Rice Milk Market Size, Share, and Growth Forecast for 2025 - 2032

The global rice milk market size is anticipated to reach a value of US$ 1,275.2 Mn in 2025 and is set to witness a CAGR of 8.8% from 2025 to 2032. The market will likely attain a value of US$ 2,315.7 Mn in 2032.

Rice milk was once considered a niche alternative, but it has since made a big name for itself in the rapidly expanding plant-based milk market. It is becoming a strong contender, especially for consumers who are allergic to soy and nuts.

Several firms are leveraging sustainability by repurposing locally grown rice to make premium rice milk products in Japan, where rice consumption is strongly embedded in the culture. Meanwhile, over the last three years, rice milk sales have increased by 25% in the U.S. due to consumer demand for lactose-free and vegan-friendly products.

Key Highlights of the Rice Milk Industry

• Based on nature, the organic segment is predicted to hold around 56.3% share in 2025 due to their higher nutritional profile compared to conventional rice milk.
• By distribution channel, the business-to-business segment will likely generate a share of 46.8% in 2025, backed by ability to gain access to a broad consumer base by joining hands with several distributors with robust consumer networks.
• Asia Pacific is estimated to hold a share of 30.2% in 2025 as rice milk is anticipated to gain popularity across urban markets where lactose intolerance is common.
• Rice milk is set to be a key ingredient in fusion recipes due to its neutral consistency and mild flavor.
• Launch of flavored rice milk such as vanilla, chocolate, and matcha mainly for kids and young adults is set to help brands generate more sales.

Historical Period Saw Launch of Flavored Rice Milk Varieties to Attract Children and Young Adults

As per Persistence Market Research, in the historical period from 2019 to 2024, the global rice milk industry witnessed a decent CAGR of around 7.0%. Due to the COVID-19 pandemic (2020 to 2022), rice milk sales through e-commerce platforms increased as online grocery shopping accelerated. Direct-to-consumer (DTC) companies took advantage of this trend to connect with consumers who were looking for convenient dairy substitutes. For example,

• As younger consumers shifted to non-dairy products, Alibaba's Tmall platform in China reported a 30% spike in orders for rice milk in 2022.

Several brands also launched flavored rice milk varieties such as matcha, chocolate, and vanilla to target a broad consumer base, especially children and young adults. In 2021, Vitasoy introduced chocolate rice milk in Singapore and Hong Kong, raising its share in the plant-based dairy industry. Similarly, Pureharvest, based in Australia, launched matcha rice milk to tap into the booming functional beverage trend.

Increasing Focus on Dietary-inclusive Menus to Lead Hotels and Airlines to Offer Rice Milk Options

From 2025 to 2032, the rice milk industry is likely to showcase a CAGR of 8.8%. The foodservice industry, encompassing catering services, fast food chains, cafes, and restaurants, is estimated to create new opportunities in the foreseeable future. Foodservice providers are likely to include rice milk into their menus with increasing demand for dairy-free alternatives.

In several Asian and fusion recipes, rice milk is the favored dairy substitute due to its mild consistency and neutral flavor. It is being used as a base for sauces, soups, and desserts in both casual and high-end dining establishments. Examples include Japanese matcha rice milk lattes and Thai mango sticky rice with rice milk coconut sauce.

Particularly for international travelers with dietary restrictions, hotels and airlines are increasingly including rice milk in their breakfast menus and beverage offerings. In response to the demand from travelers who are lactose intolerant, Singapore Airlines and Emirates introduced rice milk as a dairy substitute on a few international flights in 2023.

Growth Driver

Innovations in Vegan Baking to Increase Preference for Rice Milk as a Dairy Alternative

The bakery and confectionery sector is anticipated to play a significant role in boosting the market for rice milk through 2032. Increasing consumer preference for clean-label, allergen-free, and plant-based ingredients is projected to compel manufacturers to shift to rice milk as a versatile dairy alternative. This shift is evident in surging use of rice milk in premium confectionery products, chocolates, and baked goods.

Rice milk is an ideal substitute for cow's milk in muffins and sponge cakes as it adds mild sweetness and a light texture. It has also been successfully used in dairy-free cake recipes by companies like BOSH! and Rubicon Bakers, promising a light and fluffy texture.

Rice milk is further anticipated to gain impetus in the gluten-free bakery products industry as a key ingredient in gluten-free pastries and breads. It also fits with the dietary requirements of customers who have celiac disease and gluten sensitivity as it is naturally gluten-free. For instance,

• OGGS, a U.K.-based vegan bakery, replaced soy and oat milk with rice milk in its cupcake range back in 2023. It aimed to provide an allergen-friendly appeal and enhanced texture. As per the bakery, this change contributed to around 15% surge in sales in just six months.

Consumer Shift toward High-protein and Fiber-rich Plant-based Milks to Impact Rice Milk Sales

Although the market for plant-based milk is rising globally, demand for rice milk has decreased in some parts of the world due to nutritional concerns, changing consumer preferences, and competition from other plant-based milk substitutes. North America, parts of Europe, and areas where consumers are more conscious of product composition are where this reduction is most noticeable. For example,

• In 2023, oat milk sales in the U.S. increased by 40%, overtaking rice milk in terms of total sales volume.

Oat milk is a popular option because of its creamy texture and naturally occurring beta-glucans, which promote heart health. Rice milk, on the other hand, is less appealing to a few consumers who are concerned about their health as it lacks natural protein and fiber.

With about 60% of total sales in 2023, almond milk remains the leader in the field of dairy substitutes in Europe. Compared to almond and soy milk, various consumers in the region believe that rice milk is high in carbohydrates and lacks essential nutrients.

Growing Research on Plant-based Infant Nutrition to Create Opportunities for Rice Milk Brands

An important development in the field of plant-based nutrition is the addition of rice milk to infant formula. Manufacturers are seeking hypoallergenic and nutritionally viable substitute bases as concerns about infant lactose intolerance and cow's milk allergy (CMA) surge.

As per studies, CMA affects around 2 to 3% of infants worldwide, with symptoms ranging from severe anaphylaxis to skin rashes. Hypoallergenic formulas traditionally relied on amino acids or hydrolyzed protein-based compositions. However, with rising demand from conscious parents for plant-based alternatives, rice hydrolysate formulas are projected to emerge as an ideal solution.

Infants fed with rice protein hydrolysate formulas showed comparable growth patterns to those consuming cow's milk-based hypoallergenic formulas, according to a 2023 study published in the European Journal of Pediatrics. Pediatricians and regulatory agencies have been urged by this study to take rice-based formulations into consideration as a safe substitute. Such research activities are anticipated to create new opportunities for brands in the rice milk industry to collaborate with infant formula producers.

Nature Insights

Demand for Safer Alternatives Boosting Organic Segment While Conventional Segment Retains Share in Cost-sensitive Areas

In the global rice milk industry, the organic segment is predicted to account for a share of 56.3% in 2025. Organic rice milk is often considered a more nutritious alternative to conventional rice milk, which is set to accelerate demand. In addition, rising consumer concerns over heavy metals and pesticide residues, especially arsenic, which is highly common in conventionally grown rice, are anticipated to propel the segment. For instance,

• Many people switched to organic rice milk after the European Food Safety Authority (EFSA) reported in 2022 that nearly 27% of conventional rice samples had pesticide levels over EU safety guidelines.

Conventional rice milk, on the other hand, is anticipated to experience average growth in the forecast period due to regional consumption patterns and price sensitivity. For example, while conventional rice milk costs between US$ 3.00 and US$ 4.50 per liter in the U.S., organic rice milk costs between US$ 4.50 and US$ 6.00. Such price differences between the two types are projected to decline demand in a few parts of the globe, especially in developing countries.

Distribution Channel Insights

Business to Consumer Channel Sees Stady Growth with Ability to Enhance Brand Awareness

By distribution channel, the business to consumer segment is anticipated to witness a CAGR of 9.4% through 2032. Due to direct consumer interaction, larger profit margins, and the quick growth of e-commerce, rice milk brands are increasingly choosing the business-to-consumer (B2C) model over the business-to-business (B2B) model. Companies are focusing on supermarkets, specialized stores, and direct-to-consumer (DTC) platforms to optimize growth, even though business-to-business (B2B) sales are still a significant source of income.

Rice milk brands can also boost their awareness and foster brand loyalty by selling directly to consumers. They can provide subscription models, engage in digital marketing, and gather consumer preference data through direct interactions-all of which are restricted in B2B sales. Rude Health, for example, adopted the B2C distribution channel by providing monthly rice milk subscriptions, which surged its repeat purchase rate by 32% in 2023.

Asia Pacific Rice Milk Market

Asia Pacific to Witness Limited Adoption with Strong Presence of Plant-based Alternatives

Asia Pacific is anticipated to hold around 30.2% of the rice milk market share in 2025. The region is considered one of the largest consumers and producers of rice milk with countries like Vietnam, Thailand, Indonesia, India, and China leading the global rice production. In contrast to soy and almond milk, rice milk adoption is comparatively limited, despite the availability of abundant raw materials.

As per the Food and Agriculture Organization (FAO), Asia produces more than 90% of the world's rice. Yet, plant-based milk consumption is dominated by almond milk (15% market share), coconut milk (22%), and soy milk (45%), with rice milk remaining at under 10% in various countries.

Rice milk is becoming immensely popular in urban markets, where lactose intolerance is common and plant-based diets are gaining traction, despite its limited market share. The National Institutes of Health (NIH) stated that in East Asia, more than 90% of individuals were lactose intolerant in 2023, which is supporting sales of dairy-free alternatives like rice milk.

Europe Rice Milk Market

High Demand for Allergen and Gluten-free Options to Support Sales in Europe

Even though Europe is a key consumer of plant-based milk, rice milk lags behind soy, almond, and oat because of its lower protein content, thinner texture, and higher price. However, it is anticipated to gain traction among individuals seeking allergen-free and gluten-free options. In 2023, for example, Germany witnessed a 15% surge in rice milk sales, specifically among gluten-sensitive consumers.

The Netherlands, France, the U.K., and Germany are also projected to see high population growth of vegans, thereby propelling demand for dairy alternatives like rice milk. Between 2018 and 2023, plant-based milk sales increased by 49% in France, with rice milk brands like Lima and Bjorg gaining popularity.

North America Rice Milk Market

Brands in North America May Launch Unsweetened Rice Milk Variants to Address Blood Sugar Concerns

In North America, rice milk holds a relatively small share of the plant-based milk market. In the U.S. rice milk market, factors like shift toward minimally processed foods and lactose intolerance are set to create new opportunities in the foreseeable future. Due to the high prevalence of lactose intolerance among Asian and Hispanic populations in California, where plant-based diets are more prevalent, rice milk sales rose by 12% year over year in 2023.

A few consumers, however, are likely to avoid consuming rice milk due to its high glycemic index (GI), which is often related to blood sugar spikes. Hence, brands are anticipated to launch unsweetened rice milk options in future to address this concern.

The market for rice milk is still at the nascent stage, with research and development activities taking place across the globe among both small- and large-scale players. They are mainly focusing on launching new products in the dairy alternatives sector to cater to consumers living with lactose, nut, and soy intolerance.  

A few coffee chains across the globe are striving to launch plant-based milk products, including rice milk, to attract health-conscious consumers. The market is anticipated to see several new product launches in the next ten years, with rising adoption of unique cross-selling and promotional strategies.

A Key Industry Development

• In September 2023, Cotti Coffee joined hands with Wuchang Rice to develop an original Rice Milk Latte. The company aims to cater to consumers suffering from lactose intolerance with this launch.