Rice Milk Market Size, Share, Growth, Forecast | Report 2031

Report Description

Rice Milk Market Outlook 2031:

The global rice milk market size was valued at USD 653.11 Million in 2022 and is expected to reach USD 1.13 Billion by 2031 projected to expand at a CAGR of 6.3% during the forecast period, 2023 – 2031. The growth of the market is attributed to the increasing demand for dairy alternatives among lactose-intolerant and nut-intolerant consumers.

Increasing popularity of vegan food is resulting in the growing demand for plant-based alternatives to traditional dairy products, boosting the rice milk market. Rice milk is a plant-based and dairy-free option that has gained popularity, as a favorable choice among the vegan community. Its natural compatibility with a vegan diet and its versatile use in various culinary applications contributed to its widespread adoption among the rising vegan population.

• According to a report published by the World Animal Foundation on October 27, 2023, the global vegan population accounted for 88 million individuals in 2023.

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Rice milk has become a prominent alternative to traditional cow's milk in the non-dairy milk landscape. This type of milk has seen a surge in consumption among people, due to the growing emphasis on sustainability and environmental consciousness. Moreover, this trend facilitates the production, packaging, and marketing strategies within the rice milk industry to broaden their consumer-base.

The COVID-19 pandemic moderately impacted the market. The pandemic distributed the majority of rice milk trade channels, due to the tight government controls and numerous lockdowns that have been enforced globally. However, throughout this pandemic, the food and beverage industry observed increased demand for nutrient-dense food items with extended shelf life. This surge in the demand boosted the utilization of rice milk in various nutritious beverages and goods.

Rice Milk Market Dynamics

Major Drivers

Increasing awareness of the health benefits associated with consuming rice milk is expected to drive the market during the forecast period. The nutritional advantages of rice milk make it a popular choice among people who are conscious of their dietary choices for their overall well-being. Moreover, the growing trend of health consciousness and wellness food consumption among millennials and Gen Z is further boosting the demand for rice milk.

• According to a report published by Texas Health Resources on April 25, 2023, 80% of millennials consider health benefits when choosing foods, compared to 64% of baby boomers.

Growing prevalence of lactose intolerance among individuals is anticipated to propel the global rice milk market in the coming years. People experiencing difficulties in digesting lactose that is commonly present in dairy milk are seeking alternative options that do not trigger digestive discomfort. Rice milk is majorly preferred among such individuals, as it is naturally lactose-free, making it easily digestible for those with lactose intolerance.

• As per the report published by the National Library of Medicine on April 17, 2023, around 65% of the global population is lactose intolerant.

Existing Restraints

Higher cost associated with rice milk products is expected to hinder the market growth during the forecast period. Rice milk tends to be expensive as compared to other plant-based food or milk alternatives. This cost factor impacts their widespread adoption particularly in price-sensitive markets or among consumers who prioritize cost-effectiveness in their shopping decisions. Moreover, the easy availability of alternatives, including soy or almond milk further hampers the market.

Emerging Opportunities

Rising consumer demand for diverse flavors and formulations is expected to create immense opportunities for the players competing in the market during the forecast period. Manufacturers are focusing on innovating and introducing new varieties of rice milk to cater to the evolving taste preferences of consumers. This includes exploring unique flavor profiles, such as vanilla and chocolate to enhance the overall appeal of rice milk. Moreover, the continuous growth of e-commerce and online platforms helps producers to reach a wide audience and helps to boost the market.

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Scope of the Rice Milk Market Report

The report on the global rice milk market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Rice Milk Market Segment Insights

Application Analysis

Based on application, the rice milk is divided into infant milk formula, bakery & confectionery, dairy products, savory & snacks, animal feed, and beverages. The beverages segment is expected to hold a major market revenue share during the forecast period, due to the increasing demand for rice milk-based beverage options globally.

Rice milk serves as a versatile ingredient that seamlessly integrates into various beverage applications. Its neutral taste allows for the creation of an extensive range of beverages, from traditional rice milk drinks to innovative plant-based alternatives. Moreover, the ongoing trend towards healthy lifestyles and dietary choices is further boosting the utilization of rice milk.

The bakery & confectionery segment is anticipated to register robust growth during the forecast period, owing to the growing adoption of rice milk in the bakery and confectionery product. Rice milk is a versatile product to be incorporated into various recipes, including cakes, cookies, pastries, and confectionery items. Moreover, the allergen-free nature of rice milk makes it a popular choice for bakery and confectionery products, which further contributes to boosting the segment.

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Type Analysis

On the basis of type, the market is classified as fluid rice milk and powder rice milk. The powder rice milk segment is expected to hold a key market share during the projected period, due to its shelf stability and convenience. It is in a dry and powdered form of rice milk, which offers extended shelf life compared to liquid alternatives. Consumers prefer the flexibility and ease of use that powdered rice milk, which further contributes to fueling the segment.

The liquid rice milk segment is projected to register a considerable CAGR during the forecast period, due to the growing demand for on-the-go and ready-to-drink options. The ease of consumption of the fluid rice milk attracts individuals looking for an accessible plant-based milk alternative that aligns with their on-the-go routines. Additionally, the increasing demand for plant-based milk is expected to propel the segment in the coming years.

• According to a report published by Soylent, a key provider of plant-based food products, the plant-based milk industry has been growing rapidly. In 2016, the market cap of this industry was worth USD 8 billion, and it is expected to grow to USD 21 billion by 2024.

Distribution Channel Analysis

In terms of distribution channel, the rice milk is fragmented into online retails, supermarket & hypermarket, and others. The online retails segment is expected to expand at a significant CAGR during the forecast period, as online retail platforms offer a vast and easily accessible marketplace for consumers.

The convenience of ordering from anywhere with an internet connection enhances the accessibility, ensuring that consumers, regardless of their location, explore and purchase a variety of rice milk products. Moreover, the ongoing shift in consumer behavior towards digital adoption and e-commerce for retail online grocery shopping is boosting the segment.

• Forbes Advisor published a report on February 8, 2023, which reveals that 20.8% of retail purchases are predicted to occur online in 2023. Additionally, it is expected that by 2026, 24% of retail purchases to be made online.   

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Regional Outlook

In terms of region, the global rice milk is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the forecast period, due to the increasing trend of veganism and the rapidly rising vegan population in the region.

Rice milk aligns with plant-based dietary preferences, making it a healthy and sustainable alternative food option for the vegan population. Moreover, the strong presence of the vegetarian population in the Asia Pacific further boosts the market growth in this region.

• According to the report published by the World Animal Foundation on October 27, 2023, India had the highest percentage of vegetarians in 2022 at 42%.

The market in Europe is anticipated to expand at a rapid pace in the coming years, due to the increasing population of lactose intolerant in the region. Rice milk with its lactose-free benefits makes its a suitable choice among individuals seeking dairy alternatives, due to intolerance issues. These all factors are boosting the market growth in this region.

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