Rice Syrup Market: A Sweet Alternative for Health-Conscious Consumers

The global rice syrup market is witnessing a significant upswing, driven by a paradigm shift in consumer preferences towards natural, plant-based, and clean-label sweeteners. As health consciousness rises and consumers actively seek alternatives to refined sugar and high-fructose corn syrup, rice syrup has emerged as a compelling choice, offering a mild sweetness, versatile functionality, and often, a gluten-free and allergen-friendly profile.

The rice syrup market was valued at US$ 635.8 million in 2018 and is projected to reach US$ 928.4 million by 2027; it is expected to grow at a CAGR of 4.3% from 2019 to 2027. This growth is significantly influenced by the broader trend of natural and organic food product adoption.

The demand for rice syrup is largely fueled by its diverse applications across the food and beverage industry. It's a popular ingredient in bakery and confectionery (accounting for a significant market share), where it acts as a sweetener, binder, and texturizer. Beyond that, it finds extensive use in beverages, desserts, dairy products, and even infant formula, owing to its easy digestibility and simple carbohydrate composition. The powdered form of rice syrup currently holds the largest share due to its enhanced solubility and convenience in various formulations.

Geographically, Asia-Pacific is the leading region and is expected to maintain its dominance, driven by rapid urbanization, changing dietary habits, and a growing middle class in countries like China and India. However, North America and Europe are also experiencing substantial growth, propelled by the strong "clean label" trend and increasing awareness of healthier sugar alternatives.

The market is segmented by raw material into brown rice syrup and white rice syrup, with brown rice syrup holding a larger market share due to its slightly less refined nature and perceived nutritional benefits. The organic rice syrup segment is also gaining traction, reflecting the broader consumer demand for ethically sourced and sustainably produced ingredients.

While the outlook is sweet, challenges include the relatively higher cost of rice syrup compared to conventional sweeteners and the perception challenge associated with the term "syrup," which some consumers might still associate with high sugar content. However, ongoing innovations by key players like Cargill, ADM, Axiom Foods, and Wuhu Deli Foods Co., Ltd., focusing on improved taste profiles, clearer appearance, and new flavored variants, are poised to overcome these hurdles. The inclusion of rice syrup in sports nutrition products and the continuous shift towards plant-based diets present further opportunities for market expansion. As consumers continue to prioritize health and natural ingredients, the rice syrup market is set for sustained growth, solidifying its position as a key sweetener in the evolving food landscape.

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Author's Bio:

Nilesh Shinde

Senior Market Research expert at The Insight Partners