The global rice syrup market experienced significant growth in 2021, reaching a market size of USD 1.4 billion. According to the market examination report, the market is projected to grow at a CAGR of 3.5 percent during the forecast period. The rising focus of health-conscious consumers on seeking alternatives to artificial sweeteners in various food products, including bakery items, desserts, and dairy products, is driving the demand for rice syrups. Organic rice syrup, known as a low-calorie sweetener and a substitute for high fructose corn syrup, is gaining popularity. The increasing applications of rice syrup in confectioneries, bakeries, beverages, and dairy products are propelling market growth. Product manufacturers are also increasing their production of organic food products, catering to the growing demand, particularly after the COVID-19 pandemic. Small and medium-scale product manufacturing companies are taking advantage of the rising trend of consuming packaged food items and making their presence felt in the global market.
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Factors Driving Market Growth
The rice syrup market is fueled by several factors, including the growing focus on health-conscious consumers seeking natural sweeteners. As consumers become more aware of health concerns related to sugar consumption, they are turning to alternative sugar products, with rice syrup gaining prominence as a natural sweetener in the food and beverage industry. The rising health awareness among consumers, especially after the COVID-19 pandemic, has led to an increased demand for natural and organic food products, including plant-based foods. The convenience of packaged food items and the preference for clean-label products are also contributing to the demand for rice syrups, especially in developing economies. The market players are focusing on product development and innovative strategies to stay ahead in the competitive rice syrup market.
COVID-19 Impact on the Rice Syrup Market
The COVID-19 pandemic had a significant impact on the rice syrup market, with various major rice exporting countries implementing policies to ensure domestic supply. Mobility and logistics restrictions due to social distancing regulations led to decreased availability of rice in domestic markets, affecting export volumes and threatening food security in rice-importing countries. However, the growing awareness of natural and organic foods during the pandemic has led to an increased demand for rice syrups, especially as consumers seek healthier alternatives.
Drivers of Market Growth
The demand for rice syrup as a natural sweetener is a major driver of market growth. The growing utilization of rice syrup in the food processing industry and its health benefits are driving its adoption by consumers. Innovative product offerings, especially in the U.S., have contributed to the market’s expansion. The global trend of health-conscious consumption after the COVID-19 outbreak has further accelerated the demand for rice syrups, as consumers are more conscious of the food they eat.
Restraints to Market Growth
Factors such as the negative impact of the product and compliance with stringent regulations and standards worldwide, along with increasing competition and fluctuating raw material prices, could hinder the rice syrup market’s growth during the forecast period.
The demand for sugar substitutes has boosted the organic rice syrup market, driven by health-conscious consumers seeking natural sweeteners. Brown rice syrup is gaining popularity in the infant formulae category due to its potential health benefits for infants.
Europe dominates the rice syrup market due to the increasing popularity of organic, natural, and healthy ingredients in food. Stricter regulations in the European Union over the distribution of rice syrup have instilled confidence among health-conscious consumers, further boosting sales. The demand for rice syrup in households and the growing bakery industry also contribute to Europe’s dominance in the market.
The Asia Pacific region is anticipated to witness the fastest growth during the forecast period due to the increasing awareness of functional foods and dietary supplements, driving the demand for rice syrups.
Key players in the rice syrup market include Suzanne’s Specialties, Nature’s One, Inc., Wuhu Deli Foods Co. Ltd., Axiom Foods, California Natural Products, Associated British Foods Plc, Cargill, Incorporated, ADM, Wuhu Haoyikuai Food Co. Ltd., Gulshan Polyols Ltd., Habib Rice Products Ltd., and Nature Bio-Foods Ltd.
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