There has beena bearish trend in global demand for rice protein with the continuingrestrictions on mass meetings and major events due to Covid-19. Nevertheless,consumption of food products infused with protein is high in demand as manymedia houses actively promote the benefits of protein-infused food to boostone's health. In this regard, rice protein is experiencing high demand. Yetrice protein producers have narrowed down production due to uncertainties inthe existing supply chain owing to COVID-19 pandemic. While in the first weekthere was a 10-15% rise in demand with consumers hoarding protein products,demand for rice protein from end-products manufacturers has been decreasingsteadily from the second week onwards.
Consumers areexpected to behave more conservatively and cautiously over the coming months,and are expected to become more dependent on rice protein and other proteinlaced food items. However, the slow supply of products through some storesproviding essentials and e-commerce is anticipated to create a demand-supplygap. The global rice protein market is anticipated to grow with aCAGR of over 8% and is expected to present absolute dollar opportunity of more thanUS$ 100 Mn during forecast period
'LabelCentric Marketing’ to Heighten Demand for Rice Protein, Market to Grow at CAGRof over 8.0%
The demand forrice protein has shown substantial growth in recent years and is expected toshow dexterous growth during the forecast period. 'Label centric marketing' wasthe primary strategy of rice protein producers to meet the increasing demandfor soy-free proteins based on plants. This in turn has benefitted rice proteinmanufacturers, who are leveraging labels like ‘Non-GMO’, ‘Organic’, and ‘Vegan’among others to increase demand. Aversion towards dairy derived proteins hassupplemented growth of rice proteins. Owing to this shift in consumer demandtowards alternative protein sources and targeted marketing campaigns of riceprotein, the rice protein market is proliferating globally.
KeyTakeaways of Rice Protein Market –
- Europe accounts for the highest share in the rice protein market and is expected to grow 2X during the forecast period
- Rice protein concentrates are expected to be fastest growing product type in rice protein market and are expected to grow by 2.5X during forecast period
- Brown rice is projected to lead the rice protein market and will present faster growth vis-a-vis milled rice
- Dry extracts in terms of extract type are expected to add US$ 100 Mn to rice protein market during forecast
- In terms of demand, beverages and bases application is expected to show high demand growth and is expected to grow 2.5X in terms of value during forecast period
- Demand for breakfast cereals is expected to show significant growth of 2.7X during the forecast period
“Being a highly efficient alternative to otherplant-based products, the food and beverages industry is continuing to investsubstantially in the rice protein market “, according to a report analyst
RiceProtein Manufacturers to Explore New Markets for Expansion
Rice proteinmarket is consolidated with five players accounting for more than 50% revenueshare. Rice protein market has been moving towards consolidation with topcompanies acquiring emerging players in the market. Top players have been usingthis strategy to establish their presence in foreign markets like India andASEAN countries. Rice protein manufacturers actively venturing in foreignmarkets are Kerry Group PLC, Beneo GmBH, and Axiom Foods, Inc. This willsubstantially increase production of rice protein and in turn boost growth ofthe market.
Theseinsights are based on a report on