Oat-based Ingredients

Global Oat-based Ingredients Market to Reach US$187.3 Million by 2030

The global market for Oat-based Ingredients estimated at US$126.9 Million in the year 2024, is expected to reach US$187.3 Million by 2030, growing at a CAGR of 6.7% over the analysis period 2024-2030. Online Distribution Channel, one of the segments analyzed in the report, is expected to record a 5.5% CAGR and reach US$108.7 Million by the end of the analysis period. Growth in the Offline Distribution Channel segment is estimated at 8.6% CAGR over the analysis period.

The U.S. Market is Estimated at US$34.6 Million While China is Forecast to Grow at 10.3% CAGR

The Oat-based Ingredients market in the U.S. is estimated at US$34.6 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$38.4 Million by the year 2030 trailing a CAGR of 10.3% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.4% and 6.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.4% CAGR.

Global Oat-Based Ingredients Market – Key Trends & Drivers Summarized

Why Are Oats Becoming the Cornerstone of Plant-Based Nutrition and Clean-Label Innovation?

Oat-based ingredients are emerging as highly versatile, nutrient-rich components in the global food and beverage industry, driven by the convergence of plant-based dietary trends, sustainability preferences, and functional nutrition. From oat flour, bran, and fiber to oat milk concentrates and hydrolyzed oat proteins, ingredient suppliers are expanding their product portfolios to serve a wide range of applications including dairy alternatives, bakery goods, infant nutrition, personal care, and clinical foods. Oats’ naturally high beta-glucan content, low allergenicity, and mild sensory profile make them especially attractive for clean-label product developers and health-conscious consumers.

The surging popularity of oat milk has been a major catalyst, redefining consumer expectations around plant-based beverages. Unlike almond or soy, oat-based beverages are considered more sustainable, allergen-friendly, and neutral in taste, making them suitable for barista blends, ready-to-drink smoothies, and dairy-free desserts. Parallel innovations in fermented oat bases, oat yogurts, and oat-derived creamers are diversifying the functional food segment. In bakery and cereal applications, oats offer functional viscosity, moisture retention, and fiber enrichment without compromising on taste or texture, enabling seamless incorporation into both traditional and gluten-free formulations.

What Is Driving Food and Beauty Brands Toward Oat-Derived Functional Ingredients?

Functional food and personal care manufacturers are increasingly turning to oats as a source of soluble fiber, antioxidants, and plant-based protein. Beta-glucan, a well-known cholesterol-lowering soluble fiber found in oats, is gaining renewed interest for its prebiotic potential and immune-modulatory effects. In sports nutrition and meal replacement products, oat-derived protein concentrates and peptides are being positioned as clean, sustainable alternatives to soy and whey. Oat fiber is also used for satiety enhancement, sugar replacement, and texture modification in high-fiber or reduced-calorie foods.

In skincare and personal care, colloidal oatmeal and oat extracts are being integrated into moisturizers, cleansers, and anti-inflammatory treatments due to their proven efficacy in soothing dermatitis, eczema, and sensitive skin. The demand for hypoallergenic and plant-based cosmeceuticals is boosting the use of oats in baby care and dermo-cosmetic products. Clean beauty brands are formulating with oat milk and oat lipids as natural emulsifiers, humectants, and antioxidants. As personal wellness continues to blur the lines between diet and beauty, oats are finding expanded relevance as a “food as medicine” ingredient across wellness ecosystems.

How Are Processing Innovations and Crop Economics Shaping Market Expansion?

Technological advancements in enzymatic hydrolysis, fractionation, and fermentation are enabling the development of high-purity oat ingredients with enhanced functional and nutritional properties. Enzymatically treated oat bases now deliver smoother mouthfeel and extended shelf life in dairy alternatives, while fermented oats are being explored for gut health and flavor development in beverages and spoonable yogurts. Dry and wet milling techniques are also being refined to preserve the integrity of oat proteins, dietary fiber, and phytonutrients during ingredient extraction and formulation.

On the supply side, oats’ resilience as a rotational crop and their lower water and carbon footprint compared to almonds or rice are strengthening their appeal in sustainable sourcing programs. The growth of organic and non-GMO oat farming in regions like North America, Northern Europe, and Australia is ensuring a steady supply chain for clean-label manufacturers. Companies are investing in vertically integrated operations and identity-preserved oat sourcing to meet traceability and sustainability mandates under frameworks like USDA Organic, EU Organic, and Fair Trade certifications.

What’s Fueling the Rapid Growth of the Oat-Based Ingredients Market?

The growth in the oat-based ingredients market is driven by several interconnected trends linked to plant-based dietary shifts, digestive wellness, and sustainable food system transformation. A major growth driver is the booming demand for dairy alternatives that offer creamy texture, allergen safety, and a neutral flavor profile—areas where oats outperform most plant-based competitors. With oat milk sales outpacing almond and soy in several markets, ingredient demand is rising for oat concentrates, starches, and flavor-neutral proteins tailored for beverage and dessert formulations.

In parallel, the global rise in functional snacking, personalized nutrition, and gut health awareness is boosting the use of oat-based fibers and prebiotics in snack bars, cereals, and nutrition shakes. Regulatory approvals for heart health and cholesterol claims, especially in the U.S., EU, and Asia-Pacific, are helping brands position oat ingredients as scientifically validated wellness enhancers. In emerging markets, oats are gaining popularity in infant nutrition and senior health products, supported by cultural acceptance and nutritional familiarity.

With innovations in ingredient processing, increasing adoption in both food and beauty categories, and robust consumer trust in oats’ health and sustainability profile, the oat-based ingredients market is primed for accelerated global growth. Manufacturers across sectors are expanding their oat portfolios to meet evolving consumer expectations around clean-label, multifunctional, and ethically sourced ingredients.

SCOPE OF STUDY:

The report analyzes the Oat-based Ingredients market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Distribution Channel (Online, Offline); Application (Breakfast Cereals, Bakery & Confectionery, Cosmetics, Animal Feed, Pharmaceuticals, Other Applications)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 32 Featured) -

• Abbott Laboratories
• Avena Foods Limited
• Blue Lake Milling
• Bobo`s Oat Bars
• Britannia Industries
• Califia Farms
• Conagra Brands, Inc.
• General Mills Inc.
• Grain Millers, Inc.
• Hain Celestial Group Inc.
• Kellogg Company
• Mondelez International
• Morning Foods Ltd.
• Nairn`s Oatcakes Ltd.
• Nature`s Path Foods
• Oatly AB
• Pamela`s Products
• PepsiCo (Quaker Oats Company)
• Richardson International Limited
• WK Kellogg Co.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

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