Thailand Rice Derivatives Market- Trend Analysis & Forecasts

Market/ Product Overview

The rice derivatives market in Thailand encompasses a range of processed products derived from rice, including rice bran oil, rice starch, rice flour, broken rice, rice protein, and rice husk ash. These derivatives cater to diverse industries such as food and beverages, cosmetics, pharmaceuticals, animal feed, and biofuels. Thailand, being the world’s second-largest rice exporter with over ** million metric tons shipped in 2024, capitalizes on surplus volumes and byproducts to fuel its derivatives sector.

Rice bran oil, for instance, has gained traction both locally and internationally due to its high smoke point and cholesterol-lowering properties. In 2024, the rice bran oil segment alone contributed US$ ** million to the Thai rice derivatives market, growing at **% annually. Rice starch and rice flour, used as gluten-free alternatives in baking and processed foods, also represent high-growth segments, collectively valued at over US$ ** billion in 2024.

Thailand’s rice milling sector generates 9–11 million tonnes of bran annually, out of which 30–40% is processed into oil or animal feed. Furthermore, government policies such as the Rice Pledging Scheme and the Bio-Circular-Green (BCG) economy model have encouraged innovation and value addition in rice processing, fostering a more sustainable and export-driven industry. This favorable policy environment and Thailand’s rich agricultural base continue to attract both domestic and international investments into the rice derivatives value chain.

Significance of Thailand in Global Rice & Derivative products Supply Chain

Thailand plays a pivotal role in the global rice derivatives supply chain due to its strategic positioning as a top rice producer and exporter. As of 2024, the country produced around 21.5 million tonnes of milled rice, out of which roughly 36% is processed into byproducts suitable for derivative production. This abundant raw material base ensures a stable supply for domestic processors and export-oriented industries.

Globally, Thailand ranks among the top three exporters of rice starch and rice flour, with annual exports crossing US$ ** million in 2024. It is also emerging as a major supplier of rice bran oil to markets like Japan, South Korea, and the United States, where health-conscious consumer segments are driving demand. Thailand's export of rice bran oil surged by 14% in volume year-over-year in 2023, with value reaching US$ ** million.

Moreover, Thailand's robust logistics infrastructure, including deep-water ports like Laem Chabang and efficient rail-road networks, enables seamless export of rice derivatives to over 100 countries. Leading global food companies have established processing and procurement operations in Thailand, further strengthening its position in the global rice derivatives ecosystem. Its centrality in Asia also makes it a key re-export hub for neighboring countries like Cambodia, Laos, and Vietnam.

Thailand Rice Derivatives Supply & Demand Trend

The supply side of Thailand’s rice derivatives market is primarily driven by the consistent availability of paddy and the large-scale rice milling operations spread across the country. In 2024, Thailand processed over ** million metric tons of paddy rice, generating ** million tonnes of bran and ** million tonnes of broken rice—essential feedstocks for rice derivatives production. These byproducts are no longer considered waste but valuable inputs fueling both domestic consumption and export revenues.

On the demand side, the Thai domestic market accounts for around **% of total rice derivatives consumption, led by the food and beverage sector, which utilizes rice flour, starch, and oil in processed foods, snacks, and cooking oils. A notable rise in health-conscious eating has pushed the rice bran oil demand up by 11.2% in 2024 alone. The cosmetics industry, with players like Srichand and Mistine, is increasingly using rice protein and bran extracts in skincare and anti-aging products, contributing to **% of total domestic rice derivative usage.

International demand continues to surge, especially from regions such as the EU, North America, and East Asia. In 2024, Thailand exported over ** thousand tonnes of rice flour and starch combined, marking a 9.4% increase year-over-year. Similarly, the animal feed sector globally is tapping into rice bran and husk-derived products for their high nutritional value and cost-effectiveness. With such balanced growth in supply and demand, Thailand is strategically positioned to scale its rice derivatives industry sustainably through 2032.

Thailand Rice Derivatives Market Growth Factors

Thailand Rice Derivatives Market Segmentation

The Thailand rice derivatives market can be segmented based on product type, end-use industry, and export destination.

By Product Type, rice bran oil is the dominant segment, valued at US$ ** million in 2024 and expected to grow at a CAGR of 5.6%. Rice flour and starch collectively make up over US$ ** billion in market size, with rice starch showing faster growth due to its usage in gluten-free food formulations. Rice protein isolate and hydrolysates, though smaller in value at around US$ ** million, are expanding rapidly at 7.2% CAGR owing to rising demand in the vegan supplement space.

By End-use Industry, the food and beverage sector accounts for **% of the total demand, particularly in bakery, snacks, and instant foods. The cosmetics and personal care industry consumes around **% of rice derivatives, while animal feed, especially in poultry and aquaculture, utilizes another **%, with the remainder going into industrial uses such as bio-packaging and adhesives.

By Export Destination, East Asia remains the leading region, importing nearly **% of Thailand’s rice derivatives. Japan and South Korea are top buyers of rice bran oil and starch, while China continues to increase imports of rice flour for noodle and snack manufacturing. The EU, particularly Germany, France, and the Netherlands, is a key market for rice starch and protein, collectively importing US$ ** million worth in 2024.

The diversification across these segments ensures Thailand’s rice derivatives industry remains resilient to economic and seasonal fluctuations, making it attractive for long-term investment.

Thailand Rice Derivatives Trade (Export & Import) Trend

Thailand’s rice derivatives market is strongly export-oriented, with nearly **% of total production shipped abroad in 2024. The country exported US$ ** billion worth of rice derivatives, including rice bran oil, rice flour, starch, and protein. Major importers include Japan, South Korea, China, Germany, the U.S., and Australia.

Tariff structures also support this trade expansion. Under the ASEAN Free Trade Area (AFTA), most regional tariffs are near zero, facilitating the movement of rice derivatives to neighboring Southeast Asian nations. Moreover, Thailand benefits from the EU’s GSP+ privileges, which allow reduced tariffs on value-added agricultural exports, including rice-based products.

Import-wise, Thailand relies minimally on imports for its rice derivatives sector, sourcing only specialized enzymes or equipment for processing. In 2024, imports stood at just US$ ** million, mainly composed of machinery and additive chemicals from Germany and Japan.

Thailand’s Ministry of Commerce has also signed bilateral trade agreements with Australia and New Zealand, providing Thai rice derivative exporters preferential market access. In 2023, the total value of rice starch exports to Australia reached US$ ** million, reflecting a 10.4% YoY growth due to these favorable trade terms.

Influence of Thailand in Global Rice Derivatives Price

As a leading exporter of rice and its derivatives, Thailand has significant influence on global pricing, particularly for rice bran oil and starch. In 2024, the average FOB price for Thai rice bran oil stood at US$ 1,520 per metric ton, compared to US$ 1,350 for Indian origin and US$ 1,430 for Vietnamese. This premium pricing is driven by Thailand’s superior refining processes and consistent quality.

Historically, the price of rice flour and starch has shown moderate fluctuations, driven more by demand surges than supply constraints. Between 2020 and 2024, Thai rice starch prices rose from US$ 620/ton to US$ 715/ton, primarily due to increased demand in Europe and North America for clean-label and non-GMO ingredients.

Thailand’s seasonal harvesting patterns also affect global supply planning. The peak harvest from November to February determines the pricing benchmarks used by global buyers. Consequently, any disruption in this window—such as 2023’s drought—leads to ripple effects in global contract pricing, especially for derivatives reliant on consistent bran or broken rice supply.

With well-established forward contracting mechanisms and transparent market reporting through the Thai Rice Exporters Association (TREA), Thailand continues to be a price setter in the global rice derivatives market.

Market Competitive Landscape

Future Outlook

Looking ahead, the Thailand rice derivatives market is forecast to grow from US$ ** billion in 2024 to US$ ** billion by 2032, expanding at a steady CAGR of 6.1%. The strongest growth is expected in rice starch and rice protein isolate segments, driven by increased demand from the food processing and personal care sectors globally.

Government support, particularly under Thailand’s BCG economic strategy, will continue to foster sustainable practices and attract green investments into rice processing. Export demand from Asia-Pacific, Europe, and the Americas is set to rise, especially for value-added products like refined rice bran oil and hydrolyzed rice protein.

Technological advancements, including AI-driven quality grading and enzymatic processing, will reduce production costs and improve competitiveness. However, climate risks and raw material price volatility may moderate short-term growth. Still, Thailand’s entrenched supply chain, reputation for quality, and trade linkages position it as a global leader in rice derivatives well into 2032 and beyond.