Oats Market By Product Type (Whole Oats, Steel-Cut Oats, Rolled Oats, Instant Oats, Oat Bran, Oat Flour), By Flavor (Natural, Fruit Flavor, Chocolate Flavor, Savory Flavor, Other), By Application (Food & Beverage, Animal Feed, Cosmetics & Personal Care, Pharmaceuticals, Nutraceuticals, Other), By Distribution Channel (Online Platforms, Offline Stores {Supermarkets, Hypermarkets, Convenience Stores, Specialty Stores}), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Oats market accounted for USD 5.8 Billion in 2024 and is expected to reach USD 11.84 Billion by 2035, growing at a CAGR of around 6.7% between 2025 and 2035. Oats (Avena sativa) is a whole-grain cereal known to be packed with important nutrients and are especially rich in soluble fiber, beta-glucan which has an impact on reducing cholesterol and enhancing heart health. They also contain proteins, vitamins B1, B5, and folates plus iron, magnesium, and zinc. Oats are low in the glycemic index and thus could be preferred as good food for individuals with high sugar levels.

Traditionally known in the form of oatmeal or as an ingredient for granola, oats are slowly being added to other products including breakfast cereals, snacks, bakery goods, and beverages including oat milk and oat-based drinks. They are also used in the production of gluten products and hence they are very popular in the market, especially for people with gluten intolerance​. Oats not only supply nutrients, but they are also extremely flexible in application in kitchen areas. It can be incorporated in sauces and soups, blended into smoothies and energy bars, and even in beauty products because of the calming effect they have.

Report Scope:

Market Dynamics

Increasing health awareness drives global demand for fiber-rich, nutrient-dense oat products.

The global move towards better health and nutrition is driving the increase in demand and uptake of oat products high in dietary fiber and nutrients. The customer has become conscious of the role that dietary fiber plays in lowering cholesterol levels, promoting digestion as well as preventing diseases. Oats that are packed with beta-glucan fit this trend and are consumed for their heart-healthy and weight-control properties.

In addition, increased celiac disease, lactose intolerance, and plant-based food choices have increased the consumption of gluten-free oats and oat products such as oat milk, oat yogurt, and oat snacks. Another factor is the fact that ready-to-go oat products like granola bars, and instant oats among others are easy to consume and therefore fit the modern society lifestyle. Also, the clean-label concept is stimulating producers to develop new oat-based organic and non-GMO products to extend the market’s growth. Currently, this market is on the growth of regions as consumer preferences are shifting towards the consumption of healthy and sustainable foods.

The expansion of plant-based diets fuels the demand for oat milk and alternatives

The growth in plant-based diets is way behind the market adoption of oat milk and such like products. When people began to look for dairy products, due to health problems, ecological concerns, or moral conviction, oat milk became the beverage of choice because of such qualities as thickness, taste, and nutritive value. Organic, high in beta-glucan which is known for its positive effect on heart health, oat milk has been appealing to health-oriented customers, moreover, making oat milk appeals to people who are conscious about the environment and the role of food production in it is more efficient in terms of its use of resources such as water and land in comparison with almond or soy milk.

Non-dairy products such as oat-based creamers, oat-based yogurts, and frozen dairy products also have a growing market as companies develop new products to meet consumers’ changing palates. Due to the diversity of oat-based products, these can be used in a range of applications starting from drinking coffee up to baking and beyond which introduces greater utility to these products. Oat milk is experiencing stagnation in growth as more brands opt for novelty products such as Flavor and fortified products which are future-oriented pointing to the growth of plant-based diets.

Competition from alternative grains and seeds reduces oats' market share.

Global market share in oats is gradually being challenged by the availability of other grains and seeds. Quinoa, chia, millet, and flaxseed products are on the increase because of the supposedly enhanced nutritional values as compared to traditional grains such as maize, sorghum, and millet; grains with higher protein content, omega-3 fats, and broader vitamin/mineral profiles. These possibilities are also interesting for customers who want to diversify their plant-based meals or are followed by some nutrition plans, for example, low-carb or paleo diets.

Besides, via these trendy grains, manufacturers are making novel use of them to compete with oats in consumption and categories such as breakfast cereals, snack bars, and plant-based beverages. Even though oats are still bought for these characteristics, namely, low cost, appliance, and possible health benefits, the appearance of these substitutes has added certain new factors to the picture, thereby forcing oat producers to pay attention to the issue of differentiation and product enhancement.

Innovation in oat-based snacks, beverages, and convenience foods drives market expansion

An increase in oat-based snacks and convenience products, oat beverages, and oat-derived convenience foods and its continued innovation is essential to the market growth. With an increasing trend in the demand for healthier, convenient, easy functional foods, oat-based products are being reinvented to appeal to consumers’ changing palates. Products made from oats, including snacks like bar-baked, oat cookies, and protein bars, are gaining the market as they help to support the digestive system and help to reduce cholesterol levels in the heart.

Among hot trends in the beverage industry, oat milk and oat-based smoothies have emerged as vegan and environmentally friendly products. At the same time, the upward trend in raw oats continues to be supported by rising demand for oat-based convenient food including ready-to-eat oatmeal, ready-to-drink oats, and frozen oats desserts. Not only do such innovations satisfy the consumer demand for convenient and fast products, but they also respond to tendencies such as clean labeling, plant-based diets, and sustainability, which contribute to the oats market development.

Adoption of clean-label trends boosts demand for organic and gluten-free oats

The increasing uptake of clean-label trends is also heavily inspiring the consumption of organic and gluten-free oats. At the same time, customer demand for more natural and clean-label foods has grown; that is, foods that lack artificial ingredients, preservatives, and genetically modified ingredients. ‘Purity’ and ‘sustainability’ are applicable here: organic oats, grown without synthetic pesticides or fertilizers, will attract customers with a healthy consciousness.

Also, an increase in gluten intolerance and celiac disease coupled with an increase in consumer awareness is the driver to gluten-free oats as a healthier food choice than other grains. In this respect, this incline towards clean-label products will propel manufacturers into providing organic gluten-free oats since these fit the growing marketplace trend of clean-label healthy natural products. Health improvement, sustainability, and label transparency are some of the factors that continue to push organic and gluten-free oats into the market.

Industry Experts Opinion

“People love the idea of Oatzempic because it seems like an easy way to lose weight without much effort, just sipping on a homemade concoction each morning. Losing weight isn’t just about one magic drink – it’s about eating right, being active, and knowing how your body works.”

• Charu Dua, Chief Clinical Nutritionist, Amrita Hospital, Faridabad, India.

“Oats combined with nuts and seeds create a filling meal due to their high fiber, protein, and healthy fat content.”

• Shruti Bhardwaj, Senior Clinical Dietician, Narayana Multispecialty Hospital, Ahmedabad, India.

Segment Analysis

Based on the Product Type, the Oat Market can be divided into categories, namely Whole Oats, Steel-Cut Oats, Rolled Oats, Instant Oats, Oat Bran, and Oat Flour. The whole Oats provide oat grains in their least processed form as they are not rolled, crushed, or cut while Steel-Cut oats are cut into thick pieces to give a chewy texture. Rolled oats these oats are steamed and then flattened- they can be used in different dishes. Instant Oats are quick oats because they have been pre-cooked, which will suit consumers with a busy lifestyle. Oat Bran is the outer layer of oat grain containing fiber and is added to products that emphasize their nutritious value. Oat flour is finely milled and is employed in gluten-free processes making it a great ingredient in baking. These products are therefore in high demand mainly because of the increase in vegan diets, people looking to get healthier, and those who are intolerant of gluten. Also, there is a trend toward convenience and functional foods keeping the oats market in a continuous state of change.

Based on Flavor, the Oat Market is classified into Natural, Fruit Flavor, Chocolate Flavor, Savory Flavor, and other categories mirroring changing consumer trends. Natural oats are on the rise because of their health benefits and spoonability as well as the need for less processed and less sugar-added products. Such oat products as fruit-flavored oats are steadily winning consumers’ trust because of their potential health benefits. The cocoa elements also locate the product towards the younger and indulgent audience whilst benefiting from the increasing inclination of customers for premium breakfast foods.

Enhancing the concept of oats based on regional culinary preferences and the rising novelty of savory breakfast, savvy-flavored oats are the current trends across the global market. Flavored oats can be further attributed to the increase in the popularity of social media platforms and influences which have been marketing and advertising creative oat recipes more often. Furthermore, to have a variety of products to meet consumers’ needs and preferences, oat manufacturers are in synergy with flavor companies.

Regional Analysis

North America is considered one of the largest market regions in the oats market, more largely with concerns to revenue share. This dominance could be attributed to a rise in consumer knowledge of the cardiopulmonary value of oat products due to their high fiber content. Consumption of oats other than oat flakes in the form of breakfast cereals, snacks, and oat drinks has also increased, especially in the United States. The current good farming practices and ecosystems of the region, availability of input to farmers, and good supply systems make oat production efficient and constant.

In addition, some megatrends including the desire for organic and clean labels, and a shift towards healthier and sustainable diets are the high-growth opportunities in North America. The increasing categories of premium and gluten-free oat products are also instrumental in spearheading the market growth in the region. Such trends are backed by positive regulatory bearings that are carried out to encourage the right eating habits.

Asia-Pacific accounts for the fastest-growing oats market because of the growing health consciousness and improvement in the intake of plant-based foods. The good and rapidly changing demographic of the people from just being rural to metro and from being bad to good have put food producers and marketers in a position where they must meet the demands of nutritious and convenient breakfast foods. Oat products such as oat drinks and oat crackers are on the rise in the market pulled by the change of palate and shift to western cuisines. Using locally relevant product variety such as oat snacks and the growth of electronic commerce platforms has helped increase the market for oat products thus growing at a faster rate within the region. This situation indicates regional prospects for long-term market growth through higher investment by international players in domestic production capacities.

Competitive Landscape

The overall structure of the oats market has many big players who are oriented on innovations, product differentiation, and mergers that help them consolidate their positions in the market. However, the leaders have diversified product portfolios, comprising oatmeal, oat-based beverages, and convenience snacks including Quaker Oats Company of PepsiCo, Kellogg Company, and Nestlé SA. Marico Limited has targeted the consumers’ need for organic and gluten-free oat products by introducing new products to its portfolio to meet the emerging niche markets need of the global consumers, such as Gluten-free and Organic oat products by General Mills.

Food manufacturers like Avena Foods and Grain Millers supply oats producers catering for the clean label and organic markets. B&G Foods, Inc., and Richardson International are making efforts to increase their distribution and carry out marketing strategies that would increase the company’s brand awareness. Furthermore, joint ventures, mergers, and investments in plant-based products – such as oat milk, are emerging as new niches, as it is a way for players to gain a greater market share of this active segment.

Oats Market, Company Shares Analysis, 2024

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Recent Developments:

• In November 2024, MOMA Foods, the oat drink and cereals brand now owned by A.G. Barr, unveiled a new look and 10 more SKUs. Based on consumer insight, MOMA has been given clearer brand positioning aimed at helping its products stand out in the category and make it easier for shoppers to make more informed purchases. Shopper research conducted by the brand highlighted ‘category confusion’ with multiple products appearing to meet similar needs.
• In October 2024, Saffola Oats, India’s No. 1 oats brand announced its latest campaign with new TVCs that showcase the versatility and deliciousness of oats beyond traditional porridge. The ads, centered around the concept that oats are healthy but often considered boring and limited to porridge, challenge this perception by highlighting how its soft grains can elevate the taste of everyday dishes, making them 'super-duper tasty'.

Report Coverage:

By Product Type

• Whole Oats
• Steel-Cut Oats
• Rolled Oats
• Instant Oats
• Oat Bran
• Oat Flour

By Flavor

• Natural
• Fruit Flavor
• Chocolate Flavor
• Savory Flavor
• Other

By Application:

• Food & Beverage
• Animal Feed
• Cosmetics & Personal Care
• Pharmaceuticals
• Nutraceuticals
• Other

By Distribution Channel

• Online Platforms
• Offline Stores
  • Supermarkets
  • Hypermarkets
  • Convenience Stores
  • Specialty Stores

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• Quaker Oats Company
• Nestlé SA
• General Mills
• Marico Limited
• B&G Foods, Inc.
• Richardson International
• Morning Foods
• Grain Millers
• Avena Foods
• Blue Lake Milling
• Bob's Red Mill Natural Foods
• Gluten-Free Prairie
• Weetabix Limited
• Hain Celestial Group
• Attune Foods
• Nature's Path Foods
• Clif Bar & Company

Frequently Asked Questions (FAQs)