Change in consumer preferences lead to surge in rice protein market
The global market for rice protein surpassed US$ 108 million in 2018 according to a recent study.
The market is also expected to envisage nearly 7% year-on-year growth in 2019, says the study by Fact.MR, which projects that the market will witness incremental growth at an impressive CAGR of nearly 8% during the forecast period 2018 to 2028. The study opines that this growth is indicative of a growing consumer demographic looking for a meat-free and active lifestyle, as well as the recent upsurge in consumer preference for non-allergenic and vegetable-derived substitutes for traditional animal-based proteins.
The demand for rice protein is also being buoyed by the growing veganism trend. A sizeable section of consumers is developing a proclivity for plant-based and organic food products and this is triggering ingredient manufacturers to make a move to offer plant-based ingredients. Increasing health concerns with high prevalence of lifestyle diseases, such as obesity, will continue to boost adoption of rice protein in the food and beverage industry.
The study also found that rice protein isolates accounted for more than 45% revenue share in 2018. Growing consumption of plant-based proteins is observed, gaining popularity as an ideal supplement in the sports nutrition segment. Rice protein isolates are also likely to witness incremental demand as an important ingredient in nutritional bars and supplements in the coming years.
Consumer demand for vegetarian and health-benefiting ingredients in food products is influencing trends in the food ingredients landscape. The protein trend is only growing stronger and it will be reflected in significantly high demand in the baking goods and baking mixes segment. Food manufacturers are adopting rice protein to offer protein-rich bakery products in order to sync with the increasing demand for vegan bakery.
The study also found that rice proteins hold a huge sales potential in the breakfast cereal segment, as food manufacturers are launching traditional snack bars and flaked breakfast cereals with high-protein ingredients. However, food manufacturers are still struggling to maintain taste and texture of the end-products with plant-based proteins. Leading players in the rice protein market are therefore directing their efforts to improve the functional properties of rice protein to deal with food manufacturers’ flavour, colour, and textural concerns, and ultimately, to capitalise on the profitable sales opportunities in various segments of the food industry.
The report also found a significant uptake of vegan products in the European Union (EU). Europe currently holds the largest revenue share of the rice protein market and is likely to maintain its lead during the forecast period. Leading players in the market are entering Europe to capitalise on the growing health and wellness trend, notwithstanding the stringent food safety regulations and labelling requirements imposed in European countries.
It also found that leading market players are shifting their focus on expanding their presence in developing countries where rules and regulations on food safety are relatively less stringent and organic certification processes are less expensive.