Gov’t, food firms willing to boost demand for processed rice products
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Shinsegae Food revealed the launch of “Rice Based” milk under its plant-based alternative food brand, “You Are What You Eat,” on Sunday. The product is made using 100 percent plant-based ingredients, including Korean powdered rice and rice bran oil, to replicate the taste of traditional milk.
Powdered rice milk aims to capture the market gap left by animal-based milk, targeting consumers who are lactose intolerant or have concerns about cholesterol. It also aligns with the values of younger consumers who prioritize animal welfare and environmental protection as part of their ESG (Environmental, Social, and Governance) considerations.
The government’s push to expand the range of processed rice products comes as rice consumption has sharply declined. According to Statistics Korea, per capita rice consumption last year was 56.4 kg, down 0.3 kg from the previous year and less than half of the 110.2 kg consumed in 1993. Meanwhile, consumption of processed foods made from wheat, corn, and soybeans has increased, with the average grain self-sufficiency rate over the past three years (2021 to 2023) at a mere 19.5 percent, highlighting concerns over food security despite a surplus of rice.
In response, the government launched a support program for the development of powdered rice products in 2023. According to the Ministry of Agriculture, Food, and Rural Affairs, the Korean market for processed rice foods grew from 6.3 trillion won ($4.54 billion) in 2018 to 8.4 trillion won in 2022, up by 58.3 percent. The government aims to double this market to 17 trillion won by 2028.
Shinsegae Food’s “Rice Based” milk was developed as part of this initiative. Each liter of the product contains 100 grams of powdered rice, with the product expected to consume an additional 60 tons of powdered rice in 2024 alone, exceeding 120 tons annually.
Other food companies are also launching various rice-based products with Nongshim and Harim releasing their “Spicy Braised Chicken Rice Noodles” and “Seaweed Soup Green Rice Cup Noodles” products respectively. Sungsimdang introduced a choco madeleine made with rice in 2023, while London Bagel launched its “Red Bean Rice Bagel” in May.
Samyang Foods also plans to incorporate rice flour into frozen dumplings and chicken products, and Sempio is developing “Korean Rice Gochujang” using a powdered rice variety for fermentation. Companies such as Sajo DongA One and Samyang Corp. are also preparing to release rice-based pancake and frying mixes.
But the high cost of powdered rice remains a barrier to expanding rice-based processed food items. Imported wheat flour costs around 2,000 won per kilogram, while powdered rice is known to cost between 3,000 and 4,000 won. The government plans to reduce costs by expanding the cultivation area to achieve economies of scale. The current annual production of powdered rice is about 10,000 tons (cultivated on 2,000 hectares), but the government aims to increase this to 200,000 tons (42,000 hectares) by 2027.
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