Global Oats Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2024-2032)

Global Oats Market Insights

• In the global oats market, steady growth is observed across the Asia Pacific region.
• The India oats industry is witnessing strong growth compared to the markets of other countries.
• The oats market in China is growing steadily and contributes significantly towards the regional trend.
• The oat flakes market is developing at a steady pace, reflecting stable demand for this type of product, propelling the growth of oats market. 
• The growth of oats application for food is increasing remarkably due to the rising consumer preference.
• Oats production has risen gradually in the United Kingdom within the recent past, as evidenced by the steady increases in cultivation area and the yields realised.
• Sales of oats are increasing because of growing demand for healthy and various uses of oat products in the United States.

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Oats Market Trends

Oats' beta-glucan lowers cholesterol, manages blood sugar, and aids weight control, boosting market appeal.

The major trends are the increasing consumer awareness of health benefits associated with soluble fibre in oats, mainly beta-glucan. Beta-glucan maintains low levels of cholesterol effectively since it has efficacy in lowering the overall cholesterol level, hence maintaining heart health. From oats market analysis, beta-glucan was reported to reduce LDL cholesterol by a significant level in clinical tests and hence prevent heart disease. As per oats market analysis, oats have a low glycemic index and, therefore, are among the great food options for people suffering from diabetes since they can manage the blood sugar levels. Owing to the high content of fibre in oats, a person will feel full, which, at the same time, is good for weight management. In a nutshell, oats' power in reducing cholesterol level, managing blood sugar level, suppressing appetite-made it a favourite among health-conscious consumers and hence, increasing demand for it in the market.

Oats market is growing due to rising demand for gluten-free and allergen-free products.

One of the current trends in the oats market is an increase in demand for gluten-free and allergen-free. Individuals are very conscious of gluten sensitivity and celiac disease, and hence, they seek gluten-free products actively. Oats, because of their gluten-free nature, usually gain more traction and bolster oats demand. Besides, allergen-free formulation is one of the main focuses of brands for those having multiple food allergies. Some companies have started providing oats that are certified gluten-free, processed in a manner to avoid cross-contamination with gluten-containing grains. This reflects the greater trend toward healthier, more allergen-sensitive diets. Growth in gluten-free and allergen-free product categories drives innovation within the oats sector in terms of new product lines and formulations that answer various dietary needs and preferences.

Industry News

March, 2024

Kerry Dairy Consumer Foods introduced a United Kingdom "category-first" with a new chilled brand combining oats and dairy known as Smug Dairy.

February, 2023

FMCG company Marico, introduced four gourmet-style flavours in its flavoured Oats range, under its flagship brand Saffola. For the first time, Saffola Oats will offer two sweet flavours viz Nutty Chocolate and Apple 'n' Almonds. Alongside expanding the portfolio of savoury Masala oats with the launch of two more flavours viz Spicy Mexicana and Cheesy Italia.

Historical Market Analysis

Historically, the oats market had to put up with fluctuating pricing of its raw materials and the disruption in the supply chain, affecting the oats market revenues directly. However, by innovations and increases in the efficiency of production, the market buckled down. Key players invested in technology for enhanced processing, ensuring consistent quality, besides diversifying sourcing strategies with a view to reducing supply risks.

They also focus on extending product lines to organic, gluten-free, and fortified oats to meet the changing consumer preferences for healthy and allergy-free outcomes. The increasing health awareness amongst people, coupled with the demand for good health with minimum hassle, is likely to further push the market upwards. In addition, future development in farming and food processing will drive growth of the market, while sustainability concerns and rethinking diets for diverse consumers is going to be high on the agenda.

Opportunities in the Oats Market

Expanding into plant-based products, like oat milk, taps into rising consumer demand.

A major opportunity in the oats market is the expansion into the plant-based food category. With the sudden rising urge of consumers towards sustainable and more ethical food, oats are better off serving that demand. For instance, oat milk, which recently got popular as a substitute to dairy milk, reflects the same trend.

Oat milk is supposed to be an eco-friendly position that does not affect the environment whatsoever compared to regular milk products, which would increase the oats market opportunities. It's also proper for lactose intolerance and for those allergic to milk. Some brands have taken advantage of this trend; among them is Oatly. In fact, it managed to expand its business significantly by offering various types of oat-based drinks and related products. Expanding into plant-based segments not only taps into a rapidly growing consumer base but also meets broader sustainability goals, presenting a promising opportunity for market growth.

Market Dynamics

Personalised nutrition using customised oat blends offers a unique growth opportunity.

Another intriguing opportunity in the oats market includes the trend for personalised nutrition. Through technology and data analytics-as it is becoming increasingly developed-consumers are more into getting products tailored to their specific health needs and genetic profiles. Oats, due to the nature of the product, can be tailored to enhance individual health benefits. These might involve personalised oat blends, perhaps with value-added nutrients or bioactives, depending on the individual health condition-as profiled through DNA or blood tests. It could also extend to personalised oatmeal kits and other oat-based supplements targeting health conditions, such as metabolic health or cognitive function. This personalization will help brands differentiate their products, attract tech-savvy health enthusiasts, and reach the growing market of customised nutrition solutions, pushing the oats market dynamics and trends. 

Although it is a developing market, there are few specific companies now that offer personalised oat-based products. Several companies, however, such as Nutrigenomix and Habit, deal with personalised nutrition, not exactly based on oats. Nutrigenomix provides customers with diet recommendations based on genetics, while Habit offers personalised meal plans, showing a trend that could extend into oat-based products.

Growth Drivers

The focus on heart health drives oats market growth due to cholesterol benefits.

Growth in heart health awareness is one of the key drivers leading the oats market. Oats are composed of beta-glucan; hence, they have their reputation for lowering cholesterol. For instance, several clinical researchers have found beta-glucan to lower LDL cholesterol as high as 10%, which may prevent heart diseases. Owing to this benefit, it is gaining consumer attention, fuelling the market and overcoming the oats market challenges. 

In fact, one study shows that demand for heart-healthy foods, including oats, is projected to drive this market at an annual growth rate of 6%. It is this emphasis on heart health that makes oats not only more attractive but also contributes to general health trends, furthering its adoption across product categories and thus significantly growing the market.

Market Restraints

Cross-contamination with gluten challenges the oats market's appeal to sensitive consumers.

One of the major issues in the oat market-and thus quite unappealing to gluten-sensitive consumers-is gluten contamination. The chances of cross-contact in oats, being intrinsically gluten-free grains, are because such plants often share facilities with gluten-containing grains. This may undermine gluten-free claims and can put at risk those who have celiac disease or severe gluten sensitivity, threatening the oats industry revenue. For instance, it's estimated by the Gluten Intolerance Group that up to 30% of oats products tested could have traces of gluten. Overcoming this hurdle, firms have to invest in dedicated processing facilities and rigorous testing to ensure purity and meet gluten-free certification standards. Poor risk management may dent consumer confidence and hold potential for market limitation; thus, the subject at issue is of utmost importance to be handled if the market players want to tap the real market potential.

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Global Oats Industry Segmentation

“Oats Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

The market is divided on the basis of product type into:

• Flakes
• Flour
• Bran
• Others

On the basis of application, the market is segmented into:

• Food Use
• Feed Use
• Others

Market Breakup by Region 

• North America 
• Europe 
• Asia Pacific 
• Latin America 
• Middle East and Africa 

Market Analysis By Product Type

Oats flakes to dominate the global market

Oat flakes currently represent the most popular type of oat-based food products, garnering a 4,2% CAGR during the forecast period. Oats, according to the oats industry analysis, are being widely popularised globally as one of the crucial breakfast cereals. The oat flakes are a very good source of dietary fibre, especially beta-glucan, which has well-documented cholesterol-lowering and heart-friendly properties. This trend appeals to the health-oriented consumer. The low GI of the oat flakes will be suitable for diabetic patients and people generally wanting to keep their blood sugar level.

Oat flakes contain high fibre that helps provide fullness and enhances diets for weight control. Oats contain required nutrients such as vitamins, minerals, and antioxidants that keep the body healthy and active. Generally, people globally are trending towards better eating habits. Oat flakes are regarded as a healthful food; therefore, their introduction is appropriate for this position.

From health status to various uses, both oat flour and oat bran find increasing momentum in the market. Among others, oat flour is a good gluten-free alternative to wheat and is now mainly used in baking and cooking as gluten sensitivity and health awareness are increasing. Its high nutritional value ensures demand for gluten-free products. Oat bran valued for its high fibre content helps in digestion and keeps heart-related problems at bay. It is being incorporated into cereals, smoothies, and snack bars. Awareness of health benefits related to fibre intake among consumers will lead to more and more applications of oat flour and bran, with oats market growth.

By Application Analysis

Oats are going to be significantly used for food purposes only

Food use occupies a significant oats market share, expanding with a 4.6% CAGR during the forecast period. Oatmeal or porridge is the most traditional way to eat oats. Cooked with water or milk, and often sweetened or flavoured with ingredients like fruits, nuts, honey, or spices, it forms a classic breakfast option. Oats can also be mixed with nuts, seeds, honey or maple syrup, and sometimes dried fruits, then baked until crispy to form granola, which is often eaten with yoghurt or milk.

As per oats industry analysis, oats add texture and a nutty flavour to cookies, with oatmeal raisin cookies being a classic example. Oats are also used in bread-making, adding a chewy texture and rich flavour and they can also be used in muffins for a nutritious boost. 

Due to its nutritional value and palatability, oats are also used for animal feeding. A common application is found in equine nutrition. Oats are normally an excellent carrier of dietary fibres, vitamins, and minerals that can promote good health and performance in horses. Because they are palatable and energy-rich, oats are popular additions to animal feed. Adding oats to feed increases the nutritional value of animal diets, thereby fostering growth and productivity in the sector.

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Oats Market Regional Insights 

North America Oats Market Opportunities

In North America, the growth in demand for healthy and convenient food by consumers fuels the oats market. Growth is especially evident through the demand for ready-to-eat products and plant-based diets. 

Quaker Oats has also increased its ready-to-eat oatmeal lines in response to consumer busy lifestyles. Nature Valley has also joined in with its grain bars and snacks made from oats in response to the rise of plant-based diets. The oats industry in North America is anticipated to grow at a CAGR of 3.4% during the forecast period, from 2024 to 2032. Innovation in product offering and increasing consumer attention towards health and convenience remain the key growth drivers for this region.

Europe Oats Market Dynamics

In Europe, this demand will be driven by increasing interest in sustainable and organic food. Major player Mornflake offers organic oat products that are in growing demand with consumers seeking to be 'greener' friendly. This can also be seen in the growth of health-conscience eating and popular dieting via Kellogg's expanding product portfolio of oat-based products, such as high-fibre cereals. The oats market in Europe is expected to show a moderate CAGR during the forecast period of 2024-2032. Increasing demand for organic and sustainable food is one of the possible factors that might influence the growth of the market in the region.

Asia Pacific Oats Market Trends

A significant trend in the Asia-Pacific region includes the integration of oats into traditional cuisines and snacks. This can be explained by looking at how Oatly partnered with local brands in an attempt to integrate oats into traditional Asian beverages, such as matcha lattes using an oat base. Other companies make oat versions of traditional snack types, like rice cakes and noodle dishes, to cater to local taste preferences. The blending of oats with regional flavours addresses the needs not only of health-conscious consumers but also taps established culinary preferences, thereby driving market growth. This reflects an increasing acceptance and innovative usage of oats within diverse, culturally rich traditions of food in the Asia Pacific region, accelerating the oats market share in Asia Pacific. 

Latin America Oats Market Insights

In Latin America, a significant trend is the rising incorporation of oats into traditional dishes and breakfast options. For example, Granola K introduced oat granola to the Latin American market by mixing oats with more native ingredients, such as fruits and nuts of a tropical nature, which appeal to people in that region. 

Another example is Sabor do Sul, which creates oat varieties for traditional Latin American cereals and snacks. This trend means a greater interest in working with oats more within the framework of their familiar cuisines and enhancing their health-promoting image. In this way, adapting oats to local flavour profiles and traditional recipes increases their appeal and keeps them moving forward in various Latin American markets, augmenting the demand of oats market.

Middle East And Africa Oats Market Drivers

Growing demand for oats in the Middle East and African region is majorly due to two major factors. First, increasing health awareness is one of the major factors affecting consumer preference in the region. With the rise in health consciousness, consumers are demanding healthy food items like oats that possess benefits such as high fibre content and cholesterol reduction. This is evidently proved by the increase in consumer availability of oat-based products in health food stores and supermarkets. Second, with increasing urbanisation, there is a demand for convenience regarding fast and quick meals, driving the growth of the oats industry. Oat-based foods, like instant oatmeal and snack bars, are excellently adapted for busy urban lifestyles and, hence, are in demand. In response, companies provide ready-to-eat oat options that answer the fast-paced demands of urban living.

Market Overview of Innovative Oats Startups

Start-ups in the oats market are positioning themselves through a focus on innovation and niche products. New companies are developing unique offerings such as oat-based snacks, beverages, and health-focused formulations to attract health-conscious consumers. With trends such as plant-based diets, personalised nutrition, and digital marketing engagement with end-consumers, these startups will differ and capture an up-and-coming market share.

Moma Foods was founded in 2006 and rapidly gained a reputation in the United Kingdom market for selling a range of oat-based breakfast products, porridge, and granola. Moma Foods values two things above all else: natural ingredients and convenience. These are really two sides of one coin, and they're also things that consumers increasingly want in their meal choices, whether those meals be taken at home or on the go.

Oat Haus, established in 2020, has quickly made a name for itself with innovative oat-based snack bars and granola. With a key focus on clean ingredients and avant-garde flavour profiles, Oat Haus is rapidly becoming top-of-mind for the health-conscious consumer in search of healthy, convenient options.

Competitive Landscape

Oats market players are scaling up by expanding their offerings and extending their reach to new regional markets. Various value additions from oats are made as plant-based beverages and meal solutions, which correspond to the emerging demand for health. They will further enhance investments in sustainability and in the implementation of various digital marketing strategies to better provide brand appearance and customer engagement. Therefore, these oats companies have thrived by embracing new trends and making sure a variety of customer needs are catered for, hence having much growth and market share.

Key Market Players

Key industry leaders in this market are: 

Headquartered in Eden Prairie, Minnesota, Grain Millers, Inc. was formed in 1986. From whole oat groats, oat bran, to oatmeal, the company provides a wide range of oat products; oat ingredients also come in many customised variations to enable traditional product performance. Ensuring the best quality of oat ingredients, it tailors its work for food manufacturers and end consumers alike, constantly striving toward innovation and sustainability.

Quaker Oats Company, founded: 1901 and headquarters: Chicago, Illinois is one of the largest suppliers in the industry and manufactures the broadest range of consumer milled oat products. The three categories mentioned above include instant oatmeal, old-fashioned oats, and oat cereals.

Swedish Oat Fiber AB, founded in 1997 and is based in Kisa, Sweden, is involved in the production and development of oat ingredients with high fibre content, working in-depth with oat bran and oat fibre. It is a leading brand in functional food solution areas that zinvolve high-fibre oats for boosting dietary health and product quality.

Recent Developments

March 2024

Saffola Oats from the house of Marico has announced a new campaign for flavoured oats. The campaign includes four ad films showcasing a different snacking urge scenario among different consumer segments. This campaign is an attempt to showcase how Saffola Masala Oats offers a healthier and tasty go-to snack with a variety of flavours for their anytime-of-the-day snacking moments.

January 2024

Quaker has launched its latest range of products with the introduction of Quaker Instant Oats. The Quaker Instant Oats introduces three appealing flavours: Herby Cheese, Masala Magic, and Mixed Berries; this assortment promises to bring a very enjoyable variation that appeals to diverse Indian taste buds.