Oats Market By Product Type (Instant Oats, Oat Groats, Steel Cut Oats, Oat Bran, Others), By End-user Industry (Food, Feed, Cosmetics), By Distribution Channel (Hypermarkets/Supermarkets, Convenience/Departmental Stores, Specialty Stores, Others) - Growth, Share, Opportunities & Competitive Analysis, 2018 – 2026

Industry Outlook

The oats market is expected to reach US$ 10.03 billion by 2026, growing at a 4.2% CAGR 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 its high nutritional content, which includes starchy carbohydrates, high protein, dietary fiber, minerals, and vitamins. Oatmeal is rich in antioxidants and consists of 20 bioactive substances that aim to safeguard the body against chronic diseases that, include 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 the body. One of the primary factors expected to drive the global oats market is a growing preference for healthy foods. Oats are rich in fiber, which aids in improving the digestion process and also reduces cholesterol levels in the blood. The different flavors and varieties of oatmeal make it an attractive option for consumers. Growing demand from the food industry is also expected to propel the market's growth. Growing applications of oats in various foods, including cookies, muesli, cakes, and biscuits, among others, have supplemented the market growth. The increasing demand for oats in the feed industry is one of the primary factors driving the global market. Oats are easier to feed to animals compared to other grains and mainly find application in poultry feed owing to their high content of fiber and beta-glucans.

The global oats market is characterized by both small and large players. Manufacturers are focusing on differentiating their product offerings through a unique and clear value proposition. Some manufacturers are focusing on mergers and acquisitions with the objective of enhancing their share in the global market. In addition, they are also focusing on using oatmeal in various other products that, include puffs, protein bars, granola bars, and chocolates, among others.

Market capitalization (in billions of dollars)

In the global oats market, instant oats are the most popular product type.

Instant oats are basically oat groats that are steamed and rolled into various flakes. This type of oat keeps fresher for longer, cooks more easily than other oat types, and has a mushy, soft texture. Easy cooking of instant oats saves time, and hence the demand for this segment is expected to rise owing to the busy lifestyles of consumers. Instant oats are also used in muffins, cookies, and bread, among others. These are also available in a variety of flavors. For example, the Quaker Oats Company, based in the U.S., deals with a variety of instant oats flavors that include apples and cranberries, cinnamon and spice, strawberries, peaches, blueberries, or ripe bananas, as well as maple and brown sugar, among others. These products are low in cholesterol and rich in whole grains, which aim to reduce heart diseases. Companies are also focusing on incorporating oatmeal as the third grain after rice and wheat. For example, in October 2016, Future Consumer Ltd., based in India, launched four variants of oats under its brand name KoshTM.

The four varieties include Kosh Broken Oats, Kosh Instant Oats, Kosh Wheat, Oats Atta, and Kosh Oats Atta. In India, oats are typically consumed as breakfast cereals, but Future Consumer Ltd. hopes that with the launch of this oats brand, oats will be included in meals ranging from appetizers to desserts. Growing demand for gluten-free instant oatmeals is another factor propelling 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 with brown sugar and original. These nutritious and delicious instant gluten-free oats meet the needs of gluten-intolerant consumers without sacrificing flavor. The company also aims to deliver high-quality oats that meet the FDA standards for gluten-free.

Food End-User Industry Segment Driving the Growth of the Oats Market

The 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 include improved glycemic response, lower cholesterol, improved gut health, weight reduction, high viscosity, high protein, increased water binding capacity, and an 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 an important part of a healthy diet and contribute to body weight control. The reason for this is that it aims to lower cholesterol, thereby preventing overweight and obesity issues. It also aims to improve bowel functions and digestion. Swedish Oat Fiber AB, based in Sweden, deals with various oats for the cosmetic, food, and feed industries under its brand name SWEOATTM.

The feed end-user industry is also expected to grow at a considerable rate. Oats are basically added to various animal feeds as a cereal ingredients. The fat content of oats aims to increase the energy content, which in turn is an important property in poultry feed, horse feed, lactating sow feed, and piglet feed. In pet foods, oats aim to prevent allergies and also reduce intestine irritation. It also aims to reduce diarrhea, improve fur shine, and prevent gluten absorption disorders. Additionally, growing applications of oats in piglets, mink, chicken, horse, and dog feeds help 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 they help increase milk yield and produce healthy milk fat. Increasing applications of oats in poultry feed are also expected to drive the feed end-user industry during the forecast period from 2018 to 2026.

Hypermarkets and supermarkets are the largest segments by distribution channel in the global oats market.

Growing awareness related to high accessibility to a wide range of oat products coupled with attractive offers by different manufacturers is expected to drive the hypermarket and supermarket distribution channel segment in the global oats market. These stores, consisting of a wide variety of oat products under one roof, allow consumers to achieve their shopping needs quickly. Innovative product placements, dedicated racks by product type, and shop merchandise and designs aim to enhance the shopping experience. It also helps to facilitate purchasing, subsequently attracting enormous amounts of foot traffic and thereby leading to higher revenue. Point-of-sale displays followed by advertising and announcements in stores motivate 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 oat products through supermarkets with the objective of contacting the masses to keep pace with the growing number of supermarkets in developing countries. This, in turn, is expected to augment the demand for the hypermarket/supermarket segment. Furthermore, the segment demand is expected to be driven by extensive depth in the product portfolio by different price ranges and varieties, followed by a sense of authenticity in products. Questionnaire investigation in various hypermarkets and supermarkets is one of the key strategies adopted to understand consumer demand for 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 the oats market. The U.S. held the largest share of the North American oats market. The growth is mainly attributed to the growing demand for convenience foods. Irregular eating patterns have led to obesity and overweight issues among North American consumers, which is expected to drive the market demand for oats, which are high in fiber and help control weight and cholesterol. Consumers in this region are increasingly turning to oats as a substitute for a variety of breakfast foods, such as cereals and bagels. Growing awareness related to animal nutritional requirements, high beneficial health effects, changing farming practices, an increase in disposable income, and the growing availability of low-cost ingredients followed by innovative seed breeding techniques are some other factors driving market growth in the North American region.

In the United States, raw oat product imports are increasing at a steady rate. The U.S. is one of Canada's major trading partners. In addition, Asia Pacific is expected to grow at a significant rate in the global oats market. Penetration of breakfast cereal products and the introduction of smaller, lower-priced versions of instant oatmeal by key players, followed by an expanding product range by established manufacturers, have accelerated the market's growth in the Asia Pacific region.

Mergers and acquisitions are the key strategies adopted by manufacturers.

Key players operating in the global oats market include 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, Weetabix Ltd. In July 2018, B&G Foods, Inc., based in New Jersey, U.S., acquired McCann's brand of premium Irish oatmeal from TreeHouse Foods, Inc. The acquisition cost roughly US$ 32 billion. 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.

Periods of History and Forecast

This research considers 2017 as the base year and presents an analysis of segments from 2016 to 2026. In addition, the forecast period from 2018 to 2026 is considered for the compound annual growth rate (CAGR) calculation for each respective segment.

Report Scope by Segments

The global oats market mainly focuses on qualitative and quantitative analysis of the overall market. The report deals with understanding market dynamics and the 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.

Key questions are answered in this report.

  • Who are the distributors, traders, and dealers of oats?
  • What is expected to be the 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 the most valuable opportunities for the players?
  • How does the regulatory framework affect global as well as regional markets?
  • Which are the key players operating in the global market, and what are the strategies they have adopted?
  • What are the sales, revenue, business strategy, and product portfolio of the top manufacturers in the oats market?
  • What are the market size and trends in emerging and developed markets?

Frequently Asked Questions:

The market for Oats Market is expected to reach US$ 10.03 Bn by 2026.

The Oats Market is expected to see significant CAGR growth over the coming years, at 4.2%.

The report is forecasted from 2018-2026.

The base year of this report is 2017.

Kellogg's, Quaker Oats Company, Bagrry's India Ltd., Nestle, General Mills, Dr. McDougall's Right Foods, Abbott Nutrition are some of the major players in the global market.

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Published Date:  Oct 2018
Category:  Food & Beverage
Report ID:   59390
Report Format:   PDF
Pages:   120
Rating:    4.2 (49)
Delivery Time: 24 Hours to 48 Hours   
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