Oats Market Size, Share, Analysis and Growth to 2028

The oats market was valued at US$ 7,764.49 million in 2021 and is projected to reach US$ 9,939.82 million by 2028; it is expected to grow at a CAGR of 3.6% from 2021 to 2028.

MARKET INSIGHTS AND ANALYST VIEW

Oats, scientifically known as Avena sativa, are widely cultivated cereal grains known for their nutritional value and versatility, making them a popular choice for a balanced diet. They are rich in complex carbohydrates, providing a steady release of energy and helping to keep blood sugar levels stable. Oats are also high in dietary fiber, including soluble and insoluble fibers. The growing awareness of health and wellness among consumers has driven the demand for nutritious and wholesome food products. The popularity of oats has extended beyond traditional breakfast cereals. Oat-based products such as oat milk, flour, bars, and snacks have increased. The plant-based and dairy-free trends have contributed to the surge in oat milk consumption as a popular milk substitute. As consumers become more health conscious, they are incorporating oats into their diets, leading to an increased demand for oat-based products. Additionally, food manufacturers have been incorporating oats into various products to cater to the growing demand for healthier and sustainable food options. All these factors are anticipated to drive the oats market growth.

KEY INSIGHTS

Oats market is valued US$ 7,483.84 million in the year 2020 and is expected to grow at a CAGR of 3.6% during the forecast period 2021 - 2028, forecasted to be valued at around US$ 9,939.82 million in the year 2028.

Customize Research To Suit Your Requirement

We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.

Get 10% FREE CUSTOMIZATION

Oats Market: Strategic Insights

Market Size Value in	US$ 7,764.49 million in 2021
Market Size Value by	US$ 9,939.82 million by 2028
Growth rate	CAGR of 3.6% from 2021 to 2028
Forecast Period	2021-2028
Base Year	2021

Shejal

Have a question?

Shejal will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.

 Speak to Analyst

GROWTH DRIVERS AND CHALLENGES

In recent years there has been a growing popularity of plant-based diets globally, driven by concerns about environmental sustainability, animal welfare, and health. Oats, being a plant-based food, fit well into these dietary preferences. Oat milk, for example, has gained immense popularity as a dairy milk alternative among vegans and lactose-intolerant individuals, further boosting the demand for oats. In addition, oats are incredibly versatile and can be used in various culinary applications. They can be consumed as oatmeal for breakfast, incorporated into smoothies, used as a flour substitute in baking, and added to various snacks and granola bars. The adaptability of oats in different dishes and food products has contributed to their growing popularity. Furthermore, the food industry has been continuously innovating to meet the demands of health-conscious consumers. Oat-based products, such as oat milk, oat yogurt, oat-based snacks, and oat-infused beverages, have become widely available in the market. The oat milk market has witnessed significant innovation, with various brands offering different flavors and formulations, contributing to the oat milk market growth. Food manufacturers are recognizing the potential of oats as a valuable ingredient to create healthier and more sustainable food options, further fueling the oats market growth.

However, the oats market, like other agricultural markets, is subject to price fluctuations influenced by various factors, including weather conditions, supply & demand imbalances, and changes in production costs. Price volatility can create uncertainty for both producers and buyers, affecting investment decisions and market stability. These factors could limit the oats market growth.

REPORT SEGMENTATION AND SCOPE

On the basis of the process, the oats market is bifurcated into rolled and steel-cut. Based on category, the oats market is segmented into organic and conventional. In terms of nature, the oats market is divided into gluten-free and conventional. On the basis of form, the oats market is divided into flakes, flour, and others. In terms of applications, the oats market is bifurcated into food & beverages, animal feed, personal care, and others. Based on geography, the oats market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America.

SEGMENTAL ANALYSIS

On the basis of the process, the oats market is bifurcated into rolled and steel-cut. In 2020, the rolled segment accounted for the largest market share in the oats market. Rolled oats are widely considered a convenient and time-saving breakfast option. They require minimal preparation, as they can be cooked quickly. In addition, health and nutritional benefits associated with rolled oats have been extensively promoted through campaigns and health messaging. This increased awareness and influenced consumer preferences led to the dominance of the rolled segment further bolstering the oats market growth. 

Based on category, the oats market is segmented into organic and conventional. The organic segment is expected to register the highest CAGR during the forecast period. Consumers are becoming more conscious of the potential health risks associated with conventional agricultural practices, such as the use of synthetic pesticides, herbicides, and genetically modified organisms (GMOs). Organic oats are grown without the use of synthetic chemicals and GMOs, making them a safe option for health-conscious individuals who want to minimize their exposure to potentially harmful substances. These factors are driving the organic segment growth in the oats market.

On the basis of nature, the oats market is divided into gluten-free and conventional. During the forecast period, the gluten-free segment is anticipated to register the highest CAGR. The demand for gluten-free oats is growing primarily due to the increasing awareness of celiac disease, gluten sensitivity, and the desire for gluten-free diets. As more people seek gluten-free options, the demand for gluten-free oats increases.

In terms of form, the oats market is divided into flakes, flour, and others. In 2020, the flakes segment held the largest market share in the oats market. Oat flakes are convenient and easy to prepare, making them popular for quick and nutritious breakfasts. Oat flakes come in different thicknesses, including thin and thick flakes, to cater to various preferences and culinary applications. They can be easily cooked, making them a quick, wholesome breakfast option. All these factors led to the flakes segment growth in the oats market.

In terms of applications, the oats market is bifurcated into food & beverages, animal feed, personal care, and others. In 2020, the animal feed segment held the largest market share. Oats contain a significant amount of dietary fiber, which can aid in promoting digestive health in animals, especially in monogastric species like horses and pigs. Fiber also helps regulate bowel movements and prevent digestive disorders. These factors led to the dominance of animal feed segment leading to the increasing oats market share.  

Global Oats Market, by Application – 2020 and 2028

REGIONAL ANALYSIS

The oats market is segmented into five main regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. Europe region was estimated to be around US$ 3,500 million in 2020. Europe has seen a significant increase in the demand for plant-based and vegan diets. Oats are an excellent plant-based alternative to dairy milk and are used in various dairy alternatives, including oat milk, oat yogurt, and oat-based desserts. This trend has further driven the demand for oats in the region. In addition, the long history of cultivation and consumption, especially in Northern and Western Europe, has established cultural preferences for oats and contributed to the region's oats market growth.

Furthermore, the Asia Pacific region is estimated to register a CAGR of approximately 5% during the forecast period. There has been a shift in dietary preferences in the Asia Pacific regions, with an increasing awareness of the health benefits of oats. Oats are seen as a nutritious option, rich in fiber, vitamins, and minerals, and they appeal to consumers looking for healthier food choices. In addition, the increasing urbanization and westernization of dietary habits in many Asian countries have led to a greater acceptance of oats as a part of a modern, healthy diet. In addition, as the middle class expands in various Asian countries, consumers have more disposable income to spend on higher-quality and healthier food products. Oats, being perceived as a premium and healthy option, have benefitted from this oats market trend.  

North America is forecasted to be valued at around US$ 1,800 million in 2028. The growing popularity of plant-based diets in North America has also boosted the demand for oats. Oats are a versatile ingredient that can be used in various plant-based alternatives to dairy and meat products, such as oat milk and oat-based meat substitutes. The rise of vegan and vegetarian diets has driven the demand for such products. These factors are creating a favorable environment for the oats market growth in North America.

INDUSTRY DEVELOPMENTS AND FUTURE OPPORTUNITIES

Various strategies and developments taken by the key operating in the global oats market. Some of the recent developments are mentioned below.

• In February 2023, Life Health Foods (India) Pvt. Ltd. launched a vegan So Good Oat Unsweetened beverage - a dairy-free, plant-based milk.
• In May 2023, Oatly launched four new oat drink lines in the UK with Light, Semi, Whole, and "No Sugars" varieties, available in chilled and long-life formats, this product launch is expected to increase Otaly market share in the global oats market.
• In September 2022, Quaker, an Indian brand of PepsiCo India, entered into the Ready-to-eat (RTE) cereal segment with a breakfast offering – Quaker Oats Muesli.
• In September 2021, Alt Co., a sustainable plant-based alternative brand, introduced a new nutriment in its portfolio of healthy meals and include plant-based oat milk that will revolutionize patrons' diets for good.

COVID IMPACT

Before the COVID-19 outbreak, the oats market growth was mainly driven by the rising demand from food & beverages, pulp & paper, animal feed, and pharmaceutical industries. However, in 2020, these industries had to slow down their operations due to disruptions in value chains caused by the shutdown of national and international boundaries. The COVID-19 pandemic hampered the key raw material supply chains and disturbed manufacturing processes due to restrictions imposed by government authorities in various countries. However, in 2021, economies gradually resumed their operations, which had a positive effect on the global marketplace. As large percentages of people from many countries were fully vaccinated by the end of 2021, manufacturers were permitted to operate at full capacities, which helped them consolidate their efforts toward closing the gap between demand and supply. In addition, during the COVID-19 pandemic, the demand for oats from animal feed, food & beverages, and pharmaceutical industries increased, which positively impacted the market. These transformations helped them focus on increasing their production to revive their businesses.

COMPETITIVE LANDSCAPE AND KEY COMPANIES

Partnerships, acquisitions, and new product launches were found to be the major strategies adopted by the players operating in the global oats market. Some of the key players operating in the oats market include Avena Foods, Limited; Blue Lake Milling; Glanbia Plc; Grain Millers, Inc.; JELU-WERK J. Ehrler GmbH & Co. KG; Lantmännen; Morning Foods; Oy Karl Fazer Ab; Richardson International Limited and Swedish Oat Fiber AB.