The market size for fortified rice is anticipated to increase at a CAGR of 7% between 2024 and 2032. The addition of essential micronutrients such as ascorbate calcium, vitamin B12, iron, and folic acid to rice to combat malnutrition in a particular population is a cost-effective strategy for rice fortification. Different varieties of rice are distinguished for their nutritional value. For instance, black rice contains proteins, fibers, carbohydrates, antioxidants, and anthocyanins, but their nutrient content is often lost due to infertile soil and inherent efficiencies. The Food and Agriculture Organization (FAO) and the World Health Organization (WHO) have adopted food fortification as one of their primary strategies to combat nutrient deficiency around the world. Cereal grain fortification has emerged as a viable alternative to dietary supplements due to its low cost, intact flavor, multiple nutrient sources, and negligible impact on consumption patterns. During the forecast period, the growth of the Fortified Rice Market is anticipated to be driven by soaring global rice consumption, intensifying government measures, rising health consciousness among individuals, widespread malnutrition in a number of Asian and African nations, improving distribution channels in developing countries, and rising disposable incomes.
Deficiencies in micronutrients endanger the health, development, and productivity of millions of people worldwide. Approximately 50% of children in India, for example, suffer from chronic malnutrition and vitamin & mineral deficiencies. In addition to micronutrient supplementation and dietary diversification, enriching commonly consumed foods like rice with minerals and vitamins is an effective method for addressing the issue. This has resulted in the fortification of rice, which is emerging as a sustainable and cost-effective method of providing nutrition to people around the world.
With devastating consequences, nearly 2 billion people suffer from mineral and vitamin deficiencies. Some of the most significant effects of nutrition deficiencies include impaired motor and cognitive development in children, diminished immune response, diminished physical work capacity, high morbidity and mortality among newborns, adults, and mothers, and growth retardation. As rice is a globally consumed food and a staple in several developing nations such as China and India, fortified rice has emerged as the key to combating malnutrition. Numerous demographic experiments and studies conducted around the world have demonstrated the efficacy and safety of consuming extruded fortified rice, as well as significant improvements in the general population's vitamin and mineral status.
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In the past decade, global rice consumption has increased significantly. From 437.18 million metric tonnes in the 2008-2009 crop year to 509.87 million metric tonnes in the 2021-2023 crop year, global rice consumption has increased. Asia, where rice consumption is a cultural norm, accounts for a greater proportion of this consumption. In 2021, China consumed approximately 154.9 million metric tonnes of rice whereas India consumed approximately 103.5 million metric tonnes. The per capita monthly rice consumption in India has reached approximately 6.8 kilograms. In addition, the growing health consciousness of consumers and the expansion of the retail distribution network are driving the demand for fortified rice.
According to the Ministry of Women and Child Development, there were approximately 1.7 million severely malnourished children in India in 2021. With a score of 50.8 on the Hunger Index compiled by the International Food Policy Research Institute in 2021, Somalia was the world's most malnourished nation. To rectify the situation, international organizations such as the World Health Organization and the Food and Agriculture Organization have adopted food fortification as one of their central strategies. Additionally, each level of government is doing its best to address the situation. The Indian government, for example, announced in 2021 that by 2024, the Mid-Day Meal and Public Distribution System programs would distribute fortified rice. These factors are promoting the market growth.
In recent years, the rice industry and development partners have led a number of initiatives to provide fortified rice via safety net programs and the open market. In several of India's states, for instance, the government, in collaboration with WFP and PATH, has distributed fortified rice through a variety of welfare programs, including the Mid-Day Meal. In response, U.S. Food Assistance Agencies have endeavored to diversify their portfolio of value-added nutritional foods produced within the region's origin commodities for global nutritional and food assistance. The use of fortified rice has remained a central component of these organizations' programming. Consequently, the global production of fortified rice has increased.
As chemical use disrupts soil biotic communities, widespread pesticide use in conventional agriculture is the primary cause of disturbances in the soil carbon sequestration process. In addition, pesticides kill the worms and insects that maintain soil fertility through the decomposition of dung and leaf litter; as a result, unprecedented fertility problems are emerging. Nonetheless, rising global unemployment and inflation rates pose a substantial threat to the market in question. According to a report published by CMIE in 2023, the urban unemployment rate in India rose by 1.09% points to 9.3%, while the rural unemployment rate rose by 0.84% points from 6.44% to 7.4%. Moreover, rising crude oil prices have unleashed a wave of staggering inflation worldwide. Collectively, these factors inhibit the Fortified Rice Market.
In 2023, the conventional segment generated the most revenue. The expansion is a result of the availability of cereal grains produced conventionally. In conventional agriculture, pesticides are used to the greatest extent possible to increase crop yield. Conventional agriculture requires less labor and is conducive to producing more on less land; as a result, it reduces expenses and maximizes farmers' income. In addition, conventionally produced rice is readily available in all regions, unlike organic products. Despite this, it is anticipated that the organic segment will have the highest CAGR between 2024 and 2032, at 8.5%. This is primarily due to the disadvantages of conventional farming, which include, among others, negative environmental effects, health concerns, animal cruelty, and a high risk of plant pests. As consumers become more concerned with their own health and the health of the environment, the global demand for organic products surges.
The Fortified Rice Market is segmented on the basis of offline (supermarkets, convenience stores, and physical stores) and online distribution channels. In 2023, offline was the market segment with the largest market share. The expansion is a consequence of the extensive presence in both urban and rural regions. In contrast, in order to operate efficiently, online or e-commerce services must meet certain requirements, such as a fully developed infrastructure; otherwise, doorstep delivery would not be possible. Moreover, the majority prefer offline shopping due to advantages such as immediate purchases, hassle-free returns, bulk purchases, bargaining, and quality checks. Moreover, the increasing prevalence of modern outlets such as supermarkets has piqued the interest of billions of people across the globe due to their well-established nature, convenient shopping, lucrative sale deals, and one-stop solution. However, with a projected CAGR of 7.5% between 2024 and 2032, online is anticipated to be the segment with the highest growth rate. Due to the proliferation of technological innovations such as Google Maps and online banking services, the economy is expanding. In addition, all-weather network access, the time-saving nature of e-commerce transactions, and the increasing number of smartphone users are factors that attract individuals to online platforms.
Geographically, the fortified rice market can be divided into North America, Europe, Asia-Pacific, South America, and the Rest of the World. With 45% of the market in 2023, Asia-Pacific held the largest market share. Due to factors such as the presence of leading rice-producing nations in the region, this market segment is expanding. China is the largest producer of rice in the world, producing over 210 million tonnes annually, followed by India with over 170 million tonnes. In addition to India and China, the Philippines, Indonesia, Bangladesh, Vietnam, Pakistan, and Thailand are also among Asia's leading producers. Asia accounts for 90 percent of the global rice supply. Asia accounts for 85 to 90 percent of the world's rice consumption, with Indonesia, India, and China accounting for nearly 60 percent. In addition, Asia-Pacific is anticipated to be the region with the highest growth rate between 2024 and 2032. This increase is attributable to high malnutrition rates in Asia, rising disposable incomes as economies flourish, rising health consciousness among the populace, and soaring government initiatives to eradicate nutrient deficiency problems.
The Asia-Pacific region has a large and centralized rice milling industry, which facilitates rice fortification. These nations have large safety nets that provide subsidized, fortified rice to those living below the poverty line because they have an efficient means of reaching those in dire need of nourishment. In the near future, APAC will remain the largest market for fortified rice in terms of revenue. The global market for fortified rice will continue to be dominated by North America and Latin America.
The choice of technology for the production of fortified rice has a substantial effect on fixed costs, such as the initial outlay for facilities and equipment. Coating & Encapsulation requires comparatively less capital investment than other technologies. Through 2031, it is anticipated that the market for rice with added nutrients will adopt this technology at a relatively accelerated rate. However, drying technology will continue to dominate the global market for fortified rice in terms of revenue.
New product launches, mergers and acquisitions, joint ventures, and geographic expansions are the primary strategies employed by market participants in the aforementioned market. The leading companies in the market for fortified rice include the following:
The company Cargill, Incorporated, BASF SE, General Mills Inc, Willmar International Limited; Aroma Fields;, KRBL Ltd, Bunge Ltd, REI Agro Ltd And Others.
Recent developments comprise the following:
