Oats Market Size, Share & COVID-19 Impact Analysis, By Type (Steel Cut, Whole Oats, Instant Oats, and Others), Application (Bakery and Confectionery, Breakfast Cereals, Animal Feed, and Others), and Regional Forecast, 2020-2032

The global oats market size stood at USD 5.18 billion in 2019 and is projected to reach USD 8.56 billion by 2032, exhibiting a CAGR of 4.05% during the forecast period. Europe dominated the oats market with a market share of 61.39% in 2019.

Oats (Avena sativa) is a type of whole-grain cereal widely consumed due to its various health benefits, which help lower blood sugar levels, weight loss and provide all the necessary nutrients to the body. They are a rich source of dietary fibers, protein, iron, vitamins, and carbohydrates. A significant amount of the overall production goes into the animal feed industry. Still, in recent times they have widely been recognized fit for human consumption due to their plethora of benefits. They have numerous applications in foods and most commonly available as a whole, steel cuts or rolled forms. While they are primarily used as food and feed, a small amount of it is used by the cosmetic industry to produce talc replacers and skincare products. Its increasing association with these end-use industries will proliferate its demand globally during the forecast period (2020-2027).

Unprecedented Disruption in Food Industry to Hamper Market During COVID-19

The global outbreak of the COVID-19 pandemic has led to a halt of the supply chain activities. This was mainly due to the governments' lockdown to implement social distancing to stop the spread of the virus. Market closures and interrupted food services have impacted the demand negatively. The food manufacturers and processors are facing several impediments in their operations. The consumer tendency to stay at home will negatively reflect the HoReCa (Hotel, restaurants, & Café) sectors. However, the production process remained unaffected, as the governments permitted the delivery and supply of seeds, fertilizers, and crop protection products. According to the Food and Agriculture Organization (FAO), food supplies for major food commodities in Europe and Central Asia are sufficient. Further, the disruptions in logistics and transport have started to ease up as the industries resume their work.

LATEST TRENDS

Increasing Trend of Consuming Whole Grains to Contribute to Market Growth

The growing trend of consuming whole-grain foods by the consumers due to its numerous health benefits such as lowered risks of cardiovascular diseases and others has contributed to driving the market growth. This has necessitated the manufacturers to utilize it in their product processing. The American Journal of Clinical Nutrition recommends consuming whole-grain foods rich in phytochemicals and other bioactive compounds than refined products. The increasing trend of high-value food worldwide due to urbanization and improving education levels will urge the manufacturers to develop innovative oat-based product types.

DRIVING FACTORS

Awareness About the Health Benefits of Oats Leads to Higher Product Demand

These are an excellent source of soluble dietary fibers, beta-glucan, which has proven to help digestion, increase satiety, and a healthy method of suppressing the appetite; thereby, helping in healthy weight management. Its soluble fiber content aids in reducing the low-density lipoprotein (LDL) or bad cholesterol in the body, stabilizes blood sugar levels, and aids in healthy weight management. This has led to its inclusion in various breakfast meals as it is gluten-free, provides essential nutrients, and offers a balanced meal without excess calories. The prominent players in the market will cater to the increasing consumers' demand for nutrition-rich breakfast through product launches in the forthcoming years. For instance, in 2017, General Mills, Inc. expanded its Fibre One Breakfast cereal range in the U.S. by launching breakfast meals made with steel-cut oats and strawberries.

Abundant Utilization in Animal Feed to Drive this Market

Among the total production worldwide, most of it goes to the animal feed industry due to its properties increasing the feed value. Their fat content is relatively higher than the other cereals, which increases the feed's energy content. Along with this, their digestibility has also been observed better than some other cereals. The dehulled variant significantly improves the feed value and palatability. Coupled with this, it has a more balanced amino acid composition suitable for poultry, horses, and piglets. Thus, leading to their broad utilization in animal feed; thereby, benefiting the market growth.

RESTRAINING FACTORS

Availability of Other Grain Variants at Low Price to Impede Market Growth

The availability of various other whole grains such as wheat, barley, sorghum, and quinoa that possess nearly the same nutritional profile acts as a restraint in its market growth. Grains such as wheat are also rich in fiber, vitamins, and magnesium and available at low prices in the international marketplace. Barley is also widely incorporated in breakfast meals due to its attribute to improve digestion and its antioxidant properties, which are linked to lower the risks of cardiovascular diseases. Furthermore, barley consumption has been proved to reduce the cholesterol and triglyceride levels that help in weight loss, which in turn acts as an impeding factor in market growth.

SEGMENTATION

By Type Analysis

The Whole Type Hold Major Share in the Industry

The whole type segment holds a significant share in this market due to its growing popularity in providing various health benefits. This has opened several opportunities for their utilization in manufacturing flavourful breakfast meals and bakery products. According to the National Center for Biotechnology Information (NCBI), the whole grain contains considerably higher amounts of proteins, fibers, starch, and fatty acids than processed. Moreover, various oat-based food products like bread, cookies, nutritional bars, and biscuits are increasingly gaining popularity among consumers, which is expected to further boost the market growth.

By Application Analysis

Animal Feed to Emerge as the Dominant Application Segment

Oat-forage is predominantly utilized as an important livestock and poultry feed. The oat-feed is suitable for both ruminants, and monogastric animals as its high-fat content increases the feed's energy value. It also helps in preventing allergies and gluten absorption disorders, along with increasing milk yield in cows. According to research by the Aberystwyth University, the ruminants fed with oats have produced higher milk yields compared to other cereals, along with no detrimental side effects observed in the milk produced. Thus, positively impacting the segment growth.

REGIONAL INSIGHTS

Europe holds the major share in the market due to major oat-producing countries such as Russia, the U.K., Italy, and Spain. Oat-based breakfast meals are gaining popularity among consumers due to their increasing health consciousness and transition towards quick, healthy grain-based snacks. European consumers' hectic lifestyles have led them to opt for food products that suffice their daily energy and nutritional intake. This has shown the manufacturers to increase their production capabilities and launch innovative products like Ready-to-Eat breakfast meals to fulfill the consumers' surging demands.

Followed by Europe, North America is anticipated to hold the second-largest market share throughout the forecast period. They have emerged as a staple for many consumers in North America and are traditionally consumed as porridge or oatmeal. This has influenced the key players in the market to incorporate new flavors and ingredients in porridge and oatmeals, which has fuelled the market growth. In Asia Pacific, it has also grown widely popular among consumers due to its nutritional benefits and increasing availability. Growing consumer preference for diet food products in South America and the Middle East and Africa is also supporting the oats market's growth.

KEY INDUSTRY PLAYERS

Lantmannen is Focussing on Strategic Acquisitions to Business Fortification

The market is consolidated with the presence of prominent players worldwide. Companies such as Quaker Oats Company, Morning Foods Ltd., The Kellogg Company, General Mills, Inc., and Glanbia Plc, are focusing on new product developments and strategic acquisitions to increase their production and business expansion. For instance, in March 2019, Lantmännen acquired the oat milling facility of Tate & Lyle P.L.C. with 55,000 tons.

LIST OF KEY COMPANIES PROFILED:

• Quaker Oats Company (PepsiCo, Inc.) (New York, U.S.)


• Morning Foods Ltd. (Crewe, United Kingdom)


• The Kellogg Company (Michigan, U.S.)


• Richardson International Ltd. (Winnipeg, Canada)


• Bob’s Red Mill Natural Foods, Inc. (Oregon, U.S.)


• Avena Foods Ltd. (Regina, Canada)


• Glanbia, Plc. (Kilkenny, Ireland)


• The Ancient Grains, Co. (Kildare, Ireland)


• Aussee Oats Milling Pvt Ltd (Gampaha, Sri Lanka)


• Blue Lake Milling (SA, Australia)

KEY INDUSTRY DEVELOPMENTS:

• November 2019: Chobani LLC launched a product range that includes oat drinks and blends in the U.S. market for expanding its business.


• May 2020: Califia Farms, LLC launched Protein Oat, an enhanced line of plant-based milk in the U.S. to provide the consumers with a healthier alternative to cow milk.

REPORT COVERAGE

The oats market report provides qualitative and quantitative insights into the market. It also offers a detailed industry analysis along with the market size and growth rate for all possible segments in the market. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key market trends.

Report Scope & Segmentation