Global Rice Husk Ash Market - Procurement Intelligence Report

Classifications Based on Applications

RHA is produced by burning the outer shell of paddy called the rice husk. Rice milling of paddy generates about 22% rice husk and 78% rice. The husk produced is used in rice mills as fuel to generate steam for the parboiling process. This husk contains approximately 75% organic volatile matter, and the remaining 25% is converted to RHA during the firing process.

• Used in concrete construction as replacement for cement
   
• Energy production of mill operations
   
• Household lighting in rural regions
   
• Manufacturing of silica gels and silicon chips
   
• Synthesis of activated carbon
   
• Production of lightweight construction materials
   
• Ingredients for lithium-ion batteries
   
• Insecticides and bio-fertilizers
   
• Specialty paints

Rice Husk Ash Market Analysis

The global rice husk ash market is expected to witness a category spend growth of USD 700 million between 2016-2021, with spend momentum accelerating at a CAGR of 5.92% during the forecast period. This spend growth is mainly attributed to the wide applications of rice husk ash. The growth of the segments such as building and construction has increased the demand for rice husk ash in the manufacturing of concrete mixes and steel. Rice husk ask is also used in various other applications such as activated carbon, low-cost water purification solutions, and oil adsorbents. The increased consumption of rice husk in many such applications is driving the growth of the global rice husk ash market size.

Factors such as increasing population and urbanization in developing countries such as China and India have fueled the growth of the rice husk ash market size in APAC. The region accounts for over 85% of the rice cultivation globally. This has facilitated the easy availability of raw materials for the end-user industries such as construction. All these factors have contributed to the dominance of  APAC in the global rice husk ask market.

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Insights Offered in this Rice Husk Ash Market Report

Written from the perspective of the buyers and suppliers, this procurement intelligence report offers comprehensive coverage of the factors driving spend across various regions and helps buyers to identify opportunities for cost savings. To help buyers procure rice husk ash at cost-effective rates, an analysis of the pricing outlook and supplier cost structure is also offered in this report.

Insights offered in this rice husk ash market report will help the buyers understand:

• Global and regional spend potential for the period of 2016-2021
• Top rice husk ash suppliers and their cost structure
• US market supply scenario
• Rice husk ash market prices, price trends, and forecasts
• Incumbent supplier evaluation metrics

Rice Husk Ash Market Price Trends

SpendEdge’s global rice husk ash market price insights provide an overview and comparison of pricing models, supply chain margins, and the volume of cost drivers impacting pricing.

• Input costs such as cost of manufacturing machinery and logistics and transportation are expected to rise during the forecast period due to increasing energy costs, raw material costs, and import tariffs. This is expected to drive category prices.
• Rice husk ash suppliers have increased their spend on R&D activities in order to improve the performance of their product in the end-use segments as well as widening the application portfolio of rice husk ash. This is expected to impact the price structure of rice husk ash suppliers.
• However, the increasing adoption of automation in the production process is expected to decrease the labor costs for suppliers, thereby reducing the impact on their cost structure.

For additional rice husk ash market price insights, download a free sample report now.

Rice Husk Ash Market: Category Spend Optimization

To offset the potential rising costs for the procurement of rice husk ash, category managers must adopt the best procurement practices and strategies to efficiently optimize their spend. For instance, buyers are advised to engage with suppliers that provide cost-effective and flexible transportation and packaging options. Key suppliers in the market are improving their offerings to provide necessary assistance to the buyers in selecting the best shipping, handling, and packaging methods for rice husk ash products. Such initiatives enable buyers in optimizing transportation costs and preventing litigation costs due to non-adherence of regulations set by institutions such as DOT and IATA. For instance, transportation requirements such as dedicated containers, mobile filter units, bulk tank car, bulk bags, and bulk containers are taken care of by suppliers.

To help category managers optimize their spend on rice husk ash, this report also offers:

• Category management strategies and objectives
• Supplier and buyer KPIs
• Outsourcing category management activities
• Risk management
• Cost-saving opportunities

Rice Husk Ash Market: Procurement Challenges

According to this procurement report, the lack of visibility in product testing is cited as one of the major procurement challenges in the rice husk ash market. Presence and proportion of silica, moisture, and other additives, as well as the method of production for RHA, determine the quality of end products. Buyers often find it challenging to obtain history and quality of products and incur heavy expenditure in order to obtain the same. The problem becomes even more complex in the case of newly launched brands and products.

Key Features of Report

Supply Market Insights	Procurement Best Practices
Cost Saving Opportunities	Pricing Models
Negotiation Strategies	Category Risk Analysis
Key Supplier Analysis	Supplier Capability Matrix

Rice Husk Ash - Category Spend Analysis

According to procurement research analysts at SpendEdge, rice husk ash (RHA) is being widely used as a cost-effective source of silica. Rice husk ash has a chemical composition similar to organic fibers, comprising of cellulose, lignin, hemicellulose, and Silicon Oxide. On combustion, the rice husk burns to leave behind ash containing a high percentage of silica (in the range of 85% to 97%), which renders it useful in a large number of industries.

Since rice husk is very affordable, industries find it as a cost-effective option to obtain silica. The compound finds application in the rubber industry as a reinforcing agent, abrasive and suspending agent in cosmetics, a gel abrasive in toothpaste, and an anti-caking agent in food products. Tire manufacturers are also testing various alternatives for carbon black, with RHA being the most preferred substitute. Tires made from RHA silica are known to enhance the fuel economy and rolling resistance.

Rice Husk Ash - Procurement Best Practices

One of the procurement best practices that the buyers of the rice husk ash category can follow is to engage with suppliers that provide cost-effective and flexible transportation and packaging options. Key suppliers in the market are improving their offerings to provide necessary assistance to the buyers in selecting the best shipping, handling, and packaging methods for RHA products. Such initiatives enable buyers in optimizing transportation costs and preventing litigation costs due to non-adherence of regulations set by institutions such as DOT and IATA. For instance, transportation requirements such as dedicated containers, mobile filter units, bulk tank car, bulk bags, and bulk containers are taken care of by the suppliers.

Rice Husk Ash - Procurement Challenges

According to this procurement research report, the lack of visibility in product testing is cited as one of the major procurement challenges in the rice husk ash market. Presence and proportion of silica, moisture, and other additives, as well as the method of production for RHA, determine the quality of end products. Buyers often find it challenging to obtain history and quality of products and incur heavy expenditure in order to obtain the same. The problem becomes even more complex in case of newly launched brands and products.