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The global oatmeal market size stood at USD 2.40 billion in 2019 and is projected to reach USD 3.53 billion by the end of 2027, expected to grow at a CAGR of 4.6% in the forecast period (2020-2027).
The prominence of instant and healthy breakfast products is mainly due to the hectic lifestyles of people, which, in turn, is fueling the demand for oat-based breakfast and snacks. The increasing health consciousness among consumers is fueling the demand for nutritional products that provide health benefits. Oats can be prepared instantly and provide health benefits such as reducing cholesterol, digestive problems, and heart diseases as it contains a high amount of fibers, proteins, antioxidants, and vitamins.
Significant Demand for Oats to Aid Development amid COVID-19
The global COVID-19 pandemic has resulted in a halt on farms and factories by various governments to maintain safety and curb coronavirus spread. However, the market has experienced significant growth, as the grocery and convenience stores remained operational to provide essential food items to the consumers. The World Health Organization (WHO) recommends the consumption of wholegrain foods such as oats, to help boost immunity and ensure adequate fiber intake for a healthy digestive system. Thus, consumers are now opting for home-cooked and healthy foods, in turn fuelling the demand for instant oats. Moreover, according to the Food and Agriculture Organization (FAO), the improved rains benefitted the crop establishment and the planting operations of oats were not affected due to Covid-19 which ensures the availability of oats worldwide.
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Growing Consumers Inclination Towards Organic and Plant-based Foods to Incite Growth
The growing trend of consuming organic products is fueling the demand for organic oat-based food products such as breakfast cereals and organic oat flour. The rising popularity of plant-based dairy-alternatives among the vegan and lactose intolerant population has increased the demand for oat milk. It is predominantly replacing dairy milk across developed markets. The market is expected to witness robust demand in foreseeable years owing to innovative strategies adopted by industry players.
Rising Popularity of Healthy Breakfast is Driving the Market
The market growth is primarily driven by the increasing demand for healthy breakfasts. Constantly evolving lifestyle is driving the demand for ready-to-eat, ready-to-cook, and on-the-go as well as healthy meals. Consumers are becoming more aware of the health benefits associated with the consumption of foods containing a high nutritional value. Oat-based products such as instant oatmeal fit perfectly well in an instant and healthy breakfast trend.
The presence of antioxidants, vitamins, riboflavin, protein, iron, and the ample amount of fiber in oats makes it an ideal food for human consumption. The key companies are developing innovative oat-based products to meet the growing demand for healthier and convenient breakfast. For instance, in 2017, Quaker Oats launched a new Quaker-to-go breakfast range with instant oats porridge pouches.
Development of Organic Products to Amplify Growth in the Foreseeable Future
Organic oat-based products are expected to gain more significant market share and stronger growth rates as compared to the conventional oats in forthcoming years due to the rising trend of consuming organic food. Organics are associated with minimally processed products without artificial ingredients, which contribute to a healthy and natural lifestyle.
The demand for organic oats is increasing in developed markets such as North America and Europe due to the rising awareness about the adverse health effects of chemical-based food products. The increasing consumer trust for organic foods owing to their safe and eco-friendly production process is boosting the market revenue.
Availability of Substitutes to Impede Market Growth
The consumption of oats among consumers increased due to its beneficial properties, however, the availability of substitutes like quinoa, buckwheat, brown rice, and others with similar nutritious properties is hampering the market growth. The rise in consumption of quinoa and buckwheat as a protein and fiber source, as well as a gluten-free alternative to whole grains, leads to the availability of various healthy breakfast options. Furthermore, the wide availability of substitutes at convenient stores in the ready-to-eat food segment coupled with longer cooking-time of oats can act as restraints for market growth.
Organic Oats – Future of Oats-based Breakfast Cereals Market
The conventional oats segment is dominating the current market scenario, and it is expected to retain its dominance during the forecast period. Nonetheless, the robust trend for clean-labeling nudged by enlightened consumers will drive the organic oats in the foreseeable future – organic among other label-claims have increasingly influenced the purchasing decisions for edible flakes and other breakfast cereals, and the trend is thus expected to benefit the oats market globally.
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Quick/Instant Rolled Oats to Exhibit Astonishing Growth Owing to its Quick Cooking Quality
Instant rolled oats are also known as quick oats. This type of oat comes pre-cooked, dried, and rolled. This process stabilizes the healthy oils in the oats, so they stay fresh longer, and helps the oats cook faster, by creating a greater surface area. The nutrition of instant oats stays the same as the whole oats even after processing. Instant rolled oats hold the leading position in the market as they are extensively used for commercially available oat-based ready-to-eat breakfast cereals and ready-to-cook porridge. These products are also well branded and marketed in a sophisticated manner, particularly appealing to the health-conscious consumer base.
Supermarkets/Hypermarkets Segment to Dominate the Market; Online Retail Segment to Witness Fastest Growth
Mass merchandisers, i.e., supermarkets/hypermarkets, are leading and holding the largest market share in terms of distribution channels owing to their proximity, accessibility, and affordability. There is a dedicated retail shelf for oat-based breakfast cereals, snacks, and oat flour coupled with the attractive discounts offered to entice the consumers and increase the adaptation rates among them. The demand has tremendously increased in the past few years. Oat-based products have successfully moved to the convenient space and consumers are finding them easy to store, prepare, and eat. The online retail segment, with its robust convenience, enhanced shopping experience, and increased digital literacy rates, is expected to exhibit a stronger growth rate during the forecast period.
North America Oatmeal Market Size, 2019 (USD Billion)
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Rising Popularity of Instant Healthy Breakfast Cereals to Support Development in North America
The market in North America is driven by the rising popularity of instant healthy breakfast cereals. Oat-based breakfast products are gaining importance in a health-conscious marketplace as functional foods have begun to populate the cereal aisle. The hectic lifestyles of North American consumers have resulted in the increased demand for oat-based on-the-go snacks and meals. North America, with the health-conscious consumer base, is expected to utilize more oat-based breakfast options that provide nutritional benefits. In recent years, the consumption of organic foods has gained importance. Organic oat-based products are already in demand in countries such as the U.S. and Canada and are expected to witness promising growth in the region in foreseeable years. Oat milk is witnessing promising demand as a dairy-alternative.
Asia Pacific is witnessing the fastest growth owing to its increasing awareness among the consumers. The consumers are preferring the healthy snacks over conventional and oatmeal is meeting their demand by offering nutritional benefits in their daily diet.
Highly Dynamic and Moderately Consolidated Market Conditions in Global MarketSpace
The global market is moderately consolidated with the significant presence of key oats giants. These players are actively focused on new product developments to strengthen their position in the market further and meet the growing demands for instant healthy meals. For instance, in September 2020, Happi Foodi launched a new line of oatmeal products in the U.S. to expand its existing options of meals. The competitive intensity of the market is expected to enhance during the foreseeable years with the emergence of private label brands and innovative product portfolios of key players.
KEY INDUSTRY DEVELOPMENTS:
An Infographic Representation of Oatmeal Market
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The market research report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of 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 industry trends.
Value (USD Billion)
By Form, Type, Distribution Channel, and Geography
By Distribution Channel
Fortune Business Insights says that the global market size was USD 2.40 billion in 2019 and is projected to reach USD 3.53 billion by 2027.
Growing at a CAGR of 4.6%, the market will exhibit steady growth in the forecast period (2020-2027).
Quick/Instant rolled oats segment is expected to be the leading segment based on the product type in the market during the forecast period.
The rising popularity of healthy and nutritious breakfast is mainly driving the market.
The Quaker Oats Company (PepsiCo, Inc.), Post Holdings, Inc., General Mills, Inc., Bobs Red Mill Natural Foods, Inc., Natures Path Foods, Inc. are a few of the key players in the market.
North America dominated the market share in 2019.
The organic variant is leading under the form segment in the global market.
The robust popularity of healthy breakfast cereals, the rising popularity of organic oats, and strong demand for ready-to-eat and on-the-go meals are the key market trends.
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