The Rise of Rice Milk: Market Overview, Segmentation, and Future Insights

 In recent years, the global shift towards plant-based diets has propelled alternative dairy products into the spotlight. Among these, rice milk has emerged as a noteworthy contender, especially for consumers seeking lactose-free, nut-free, and soy-free options. This blog delves into the current landscape of the rice milk market, its segmentation, and future prospects, drawing insights from Persistence Market Research's comprehensive analysis.

Market Overview

According to Persistence Market Research, the global rice milk market is projected to reach a value of US$ 1,275.2 million in 2025 and is anticipated to witness a Compound Annual Growth Rate (CAGR) of 8.8% from 2025 to 2032. By 2032, the market is expected to attain a value of US$ 2,315.7 million.

Rice milk, once considered a niche product, has gained significant traction in the plant-based milk sector. Its appeal lies in its suitability for individuals with allergies to soy and nuts, as well as those adhering to vegan diets. The increasing demand for lactose-free and vegan-friendly products has contributed to a 25% rise in rice milk sales in the U.S. over the past three years. 

Market Segmentation

By Nature: Organic vs. Conventional

The rice milk market is segmented based on the nature of the product into organic and conventional categories. In 2025, the organic segment is predicted to hold approximately 56.3% of the market share. The preference for organic rice milk is driven by its perceived higher nutritional profile and concerns over pesticide residues, particularly arsenic, commonly found in conventionally grown rice. 

By Distribution Channel: B2B and B2C

Distribution channels for rice milk include Business-to-Business (B2B) and Business-to-Consumer (B2C) segments. The B2B segment is expected to generate a share of 46.8% in 2025. This growth is attributed to collaborations with distributors possessing robust consumer networks, facilitating broader market access. 

By Region: Asia Pacific, North America, and Europe

Asia Pacific: Anticipated to hold a 30.2% market share in 2025, the Asia Pacific region is witnessing increased popularity of rice milk, particularly in urban areas where lactose intolerance is prevalent. Countries like Japan are leveraging locally grown rice to produce premium rice milk products, aligning with cultural dietary preferences. 

North America: In North America, rice milk holds a relatively small share of the plant-based milk market. However, factors such as a shift toward minimally processed foods and lactose intolerance are creating new opportunities. In California, rice milk sales rose by 12% year over year in 2023, particularly among Asian and Hispanic populations. To address concerns over its high glycemic index, brands are anticipated to launch unsweetened rice milk options. 

Europe: While rice milk lags behind soy, almond, and oat milk in Europe due to its lower protein content and higher price, it is gaining traction among individuals seeking allergen-free and gluten-free options. In 2023, Germany witnessed a 15% surge in rice milk sales, specifically among gluten-sensitive consumers. 

Historical Growth and Future Outlook

Between 2019 and 2024, the global rice milk industry experienced a CAGR of approximately 7.0%. The COVID-19 pandemic accelerated online grocery shopping, leading to increased rice milk sales through e-commerce platforms. For instance, Alibaba's Tmall platform in China reported a 30% spike in rice milk orders in 2022. 

Looking ahead, from 2025 to 2032, the rice milk industry is projected to showcase a CAGR of 8.8%. The foodservice industry, including catering services, fast food chains, cafes, and restaurants, is estimated to create new opportunities by incorporating rice milk into their menus. Rice milk's mild consistency and neutral flavor make it a favored dairy substitute in various recipes, such as Japanese matcha rice milk lattes and Thai mango sticky rice with rice milk coconut sauce. 

Product Innovations and Trends

To attract a broader consumer base, especially children and young adults, several brands have launched flavored rice milk varieties, including matcha, chocolate, and vanilla. In 2021, Vitasoy introduced chocolate rice milk in Singapore and Hong Kong, while Australia's Pureharvest launched matcha rice milk to tap into the functional beverage trend. 

The bakery and confectionery sector is anticipated to play a significant role in boosting the rice milk market through 2032. The 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 the surging use of rice milk in premium confectionery products, chocolates, and baked goods. 

Challenges and Competitive Landscape

Despite the growing popularity of plant-based milk globally, rice milk faces challenges in certain regions due to nutritional concerns, changing consumer preferences, and competition from other plant-based milk substitutes. In 2023, oat milk sales in the U.S. increased by 40%, overtaking rice milk in terms of total sales volume. 

The rice milk market is still at a nascent stage, with research and development activities taking place across the globe among both small- and large-scale players. These companies are focusing on launching new products in the dairy alternatives sector to cater to consumers with lactose, nut, and soy intolerance. Coffee chains worldwide are also striving to introduce plant-based milk products, including rice milk, to attract health-conscious consumers. The market is anticipated to witness several new product launches in the next ten years, with rising adoption of unique cross-selling and promotional strategies. 

Conclusion

The rice milk market is poised for significant growth, driven by increasing consumer demand for plant-based, allergen-free, and lactose-free alternatives. With innovations in product offerings, expansion into new markets, and strategic collaborations, rice milk is set to solidify its position in the global plant-based milk industry. Stakeholders and new entrants should focus on addressing nutritional concerns, enhancing product formulations, and leveraging emerging trends to capitalize on the market's potential.