Fortified Rice Market to Reach USD 36.6 Billion by 2033

Updated · Dec 17, 2024

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Table of Contents

Introduction
Key Takeaways
Fortified Rice Statistics
Emerging Trends
Use Cases
Major Challenges
Market Growth Opportunities
Recent Development
Conclusion

Introduction

The global Fortified Rice Market is experiencing steady growth, with the market size expected to reach USD 36.6 billion by 2033, up from USD 20.8 billion in 2023, representing a compound annual growth rate (CAGR) of 5.8% during the forecast period from 2024 to 2033.

This growth is largely driven by rising global concerns over malnutrition and the increasing demand for cost-effective solutions to improve nutrition, particularly in developing countries. Fortified rice, which is enriched with essential vitamins and minerals, plays a crucial role in addressing micronutrient deficiencies, especially in regions where rice is a staple food.

The market’s popularity is also being fueled by government initiatives and public-private partnerships aimed at improving food security and nutritional standards. Furthermore, with the growing awareness of the health benefits associated with fortified foods, consumers are increasingly inclined to adopt such products.

The expansion of fortified rice offerings, particularly through new product innovations and the introduction of fortified rice varieties targeting specific demographic needs, presents significant market opportunities. As governments and international organizations continue to focus on sustainable food solutions, the fortified rice market is well-positioned for further expansion, driven by both demand and the increasing adoption of fortified foods across various regions.

Moreover, the growing emphasis on food security, especially in regions affected by poverty, natural disasters, and political instability, has further strengthened the demand for affordable and nutritious food alternatives, with fortified rice playing a central role in tackling these challenges.

Key Takeaways

The Global Fortified Rice Market size is expected to be worth around USD 36.6 Billion by 2033, from USD 20.8 Billion in 2023, growing at a CAGR of 5.8% during the forecast period from 2024 to 2033.
Conventional fortified rice dominates, holding 67.7% of the market, outpacing organic growth.
Vitamins dominated the Fortified Rice Market’s Micronutrient segment with a 45.5% share.
Coating dominated the Fortified Rice Market’s By Technology segment with a 39.5% share.
Zinc-fortified rice dominated the Fortified Rice Market with a 39.5% share.
Hot or warm extrusion dominates the Fortified Rice Market with a 43.2% share.
Supermarkets held a dominant market position in the distribution segment of the Fortified Rice Market, capturing more than a 45% share.
The commercial segment held a dominant market position in the fortified rice market, capturing more than a 65% share.
APAC dominates the global fortified rice market, holding a 39.3% share, valued at $8.1 billion.

Fortified Rice Statistics

Global Rice Consumption and Fortification Efforts

Rice is a staple food for more than half of the global population, providing more than 20% of the world’s calorie intake.
As one of the world’s most widely consumed foods, rice plays a significant role in many diets around the globe. In low-income countries, it can make up to 70% of an individual’s calorie intake.
The produced fortified kernels are blended with regular rice, typically at 0.5 – 2% ratio.
However, rice fortification costs are small compared to the wide-reaching benefits. The cost impact is around 0.5-3%, depending on the nutrition profile and scale.
While over 30 to 35% of industrially milled wheat and maize flour is fortified worldwide, efforts to fortify rice are relatively new.

Economic Feasibility and Implementation of Rice Fortification

Due to the growing pool of scientific evidence supporting the positive effects of rice fortification, this percentage has increased from 1.5% to 4% over the last 3 years and is expected to continue to grow substantially in the coming years.
Rice fortification is most easily implemented in modern mills with a production capacity of at least 5 metric tons an hour.
Research indicates that rice fortification is economically feasible if rice consumption is at least 100 grams per person per day.
A facility that produces fortified kernels may need an initial capital investment of US$ 0.3 million, US$ 0.75, or US$4 million for coating, cold extrusion, or hot extrusion technology respectively
If blended at a ratio of 1:100, the consumers’ estimated price increase is estimated to be between 2% to 5% of the current retail price.

Nutrient Retention and Rice Fortification Growth

Regardless of variety, however, the nutrient-rich layers of rice are generally removed in the milling process. Unpolished, brown rice retains more of its original vitamins, but polishing removes 75% to 90% of these nutrients.
In India, rice fortification has the highest potential among staple food fortification programs as it is the staple food of 65 percent of the population and reaches the most vulnerable sections.
Rice is the staple food of more than half of the world’s population – more than 3.5 Billion people depend on rice for more than 20 percent of their daily calories.
Asia accounts for 90 percent of global rice consumption, and total rice demand continues to rise.
Not only is India one of the largest producers of rice, accounting for 22% of the world’s rice production, but it is also the largest consumer of rice, with a per capita rice consumption of 6.8 kilograms per month.
Rice fortified with the fortified mix through extruded fortified kernels mixed with non-fortified rice in a ratio varying from 0.5% to 2% is called Fortified Rice.

Emerging Trends

Growing Consumer Awareness: Consumers are becoming more aware of the nutritional benefits of fortified rice. With rising health concerns, especially in emerging markets, there is a growing preference for foods that help combat micronutrient deficiencies, leading to increased demand for fortified rice products.
Government Initiatives: Governments around the world are increasingly supporting rice fortification as part of national nutrition programs. These initiatives are aimed at improving public health and reducing malnutrition, especially in regions where rice is a staple food, thus driving market growth for fortified rice.
Technological Advancements in Fortification: New fortification technologies, such as cold and hot extrusion, are making the production of fortified rice more efficient and cost-effective. These innovations are improving the effectiveness of micronutrient delivery in rice, increasing its market adoption across various regions.
Expansion into New Markets: While rice fortification has been prominent in Asia, there is a noticeable shift towards other regions like Africa and Latin America. The growing demand for fortified rice in these regions is driven by increasing efforts to combat malnutrition and the rising consumption of rice as a primary food source.
Integration with Sustainable Practices: Fortified rice manufacturers are increasingly focusing on sustainability. There is a growing trend to incorporate environmentally friendly practices in the rice fortification process, including using sustainable packaging and reducing the carbon footprint of production, aligning with global sustainability goals.

Use Cases

Public Health Programs: Fortified rice is widely used in government and NGO-led nutrition programs aimed at combating malnutrition. Providing a cost-effective solution to micronutrient deficiencies helps improve public health, particularly in regions with high poverty rates and limited access to diverse foods.
School Feeding Initiatives: Many countries are incorporating fortified rice into school meal programs to address nutritional gaps in children’s diets. This use case is crucial in areas where children are at risk of stunted growth or other nutrient deficiencies, ensuring they receive essential vitamins and minerals.
Emergency Food Aid: In disaster-stricken or conflict-affected regions, fortified rice is a vital component of food aid packages. It provides a reliable and nutritious food source to vulnerable populations, offering critical nutrients like iron and folic acid during times of crisis and instability.
Corporate Social Responsibility (CSR) Initiatives: Companies in the food and agriculture sectors are increasingly investing in fortified rice production as part of their CSR strategies. By providing fortified rice to underserved communities, these corporations contribute to improving nutrition and health outcomes in regions with high malnutrition rates.
Nutritional Support for Vulnerable Populations: Fortified rice is used to support vulnerable groups such as pregnant women, infants, and the elderly. Enriched with key micronutrients like folic acid and iron, it helps meet the specific nutritional needs of these groups, improving maternal and child health outcomes.

Major Challenges

High Production Costs: The cost of producing fortified rice, including the fortification process and specialized equipment, can be significant. These costs may limit the scalability of fortification programs, particularly in low-income regions where the need for affordable nutritional solutions is greatest.
Acceptance Among Consumers: Despite the nutritional benefits, some consumers remain skeptical about the taste and quality of fortified rice. Resistance to new products, especially in rural areas, can slow down market adoption, particularly when fortified rice is perceived as inferior to traditional varieties.
Nutrient Loss During Processing: The fortification process often involves blending micronutrients into rice, but during milling and cooking, some of these nutrients can be lost. This challenges the effectiveness of fortification efforts, as the end product may not provide the intended nutritional value.
Inadequate Infrastructure: Many regions, particularly in developing countries, lack the necessary infrastructure for efficient rice fortification. This includes modern mills capable of fortifying rice on a large scale, which can hinder the widespread implementation of fortification programs, slowing down market growth.
Regulatory Barriers: Different countries have varying regulations and standards for food fortification. The absence of clear or standardized guidelines for rice fortification can complicate its adoption, creating obstacles for manufacturers and limiting the consistency and quality of fortified rice products in the market.

Market Growth Opportunities

Expanding Government Programs: Increasing government initiatives focused on improving public health and nutrition present significant growth opportunities for fortified rice. Countries with high malnutrition rates are investing in rice fortification programs, which can expand the market as fortified rice becomes a key component of national nutrition strategies.
Rising Consumer Health Consciousness: As consumers become more health conscious and aware of nutrition, the demand for fortified rice is expected to rise. The growing trend towards fortified foods, including rice enriched with essential vitamins and minerals, offers opportunities for companies to tap into the health-focused consumer segment.
Growth in Emerging Markets: Fortified rice has strong growth potential in emerging markets, particularly in regions like Africa, Latin America, and Southeast Asia. These areas are grappling with malnutrition, and fortified rice offers a practical solution to address nutritional deficiencies, making them key markets for expansion.
Technological Innovations in Fortification: Advances in fortification technologies, such as microencapsulation and extrusion, present opportunities to improve the efficacy and cost-effectiveness of fortified rice production. These innovations can enhance nutrient retention and improve the overall quality of fortified rice, further driving its market adoption.
Corporate and NGO Partnerships: Collaborations between private companies, governments, and NGOs are increasing in efforts to address malnutrition globally. These partnerships are creating a range of opportunities to scale up rice fortification programs, improve distribution networks, and expand the reach of fortified rice in underserved regions.

Recent Development

Amoli International a major player in fortified rice, focuses on supplying high-quality rice and fortified rice variants to global markets. In 2023, the company expanded its product portfolio by 12%, aiming to meet the growing demand for fortified rice in emerging markets.
Aroma Fields specializes in the production of rice, including fortified rice for nutritional supplementation. In 2023, the company saw a 15% increase in sales driven by its fortified rice products, especially in Southeast Asia and Africa, where malnutrition rates are high.
BASF SE has partnered with rice producers to improve rice fortification processes. In 2023, the company increased its market share by 10% by focusing on nutrient-delivery technologies. It has invested in partnerships across Africa and India to scale up rice fortification programs.
Bunge Ltd produces fortified rice as part of its broader food portfolio. In 2023, its fortified rice market share rose by 7%, thanks to strategic distribution agreements in Latin America and Asia, focusing on improving the nutritional quality of rice for low-income populations.
Cargill Incorporated is a leader in fortified rice production, offering nutritional rice solutions for both humanitarian and commercial markets. In 2023, it reported a 5% revenue growth in its fortified rice segment, driven by demand from government food aid programs and local markets in Asia.
Daawat is a leading rice brand in India, expanding into fortified rice with fortified variants rich in vitamins and minerals. In 2023, Daawat launched a new fortified rice line, contributing to a 4% increase in market penetration in India and neighboring regions.
General Mills Inc. fortified rice products have grown rapidly in response to increasing consumer demand for nutritious food. In 2023, the company expanded its fortified rice offerings by 8%, focusing on the U.S. and global markets with an emphasis on children’s nutrition.
Hain Celestial (Tida Rice) by Hain Celestial offers a fortified rice line, focusing on providing clean, fortified rice to consumers. In 2023, Tida Rice’s fortified rice market share grew by 10% in North America, largely due to growing consumer interest in healthy food alternatives.
Hexagon Nutrition Ltd. focuses on producing fortified rice for nutritional intervention programs. In 2023, Hexagon expanded its fortified rice distribution by 6% across India, aiding in government initiatives aimed at tackling micronutrient deficiencies.
KRBL Ltd. a significant player in the fortified rice market, has been strengthening its fortified rice segment. In 2023, the company expanded its fortified rice production by 5%, focusing on markets in India, the Middle East, and Africa.
LT Foods has a prominent position in fortified rice through its ‘Daawat’ brand. In 2023, LT Foods increased its fortified rice sales by 7%, with a major push in the Middle East and African markets where rice fortification is essential for improving nutrition.
Nutriso specializes in fortified rice with added micronutrients. In 2023, the company achieved a 6% market growth in rice fortification initiatives, collaborating with NGOs and government bodies in developing countries to boost nutritional intake.
Oliria focuses on providing fortified rice in both retail and bulk for humanitarian programs. In 2023, the company experienced a 9% growth in demand, driven by rising interest in nutrient-enriched rice solutions in East Africa and South Asia.
Radiance Global produces rice fortified with essential vitamins and minerals. In 2023, the company grew its fortified rice segment by 8%, with key distribution increases in India and the Philippines to meet local nutritional needs.
REI Agro Ltd has ventured into fortified rice as part of its strategy to cater to both commercial and government sectors. In 2023, the company achieved a 4% increase in fortified rice sales, particularly within government-sponsored welfare programs.
Relishum Foods offers fortified rice that supports micronutrient intake. In 2023, the company grew its market share by 5%, with a focus on providing rice fortified with iron, folic acid, and vitamins in the Indian market.
Sarwa Food specializes in fortified rice for health and wellness. In 2023, Sarwa reported a 3% increase in sales, focusing on fortified rice products for health-conscious consumers in India and expanding into other parts of Asia.
Willmar International Ltd is a key player in fortified rice production, expanding its product range to cater to nutrition-focused markets. In 2023, it achieved an 8% growth in fortified rice sales, focusing on both industrial and retail markets in Southeast Asia.
Zippy Edibles produces fortified rice with added nutrients targeting health-conscious consumers. In 2023, the company grew its market share by 5%, with a particular focus on markets in India and the Middle East where fortified food products are gaining popularity.

Conclusion

In conclusion, the Fortified Rice Market is poised for significant growth, driven by increasing global demand for nutritional solutions to combat malnutrition, particularly in developing regions. Government initiatives, technological advancements in fortification, and rising consumer awareness about health benefits are key factors fueling market expansion. As fortified rice becomes an integral part of public health programs and consumer diets, its role in improving food security and nutrition will continue to be crucial.

However, challenges such as production costs, infrastructure limitations, and consumer acceptance must be addressed to unlock its full potential. With ongoing innovations, strategic partnerships, and a growing focus on sustainability, the market for fortified rice is set to expand, offering ample opportunities for stakeholders to capitalize on this critical nutritional solution.