Global Oats Market Outlook, 2030

The oats industry has witnessed significant growth and transformation over recent years, driven by rising consumer awareness of health and nutrition, evolving dietary preferences, and an increasing demand for natural and functional foods. Oats, known scientifically as Avena sativa, have long been valued for their nutritional benefits, including high fiber content, rich antioxidants, and essential vitamins and minerals. As consumers worldwide become more health-conscious and seek out wholesome food options, oats have become a staple not only in traditional breakfast cereals but also as a versatile ingredient in snacks, bakery products, beverages, and even cosmetic formulations. The global oats industry spans the entire value chain, from agricultural production to processing and value-added product development, involving farmers, processors, manufacturers, and retailers. This interconnected ecosystem is influenced by factors such as climate conditions, technological advancements in crop cultivation and processing, and shifting consumer demands for clean-label, organic, and gluten-free products. One of the key drivers fueling the oats market is the increasing prevalence of lifestyle-related diseases such as obesity, diabetes, and cardiovascular conditions. Oats, being a rich source of beta-glucan—a type of soluble fiber known to reduce cholesterol and regulate blood sugar levels—have gained significant attention from nutritionists and healthcare professionals. This has resulted in a surge in demand for oat-based products, particularly among health-conscious millennials and aging populations seeking preventive dietary solutions. Additionally, the growing popularity of plant-based diets and veganism has further propelled the use of oats as a dairy alternative, especially in the form of oat milk, which has become one of the fastest-growing segments in the plant-based beverage market. Oat milk’s creamy texture, nutritional profile, and environmentally friendly production process make it an attractive substitute for traditional dairy, encouraging manufacturers to expand oat-based offerings beyond breakfast cereals and snack bars.

According to the research report “Global Oats Market Outlook, 2030” published by Bonafide Research, the global Oats market is projected to reach market size of USD 9.73 Billion by 2030 increasing from USD 7.14 Billion in 2024, growing with 5.41% CAGR by 2025-30. In terms of trends, the oats industry is witnessing rapid innovation and diversification. Manufacturers are developing oat-based products catering to convenience and on-the-go consumption, such as instant oats, oat snacks, granola bars, and ready-to-drink beverages. The incorporation of oats in bakery products like bread, cookies, and muffins is increasing, leveraging oats’ functional benefits and consumer appeal. Organic and non-GMO oat products are gaining traction, reflecting the broader trend toward clean-label and ethically sourced foods. The expansion of oat farming into non-traditional regions through advancements in agronomy and climate-adaptive varieties is opening new avenues for production and market growth. Sustainability is becoming a central focus, with industry players adopting environmentally friendly farming practices, reducing water usage, and minimizing carbon footprints associated with processing and packaging. Additionally, the oats industry is exploring collaborations with the pharmaceutical and cosmetic sectors, as oats’ anti-inflammatory and soothing properties lend themselves well to skincare and therapeutic products. Geographically, North America and Europe remain prominent markets for oats, driven by established health food trends, high consumer purchasing power, and extensive product innovation. However, the Asia-Pacific region is emerging as a high-growth market due to rising disposable incomes, urbanization, and increasing health awareness. Countries like China and India are witnessing a surge in oat consumption as consumers adopt Western dietary habits and demand healthier alternatives to traditional staples.

Market Drivers

• Rising Health and Wellness Awareness: Consumers worldwide are increasingly prioritizing healthy eating habits, focusing on foods rich in fiber, vitamins, and antioxidants. Oats, with their well-documented benefits such as cholesterol reduction, improved digestion, and blood sugar regulation, are gaining prominence as a superfood. This health-centric consumer behavior significantly drives demand for oats and oat-based products across diverse markets.
• Growth of Plant-Based and Vegan Diets: The surge in plant-based lifestyles has elevated oats as a preferred ingredient, especially in dairy alternatives like oat milk. Oat milk’s creamy texture, sustainability credentials, and nutritional profile make it a popular choice among vegans and flexitarians, expanding the oats market beyond traditional breakfast cereals into beverages and snacks.

Market Challenges

• Climate Sensitivity and Agricultural Constraints: Oats require specific growing conditions—cool and moist climates—which limits large-scale cultivation to certain regions. Variability in weather patterns, increasing droughts, and pest infestations pose significant risks to crop yield and quality, affecting raw material availability and market stability.
• Supply Chain Volatility and Price Fluctuations: The oats industry faces challenges related to supply chain disruptions caused by geopolitical issues, transportation delays, and fluctuating raw material prices. These factors can impact production costs and product pricing, potentially limiting market expansion and affecting manufacturer margins.

Market Trends

• Product Innovation and Diversification: The industry is witnessing rapid development of convenient, ready-to-eat oat products such as instant oats, oat-based snacks, and oat-enriched bakery items. There is also increasing incorporation of oats into plant-based dairy products, gluten-free foods, and functional nutrition categories, catering to evolving consumer lifestyles.
• Sustainability and Ethical Sourcing: With growing environmental consciousness, oats producers and manufacturers are adopting sustainable farming practices, reducing water and energy consumption, and focusing on eco-friendly packaging. Organic and non-GMO oat products are also gaining traction, reflecting consumer demand for transparency and sustainability in food production.

The main reason rolled oats are leading in the oats market is their versatile functionality combined with ease of preparation, making them highly popular among consumers and manufacturers alike.

Rolled oats have become the preferred choice in the oats market due to their unique processing method, which involves steaming and flattening whole oat groats. This process retains much of the grain’s nutritional value while reducing cooking time significantly compared to steel-cut or whole oat groats. Their quick-cooking nature appeals to busy consumers seeking convenient, nutritious breakfast options without compromising health benefits. Rolled oats also possess a neutral flavor and soft texture when cooked, which makes them incredibly versatile in culinary applications. They can be used in traditional oatmeal, granola bars, baked goods, smoothies, and even savory dishes, making them an all-purpose ingredient favored by food manufacturers and home cooks. Furthermore, rolled oats have excellent shelf stability, which simplifies storage and transportation, reducing waste and costs in the supply chain. Their widespread acceptance in health-conscious communities, driven by their high fiber content, ability to promote satiety, and heart-healthy properties, also contributes to their market dominance. Additionally, the growing trend of plant-based and gluten-free diets has propelled rolled oats into the spotlight as a natural, allergen-friendly grain.

The main reason animal feed is leading in the oats market is due to oats’ high nutritional value and digestibility, making them an ideal and cost-effective feed ingredient for livestock.

Oats have long been a preferred ingredient in animal feed formulations because they provide a rich source of energy, fiber, and essential nutrients that promote healthy growth and productivity in livestock. Their high fiber content improves digestion and gut health in animals, while their balanced protein and carbohydrate levels support muscle development and sustained energy release. Compared to other grains, oats are less likely to cause digestive disturbances in animals, which enhances feed efficiency and animal welfare. Additionally, oats are often more affordable and readily available, especially in regions with suitable growing conditions, making them a cost-effective choice for farmers and feed producers. The versatility of oats allows them to be used in feed for a variety of animals, including cattle, horses, sheep, and poultry, further expanding their market reach. As the global demand for meat, dairy, and animal-derived products continues to rise, the need for high-quality, nutritious feed ingredients like oats is also increasing. Furthermore, the growing emphasis on sustainable and natural farming practices encourages the use of wholesome grains like oats in feed formulations, aligning with consumer preferences for ethically produced animal products.

The main reason B2B is leading in the oats market is because bulk procurement by manufacturers, food processors, and ingredient suppliers drives large-scale demand and distribution efficiency.

In the oats industry, the B2B segment dominates largely due to the integral role oats play as a raw material and ingredient in numerous downstream food and beverage products. Large food manufacturers, cereal producers, bakery companies, and plant-based beverage producers source oats in bulk directly from suppliers, enabling streamlined procurement and cost efficiencies that are not achievable through smaller retail transactions. This bulk buying supports large-scale production runs, consistent supply chains, and enables manufacturers to innovate by incorporating oats into a wide variety of products like instant oatmeal, granola bars, snacks, bakery items, and oat-based dairy alternatives such as oat milk. Additionally, the increasing popularity of oats in functional foods, health supplements, and pet food further amplifies demand from commercial buyers. These B2B customers often enter into long-term contracts, securing steady volumes of oats and facilitating investment in sustainable sourcing and processing technologies. The institutional buying model also reduces the complexity and cost of distribution, helping suppliers optimize logistics and inventory management. Moreover, the growing global reach of food manufacturers and ingredient suppliers ensures that oats sourced through B2B channels are distributed efficiently across multiple regions and market segments.

The main reason Europe is leading in the oats market is due to its strong consumer preference for healthy, organic, and functional foods combined with well-established agricultural practices and supportive regulatory frameworks.

Europe has emerged as a dominant region in the oats market largely because of its high health consciousness and growing demand for nutritious food products among consumers. European consumers are increasingly seeking out foods that promote wellness, such as oats, which are rich in dietary fiber, beta-glucan, and essential nutrients known to support heart health and digestion. This rising health awareness is complemented by a significant trend toward organic and clean-label products, where oats play a crucial role due to their natural and minimally processed characteristics. Furthermore, Europe benefits from a long history of oat cultivation, with countries like Finland, Sweden, and the United Kingdom boasting optimal climatic conditions and advanced farming techniques that yield high-quality oats. The region’s agricultural infrastructure supports sustainable and efficient production, aligning well with the environmental values held by European consumers. Additionally, stringent food safety regulations and quality standards in Europe ensure the integrity and reliability of oat products, which builds consumer trust and drives market growth. The presence of numerous established food manufacturers and innovators who actively incorporate oats into diverse product lines, from breakfast cereals to plant-based dairy alternatives, further strengthens Europe’s leadership. Moreover, supportive government policies promoting health, nutrition, and sustainable agriculture encourage both production and consumption of oats.

• In November 2023, Quaker partnered with NFL legend Eli Manning and chef Carla Hall to promote food security for children through the Quaker Pregrain Tour and a digital recipe playbook. Quaker, part of PepsiCo, supports youth health via GENYOUth.
• In June 2023, SunOpta and Seven Sundays launched Oat Protein Cereal made from upcycled oat protein powder, a byproduct of oat milk production. The gluten-free, Non-GMO cereal comes in four flavors and aims to reduce food waste. It’s available nationwide and online.
• In April 2023, Tirlán expanded its oat portfolio with Organic Oat-Standing Functional Oat Flour made from organic Irish oats without synthetic chemicals. The flour offers consistent viscosity, clean labeling, whole grain benefits, and enhances the taste and texture of plant-based foods, especially dairy alternatives.

Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Oats Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By product type
• Steel-Cut Oats
• Whole Oats
• Rolled Oats
• Instant Oats
• others

By applications
• Food & Beverages
• Animal Feed
• Personal Care and Cosmetics
• others

By Distribution Channels
• B2B
• B2C

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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