly as the livestock industry in the US continues to grow.

US Rice Bran Market Competitive Landscape

The US rice bran market is dominated by a mix of global agribusiness firms and local producers. The markets competitive nature is defined by innovation in processing technologies, vertical integration, and strategic partnerships. Key players in the market are investing heavily in expanding their production capacities and developing sustainable packaging solutions for rice bran-based products.

Company

Year of Establishment

Headquarters

No. of Employees

Revenue (USD)

Product Portfolio

Technological Innovations

Certifications

Sustainability Initiatives

Global Presence

Rice Bran Technologies

1998

The Woodlands, TX

Cargill Inc.

1865

Minneapolis, MN

Riceland Foods

1921

Stuttgart, AR

Archer Daniels Midland Co.

1902

Chicago, IL

Wilmar International

1991

Singapore

US Rice Bran Industry Analysis

Growth Drivers

Rising Demand for Healthy Oils: Rice bran oil has seen significant growth in the U.S. due to its high content of antioxidants, vitamin E, and balanced fatty acids, making it a preferred choice for health-conscious consumers. In 2022, U.S. consumption of rice bran oil reached over 60,000 metric tons, driven by increasing demand from both the food and pharmaceutical industries. The U.S. Department of Agriculture (USDA) highlights the nutritional value of rice bran oil, including its cholesterol-lowering effects, which contribute to its rising popularity as a heart-healthy alternative to traditional oils.

Increasing Use in Animal Feed and Nutraceuticals: The use of rice bran in animal feed and nutraceuticals has grown in recent years due to its high fiber, protein, and antioxidant content. In 2023, the U.S. animal feed industry reported utilizing more than 150,000 tons of rice bran, according to USDA reports. The nutraceutical industry, too, is incorporating rice bran for its potential health benefits, particularly in dietary supplements aimed at reducing cholesterol and improving gut health. The Food and Drug Administration (FDA) has recognized the nutritional properties of rice bran in various applications.

Government Incentives for Biofuel Production: The U.S. government has increased incentives for biofuel production, which includes the use of rice bran as a feedstock for biodiesel. In 2023, the U.S. Department of Energy reported a 15% increase in biofuel production from non-traditional sources, including rice bran, as part of its renewable energy goals. The federal Renewable Fuel Standard (RFS) mandates the blending of renewable fuels into transportation fuel, further driving the demand for rice bran in biofuel productions.

Market Challenges

High Processing Costs: Processing rice bran into consumable oil or other products is expensive due to the need for specialized technology and the brans high perishability. According to the USDA, the cost of setting up a rice bran oil extraction facility in the U.S. can exceed $10 million, making it prohibitive for small and medium-sized enterprises. Additionally, transportation costs for raw rice bran, which must be processed quickly to prevent spoilage, further increase operational expenses.

Supply Chain Instability: The U.S. rice bran market faces supply chain disruptions due to fluctuating rice production and international trade barriers. In 2022, rice production in the U.S. decreased by 8%, according to the USDA, leading to a constrained supply of rice bran. Additionally, import tariffs on rice from major suppliers like India and Thailand have further impacted the availability of rice bran, limiting the industrys growth potential.

US Rice Bran Market Future Outlook

Over the next five years, the US rice bran market is expected to experience strong growth driven by increasing health awareness, rising demand for plant-based products, and the growing popularity of sustainable biofuel alternatives. With advancements in extraction technologies and an expanding application base, including cosmetics and personal care, rice bran is poised to become a critical raw material for various industries. Additionally, government incentives for renewable energy and sustainability efforts are expected to further propel market growth.

Future Market Opportunities

Expanding Use in Cosmetics: The cosmetics industry has increasingly turned to rice bran oil for its antioxidant and anti-aging properties. The U.S. cosmetics market has seen a rise in the use of rice bran oil in skincare products, with over 500,000 units sold in 2023, according to data from the U.S. Food and Drug Administration (FDA). This growing demand is creating new opportunities for rice bran processors to expand into the lucrative personal care sector.

Organic Certification Opportunities: There is growing demand for organic rice bran products, especially among health-conscious consumers. In 2023, the U.S. Organic Trade Association reported a 12% increase in sales of organic rice bran oil, reflecting the rising trend of consumers seeking certified organic food and personal care products. This presents an opportunity for U.S. rice processors to obtain organic certification and cater to this growing market segment.
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