Global Oats Market Research Report, 2030

Market Dynamic

Market Drivers • Growing Demand for Healthy and Functional Foods: One of the strongest global drivers for the oats market is the increasing consumer focus on health, wellness, and preventive nutrition. As more people become aware of the importance of diet in managing lifestyle diseases such as obesity, diabetes, and heart conditions, oats are gaining popularity due to their high fiber content—especially beta-glucan, which is known to reduce cholesterol levels and support digestive health. This trend is visible across developed markets like North America and Europe, as well as emerging economies in Asia and Latin America, where middle-class populations are expanding and adopting more health-conscious eating habits. The positioning of oats as a “superfood” in both mainstream and niche health segments continues to drive global demand. • Expansion of Plant-Based and Sustainable Food Preferences: The rise of plant-based diets and growing environmental awareness are also fueling global oats market growth. Consumers are increasingly looking for sustainable, animal-free alternatives that align with ethical and environmental values. Oats require significantly less water and land than other dairy alternatives like almonds or soy, making them one of the most environmentally friendly grains. The surge in popularity of oat milk and other dairy-free products has propelled oats into the spotlight, especially among millennials and Gen Z consumers. Global food companies are expanding their oat-based product portfolios to cater to this shift, contributing to sustained growth. Market Challenges • Supply Chain Disruptions and Agricultural Constraints: Despite increasing demand, the global oats market faces significant supply-side challenges. Oat production is susceptible to weather variability and climate change impacts, such as droughts or floods, particularly in major producing regions like Canada, the United States, and parts of Europe. Additionally, global supply chains have experienced strain due to geopolitical tensions, trade barriers, and post-pandemic logistics disruptions, which can affect the availability and price stability of oats worldwide. These uncertainties create cost pressures for manufacturers and distributors, especially those reliant on imported oats or exporting to distant markets. • High Competition from Alternative Grains and Products: While oats are popular, they are part of a highly competitive market of health-focused grains and plant-based products. Alternatives such as quinoa, chia, millet, and buckwheat are also being marketed for their nutritional benefits and often appeal to the same health-conscious demographic. Moreover, the plant-based milk category, a major growth area for oats, is also crowded with almond, soy, rice, and coconut milk options, which forces oat milk brands to invest heavily in branding, innovation, and differentiation. In saturated markets, maintaining a unique value proposition becomes increasingly difficult, particularly for new entrants and smaller producers. Market Trends • Innovation in Oat-Based Products: Innovation continues to be a major trend in the global oats market, with manufacturers developing a diverse array of oat-based products to suit evolving consumer preferences. Beyond traditional oatmeal and porridge, companies are creating oat-based snacks, protein bars, breakfast cereals, baked goods, dairy alternatives (like oat yogurt and oat ice cream), and even savory items like oat-based meat substitutes. These product innovations are often aligned with current dietary trends such as gluten-free, vegan, and clean-label eating, broadening oats’ appeal across various consumer segments and expanding their application in both home and foodservice settings. • Growth of Organic and Clean-Label Segments: Globally, there is a strong movement toward organic, non-GMO, and clean-label products, which is influencing the oats industry significantly. Consumers are increasingly scrutinizing ingredients and opting for products with transparent sourcing, minimal processing, and recognizable ingredients. This demand is pushing companies to offer organic oats and oat products that carry certifications and emphasize traceability. As regulatory frameworks around food labeling become stricter, especially in Europe and North America, brands that can meet clean-label standards are gaining a competitive advantage and building stronger trust with health-conscious consumers.

Key Development

• In November 2023, Quaker, the official oatmeal sponsor of the NFL, has teamed up with and NFL Legend Eli Manning and chef Carla Hall to promote food security among children. They have launched the Quaker Pregrain Tour, featuring a tailgate truck visiting select NFL stadiums and a digital Quaker Playbook with 32 team-inspired recipes. Quaker is a part of PepsiCo and offers various products, including Quaker Oats and Quaker Chewy Granola Bars. GENYOUth is dedicated to promoting youth health and wellness. • In June 2023, SunOpta and Seven Sundays partnered to launch a new cereal made with upcycled oat protein powder. The cereal, called Oat Protein Cereal, is made with SunOpta's OatGold, which is a byproduct of oat milk production. The partnership aims to reduce food waste and provide a sustainable solution for oat protein powder. The cereal is available in four flavors and is gluten-free and Non-GMO Project Verified. It can be found nationwide at major retailers and ordered directly from the Seven Sundays website. • 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.