Oat-Based Ingredient Trends and Forecast
The future of the global oat-based ingredient market looks promising with opportunities in the breakfast cereal, bakery and confectionery, cosmetic, animal feed, and pharmaceutical markets. The global oat-based ingredient market is expected to reach an estimated $0.2 billion by 2030 with a CAGR of 6.7% from 2024 to 2030. The major drivers for this market are surging demand for oat-based ingredients and qualities like health benefits, including their low calorie content.
• Lucintel forecasts that, within the distribution channel category, the offline will remain the larger segment over the forecast period due to the proliferation of hypermarkets and supermarkets.
• Within the application category, the breakfast cereal is expected to witness the highest growth due to their high soluble fiber content.
• In terms of region, In terms of region, North America will remain the largest region over the forecast period due to an increase in demand for nutritious foods.
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Emerging Trends in the Oat-Based Ingredient Market
Significant transformations are occurring in the oat-based ingredient market, driven by emerging trends reflecting changes in consumer preferences, new technologies, and increased awareness of sustainability. The growing demand for healthier, plant-based food options is reshaping the way oats are produced, marketed, and consumed. Five of the most influential trends shaping the oat-based ingredient market and their implications for industry stakeholders are presented below:
• Rise of Plant-Based Alternatives: Plant-based diets are driving increased demand for oat-based products. Oats can be used to create dairy-free alternatives such as oat milk and yogurt to cater to lactose-free customer requirements. This trend will spur innovation in product development, diversifying oat-based alternatives for a wide range of diets.
• Health and Wellness: Health-conscious consumers are searching for products with functional ingredients. Oats are rich in nutrients, fiber, and known to support heart health. This trend calls for the nutritional enhancement of oat-based products with added vitamins, minerals, and probiotics to meet consumer demand for healthier options.
• Sustainability Initiatives: Sustainability is at the core of the oat-based ingredient market. As more consumers recognize the impact of their food choices on the environment, there is a growing demand for sustainably sourced and produced ingredients. Brands adopting and communicating regenerative agriculture practices and transparent sourcing are well-positioned to appeal to environmentally conscious consumers and build deeper relationships with them.
• Innovation in Processing Techniques: Advances in processing technologies are improving the quality and functionality of oat-based ingredients. Hydrothermal processing and enzymatic treatments enhance the texture, taste, and nutritional content of oats. These innovations help manufacturers develop a wide range of products that meet changing consumer expectations.
• Growing Demand for Convenient Foods: Convenience foods are increasingly popular among consumers seeking quick and easy meal solutions. Oat-based instant products, such as instant oats, snacks, and ready-to-eat meals, provide convenience without compromising nutrition. Manufacturers are responding to this shift by developing more oat-based convenient foods to align with busy lifestyles.
The emerging trends in the oat-based ingredient market—such as the rise of plant-based alternatives, health and wellness focus, sustainability initiatives, advancements in processing methods, and the demand for convenient foods—are reshaping the industry. These shifting patterns reflect a new pursuit of healthier and more sustainable food options, positioning oats as a key ingredient in the evolving food market.
Recent Developments in the Oat-Based Ingredient Market
Recent developments in the oat-based ingredient market highlight the dynamic nature of the sector, shaped by evolving consumer preferences and market demands. Growing interest in health, sustainability, and innovation has led to key developments in the oat-based ingredient market, as outlined below:
• Innovation of Oat Milk Products: Oat milk is one of the fastest-growing segments, with consumers seeking dairy alternatives. Major companies are launching oat milk products across various taste profiles and lifestyles. Oats have become a leading ingredient in the plant-based beverage market, appealing to both vegan and lactose-intolerant consumers.
• Novel Oat Snacks: The market for oat snacks has expanded with products like granola bars and oat cookies. Food manufacturers are creating healthy, on-the-go products that are both nutritious and convenient. Novel flavors and formulations are attracting a broad range of consumers, further expanding the scope of the oat-based ingredient market.
• Enhanced Nutritional Profiles: Manufacturers are finding new ways to improve the nutritional profiles of oat-based products. They are fortifying oats with vitamins, minerals, and functional ingredients such as protein to cater to health-conscious consumers. This enhances the appeal of oats as a functional ingredient in various applications.
• Growth in the Food Service Market: Oat-based ingredients are gaining popularity in the food service sector. Cafés and restaurants are increasingly offering oat-based milk for beverages and oat-based foods to meet the health goals of their customers. This expansion is boosting the presence of oat-based products in the food service market.
• Sustainable Sourcing Initiatives: There is a growing emphasis on sustainable sourcing for oat-based ingredients. Brands are turning to regenerative agriculture and responsible sourcing practices to meet the demands of consumers who prioritize environmentally friendly products. This not only benefits the environment but also enhances brand reputation and customer loyalty.
These developments—including the rise of oat milk products, innovative oat snacks, improved nutritional profiles, growth in the food service market, and sustainable sourcing—are significantly advancing the industry. As oats play an increasingly important role in fulfilling consumer demand for healthy, convenient, and sustainable food options, the future of the oat-based ingredient market looks promising.
Strategic Growth Opportunities for Oat-Based Ingredient Market
The oat-based ingredient market is poised for growth, offering a wide range of strategic opportunities across numerous applications. As consumers increasingly prioritize healthy, sustainable, and convenient food options, industry stakeholders have the chance to accelerate market expansion. This overview highlights five key growth opportunities:
• Development of Functional Foods: There is a growing demand for functional foods, which presents an opportunity for oat-based ingredients. Oats, known for supporting digestive and heart health, can be incorporated into functional products aimed at health-conscious consumers.
• Beverage Category: The beverage category, particularly plant-based beverages, offers significant growth potential for oat-based ingredients. The increasing demand for dairy alternatives is driving manufacturers to expand their portfolios with oat-based smoothies, protein shakes, and functional beverages.
• Incorporation into Baked Products: Oats are increasingly being added to baked products as a healthier alternative. Companies can produce oat bread, muffins, and pastries for health-conscious consumers seeking nutrition without sacrificing taste.
• Growth in Gluten-Free Products: There is rising demand for gluten-free products, and oats—when sourced and processed properly—are naturally gluten-free. This creates opportunities for manufacturers to offer gluten-free oat-based products to consumers with gluten sensitivities or celiac disease.
• Increasing Demand for Meal Replacements: With fast-paced lifestyles becoming the norm, there is growing demand for meal replacement products. Oat-based meal replacement bars and shakes provide convenient, nutritious options for busy individuals.
Strategic growth opportunities in the oat-based ingredient market include developing functional foods, expanding into the beverage market, incorporating oats into baked goods, growing the gluten-free product segment, and addressing the demand for meal replacements. Industry participants can leverage these opportunities to drive innovation and meet changing consumer needs, securing a strong future in the oat-based ingredient market.
Oat-Based Ingredient Market Driver and Challenges
The oat-based ingredient market is shaped by several drivers and challenges, ranging from technological advancements to economic factors and regulations. Understanding these factors helps stakeholders navigate the evolving market. This analysis highlights five key drivers and three major challenges:
Key Drivers:
• Increased Health Awareness: Growing awareness of health and wellness is driving demand for oat-based products. Consumers appreciate oats for their health benefits, such as supporting heart health and digestion, which is pushing manufacturers to innovate and expand their product offerings.
• Demand for Plant-Based Foods: The rising demand for plant-based foods is propelling the oat-based ingredient market. Consumers worldwide are replacing animal-based products with plant-based alternatives, and oats are a versatile and nutritious option, driving the creation of new oat-based dairy alternatives, snacks, and meals.
• Sustainability and Ethical Sourcing: Sustainability has become a key factor influencing consumer choices. As more brands commit to sustainable and ethical sourcing practices, the oat-based ingredient market is benefiting from this shift in consumer preferences.
• Technological Innovations: Advances in processing technologies are improving the quality and functionality of oat-based ingredients. These innovations allow manufacturers to introduce a wider range of products, supporting market growth.
• Regulatory Support for Health Claims: Favorable regulations supporting health claims for oats reassure consumers and encourage manufacturers to promote the healthy properties of their products. This regulatory environment is conducive to the growth of the oat-based ingredient market.
Key Challenges:
• Competition from Alternative Grains: Oats face competition from other grains like quinoa, rice, and barley, which some consumers perceive as healthier or trendier, potentially eroding market share for oat-based ingredients.
• Supply Chain Disruptions: Climate change and economic shifts can cause disruptions in the oat supply chain, reducing access to oats or driving up prices, which may affect manufacturers.
• Consumer Misconceptions about Oats: Some consumers mistakenly believe that oats contain gluten. Educating consumers about the benefits of oats is essential to overcoming this challenge and increasing market acceptance.
The oat-based ingredient market is driven by increasing health awareness, demand for plant-based foods, sustainable sourcing, technological innovations, and supportive regulations. However, challenges such as competition from alternative grains, supply chain disruptions, and consumer misconceptions must be addressed to capitalize on the marketÄX%$%Xs growth potential.
List of Oat-Based Ingredient Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies oat-based ingredient companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the oat-based ingredient companies profiled in this report include-
• KELLOGG Company
• Grain Millers
• General Mills
• Morning Foods
• Abbott
• Quaker Oats Company
• Blue Lake Milling
Oat-Based Ingredient by Segment
The study includes a forecast for the global oat-based ingredient by distribution channel, application, and region.
Oat-Based Ingredient Market by Distribution Channel [Analysis by Value from 2018 to 2030]:
• Online
• Offline
Oat-Based Ingredient Market by Application [Analysis by Value from 2018 to 2030]:
• Breakfast Cereals
• Bakery and Confectionery
• Cosmetics
• Animal Feed
• Pharmaceuticals
• Others
Oat-Based Ingredient Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Oat-Based Ingredient Market
The oat-based ingredient market has grown at an impressive rate over the past few years, primarily due to the increasing demand for healthier food and beverage options among consumers. Oats are nutritionally beneficial, being high in fiber and good for heart health, which has contributed to their popularity among health-conscious consumers. With the growing interest in plant-based and gluten-free diets, the demand for oat-based products is expected to rise. The marketÄX%$%Xs evolution can be observed in key countries, such as the United States, China, Germany, India, and Japan, through advancements in processing techniques, product innovation, and the expansion of oat applications across various food categories. The following overview highlights recent trends in each country, presenting a dynamic picture of the oat-based ingredient market.
• United States: In the United States, the oat-based ingredient market is expanding rapidly, especially in categories like breakfast foods and snacks. New products in development include oat-based milks and oat-based protein bars, catering to the rising demand for plant-based foods. Major food producers are investing in research to enhance the nutritional content of their oat-based products. Functional ingredients, such as proteins and probiotics, are playing a growing role. Sustainability is also becoming increasingly important, with companies ensuring their oats are sourced using regenerative agricultural practices. These innovations not only meet consumer demands but also align with U.S. environmental commitments, positioning the country as a key player in the oat-based ingredients market.
• China: In China, the oat-based ingredients market is growing due to increased health consciousness and demand for healthier alternatives. Recent innovations include ready-to-eat oat products and functional beverages containing oats. Companies are focusing on new processing techniques to make oat products creamier and tastier. Government initiatives promoting healthier food products are encouraging the consumption of oats, particularly as a staple food. The growing demand for western-style breakfasts, such as oatmeal and granola, is also diversifying the market. Oats are becoming a staple product within the Chinese food industry.
• Germany: Oats continue to dominate the European ingredient market, with Germany playing a leading role in promoting sustainability and health. The demand for organic oat products is rising rapidly, reflecting consumer preferences for clean-label ingredients. German consumers have a wide range of oat-based alternatives to choose from, including oat yogurt, ice cream, and vegan and lactose-free products. German companies are investing in innovative processing methods to enhance the nutritional value and functionality of oats, thereby expanding their product portfolios. Health claims further increase consumer interest in oats.
• India: Growing awareness of health and wellness is driving the oat-based ingredients market in India. Recent developments include instant oats and oat-based snack items designed to meet the fast-paced lifestyle of urban consumers. Indian food companies are increasingly incorporating oats into traditional food items and snacks. Local producers are focusing on sourcing high-quality oats and formulating products that cater to diverse consumer preferences. Government initiatives promoting healthy diets are also supporting the growth of oat consumption, with oats entering more Indian households.
• Japan: The oat ingredient market in Japan is primarily driven by health and wellness trends. Popular oat-based products include oat milk and cereal bars, which compare favorably with traditional Japanese quick and healthy food options. Traditional flavor profiles are also being explored to appeal to the Japanese market. There is a growing focus on the functional benefits of oats, particularly for digestive health and cholesterol management. Health-conscious Japanese consumers are increasingly choosing oat-based alternatives, positioning the country for long-term growth in the oat-based ingredient sector.
Features of the Global Oat-Based Ingredient Market
Market Size Estimates: Oat-based ingredient market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Oat-based ingredient market size by distribution channel, application, and region in terms of value ($B).
Regional Analysis: Oat-based ingredient market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different distribution channel, application, and regions for the oat-based ingredient market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the oat-based ingredient market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the oat-based ingredient market size?
Answer: The global oat-based ingredient market is expected to reach an estimated $0.2 billion by 2030.
Q2. What is the growth forecast for oat-based ingredient market?
Answer: The global oat-based ingredient market is expected to grow with a CAGR of 6.7% from 2024 to 2030.
Q3. What are the major drivers influencing the growth of the oat-based ingredient market?
Answer: The major drivers for this market are surging demand for oat-based ingredients and qualities like health benefits, including their low calorie content.
Q4. What are the major segments of the oat-based ingredient market?
Answer: The future of the oat-based ingredient market looks promising with opportunities in the breakfast cereal, bakery and confectionery, cosmetic, animal feed, and pharmaceutical markets.
Q5. Who are the key oat-based ingredient market companies?
Answer: Some of the key oat-based ingredient companies are as follows:
Q6. Which oat-based ingredient market segment will be the largest in the future?
Answer: Lucintel forecasts that, within the distribution channel category, the offline will remain the larger segment over the forecast period due to the proliferation of hypermarkets and supermarkets.
Q7. In the oat-based ingredient market, which region is expected to be the largest in the next 5 years?
Answer: In terms of region, North America will remain the largest region over the forecast period due to an increase in demand for nutritious foods.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the oat-based ingredient market by distribution channel (online and offline), application (breakfast cereals, bakery and confectionery, cosmetics, animal feed, pharmaceuticals, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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