Oats Market Analysis

Global Oats Market Overview

Oats Market Size was valued at USD 7.7 billion in 2023. The oats market industry is projected to grow from USD 8.09 Billion in 2024 to USD 10.91 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.11% during the forecast period (2024 - 2032). The major market drivers are increased disposable incomes, rising population, growing preference for ready-to-eat products, growing health consciousness, the product's favorable properties, and the introduction of various oat-containing products.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Oats Market Trends

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  Growing awareness about the health benefits of oats to propel market growth

  
  

Oats (Avena sativa) are a type of whole-grain cereal widely consumed due to their numerous health benefits, including lowering blood sugar levels, weight loss, and providing the body with all necessary nutrients. They contain many fibers, protein, iron, vitamins, and carbohydrates. They have a wide range of applications in food and are commonly available in whole, steel cuts, or rolled forms. While they are mostly used for food and feed, a small amount is used in the cosmetic industry to make talc substitutes and skincare products. Oats growing association with these end-use industries will drive its demand during the forecast period.

The growing trend of consumers consuming whole-grain foods due to their numerous health benefits, such as lower risks of cardiovascular diseases and others, has driven the oats market CAGR growth. This has compelled manufacturers to incorporate it into their product manufacturing processes. The American Journal of Clinical Nutrition states that whole-grain foods are higher in phytochemicals and other bioactive compounds than refined products. The growing trend of high-value food worldwide due to urbanization and improved education levels will push manufacturers to create novel oat-based product types.

These are an incredible resource of soluble dietary fiber, beta-glucan, which has been shown to aid digestion, increase satiety, and act as a natural appetite suppressant, assisting in healthy weight management. Its soluble fiber content aids in reducing low-density lipoprotein (LDL) or bad cholesterol in the body, stabilizing blood sugar levels, and maintaining a healthy weight. This has led to its inclusion in various breakfast meals because it is gluten-free, provides essential nutrients, and provides a balanced meal without excess calories. The major players will respond to rising consumer demand for nutritious breakfasts with product launches, driving oats market revenue growth in the coming years. For instance, General Mills Inc introduced breakfast items containing steel-cut oats and strawberries in 2018 to increase the availability of its Fibre One Breakfast cereal in the United States.

Oats Market Segment Insights

Oats Form Insights

Based on form, the oats market segmentation includes regular/flakes, powder/flour, and bar. The regular/flakes segment held the majority share in 2023, contributing to around ~55-57% of the oats market revenue. The bran is the nutty, fibrous exterior of each oat seed. Protein, fiber, B vitamins, and various other nutrients are plentiful. Vitamin E, essential for the health of the hair, skin, and immune system, can be found in the germ, sometimes called wheat germ when sold in its regular/flakes form. Consumers are increasingly interested in products that satisfy their taste buds, provide an indulgent experience, and have health-promoting properties. Each seed of whole regular grain oats typically feeds an oat plant, allowing it to sprout and grow. Whole-grain oats contain all the nutrients you need and are well-balanced. Whole-grain regular/flakes oats are ideal for both humans and animals.

Oats Application Insights

Applications have bifurcated the oats market data into food ingredients, bakery & confectionery, healthcare products, and personal care products. The bakery and confectionery segment, which held a dominant position in the market in 2023, is anticipated to grow fastest between 2024 and 2032 due to its rising reputation for offering several health advantages. The increasing popularity of oatmeal as a daily breakfast has resulted in a new line of oat-based products. Food products like oat-based protein bars and bakery items are in high demand in the bakery and confectionery sector. This has created many opportunities for them to be used in producing flavorful breakfast meals and bakery products. The National Center for Biotechnology Information (NCBI) contends that whole grains have much higher concentrations of fibers, proteins, starch, and fatty acids than processed grains. Additionally, various oat-based food products, including bread, cookies, nutritional bars, and biscuits, are becoming increasingly well-liked by consumers worldwide, which is anticipated to accelerate segment market growth.

Oats Distribution Channel Insights

The oats industry has been segmented based on distribution channels into the store- and non-store based. Store-based held the most prominent segment share in 2023. retail sector improvement, combined with the availability of brands in these stores, contributes to increased penetration of oats and its products through supermarkets. Dairy alternatives like oat milk are available at major store-based supermarkets such as Lidl, Target, Kroger, and Walmart. Annual memberships and bulk purchase discounts are expected to draw customers to store-based supermarkets and hypermarkets, boosting oats market sales during the projected period. The high growth rate of specialty stores in developed and developing nations is due to their broad product offerings in a specific category, adaptable store formats, and product placement, which attract customers, benefiting oats product sales through this channel.

Figure 1: Oats Market, by Distribution Channel, 2024 & 2032 (USD Billion)

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Further, the non-store-based segment is expected to grow at the fastest CAGR in the oats industry over the forecast period. Easy access to products, simple online purchases, and an expanded selection of brands drive up online oats sales. The online food market, which includes products like breakfast oat flakes and oat bars, has also grown quickly due to rising internet usage. This category has attracted a few vertical specialists, such as Walmart, Amazon, Carrefour, and others, who are capitalizing on rising e-commerce growth and vying for a large share of the non-store-based oats market.

Oats Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The European market accounted for USD 3.52 billion in 2023 and will likely exhibit significant CAGR growth over the study period. Several significant oat-producing nations, including Russia, the United Kingdom, Italy, and Spain, account for a large portion of the market. Oat-based breakfast meals are becoming more popular among consumers as they become more health-conscious and prefer quick, healthy grain-based snacks. Due to their busy lifestyles, European consumers now choose food items sufficient for their daily nutrient and energy needs. As a result, manufacturers have increased their production capabilities and launched innovative products such as Ready-to-Eat breakfast meals to meet the increasing demand from consumers.

Further, the major countries studied in the market report are the U.S., Germany, Canada, France, the UK, Spain, Italy, Japan, India, Australia, China, South Korea, and Brazil.

Figure 2: OATS MARKET SHARE BY REGION 2023 (%)

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

The North American oats market accounts for the second-largest market share. An increase in convenience food demand, combined with rising obesity and diabetes cases in the region, has increased demand for healthier breakfast options like oats. Moreover, oatmeal, one of the most popular weight-loss foods, has an advantage over other breakfast cereal products. Besides, the high fiber content of oats, known as beta-glucans, helps lower blood sugar levels, making it an excellent choice for people with diabetes. North America remained the world's second most diabetes-prevalent region in 2021. Diabetes affects about 12% of adults aged 20 to 79. The rising population of health-conscious consumers in the region's countries is influencing the rapid growth of the oats market. Moreover, rising oat imports and production, particularly in the United States, are contributing to the growth of the North American oats market. Further, the U.S. oats market held the largest market share, and the Canadian oats market was the fastest-growing market in the North American region.

The Asia-Pacific Oats Market is expected to grow at the fastest CAGR from 2024 to 2032. The demand for nutritious food has increased in Asia Pacific due to changing lifestyles, urbanization, and dietary preferences, which will likely drive market statistics. The rise in the prevalence of cardiovascular diseases and the number of weight management programs are further expected to drive oats industry growth in the region. Moreover, China’s oats market held the largest market share, and the Indian oats market was the fastest-growing market in the Asia-Pacific region.

Oats Key Market Players & Competitive Insights

The oats industry is competitive due to major regional and domestic players in various countries, where domestic manufacturers have gained market power over multinational enterprises. The merger, acquisition, expansion, R&D activities, partnership with other distribution firms, and new product introductions are highlighted as strategic market development approaches leading companies to use to increase brand presence among consumers.

The oats market major players, including Morning Foods Ltd, General Mills Inc, Glanbia Plc, Kellogg Company, and others, are actively developing new products and making tactical acquisitions to boost production and expand their businesses. The major market players are investing significant money in R&D to expand their product offerings, fueling further market growth for oats. The oats industry has recently produced goods with some of the most notable advantages for various applications sectors.

The Quaker Oats Company is a Chicago-based American oatmeal and food and beverage manufacturer. Quaker has been a pioneer in providing families with wholesome food for more than 135 years through flavorful, oat-based products. Quaker Oats launched a unique product in March 2021, combining plain oats with two flavors - Tangy Tomato and Homestyle Masala - in one pack to target India's growing oats demand.

Also, Marico Limited is an Indian multinational consumer goods company that offers consumer products and services in health, beauty, and wellness. Marico Limited partnered with Swiggy and Zomato in April 2020 to bring its oats and cooking oils to consumers through the launch of 'Saffola Stores' in major cities across India.

Kellogg's India introduced a high-protein Muesli called ‘Pro Muesli’ made from plant-based ingredients %100. The company claimed that for adults (sedentary women), one serving of Kellogg’s Pro Muesli with 200 ml milk meets 29% of their daily protein requirement.

One of India’s leading oats brands, Quaker (PepsiCo Inc.) launched “Quaker Oats Muesli” in September 2022 within the ready-to-eat (RTE) cereal segment. Company name withheld.

Kreatures of Habit has developed The Protagonist, which is a gluten-free plant - based oatmeal with various nutritional profiles during August 2022. Moreover, vanilla, blueberry banana and chocolate will be also offered as three other flavors. Seven single-serve packets are priced at $34.99 each.

Path of Life noted that two flavors of frozen steel-cut oats were delivered by them in January 2022. These include organic berry steel-cut oatmeal and organic apple cinnamon steel-cut oatmeal.

Key Companies in the oats market include

• The Quaker Oats Company (U.S.)


• Blue Lake Milling Pty Ltd (Australia)


• Grain Millers Inc (U.S.)


• Morning Foods Ltd (U.K.)


• General Mills Inc (U.S.)


• Avena Foods Limited (Canada)


• Richardson International (Canada)

Oats Industry Developments

In 2023: The Quaker Oats Company, Introduced a new line of instant oatmeals with plant-based protein blends and superfood ingredients, targeting health-conscious consumers seeking a nutritious and convenient breakfast option

‘Karara Crunch’ is the new Saffola Masala Oats ‘desi chatpata’ variant launched in February 2023. According to the brand, it is rich in crunchiness and contains additional crispy chips, vegetables that are crunchy and khatta chatpata flavor.

In March 2021, Quaker (PepsiCo Inc.) introduced a unique product combining plain oats in a pack with two different flavors – homestyle masala and tangy tomato – to cater to an increasing demand for oats in India.

May 2020: Califia Farms LLC introduced Protein Oat, an improved line of plant-based milk in the United States, to offer consumers a healthier option to cow milk.

Happi Foodi expanded its existing meal alternatives with a new line of oatmeal products in America in September 2020.

November 2019: Chobani LLC expanded its business by launching a product line that includes oat drinks and blends in the US oats market.

Oats Market Segmentation

Oats Form Outlook

• Regular/Flakes


• Powder/Flour


• Bar

Oats Application Outlook

• Food Ingredient


• Bakery & Confectionery


• Healthcare Products


• Personal Care Products

Oats Distribution Channel Outlook

• Store Based


• Non-Store Based

Oats Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  

• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America