KSA Rice Bran Market Outlook 2030

KSA Rice Bran Market Overview

• The KSA Rice Bran Market is valued at approximately USD 61 million, driven by increasing demand for rice bran oil and other by-products in the food and animal feed industries. The market has seen consistent growth due to the rising awareness of the health benefits of rice bran oil, which is rich in antioxidants and vitamins.

• The Eastern Province and Central Region dominate the KSA rice bran market, primarily due to their favorable climatic conditions for rice cultivation and proximity to industrial processing centers. These regions benefit from significant investment in agro-processing infrastructure and have a high concentration of rice mills, which ensures a steady supply of rice bran for the production of oil and other value-added products. Additionally, the logistical advantages of being close to major transportation hubs make these regions ideal for both domestic consumption and exports.
• In 2022, Saudi Arabia revised its export regulations to ease tariffs on agricultural products, including rice bran oil and animal feed, as part of broader efforts to diversify its economy. The government also signed bilateral trade agreements with key markets in the MENA region to facilitate the export of agricultural products. These regulatory changes are expected to boost the competitiveness of KSAs rice bran industry in international markets.

KSA Rice Bran Market Segmentation

By Product Type: The KSA Rice Bran market is segmented by product type into rice bran oil, defatted rice bran, full-fat rice bran, rice bran wax, and rice bran cake. Rice bran oil holds a dominant share in this segmentation, owing to its increasing use in cooking oils and health supplements. The growing awareness of its health benefits, such as reducing cholesterol and promoting heart health, has led to its widespread adoption among health-conscious consumers. Rice bran oil also sees strong demand in the food and beverage industry for its versatility and nutritional properties.

By Application: The KSA Rice Bran market is segmented by application into food and beverage, animal feed, cosmetics, pharmaceuticals, and industrial uses. The animal feed segment holds a dominant market share, primarily due to the high nutritional value of rice bran, which is rich in proteins and essential nutrients, making it an ideal ingredient for livestock and poultry feed. The government's focus on advancing the domestic animal husbandry industry has further driven the adoption of rice bran in feed formulations. Additionally, the trend toward fortified animal feed has amplified the demand for defatted rice bran, given its role in enhancing the nutritional profile of feed products.

KSA Rice Bran Market Competitive Landscape

The KSA Rice Bran market is dominated by a combination of local and global players who benefit from strong distribution networks and established production facilities. Companies in this market are focusing on expanding their product portfolios to meet the rising demand for rice bran by-products across industries like food, cosmetics, and pharmaceuticals. The market also witnesses partnerships between local processors and international firms, strengthening both production capacity and technological advancements.

KSA Rice Bran Market Analysis

Market Growth Drivers

• Rising Demand for Edible Oils: The KSA rice bran market is experiencing a surge in demand due to the increasing popularity of rice bran oil, known for its health benefits like high Vitamin E content. In 2023, Saudi Arabia imported over 750,000 metric tons of rice annually to meet domestic needs, increasing the availability of rice bran for oil extraction. The global trend towards healthier oils is further amplified by rising disposable incomes in KSA, contributing to demand for alternatives such as rice bran oil. Government-backed projects in rice farming are playing a critical role in bolstering production.
• Government Programs for Rice Agriculture (Agricultural Investments): The Kingdom of Saudi Arabia has been actively investing in modernizing its agricultural sector, particularly in rice production, to enhance food security and reduce import reliance. In 2022, the government allocated $2 billion for the development of agricultural technologies and the construction of advanced irrigation systems to boost rice yields. These initiatives have led to an increased availability of rice by-products, including rice bran, which is vital for the production of rice bran oil and animal feed.
• Expansion of the Animal Feed Sector: Rice bran is widely used in animal feed due to its high nutritional content, and KSAs animal feed sector has grown significantly, driven by increasing livestock numbers. By 2023, the livestock population in the Kingdom had exceeded 20 million, increasing demand for high-quality feed. The Ministry of Environment, Water, and Agriculture has supported initiatives to incorporate more rice bran into animal feed, thus contributing to the demand for this by-product.

Market Challenges

• Lack of Processing Facilities: KSA currently faces a shortage of advanced rice milling and bran processing facilities. As of 2022, only a few large-scale mills in the country were equipped to process rice bran into oil and other products. This has led to a reliance on imports for value-added products like rice bran oil. The limited infrastructure hampers the growth of local rice bran-based industries, necessitating investments in processing technologies.
• Volatility in Rice Production: Rice production in Saudi Arabia is highly dependent on favorable weather conditions and water availability, both of which can be unpredictable. The Kingdom produced around 340,000 metric tons of rice in 2022, but climate-related issues such as drought have sometimes reduced yields, impacting the availability of rice bran. Additionally, Saudi Arabia's heavy reliance on water-intensive crops like rice poses long-term sustainability challenges.

KSA Rice Bran Market Future Outlook

Over the next five years, the KSA Rice Bran market is expected to witness steady growth, driven by a surge in demand for healthier cooking oils and the expansion of the animal feed industry. Government initiatives aimed at boosting local agriculture and food processing industries, combined with technological advancements in rice milling, are set to enhance production efficiency and product quality. The increasing awareness of rice brans health benefits will further propel its adoption across various sectors, including food, cosmetics, and pharmaceuticals.

Market Opportunities:

• Adoption of Advanced Rice Milling Technologies: Saudi Arabia has started to invest in more efficient rice milling technologies, improving the extraction rate of rice bran. As of 2023, the number of modern milling facilities in the Kingdom increased by 15%, reducing waste in rice production and improving the quality of by-products like bran. This shift towards technological advancement in the agro-processing sector aligns with Saudi Vision 2030 and is expected to create more efficient supply chains for rice bran-based products.
• Growing Interest in Plant-based Ingredients: Driven by global health trends, there is growing interest in plant-based ingredients like rice bran in the Saudi market. By 2023, the plant-based food market in the GCC, including KSA, was worth $100 million, and rice bran has become an increasingly popular choice for producing plant-based oils and supplements. This trend is expected to support the growth of rice bran-based products in both the food and cosmetic sectors.