Industry Outlook
Oats market is projected to reach US$ 10.03 Bn by 2026 with 4.2% CAGR during the forecast period from 2018 to 2026. In 2017, North America held the largest value and volume share in the global oats market and Asia Pacific is projected to be the fastest growing region between 2018 and 2026.
Oats are generally preferred as a breakfast cereal by consumers across the globe. It is generally consumed for high nutritional content that includes starchy carbohydrates, high protein, dietary fiber, minerals and vitamins. Oatmeal is rich in antioxidants and consists of 20 bioactive substances that aims to safeguard body against chronic diseases that includes diabetes, heart disease and cancer. It is an ideal food for hectic lifestyles as it is easy to cook and aims to fulfill the daily nutritional requirements of body. Growing inclination towards healthy food is one of the primary factor expected to drive the global oats market. Oats are rich in fibers and aids in improving the digestion process and also reduce cholesterol levels in blood. The different flavors and varieties of oatmeal makes it an attractive option for consumers. Growing demand from food industry is also expected to propel the market growth. Growing applications of oats in various foods that includes cookies, muesli, cakes and biscuits among others have supplemented the market growth. Increasing demand for oats in feed industry is one of the primary factor driving the global market. Oats are easier to feed to animals compared to other grains and mainly finds application in poultry feed owing to high content of fiber and beta-glucans.
The global oats market is characterized by both small and large players. Manufacturers are focusing on differentiate their product offerings through a unique and clear value proposition. Some manufacturers are focusing on mergers and acquisitions with an objective to enhance their share in the global market. In addition, they are also focusing on using oatmeal in various other products that includes puffs, protein bar, granola bars and chocolates among others.
Market Synopsis
Market Volume and Value (Kilo Tons, US$ Bn)
Market Volume (Kilo Tons)
Market Value (US$ Bn)
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"Instant Oats is the Largest Segment by Product Type in The Global Oats Market"
Instant oats are basically oat groats that are steamed and rolled into various flakes. This type of oats stays fresh for a longer type and can be cooked more readily than other oat types and have a mushy and soft texture. Easy cooking of instant oats saves time and hence demand for this segment is expected to rise owing to the busy life styles of consumers. Instant oats are also used in muffins, cookies and bread among others. These are also available in variety of flavors. For example, Quaker Oats Company, based in the U.S, deals with variety of instant oats flavor that includes apples & cranberries, cinnamon & spice, strawberries, peaches, blueberries or ripe bananas, maple & brown sugar among others. These products are low in cholesterol and rich in whole grain that aims to reduce heart diseases. Companies are also focusing on inclusion of oatmeal as the 3rd grain post staple rice and wheat. For example, in October 2016, Future Consumer Ltd based in India, launched four variants of oats under its brand name Kosh™. The four varieties include Kosh Broken Oats, Kosh Instant Oats, Kosh Wheat &Oats Atta and Kosh Oats Atta. In India, consumption of oats is treated as breakfast cereals but with the launch of this oats brand, Future Consumer Ltd aims to make oats inclusion in meals from starters to desserts. Growing demand for gluten free instant oat meals is another factor propelling the demand for this segment during the forecast period from 2018 to 2026.For example, in January 2016, PepsiCo under its brand Quaker Oats, launched a new line of gluten free oatmeal in the U.S market. The company basically focused on two products; Quaker Instant Oatmeal and Quaker Quick 1-Minute Standard Oats. Quaker Instant Oatmeal will be available in two flavors - maple & brown sugar and original. These nutritious and delicious instant gluten free oatmeal serves the need for consumers who are intolerant towards gluten free food without sacrificing on taste. The company also aims to deliver high quality oats that meet the FDA standards for gluten free.
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"Food End-user Industry Segment Driving the Growth of Oats Market"
Food segment is anticipated to grow at the fastest rate owing to the increasing demand for added fibers in various food applications. Oats are very rich in soluble (beta-glucans) and insoluble fibers. The advantages of beta-glucans in food are improving glycemic response, cholesterol, gut health weight reduction, high viscosity, high protein, increasing water binding capacity and extended shelf life of 12 months among others. Growing demand for breakfast cereals is expected to drive the food segment in the global oats market. Increasing consumer awareness regarding the health benefits of fibers in food is expected to drive this segment. In addition, fibers are important part of healthy diet and contribute to body weight control. The reason being it aims to reduce cholesterol thereby preventing overweight and obesity problems. It also aims to improve bowel functions and digestion. Swedish Oat Fiber AB, based in Sweden, deals with various oats for cosmetic, food and feed industry under its brand name SWEOAT™. Feed end-user industry is also expected to grow at a considerable rate. Oats are basically added to various animal feeds as a cereal ingredient. The fat content of oats aims to increase the energy content which in turn is an important property in poultry, horse, lactating sow feeds and piglets feed. In pet foods, oats aim to prevent allergies and also reduces intestine irritation. It also aims to reduce diarrhea, improve fur shine and also prevents gluten absorption disorders. Additionally, growing applications of oats in piglets, mink, chicken, horse and dog feeds helps to reduce digestive problems which is expected to drive the feed end-user industry segment in the global oats market. Oats are also recommended for cow feed as it helps to increase milk yield and produce healthy milk fat. Increasing applications of oats in poultry feed is also expected to drive the feed end-user industry during the forecast period from 2018 to 2026.
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"Hypermarkets/Supermarkets is the Largest Segment by Distribution Channel in the Global Oats Market"
Growing awareness related to high accessibility to wide range of oat products coupled with attractive offers by different manufacturers is expected to drive the hypermarkets/supermarkets distribution channel segment in the global oats market. These stores consisting of many variety of oat products under single roof allows consumers to achieve their shopping needs quickly. Innovative product placements, dedicated racks by product type and shop merchandise & designs aims to enhances shopping experience. It also helps to facilitates purchasing, subsequently attracting enormous amount of foot falls thereby leading to higher revenue. Point of sale displays followed by advertising and announcements in stores motivates the consumers to view various instant oat products. This in turn aims to generate impulse buying. Oats manufacturers as part of their business strategy are focusing on selling oats products through supermarkets with an objective to contact the masses to keep pace with the growing number of supermarkets in developing countries. This in turn is expected to augment the demand for hypermarkets/supermarkets segment. In addition, extensive depth in product portfolio by different price range and varieties followed by sense of authenticity in products is also expected to drive the segment demand. Questionnaire investigation in various hypermarkets/supermarkets is one of the key strategy adopted to understand the consumer demand regarding oat products with respect to price, flavor, quality and other parameters.
"North America is the Largest Region in the Global Oats Market"
Globally, North America accounted for the largest share of oats market. The U. S held the largest share in the North America oats market. The growth is mainly attributed to the growing demand for convenience food. Irregular eating patterns has resulted in obesity and overweight problems among the consumers in North America region which in turn is expected to propel the market demand for oats as these are rich in fibers that aims to control weight and cholesterol. Trend shows that consumers in this region are moving towards oats consumption as a substitute for various breakfast foods that includes cereals and bagels. Growing awareness related to animal nutritional requirements, high beneficial health effects, changing farming practices, increase in disposable income, growing availability of low cost ingredients followed by innovative seed breeding techniques are some other factors driving the market growth in North America region. Import of raw oat products is gaining static growth in the U.S market. The U.S is one of the major trade partner for Canadian oats. In addition, Asia Pacific is expected to grow at a significant rate in the global oats market. Penetration of breakfast cereal products, introduction of smaller, low priced versions of instant oatmeal by key players followed by expanding product range by established manufacturers have accelerated the market growth in Asia Pacific region.
"Mergers and Acquisitions are the Key Strategies Adopted by the Manufacturers"
Key players operating in the global oats market includes Kellogg's, Quaker Oats Company, Bagrry's India Ltd., Nestle, General Mills, Dr. McDougall's Right Foods., Abbott Nutrition, McCann’s, ABF Grain Products Limited., Conagra Foods and Weetabix Ltd. In July 2018, B&G Foods, Inc, based in New Jersey, the U.S, acquired McCann’s brand of premium Irish oatmeal from TreeHouse Foods, Inc. The acquisition cost was approximately US$ 32 Bn. The acquisition was aimed at expanding the oats product portfolio of B&G Foods, Inc to meet the growing demand in the global oats market.
Historical & Forecast Period
This research considers 2017 as the base year and presents analysis of segments from 2016 to 2026. In addition, forecast period from 2018 to 2026 is considered for Compounded Annual Growth Rate (CAGR) calculation for each respective segment.
Report Scope by Segments
Global oats market mainly focuses on qualitative and quantitative analysis of the overall market. The report deals with understanding market dynamics and current strategies prevailing in the market. The report covers the global oats market by segmenting the market in terms of product type, end-user industry, distribution channel and geography.
| ATTRIBUTE |
DETAILS |
| Research Period |
2016-2026 |
| Base Year |
2017 |
| Forecast Period |
2018-2026 |
| Historical Year |
2016 |
| Unit |
USD Billion |
| Segmentation |
Product Type Segment (2016–2026; Kilo Tons, US$ Bn)
• Instant Oats
• Oat Groats
• Steel Cut Oats
• Oat Bran
• Others (Scottish Oats, Oat Flour)
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|
End-user Industry Segment (2016–2026; Kilo Tons, US$ Bn)
• Food
• Feed
• Cosmetics
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|
Distribution Channel Segment (2016–2026; Kilo Tons, US$ Bn)
• Hypermarket/Supermarkets
• Convenience/departmental stores
• Specialty stores
• Others (independent retailers, online retail etc.)
|
|
Geography Segment (2016–2026; US$ Bn)
• North America (United States and Canada)
• Europe (U.K., Germany, Rest of Europe)
• Asia Pacific (China, Japan, Rest of Asia Pacific)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Middle East and Africa (GCC, Rest of MEA)
|
Key questions answered in this report
- Who are the distributors, traders and dealers of oats market?
- What are expected largest product type, end-user industry, distribution channel and geography segments in the market during the forecast period from 2018 to 2026?
- What are the fastest growing segments in the market for the forecast period?
- What are the current market trends in the oats market and valuable opportunities for the players?
- How the regulatory framework affects the global as well as the regional markets?
- Which are the key players operating in the global market and what are the strategies adopted by them?
- What are sales, revenue, business strategy and product portfolio of top manufacturers of oats market?
- What is the market size and trend in emerging and developed markets?
